Agency Non-Endowed Funds

In addition to your permanent endowment fund which earnings provides for your long-term financial sustainability, it is critical for agencies to first consider building a liquid designated “rainy day” reserve fund which provides working capital to your organization as a hedge when short-term unexpected challenges occur, e.g. declines in campaign or event revenues as a result of economic or weather-related events. A reserve fund may also be useful when planning for capital improvements.

What is a Non-Endowed Fund?

Agencies can receive an investment return on their capital and have the option for liquidation and distribution at any time and for any amount, including 100% of the fund balance.

Benefits of a Non-Endowed Fund:

A non-endowed fund is often used to maintain and grow sufficient capital reserves in the event of unexpected financial difficulties. A reserve fund may also be useful when planning for capital improvements.

How it Works:

• You begin with a balance as low as $10,000
• Complete a simple Agency Agreement prepared by the foundation.
• Your fund is overseen by the investment committee of the community foundation and invested in a manner consistent with your organizations time horizon and risk-reward objectives, e.g. conservative, moderate, aggressive.
• Your organization may advise grants from the fund in any amount at any time. Fund disbursements are subject to final approval by the foundation’s governing body.
• You receive quarterly statements of the fund balance and activities.