Synagogues often face financial challenges due to reliance on yearly fundraising cycles. Endowments offer a long-term solution by creating a consistent income stream while preserving the principal for future growth. Here's what you need to know:
Endowments are essential for securing a synagogue's mission for future generations. A single $50,000 endowment can generate $23,000 annually and grow over time, making it a powerful tool for lasting impact.
An endowment is essentially a pool of assets that are invested to generate steady income while preserving the principal amount. As the Tidewater Jewish Foundation explains:
"Endowment is the word often used to refer to a designated pool of assets that are invested... such that a modest portion (usually based on a percentage) of the assets are distributed each year to charitable causes, and the rest of the assets remain invested to grow in perpetuity."
In simpler terms, this means a board-approved Investment Policy Statement typically guides the fund's management. Each year, around 5% of the endowment's market value is distributed to support operations or specific programs. The rest remains invested, separate from operating funds, ensuring the principal grows over time. This setup not only secures financial resources but also provides a consistent revenue stream.
Endowments play a vital role in ensuring long-term financial stability for synagogues. They help shift reliance from short-term fixes to a more sustainable funding model. By providing a steady income, endowments act as a safety net during unexpected financial challenges or revenue shortfalls. Dirk Bird, Founder and Principal of Illumination Strategies, highlighted this during the COVID-19 pandemic:
"During the 2020 pandemic I was at JFNA, and I saw how Jewish communities that had established endowments and donor-advised funds were able to deploy resources quickly and handle the crisis in a strategic and effective way."
But the benefits extend far beyond crisis management. Endowments also support ongoing programs and help make membership more accessible. For example, Adas Israel Congregation in Washington, D.C., uses about 5% of its total endowment market value each year, which covers 12% of its operating budget. This income supports essential needs like building maintenance, clergy recruitment, and ensures no member is excluded due to financial hardship.
Additionally, endowments allow for the creation of named sub-funds tailored to specific causes, such as scholarships, youth education, or ritual objects. This flexibility not only lets donors focus on causes they care about most but also strengthens long-term community ties and engagement.
How Synagogues Build & Grow an Endowment: Step-by-Step Guide
Building financial stability for synagogues starts with forming a dedicated legacy team. This group focuses on aligning donor relationships with the synagogue's long-term goals. Successful synagogues often create small, focused teams that handle donor relationships, educate the community, and oversee governance.
The best teams combine financial expertise with synagogue leadership. Members might include CPAs, estate attorneys, insurance specialists, and leaders such as the board president. This mix ensures donors receive practical advice while keeping the endowment aligned with the synagogue’s mission.
Take Temple B’nai Shalom in East Brunswick, New Jersey, as an example. By December 2018, the synagogue had a dedicated team, including estate attorney Ed Smeltzer, who shared:
"I found the way to contribute my experience in estate planning and administration... to ensure my temple's continuing viability."
This structured approach can yield incredible results. For instance, the Jewish Federation in the Heart of New Jersey’s Life & Legacy program, which supported such teams across 16 organizations, secured over 400 legacy gift commitments worth $11 million in estimated future value in just two years. Additionally, participating organizations earned $200,000 in cash incentives for meeting milestones.
By establishing a strong leadership foundation, synagogues make legacy giving more accessible and inclusive.
Legacy giving isn’t just for the wealthy. Many legacy gifts use beneficiary designations rather than large cash donations, making it a practical option for nearly every congregant.
For example, donors can name the synagogue as a beneficiary on retirement accounts or designate life insurance policies. These options often provide tax advantages and greater flexibility. Estate attorney Ed Smeltzer explains:
"A better approach, when possible, is to name the charity as a beneficiary of an IRA, 401(k), or tax-deferred annuity. By doing so, the charity can claim such assets income tax-free and additional estate assets... can pass by the will to the family."
Keith Zimmerman, a Chartered Life Underwriter and member of Congregation B’nai Tikvah’s legacy team, highlights another option:
"Using life insurance is a great way to make a substantial legacy gift for a relatively modest outlay with a new policy or policies no longer needed for their original purpose."
For those who want to make an immediate impact, Qualified Charitable Distributions (QCDs) are an excellent option. Members aged 70½ or older can donate directly from their IRA, satisfying required minimum distributions while funding the endowment tax-free. In January 2026, donor David Apseloff used this method to create a $50,000 endowment for the Atlanta Jewish Federation’s JCamping initiative. He paired his initial gift with ongoing IRA contributions to provide scholarships for children indefinitely.
Synagogues can also offer a non-binding Letter of Intent, allowing donors to express their commitment without immediate legal or financial obligations.
By offering these accessible giving methods, synagogues set the stage for broader community education.
Once systems and giving options are in place, educating the community becomes essential to encourage participation. The key to success lies in making the process personal, not transactional.
Rather than overwhelming potential donors with financial terms, legacy teams can ask meaningful questions like: "How do you want to be remembered?" or "What causes have been important in your life that you’d like to support in your will?" Keith Zimmerman, who uses this approach at B’nai Tikvah, finds it consistently effective:
"I find that prospective donors appreciate the opportunity to talk about how they want to be remembered. It encourages them to talk about what is important in their lives now."
