Establishing Agency Funds
The Community Foundation can help establish and grow a nonprofit
organization’s endowment. Classified for tax purposes as public charities,
community foundations exist to manage permanent funds established by
donors for the benefit of a specific charitable cause or for the general welfare
of the community. A community foundation is often described as a pool
of endowed assets.
An agency endowment fund held at WCCF offers these advantages:
The fund is invested in a larger pool of assets, which can lead to greater
growth, greater income, and lower investment fees.
The Community Foundation handles investment management and
oversight, all accounting and financial reporting, and the annual audit.
All gifts to the fund are designated for the organization’s use only.
While co-mingled for investment, your organization’s fund will not be
used for other purposes.
All gifts are tax deductible at the highest levels allowed.
WCCF sends your organization an annual fund statement containing
information on the fund’s activities.
Your organization receives an annual distribution according to the
Community Foundation’s Investment and Spending Policy; current
distribution provides for 5% of the fund’s 3-year trailing average.
Your nonprofit organization’s endowment fund receives exposure in
WCCF’s annual report, reaching more ~ and perhaps different ~ donors
than those on its current list. WCCF donors may designate their gifts to
be added to your organization’s fund at any time.
WCCF acknowledges all donors for their gifts, using appropriate tax-related
language; it also informs your organization, with the donor’s approval, of
all gifts received.
A fund at WCCF offers donors a simple, meaningful way to memorialize
or honor someone who values your organization. It also can inspire
legacy gifts through donors’ estates.