We provide prompt, personal service, tailored to your charitable and financial objectives. As a local organization with broad knowledge of community issues and needs, we can help you invest in causes that you care most about.
- Investment Expertise through the Community Foundation’s professional money managers and investment consultants.
- Planned Giving Expertise in handling a wide variety of gifts, allowing your organization to introduce its donors to more innovative and tax-minimizing ways of giving.
- Greater Exposure to a wider range of potential donors through various Community Foundation publications allowing for opportunities to grow the endowment fund.
- Relief of Administrative Burdens as the Community Foundation receiving and processing all gifts to the endowment fund including acknowledgement to the donor and notification to the Agency organization.
- Increased Donor Confidence because the organization is using a professional third party endowment building partner to administer the endowment.
- Personalized Service from our knowledgeable, professional staff who are here to provide prompt attention to your needs including presentations to board and staff upon request by the Agency organization.
Nonprofit organization endowment funds established at the Community Foundation are referred to as Agency funds. Below are the most common questions and answers about Agency endowments at the Community Foundation.
A CFNF agency endowment is a fund which is kept in perpetuity to provide invested earnings for the benefit of the nonprofit organization for which the fund was established. An endowment fund grows through gifts from donors, contributions from the organization itself, and investment income.
An endowment provides an additional source of annual revenue to an organization for assisting with operations, programs or unanticipated needs, if necessary.
Organizations with strong leadership and management, financial stability, a committed and diverse pool of donors, board and staff committed to the effort, and the capacity to engage in this long-term fundraising strategy are the best candidates for endowment development.
An Agency endowment can be established by any qualified charitable nonprofit, tax-exempt 501(c)(3) organization or by a private donor of the organization.
A nonporfit organization can establish an Agency endowment fund with the Community Foundation by completing a fund agreement and providing an initial gift of $10,000 or more.
To establish an endowment fund at the Community Foundation, a minimum gift of $10,000 is required.
The annual administrative fee for an Agency endowment is based on the fund balance as follows:
1.5% $50,000 +
1.75% under $50,000
$175 under $10,000
The fee for any fund above $3 million will reduce as follows:
$3-6 million = 1.0%
$6-9 million = 0.8%
$9-12 million = 0.6%
Above $12 million = 0.4%
Each fund pays a pro-rata share of the investment costs (approximately 67 basis points, less than 1%) annually. Generally, non-endowed funds do not earn interest and are not charged an investment fee.
NOTE: All investment returns are reported net of investment costs.
When a gift is received by CFNF for the benefit of an Agency endowment, the Director of Donor Relations will contact the Executive Director/President at the nonprofit organization via email. The email will provide the donor’s name and contact information as well as the gift amount and purpose.
The Community Foundation uses DonorCentral, an online portal which allows fundholders to login and view accounty activity, annual spending balance amounts and download quarterly fund statements. Once a fund is established, online access is given to the Executive Diretor/President and Finance Director/Bookkeeper of the Agency.
Annual spend balances are calculated at the end of the calendar year and are based on a board approved spending policy, currently 4%. To request available funds, the Agency must complete and submit an distribution request form to CFNF. Upon receipt of the request and after CFNF board approval, the request will be processed in the next grant cycle.
The Community Foundation partners with Commonfund, founded in 1971 as an independent asset management firm focused on not-for-profit institutions and now manages over $25 billion in assets, including 431 foundations. Commonfund is one of North America’s leading investment firms for education endowments, foundations and philanthropic organizations. Their only business is investment management, and they are active in all sectors of the global capital markets, both public and private, serving a broad spectrum of investors, including nonprofit organizations, healthcare organizations, family offices and pension plans.
Thank you for your interest in learning more about an Agency fund at the Community Foundation of North Florida. The decision to establish an endowment is an important step for securing a continual source of long-term revenue for your nonprofit organization.
If you’re ready to get started, please fill out the form below and our staff will contact you soon.