Conversations about legacy often resonate deeply with donors. Incorporating legacy messaging into lifecycle events - such as milestone birthdays, anniversaries, or b’nai mitzvah celebrations - creates natural opportunities to introduce the idea without it feeling like a fundraising pitch. Connecting these discussions to the concept of L’dor Vador (from generation to generation) ties giving to shared values and traditions, rather than focusing solely on financial planning.
For donors affected by changes to standard deduction thresholds, donor-advised funds (DAFs) offer a practical solution. By "bundling" several years of contributions into one, donors can exceed the standard deduction and still enjoy the tax benefits of their charitable giving.
Once an endowment is established, protecting it becomes a top priority. One of the best ways to ensure its longevity is by adopting a clear spending policy. Typically, this means drawing 3–5% of the endowment's market value annually. This approach provides steady operational support while preserving the principal for future needs.
Rabbi and author Joshua C. Lesser highlights the importance of this balance:
"Spending more than a prudent draw erodes principal."
To further safeguard the endowment during market fluctuations, many organizations use a trailing multi-year average to calculate annual draws rather than relying on the current balance. This method smooths out volatility, making distributions more predictable. Additionally, maintaining a separate operating reserve as a financial cushion ensures the congregation avoids dipping into the endowment's principal during tough times. Together, these strategies protect the endowment while supporting long-term financial stability.
Lesser also suggests framing spending policies in terms that resonate with the community. For example, tying the policy to the Jewish concept of shmirah - which emphasizes guarding and sustainability - can make it feel like a shared values-driven commitment rather than a rigid financial rule:
"Adopt and teach a spending policy and tie it to Jewish ideas of shmirah and sustainability."
With spending policies in place, the next step is to focus on investment strategies that promote long-term growth.
A strong investment strategy starts with a Board-approved Investment Policy Statement (IPS). This document outlines the goals, asset allocation, and acceptable risk levels, providing a clear roadmap for decision-making. It also prevents ad hoc choices that could undermine the endowment's growth potential.
Adas Israel Congregation in Washington, D.C., offers a great example of this approach. Their endowment comprises hundreds of individual contributions, each categorized by purpose - such as General & Capital, Scholarship, Ritual, Youth Education, and Cultural & Arts. Under the leadership of Executive Director David Polonsky, the synagogue adheres to its IPS and draws roughly 5% of the total endowment’s market value annually, which covers a significant portion of their operating expenses. As the congregation describes it:
"A community member gives a gift that lasts forever; one that serves the community now and in future generations."
By organizing funds based on their intended purposes, rather than pooling them together, the synagogue ensures that donor intent is respected and that specific programs receive consistent support over time.
The final piece of the puzzle is maintaining transparency through effective tracking and reporting.
Transparent reporting turns a well-managed endowment into a trusted community resource. When congregants and donors clearly see how funds are being used, they’re more likely to contribute - and to keep contributing.
Reports should use straightforward language and include easy-to-understand visuals like charts and graphs. Avoiding complex financial jargon ensures that everyone, regardless of their financial expertise, can grasp the key points. Rabbi Lesser suggests a simple "three-number" approach for budgets: highlight what the goal costs, what the synagogue currently has, and what is still needed. This method provides an immediate snapshot of the situation for any congregant.
"Share a one-page annual impact report and a plain language budget with three numbers: what it costs, what we have, what we still need." - Joshua C. Lesser, Boardwalk
Regular updates, such as quarterly board reports and an annual one-page impact summary, help maintain donor confidence. For Adas Israel, endowment earnings have become a vital revenue stream, making clear and consistent communication essential to sustaining trust and support within the community.
Real-world examples highlight how careful planning, strong leadership, and a committed community can create thriving endowment programs.
Westchester Jewish Center (WJC) launched its "From Strength to Strength" campaign with a goal of raising $8–$10 million. This aligns with the recommendation that an endowment should be at least five times the annual operating budget. Executive Director David Goldstein, along with Co-Chairs Larry Iason and Ian Winters, ensured full board participation before involving the wider membership. Donors were given flexibility, with options for three-to-five-year pledges and contributions through appreciated securities or ACH transfers. A Financial Oversight Committee of five members, all with investment expertise, was tasked with managing the funds.
"Best practice dictates that a congregation of our size, with its broad range of programming, establish an endowment that, at a minimum, is valued at five times our annual budget." - Westchester Jewish Center
Shir Ami joined the Harold S. Grinspoon Foundation's "Life & Legacy" program in November 2024. The goal? To replace dependence on annual dues and tuition with a lasting endowment equal to its operating budget. In just its first year, Shir Ami was on track to welcome 25 new legacy members. This effort was part of a larger initiative involving 13 Jewish institutions in Greater Philadelphia, collectively securing $25 million from 193 donors.
