The work of the Steve Biko Foundation has been made possible by grants from donor agencies. The most consistent of these have been the Ford Foundation, the WK Kellog Foundation and the Charles Stewart Mott Foundation. The foundation has also had relative success in raising funding from the local corporate sector, over the past two years. Although useful in getting the foundation through its formative stage, the shortcoming of both the donor and corporate funding to date lies in its provision for the short-term, thus limiting the ability of the foundation to develop and plan for the long-term sustainability of its programes.
In February 2005, the foundation entered its second decade of its programmatic existence. The foundation has developed and managed successful programmes at both the national and community level. It has become one of the leading brands in the non-profit sector in South Africa.
In launching the consolidation phase of its life cycle, the foundation now wishes to establish an endowment fund to ensure the future sustainability of its programmes. An endowment is a permanent asset invested to earn income. It may consist of money, securities, or property. The most common types of endowment funds (EFs) are unrestricted/general funds, which can be used at the discretion of the board; and restricted funds, which can be divided into Donor Advised or Designated/Field of Interest Funds.
The proposed endowment will offer the advantage of sustainable income over the long-term by providing the Steve Biko Foundation with independence, greater ownership of resources, increased capacity for long term planning, access to new resources.
The process of endowment building will involve a wide range of individuals and organisations.
The proposed endowments will be built through contributions from individuals, businesses, government agencies, other grant making organisations, official development agencies, and other non-profit organisations.
The investment policy of the endowment fund will create the required sustainability by ensuring the attainment of three primary objectives, namely:
1) Security of the principal investment
2) A market rate of return considered reasonable under generally accepted market principles, and
3) Sufficient liquidity to meet the foundation's needs.
If you or your institution would like to support the endowment initiatives please do not hesitate to contact us.
© Copyright 2006, Steve Biko Foundation
