About Agency Funds at GCF:
A safe and simple way for your nonprofit organization to establish an endowment, which can grow over time and provide a source of lasting support. Once the fund is established using cash or stock, it is invested using the Community Foundation’s economies of scale and will benefit from the diverse investment portfolio and low investment fees that typically come only with very large funds. With an agency endowment the sole beneficiary of grants from the fund is the organization or agency for which the fund is named, as long as that agency remains a 501 C (3).
Who Needs an Agency Endowment Fund?
- Organizations without an investment committee
- Organizations without a financial advisor on staff
- Organizations without the capability to accept gifts of real estate
- Organizations without the capability to accept gifts of stock or other assets
Benefit of an Agency Endowment Fund
- Access to higher quality money managers
- Diversification in investments
- Access to asset classes for which you might not otherwise qualify
- Cost efficient – low fees
- Allows organization to focus on true mission
- Provides portal for accepting bequests and complex planned gifts
How to Get Started
- Board/Financial Committee decides to establish Agency Endowment Fund and how much to invest long term
- Your organization works with our professional staff to complete a fund agreement
- Community Foundation handles all the administrative details-including investment management
- Earnings from the fund as well as corpus are available for recommended grants
Key Things to Know
- The income from the fund will be reflected in the fund balance mailed to the Organization/ Agency bi- annually. Access to the fund balance is also available online and updated monthly.
- Fees are very low and are determined on a sliding scale by the amount of the fund balance
- Administrative fees account for less than 1% of Community Foundation operating budget
- Donors may easily transfer marketable securities to the Foundation specifically to a named fund.
- The Community Foundation strives to promptly thank all Donors and acknowledge the Donor for tax purposes.
- The Community Foundation performs all administrative and accounting services including check writing, donor acknowledgment and recognition.
- The Community Foundation offers assistance with fund development and planned giving. Your Endowment fund can serve as a portal for planned gifts (i.e. stocks, real estate, insurance and trust instruments).
- The Foundation gives you Enhanced visibility.
- The ability to accept complex gifts. The Foundation will accept stock, real estate, trusts, annuities; taking the burden off of the nonprofit. The Foundation accepts these gifts, liquidates them and places the funds into the agency fund.
- Agency funds remain an asset on the balance sheet of the nonprofit and a liability on the Foundation's balance sheet.
For more information on establishing an agency fund, please contact Elizabeth Patton or Ernest Sumner, 704-864-0927.
Here to help
Looking for Assistance?
Contact our Donor Development Officer, Elizabeth Patton, at 704-864-0927 or send an email.