What Is An Agency Endowment?
An agency endowment is a permanent fund held and managed by the Community Foundation for a nonprofit organization. The agency will have a constant source of funding that will help them respond to emergency needs as well as plan for the future and sustain the good work they do.
When nonprofit organizations work through the Community Foundation to achieve their charitable goals, they benefit from the expertise of experienced local program staff, community leadership and professional investment managment.
Why Create an Agency Endowment?
With the growing need for services of nonprofit organizations and fewer sources of support, endowment-building has become critically important. Agency Endowments provide a safe, financially responsible outlet for protecting the economic future of a charity. Thirty-one nonprofit organizations have created endowment agreements with the Community Foundation.
Services Provided for Agency Endowments?
Philanthropic services for the agency endowments are extensive and include:
- Assisting in negotiating and completing complex gifts of various assets.
- Providing seminars and workshops on planned giving because estate planning plays an important role in building endowments.
- Financial management system that includes a fund accounting software that provides annual reports to the agencies concerning principal in the endowment and the distributable income for the year. Financial management includes an annual audit of all funds in the Community Foundation.
- Receipting and acknowledging gifts to the agency endowments.
- Management of the agency endowments includes:
1. The retention and review of a professional manager.
2. The apppointment of an Investment Committee by the Board of Directors that meets on a quarterly basis with the professional manager to review the portfolio.
3. The creation and review of an Investment Policy on a quarterly basis.