Leadership White County - 2014 Give Now
Things to Consider
WCCF is an excellent vehicle for developing an organization’s endowment
with maximum advantage.  A few items to be considered include:

•   WCCF invests endowment funds with both growth and grants in mind.  
    An organization should expect long-term growth and a reasonable
     return but not wildly speculative risk or unusually high income.

•   The IRS requires that funds within a community foundation be considered
     assets of the foundation.  While all gifts to the endowment are restricted
     only for the use of the organization and it receives distributions each year,
     it cannot:

Spend the principal at will:  the organization would not do this
anyway where the funds are held as a true endowment, or
stipulated by the donor;

Remove the funds from the foundation unilaterally;

Direct how assets in the endowment fund are invested.

•   For auditing purposes, per federal accounting standards, funds established
     using organization assets show the amount in the fund both as an asset
     and liability on the Foundation’s audit and as an asset on the organization’s
     audit.  Funds donated by others (public donors) to the organization’s fund
     are the Foundation’s assets.