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Nonprofit organizations can establish endowment funds at The Greater Tacoma Community Foundation. With an endowment fund, a nonprofit organization is the designated charitable recipient of distributions from the fund. This provides a permanent source of income that provides stability through economic ups and downs. It gives donors the opportunity to provide for the future needs of your agency.
Advantages of a Nonprofit Endowment Being Held at the Community Foundation:
Perpetuity:
Placing an endowment with the Community Foundation allows the Board of a nonprofit organization to protect its endowment for the long-term and ensure growth to the principle through investment and continued donations.
Pooled Investments:
Your endowment will be pooled with other funds held at the Community Foundation allowing for a broader spectrum of investments, protection of capital and increased returns.
Fund Management Expertise:
The Community Foundation handles all of the administrative and investment details, allowing the nonprofit to focus on its mission. Establishing a nonprofit endowment also provides investment oversight by the Community Foundation’s Investment Committee of top local investment professionals.
Increased Visibility:
The Community Foundation has developed a strong reputation among community leaders and donors as one of the voices of our community’s local philanthropy. Establishing a fund with the Community Foundation shows your commitment to a long-term sustainable mission.
Frequently Asked Questions:
· How do we get started?
After deciding to establish an endowment fund, the nonprofit will work with Community Foundation staff to complete a fund agreement.
· When can we add to the fund?
The nonprofit organization can add to the endowment at anytime. An option for your organization’s donors is for them to establish a Designated Endowment Fund which benefits the nonprofit's endowment. The Community Foundation can assist your donors in setting up this type of fund.
· How is the income distributed?
Once a year, the Community Foundation returns a portion of your fund's proceeds based our spending policy, currently 4.7%. This policy protects your funds and allows for stable, long-term financial growth.
· What are the fees to establish this fund?
The Community Foundation assesses an administration fee of 1.75% for funds under $1 million. Larger funds receive a reduced fee percentage based on a sliding scale. Investment management fees are passed through to each fund at our cost, which generally ranging between 0.50% to 0.65% annually and are accessed at the proportioned size of the fund. Every effort is made to keep both our costs and fees to a minimum while offering a unique philanthropic service to the community. |
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