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 the 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 DonorCentralSM web 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 the organization’s use. We use a target of 5% for each year’s payout. The organization receives a quarterly account statement to keep track of the fund’s gifts, income, and distributions.

How does an Organization Endowment Fund work?

  • 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 the 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.

Benefits to Organization

  • 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

Our Investment Strategies Explained