Endowments are powerful tools for creating lasting impact—yet many donors do not know how they work. In this edition of Ask an Expert, Jessica Watts explains what an endowment is, how it supports nonprofits, and why it’s a smart way to give. At The Dallas Foundation, one-third of our collective funds are endowed. These gifts continue to provide meaningful support for the causes our donors care about most.

What Is an Endowment?

An endowment is a permanent fund that provides charitable support year after year. Its true power lies in long-term stability.

Each year, we invest the fund and distribute a percentage of its market value to make grants. Because the principal stays intact, the fund can support nonprofits forever. In this way, an endowment becomes a gift that never stops giving.

At The Dallas Foundation, we help donors support what matters most to them. You can give to an existing endowed fund—like our Community Impact Fund—or create your own. Both options provide reliable, ongoing support to nonprofits in Dallas and beyond.

What Types of Endowed Funds Should I Consider Establishing at The Dallas Foundation?

At The Dallas Foundation, we offer flexible endowment options based on your giving goals. Two of the most popular are Designated Funds and Field of Interest Funds:

• Designated Funds offer steady, annual support to a specific nonprofit. If you care deeply about one organization, this is a great option.
• Field of Interest Funds focus on broader issue areas like education, health, or the arts. This type of fund lets you support the causes you care about without choosing just one organization.

Each of these options helps ensure your gift has long-term impact.

How Do Endowments Help Nonprofit Organizations Fulfill Their Missions?

Nonprofits rely on consistent funding to run programs and support their missions. An endowment provides reliable income year after year.

Since the principal remains untouched, the fund keeps growing—and giving—for generations. Over time, that growth allows nonprofits to plan confidently, build capacity, and deliver stronger outcomes for the communities they serve.

Ready to Make a Lasting Impact?

Whether you’re looking to support a specific nonprofit or champion a broader cause, establishing an endowment is a meaningful way to create lasting impact.

If you’re interested in learning more about how to establish or contribute to an endowment at The Dallas Foundation, I’d love to connect. Contact me today and let’s work together to create a legacy that endures.