Nonprofits

Agency Endowed Funds




Agency Endowment Funds

You understand how important it is to protect and sustain your agency to ensure it can meet its mission. An agency endowment fund is designed to provide a steady source of income that can ensure the viability and sustainability of your nonprofit agency in perpetuity.

Nonprofits establish their agency funds at the Community Foundation as a simple and efficient way to build an endowment for their organization.  Creating an agency endowment fund with the community foundation allows you to reap the benefits of an endowment fund with assurances of expert fiscal stewardship and without the associated administrative burdens and costs.

 

What is an Endowment?

Endowment funds are design to provide for the long term preservation of the fund capital and provide annual stable cash flows that will benefit your charity in perpetuity.

This option is best for organizations that want to assure donors that their intent for donations and bequests to last forever will be honored.

 

Benefits of a Permanent Endowment:

  • Opportunity for stable and growing revenue streams forever.
  • Diversify your revenue streams to reduce potential volatility associated with traditional fundraising activities, such as your campaign and events, e.g. economic downturns and severe weather.
  • Empower your agency to strategically plan for long-term program results.
  • Assure donors the endowment fund will continue in perpetuity and honor their intent.
  • Attract major donations and legacy gifts by demonstration of your organization’s foresight to plan for its longevity.

 

How it Works:

  1. You begin with a balance as low as $50,000.
  2. Complete a simple Agency Agreement prepared by the foundation.
  3. Your fund is overseen by the investment committee and governing board of the community foundation.
  4. An annual payout to your agency is made based on the community foundation’s spending policy is paid to your agency for your use and benefit.
  5. Your agency can add to the endowment at any time.
  6. You receive quarterly statements of the fund balance and activities.