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Agency Funds

Nonprofit organizations can create an Agency Fund at the Community Foundation to support their programming in perpetuity. We will receive gifts, manage the fund and distribute a permanent source of income to the organization.

 

Getting Started is Easy

An Agency Fund protects the capital of an organization and helps to meet future needs. It can also provide a relatively constant source of income, demonstrating security and long-term financial planning to your donors.

Once an Agency Fund is opened, we help you determine its purpose – whether to provide general operating support or support to a specific program – and can help you prepare the appropriate documentation. Additional gifts can be made to your fund at any time.

Reasons to Create an Agency Fund

Professional Management: By joining our large investment pool, which is managed by an independent consultant, your organization can enjoy the leverage, economies of scale and portfolio diversification unavailable to smaller endowment funds.

Expanded Capacity: When your organization creates a fund, all of our gift planning resources are at your disposal. Complex gifts such as real estate and closely held business interests can be facilitated through your endowment at the Community Foundation. We can act as trustee for charitable remainder trusts and charitable lead trusts. Lastly, nonprofit organizations that have not been licensed to offer charitable gift annuities in New York can offer them through our charitable gift annuity service.

Ease and Flexibility: Our professional, experienced staff provides technical assistance with planned gifts to the fund and offers oversight of the investment of your fund. Additions can be made to your fund at any time. You can choose to grow your fund through fundraising or donor cultivation for planned or current gifts. Meanwhile, we handle the administrative tasks – from keeping track of your gifts to acknowledgement letters – all for a nominal fee.

 

How Our Agency Funds Work

We pool our more than 600 charitable funds for investment purposes and each receives its pro rata share of the investment return. A portion of earnings from principal and income of your fund would be distributed annually to support the needs of your organization. We recommend a distribution rate of 5% applied to a twenty-quarter rolling average balance of principal. This approach protects the long-term value of the fund, promotes growth and buffers against the wild fluctuations in the amount available from the fund.

In some years your organization may not want to take a distribution, in which case you would ask that the funds remain invested. It is also possible that you may have special reasons to request a larger distribution. Distributions of earnings and principal in excess of the norm may be made from time to time based on terms agreed to in the original fund agreement but generally subject to approval of the governing bodies of the organization and the Community Foundation. For legal reasons, such recommendations are considered advisory and not binding on the Community Foundation.

 

 

Learn More:

Why Partner With Us
Types of Assets
Legacy Planning
Administrative Fees
Request a Meeting


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(315) 422-9538.