When we talk about creating a vibrant and sustainable future for arts and culture in Roanoke, the word “endowment” often comes up. But what exactly is an endowment, and why is it so important to the mission of the Roanoke Cultural Endowment (RCE)? Let’s break it down.
A Long-Term Investment in Our Community
An endowment is a fund designed to provide a steady and reliable source of income over the long term. Think of it as a savings account for the community, but with one significant difference: the principal amount (the money donated to the fund) is not spent. Instead, that money is invested, and only a portion of the earnings generated by those investments is used to support the endowment’s intended purpose.
For the RCE, that purpose is clear: to ensure sustainable funding for the City of Roanoke’s more than two dozen arts and cultural nonprofits that enrich our community. These organizations—from theaters and ballets to museums and music venues—play a vital role in our region’s economic and social health. But funding for our arts nonprofits is often unpredictable, leaving them vulnerable to financial challenges. That’s where an endowment comes in.
How It Works
Here’s how an endowment operates:
- Donations Build the Principal: Individuals, businesses, government agencies, and/or foundations contribute to the endowment fund. These donations are pooled together to create the principal amount.
- Invest the Funds: The principal is invested prudently to generate earnings. Investments are typically managed by financial professionals who balance the need for growth with the need to protect the principal.
- Earnings Support the Mission: A portion of the earnings is distributed annually to support the endowed organization’s mission. The remaining earnings are often reinvested to grow the fund and maintain its purchasing power over time.
Where is RCE in its endowment process?
Roanoke Cultural Endowment is building a $20 million endowment. As of January 2025, RCE’s endowment has reached $7 million. When our endowment fund reaches $20 million, RCE will begin awarding operational grants in three-year cycles to eligible arts and cultural nonprofits within the City of Roanoke. RCE’s spending policy will allow up to 5% of the earnings (from a 5-year rolling average) to be distributed annually through grants.
Why Your Support Matters
Every contribution to the Roanoke Cultural Endowment, no matter the size, helps support sustainable funding for Roanoke’s arts and cultural nonprofits. Each gift is a step toward lasting impact, and together, through the collective support of our community, we can turn this vision into reality.
What Makes the RCE Different?
Traditional arts fundraising models focus on annual campaigns that immediately disperse the money they raise. In contrast, RCE’s endowment model emphasizes long-term sustainability. By building a permanent fund, RCE creates a lasting financial resource that can weather economic fluctuations and provide stable support year after year. This approach reduces reliance on the annual funding cycle, allowing for predictable funding that will help sustain Roanoke’s arts and cultural nonprofit community.
Roanoke Cultural Endowment’s approach reflects the timeless lesson of the tortoise and the hare—steady, strategic, and focused on the long game. Building an endowment takes time, but once we reach our goal, the benefits will extend beyond Roanoke’s arts and cultural nonprofits to strengthen our entire community, ensuring a lasting and meaningful achievement for all.
A Legacy for Roanoke
Building an endowment is about more than finances; it’s about legacy. It’s about ensuring that Roanoke remains the arts and cultural hub of Southwestern Virginia where creativity and expression are celebrated. It’s about giving our children and grandchildren the opportunity to experience the joy, inspiration, and connection that our arts and cultural nonprofits bring to our lives.
By investing in the Roanoke Cultural Endowment, you’re playing a part in shaping that legacy. Together, we can make sure that the arts in Roanoke thrive for generations to come.