AGENCY FUNDS
“Our board of directors was at a loss as to how to grow our endowment, how to structure and accept gifts of real estate and other hard-to-value assets, and how to follow best practices for establishing and following our investment policy. Happily, with our agency fund, the community foundation stepped in as our behind-the-scenes back office, and now our board and staff can focus on our programs and our donors.”
—Carrie Patterson, Executive Director, Building Blocks of Hope
What is an agency fund?
An agency fund at the community foundation is a powerful first step to securing your organization’s financial future for generations to come.
Nonprofit organizations frequently establish agency funds at the community foundation to set aside reserves or rainy day funds.
The team at the community foundation is adept at navigating the specific accounting standards that are unique to this type of arrangement.
The community foundation team can help establish investment policies and gift acceptance policies, making it easier for you to engage in fundraising discussions.
How does the community foundation help?
The community foundation makes it easy for your organization to set aside and invest reserve funds.
An agency fund is a cost-effective option for accessing investment options that might not otherwise be available to your organization.
The community foundation is committed to helping your organization exercise outstanding stewardship of the funds donors have entrusted to your board and staff to support your organization’s mission.
The community foundation’s staff is familiar with a wide range of planned giving structures and techniques and can serve as a sounding board for your fundraising efforts.
How does the fund work?
The community foundation works with your board of directors and leadership team to establish the documentation for your agency fund.
Select from investment options that meet your organization’s cash flow and capital needs.
Transfer cash, stock, or other assets to your agency fund at the community foundation.
Your organization and its board of directors approves requests for distributions back to your organization to meet your cash flow and capital needs.
The community foundation offers 24/7 online access so your organization’s staff can view the fund balance, contributions and grants back to the organization anytime.
The community foundation team will meet with your board of directors or finance committee each year to review the investments.
Keep growing.
Working with the community foundation gives you the back up and confidence you need to secure major and complex donor gifts.
The team at the community foundation strives to make it easy for your organization to establish, maintain, and grow your reserves or endowment funds at a reasonable cost.
For example, we can help a donor structure a separate fund when the donor wants to give a complex asset and split the proceeds among several charities, including yours. We also are happy to help you navigate gifts of real estate, closely-held stock, or other hard-to-value assets.
We’re here for you
Whatever your charitable giving goals may be, our team at the community foundation can help. We care about our community as much as you do. Our board of directors and staff are committed to understanding your perspectives on the challenges facing the quality of life in our region. Deeply familiar with local nonprofits, we can serve as a resource to help you give when, how, and to the causes you want. Our tools and back-office administration capabilities make it easy to keep your giving organized and tax-savvy.