"Legacy gifts are more than finances, they're about sustaining our future." - Jon Stevens, Past President, Shir Ami
Ahavath Achim Synagogue in Atlanta, GA shows the power of personalized donor engagement. In January 2026, donor Brent Kaplan, in collaboration with Ghila Sanders of the Atlanta Jewish Foundation, created four targeted endowments, including one honoring his family’s legacy. For context, a single $50,000 endowment gift has the potential to generate $23,000 annually and grow significantly over time.
These examples emphasize how a mix of strong leadership and adaptable giving options can establish a foundation for long-term stability, paving the way for future advancements in managing endowments.
Managing endowments effectively demands accurate tracking, clear reporting, and consistent donor engagement. As discussed earlier, governance and transparency are key, and technology serves as a powerful ally in achieving these goals. By streamlining operations and aligning with financial strategies, these tools help ensure sustained endowment growth.
One of the toughest challenges for synagogues is keeping endowment funds separate from day-to-day operating funds. Mixing these funds can obscure the synagogue's financial health and damage donor trust. Platforms like Easyshul tackle this issue head-on by enabling administrators to track donations by specific causes. For instance, an endowment gift is logged and reported separately from general contributions or High Holiday pledges. These records sync seamlessly with QuickBooks and Sage, eliminating the need for manual ledger updates. The outcome? Clear, accurate financial statements that even non-accountants on the board or volunteer teams can easily understand.
"What made me feel confident about choosing Easyshul was knowing it had everything I needed. They truly listen to customer feedback and adapt the platform to users' needs - which is vital." - Amber Giddings, Executive Director, Temple Beth Sholom
This level of transparency doesn’t just improve operations - it builds trust within the community, a cornerstone of long-term legacy giving.
Endowment growth isn’t just about numbers; it’s about relationships. AI-powered tools are transforming how synagogue staff engage with members by identifying congregants most likely to consider a legacy gift, analyzing giving trends, and tailoring outreach efforts.
Easyshul’s EasyCare module connects giving history with personal milestones like bereavements and anniversaries. These are moments when conversations about legacy giving naturally fit. By linking these insights to follow-up workflows, staff can reach out with the right message at the right time - a task nearly impossible to manage manually in larger congregations.
"Incorporating smart tech into your organization is worthwhile because it can free clergy, staff, and volunteers from the time they currently spend on administrative tasks. In our book, we call this the 'dividend of time'..." - Allison Fine and Beth Kanter, Authors of The Smart Nonprofit
Easyshul has earned a 4.9/5 rating on platforms like Capterra, GetApp, and Software Advice, underscoring its reliability and ease of use. For congregations with more than 150 families, the platform costs $349/month (plus digital payment fees), with a tailored "Small & Mighty" program available for smaller congregations. By adopting these tools, synagogues can strengthen donor relationships and fortify their long-term endowment strategies.
Creating a synagogue endowment is a long-term endeavor that demands clear governance, strong community connections, and consistent dedication. As Jon Stevens of Shir Ami aptly noted: "Nearly all our revenue has come from member affiliation, tuition and our annual campaign. But crossed fingers aren't a reliable source of revenue."
The numbers speak for themselves: a $50,000 endowment, when invested wisely, can provide $23,000 annually and grow to $276,000 over 50 years. That first step toward building an endowment can mean the difference between merely surviving and truly thriving.
"Annual giving is a treadmill... An endowment is an engine. Once built, it generates support year after year without forcing you to begin from zero every January." - Philanthropy.org
The journey begins with one fund, one conversation, and the courage to take action. Establishing formal policies - covering investment, spending, and gift acceptance - lays the groundwork, while educating the community and sharing legacy stories help build momentum. Tools like Easyshul ensure efficient management, transparency, and strong donor relationships, keeping everything aligned with the synagogue’s mission over time. This structured approach highlights the importance of starting legacy planning sooner rather than later, a point emphasized by experts in the field.
"The real cost is not the endowment conversation. The real cost is not having it." - Philanthropy.org
Every synagogue has the potential to create an endowment that transcends any single budget cycle. The ultimate goal is to move beyond survival mode and establish a sustainable model that funds the mission not just for today, but for generations yet to come. By taking these steps, synagogues can ensure their mission endures for the future.
A synagogue endowment needs to be substantial enough to generate yearly returns that can cover essential costs like maintenance, capital repairs, insurance, and other operational expenses. For example, an endowment of $1 million with a 5% payout rate would yield $50,000 annually, which could go toward meeting these financial needs. Experts often suggest that the endowment should be large enough to provide a reliable income stream, ensuring the synagogue’s long-term financial stability.
The easiest way to start with a legacy gift is by naming a Jewish organization as a beneficiary in your will, retirement account, or life insurance policy. This approach is simple to set up and can be done with the help of a financial professional.
To keep endowment funds distinct and maintain clarity, it's essential to set up well-defined accounting practices and dedicated management systems. Start by separating endowment assets from other funds and ensuring they are clearly recorded in financial statements. Regular, detailed reports should cover contributions, investment performance, and expenditures.
Establish policies that guide fund management and conduct regular audits to uphold accountability. Tools like Easyshul can also help streamline financial tracking and reporting, ensuring effective oversight and long-term financial health.