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FORM 990

If you wish to view our IRS Form 990, you may download it pdfhere or check the following website: www.guidestar.org.



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AGENCY FUND FAQs

What is the minimum our nonprofit needs to open a fund?

For a nonprofit agency to establish either an endowed or non-endowed fund at The Community Foundation (TCF) the minimum investment needed is $10,000.

An agency endowment is a type of designated fund established by a charity at a community foundation for the charity's own benefit or the benefit of a related entity. That is, the donor or resource provider and the beneficiary or recipient organization is the same entity. For example, an art museum transfers funds to a community foundation to establish a fund that will provide annual distributions to the art museum for its own use. The instrument of transfer used to establish an agency endowment references the variance power and transfers legal ownership over the assets to the community foundation.

The transfer of legal ownership of the assets is necessary because the money must come to the community foundation in the form of a completed gift. An incomplete gift may lead to the conclusion that the community foundation is managing somebody else's funds. Since TCF is not a financial institution we cannot legally hold assets for other entities; doing so would jeopardize our status as a 501c3 nonprofit.

The agency's board must make the decision regarding whether transferring legal ownership of the funds to establish an agency endowment is consistent with its fiduciary duties. An agency's board may decide that such a transfer is prudent and consistent with its fiduciary responsibility to the organization because of the benefits provided as a result of the relationship with the community foundation. For example, the agency may benefit from the expertise of the community foundation in long-term management of assets, the flexibility the community foundation may provide by accepting types of non-cash contributions not accepted by the agency, or the protection that the transfer will provide by establishing an endowment at a separate organization.

Funds available to an Agency Endowment Fund

The current spending policy of TCF is to make available for disbursement 4% of the endowment principal market value from all endowed funds. The distributable amount for each fund is determined using a twelve-quarter moving average. This determination is made based on each fund's principal market value as of September 30 of the preceding year for all funds. TCF has increased the spending policy for Agency funds to 5%. The increase must be requested in writing.

What planned giving support will a nonprofit receive when they establish an Endowed or Non-Endowed Fund at TCF?

The following support services are offered to agencies and organizations that establish a Fund at TCF:
  • Training on Donor Cultivation and Planned Giving for Executive Director, Senior Management Staff, Board of Directors, and/or other advisory groups or Task Forces.
  • Assist with the identification and cultivation of prospective donors.
  • Individual meetings with prospective donors to discuss the value and benefits of charitable giving, and follow-up.
  • Crescendo proposals/illustrations on planned gifts, analysis of different scenarios of a planned gift and their tax benefits or impact which include Charitable Gift Annuities; Charitable Remainder Trusts; Charitable Lead Trusts; and Gifts of Real Estate, etc.
  • Support to plan and host receptions for small groups of potential donors.
  • Use of the Foundation's Charitable Gift Annuity License.
  • Assistance with marketing of planned giving options through newsletter(s), email, website, social media, and the internet.


Does our fund have to be an endowment?

No, it can be a non-endowed fund. The primary difference between an endowed fund and non-endowed is that an endowed fund is invested with the Foundations pooled funds and earns a higher investment return and the principal is subject to risk.


The other main difference is that funds in a non-endowed fund can be withdrawn at any time and is not subject to the Foundations 4% spending policy. In addition, the non-endowed funds are invested in a money market vehicles; currently earning very low returns

What are your fees?

Fee Structure for Agency Endowed Funds: Figures given below are annual rates. Administrative Fees are assessed monthly at 1/12 of these rates. Investment Consultant fee represents each fund's pro-rata share of the cost for Wurts & Associates, consulting services.

Administrative Fees*
Fund Balance
‹ $500,000
Fund Balance
$500,000 - $1M
Fund Balance
$1M - $5M
Fund Balance
$5M - $10M
Fund Balance
› $10M
1.75%
175 basis points
1.50%
150 basis points
1.00%
100 basis points
.50%
50 basis points
.25%
25 basis points
Investment Consultant Fee
Estimated 0.13%
13 Basis Points (bps)
*Administrative fees may be higher for funds with complex gifts or grants programs.

Fee Structure for Non-endowed funds:
Administrative Fee
Administrative fees may vary based on level of services needed

How often will we receive a statment?

Quarterly, approximately 6 weeks after the end of the quarter.