Non-profit organization can create an Agency Endowment Fund at the Community Foundation. The purpose of creating this type of “charitable savings account” is to provide important ongoing support for the operation of an organization, now and for generations to come. It’s lasting.
Endowment Funds are indicators that the agency’s leadership is planning for the future. Below is an introduction to the creation and operation of an Agency Endowment Fund.
For additional information see Benefits of an Endowment at the Community Foundation and Endowments Luxury or Necessity?
How It Works
- A nonprofit agency makes a gift to The Community Foundation of Cleveland and Bradley County.
- The Fund is established with this initial agency gift and the completion of an agreement outlining terms and conditions.
- Our professional staff supports the agency in its efforts to grow its endowment, while keeping within the policies and procedures of The Community Foundation.
- Anyone may make gifts at any time to the Agency’s Endowment Fund. These gifts may be cash, publicly traded or closely held securities, bequests, planned gifts, insurance, IRAs, Remainder or Lead Trusts, real property, etc.
- While The Community Foundation must own the Fund, the assets are reported on the agency’s financial statements.
- Our professional staff handles the administrative details and assists the agency.
- Fund Statements including investment results are sent semi-annually.
- Agency Endowment Funds can be established with a minimum gift of $5,000.
- The Foundation manages and grows the charitable investments so that your organization has more money to invest in programs that further your mission.
- Approximately 4.5%- 5% of the balance of the Fund is available annually for the agency’s use.
- Funds are invested in a diversified portfolio designed to manage market risk, dampen market volatility and ensure steady growth over time.
- The agency benefits from lower institutional investment management fees.
- Non-profit funds will be charged a discounted administrative fee of 1% (the regular administrative fee is 1.25%).