Benefits of using the Community Foundation as an endowment-building vehicle include:
The Community Foundation provides endowment investment expertise through professional investment consultants and money managers engaged by the Foundation to assist us in attaining our goal of achieving superior long-term investment performance. The Board of Directors and the Investment Committee of the Foundation provide additional oversight, monitoring and evaluation.
Economies of Scale
Your organization receives the benefit of investment economies of scale, as your funds will be pooled together with other funds of the Community Foundation for investment purposes. This can lead to greater diversification, greater growth, greater income, and lower investment fees.
Relief of Administrative Burdens
The Community Foundation receives and processes all gifts to your endowment fund with proper acknowledgement to the donor and notification to your organization. Additionally, your board is relieved of the responsibility for choosing investments and filing tax returns with respect to its endowment fund at the Community Foundation.
Increased Donor Confidence
Your donors have increased confidence in adding to your endowment because you are using a professional third party endowment building partner to administer your endowment.
The Community Foundation provides your organization with quarterly reports reflecting gifts made during the quarter, income earned, distributions made, and the endowment fund's balance.
Spending Policy Expertise
Planned Giving Expertise
The Community Foundation has expertise in handling a wide variety of gifts, allowing you to introduce your donors to more innovative and tax-minimizing ways of giving. The Foundation's President & CEO, Katrina Rolle, is an attorney with experience in estate planning and charitable giving. She is available to assist you in meeting with any of your donors who are interested in making a planned gift to your organization.
Your organization gains recognition among a wider range of potential donors through publication of the existence of the your endowment fund by the Community Foundation in its annual report and other promotional materials.
Third Party Protection
A fund at the Community Foundation provides your organization with safeguards to ensure that the endowment will be utilized as planned at the time of establishment of the fund.
The Community Foundation is a public charity and therefore all gifts to your endowment fund will qualify for maximum deduction under federal tax laws.
Knowledgeable, professional staff provide prompt attention to your needs.
The Foundation has a record of reliability and dependability.
- 1.5% on the first $3 million (except that funds with a balance of less than $50,000 incur an administrative fee of the greater of $350 or 1.75 %.) The minimum fee for nonprofits can be reduced to $175 if the agency agrees to promote their endowment fund.
- 1.0% on the next $3 million
- 0.80% on the next $3 million
- 0.60% on the next $3 million
- 0.40% on the balance in the fund
Earnings of endowed funds are reduced by each fund's pro-rata share of investment costs (approximately 85 basis points 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.