Organization Endowment Fund

Many financially stable nonprofit organizations establish endowment funds for long-term security. 

An entity with 501(c)3 status can establish an Organization Endowment fund at the Community Foundation. An Organization Endowment remains an asset of your nonprofit organization. The assets are placed into an endowment fund that is pooled with the other assets of the Community Foundation and overseen by the Foundation’s Board of Directors, per our Investment Policy. Typically, 70% of the funds are invested in equities, 20% in fixed assets, and 10% in alternative investment strategies.

Using our Donor Portal, authorized individuals are able to check balances at any time. The “Total Return” from the endowment (interest, dividends, and appreciation) provides a stable annual income for your organization’s use. We use a target of 5% for each year’s payout. Your organization receives a quarterly account statement to keep track of the fund’s gifts, income, and distributions.

  • Your organization completes two forms: 1) Fund Agreement and 2) Information Form.
  • The Community Foundation sets up a fund in your organization’s name.
  • Your organization makes a gift of cash or appreciated stock to the Community Foundation. 
  • The assets remain on your books, and show as an asset with an offsetting liability on ours.
  • You receive an annual payout from the fund for organization use.
  • Access to principal is permitted with approval from your organization’s Board of Directors.

The minimum amount to create an Organization Endowment Fund is $50,000. There is an annual fee equal to 1% (based on a tier) of the fund’s principal ($1,000 minimum), which is charged quarterly.

  • Investment committee oversight comprised of local, impartial financial experts and established Investment Policy
  • Support for gift processing including gifts of cash, public stock, bonds, charitable IRA rollovers, mutual funds, and closely held stock.
  • No legal costs or set-up fees; no fees for disbursements.
  • The organization’s donors may contribute to the fund through our website.
  • The organization can add to the fund at any time.
  • 24/7 online access to fund information
  • Professional money management as part of a multi-million-dollar portfolio
  • How do I learn more about Organization Endowment funds at the Community Foundation?This video contains a thorough overview of our organization endowment fund program.
  • How is my fund invested?
    Your fund is pooled with 1,400 funds at the Community Foundation and invested for long-term endowment growth. The pool is invested in 70% equities, 20% fixed, and 10% alternative investments. Through this pooled approach, your fund benefits from access to multi-million-dollar fund managers in our thorough investment process. Click here to view the latest investment returns. Our impartial, volunteer investment committee of local financial experts works with Crewcial Partners, our paid financial advisor that specializes in managing foundations and endowment, to advise on our 35+ fund managers as guided by our investment policy.
  • Volunteer leadership and staff roles have changed at our organization, and I need to add or remove an authorized contact for the fund.
    Contact OrgFund@racf.org with the name, mailing, and email address of the new authorized contact and with information about who you wish to remove as an authorized contact on the fund (if applicable). We will grant access to our Donor Portal to this new contact and they should receive a welcome email shortly.
  • How can I gain access to the 24/7 online portal with information about my fund?
    Please email OrgFund@RACF.org to request your online access to our Donor Portal.
  • Where is the most recent fund statement? 
    Fund statements are mailed/uploaded to Donor Portal approximately 4 weeks after the calendar quarter end. 
  • Where can I get a copy of past fund statements? 
    Please visit Donor Portal for copies of current or previous fund statements.  
  • Why does the ending balance of my previous statement not match the beginning balance of the next statement? 
    Our alternative investment managers (10% of the portfolio) report to us on a delay of about 6 weeks from the rest of our fund managers. This is because of the complicated nature of the hedge fund investments. They do not report on a monthly schedule. Rather than delaying the statements further, the fund balance changes slightly in between statements based on the alternative investment reporting we receive. The change is reflected in the net investment return on the newest statement. Most organizations that are tracking the fund balance in their bookkeeping reflect the difference as an adjustment in their books. 
  • I need specific information about my fund that cannot be found in the quarterly statements for auditing purposes. 
    Please reach out to OrgFund@RACF.org to request information needed for your audit. 
  • Can you take in gifts of appreciated stocks and mutual funds from a donor? 
    We will accept the in-kind transfer of appreciated stocks or mutual funds, sell the asset, and deposit the sale into your fund at the Foundation. Click here for transfer instructions. Please notify StockProcessing@racf.org of the incoming transfer and fund destination. To make a wire transfer, please email OrgFund@RACF.org. 
  • I need to request a payout from the principal of the fund. 
    Barring extenuating circumstances outlined in your fund agreement, withdrawal from principal is usually permissible through a vote of 2/3 of your Board of Directors. Send a copy of your board meeting minutes to OrgFund@RACF.org that indicates the date, those present, the outcome of the vote, the amount to be withdrawn, and any discussion. We will verify the fund agreement and move forward with the request. The process of distributing funds from principal can take 2-3 weeks. 
  • How are payouts made from the fund? 
    Payouts from the fund come in the form of a check made out to your organization. We are not currently equipped to make electronic transfers, but we are exploring this option for future consideration. 
  • Is there a fee for withdrawing from principal or closing the fund? 
    The only fee is the 1% annual fee for administering the fund at the Community Foundation. There are no additional fees for gift or grant processing. 

Our Investment Strategies Explained