How a Gift Pyramid Powers Generational Change

“Raising Excellence” LinkedIn Newsletter Issue July 14, 2025

When people hear the word endowment, they often imagine multi-billion-dollar university funds built over centuries. But sustainable funding isn’t reserved for private schools or elite institutions. Public high schools can and should build endowments of their own. The key is knowing how to get started.

A powerful tool in launching an endowment is the gift pyramid. Rather than relying on thousands of small donations, a gift pyramid shows how a handful of leadership gifts can lay the foundation for a lasting fund.

Here’s one example of what it might look like:

• 1 donor gives $100,000

• 3 donors give $50,000 each

• 6 donors give $25,000 each

• 50 donors give $10,000 each

That’s $900,000 raised from just 60 people—often a fraction of a single graduating class, let alone the broader group of living alumni that can often number in the tens of thousands.

Why this model works:

• It builds momentum. Securing larger gifts early inspires confidence and attracts more donors.

• It’s achievable. Even in a large alumni base, only a small percentage need to participate at leadership levels to make a huge difference.

• It accelerates impact. The sooner a fund reaches a meaningful size, the sooner it can start generating returns for the school.

Consider this: with an annual net growth rate of around 4 percent (after payouts and fees), a $1 million endowment could nearly double in 20 years, while distributing more than $1.1 million to the school during that same period. Over 100 years, its total size and cumulative impact could surpass $100 million each!

Building an endowment might sound ambitious, but with a gift pyramid, it’s entirely within reach for public high schools to lay the groundwork for generational change.

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