Endowing your nonprofit organizationfile000551198693

Nonprofit organizations can also establish a Designated Fund or agency endowment at the community foundation. It’s a simple and efficient way to build an endowment—and help create sustainability—for your nonprofit organization. We handle investment management and the administrative responsibilities related to endowment so that your organization’s staff and volunteer hours are concentrated on fulfilling your mission.

Your donors can be sure that the endowment fund’s principal will not be spent and can grow over time, providing a source of lasting support. And the community foundation’s economies of scale provide your organization the benefits of a diverse investment portfolio and low investment fees that typically come only with very large funds.

Agency Endowed Fund: An Agency Fund may be established by a nonprofit to provide a long-term, dependable source of operating revenue and ensure financial stability well into the future. An endowment is a permanent fund in which contributions may not be spent but rather are invested to generate a stream of income for the organization. They are gifts that keep on giving year after year. Your organization’s regular donors can leave a bequest through the community foundation to benefit your organization forever and create a personal legacy. The community foundation can facilitate even the most complex planned gifts or gifts of appreciated stock or real estate.

Acorn Fund: An Acorn Fund may be established as the first step to an endowed or permanent fund. An Acorn Fund may be opened with $2,000 and the nonprofit pledges to make annual contributions until the fund reaches the endowed level (currently $10,000).

Agency Advised Fund (also called an Agency Investment Fund): An agency advised fund allows a  nonprofit full access to the balance of the original gift and all future earnings from the gift. This fund is a non-endowed fund, meaning both the principal and the earnings are available for use by the nonprofit to support its mission. This makes it ideal for operating funds, building improvements, capital expenditures and reserves.

Designated Fund: A designated fund may be established by a donor to support a specific charity or multiple charities. It is wonderful idea to create endowments benefiting your favorite charities.  The charitable organizations receive an annual distribution from their endowment and will receive the annual distribution for perpetuity.  The endowments not only provide a reliable source of income to these organizations but also serve as a convenient way for donors to make contributions.

Capitol Campaign Fund: Agency often request that we manage a large capital campaign on their behalf and act as the back office for the donations.

Pass Through Fund: A Pass Through Fund may be established by an organization or a group of citizens for a specific fundraising project that meets a charitable purpose or civic need. For example, a Pass Through Fund was established for the Menomonie Skate Park and the Menomonie Dog Park. Contributions made to the fund are tax deductible; the Foundation handles all of the donor acknowledgments, fund accounting, and pays the expenses of the project. Pass Through Funds are expected to be short term.

Value Added Services

When a nonprofit organization houses their endowment with The Community Foundation, they receive value-added services. The Foundation provides investment management, audit and other related services for these funds. We also work with agency boards and staff to help them develop the policies and skills needed to attract planned gifts from their supporters and friends.

Current Endowments Held for Nonprofits

Indianhead Enterprises Designated Endowment Fund
United Way of Dunn County Fund (Dunn County’s Emergency Disaster Fund)
Menomonie Public Library Foundation Endowment Fund
St. Joseph’s School Endowment Fund
St. Joseph’s Parish Endowment Fund

There is so much more we’d like you to know. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact The Community Foundation.