Organization Funds FAQs
What is an organization fund?
An Organization Fund is a long-term fund held and managed by the Community Foundation on behalf of a nonprofit organization. It provides consolidated investment management; speed and convenience for donors, guidance, and donors receive assurance money will be managed into long term. After discussions with the organization about objectives for the fund, we would recommend a financial goal.
What is the minimum needed to establish an organization fund?
The Community Foundation will open a long term account for as little as $25,000.
What kind of return can we expect?
Our fund performance has varied considerably since our inception. The returns over the past years are available for review. Of course, past performance is no guarantee of future results, and you can stipulate your required pay out amount in your agency agreement. The Community Foundation maintains a balanced portfolio comprised of domestic and international stock, bonds, notes, t-bills, and money market holdings.
What does it cost?
1% annually, based on the market value of the fund, plus $200 annually. We compute and assess this fee quarterly. The fee is deducted from the fund balance.
What are the advantages of having an organization fund with The Community Foundation?
Consolidated investment management provides a better return with lower administrative costs through economies of scale. The Community Foundation’s Board of Trustees has fiduciary oversight and handles all administrative reporting.
Agencies receive an exemption from filing a tax return or reporting on this fund since the fund’s financial transactions are consolidated with those of other funds on The Community Foundation’s Form 990. We provide quarterly reporting to your agency and staff of investment fund performance.
Agencies receive access to donors who structure all their gifting through one source at The Community Foundation and who can name your agency as a partial beneficiary of their philanthropy.
The Community Foundation has access to the legal staff of The Council on Foundations and our own community legal experts for assistance when structuring complex gifts such as property, and current updates on new tax implications for charitable gifts.