Agency Funds

agency fundsWhen you establish an agency fund at the Community Foundation it ensures your nonprofit receives a return on its cash reserves, while creating a permanent stream of revenue for your agency. It is one of the most innovative ways for your nonprofit to support its good work for generations to come.

Fund Options

Your nonprofit has the option to choose either an endowed or non-endowed fund. Non-endowed funds can be used when and how you see fit. They remain safe and secure, until you need them, under the Community Foundation’s stewardship.

Agency Endowment Funds

Agency Endowment Funds are permanent investments, which we invest in the market and manage on behalf of your organization. The distribution of funds are made from the earnings, without touching the original contribution—or principal.

An Agency Endowment Fund Will:

  • Protect your organization’s endowed monies to meet future needs.
  • Provide a source of annual income, depending on market performance.
  • Demonstrate to your donors a commitment to sound long-range financial planning.
  • Provide a way for donors to give complex gifts such as stocks, life insurance, or property.
  • Increase investment yield, as endowments are pooled with our other funds to provide maximum return and lower fees due to the size of the total investment.

How it Works

  • Your board determines how much you would like to invest long term.
  • Funds can be established with a gift of $5,000, to build until the minimum of $25,000 is in the fund to become endowed.
  • Your organization works with our professional staff to complete a fund agreement.
  • We set up a fund in the name of your nonprofit organization.
  • You and your donors can add to the fund at any time.
  • We handle all the administrative details including expert investment management.
  • Earnings from your fund are distributed as grants to your organization annually; supporting your nonprofit’s programs and services forever.

Agency Non-Endowed Funds

An agency non-endowed fund means both the principal and the earnings are available for use by your agency. This makes it ideal for operating or building capital reserves.

An Agency Non-Endowed Fund Will:

  • Allow your nonprofit full access to the balance of the original gift and all future earnings from the gift.
  • Provide your organization with investment expertise and secure returns.
  • Provide you a way to accumulate funds for a capital campaign or simply as a way to receive a better return on a cash reserve.
  • Provide you a way for donors to give complex gifts such as stocks, life insurance, or property to benefit your organization.
  • Increase your investment yield, as agency funds are pooled with our other funds to provide maximum return and lower fees due to the size of the total investment.

How it Works

  • Your board determines how much you would like to invest.
  • Funds can be established with a minimum gift of $5,000.
  • Your organization works with our professional staff to complete a fund agreement.
  • We set up a fund in the name of your nonprofit organization.
  • The fund remains as an asset on your nonprofit’s books.
  • You and your donors can add to the fund at any time.
  • We handle all the administrative details including expert investment management.
  • Your organization may advise grants from the fund in any amount at any time to itself, or other nonprofits, if desired.
  • You may direct us to treat the fund as an endowment, subject to the Foundation’s spending policy, yet still retain your access to all the funds at any time.