If you’re concerned about sustainability in the future, not just viability now, an endowment is an important way to realize that vision. With increasing needs for services of nonprofit organizations and fewer sources of support, endowment building becomes critically important for future stability and growth. Creating an endowment sends a positive message to donors that your organization is achieving a key measure of financial stability and will fulfill its mission for years to come.
Agency endowment funds are permanent investments, which we manage on behalf of your organization. The distribution of funds is made from the earnings, without touching the original contribution—or principal.
Agency endowment funds safeguard your original investment, while building a stable funding stream for the future.
Agency Endowment Funds
- Protect your organization’s endowed monies for future needs.
- Provide annual income, based on the Community Foundation spending policy.
- Demonstrate to your donors a commitment to long-range financial planning.
- Increase investment yield, as your endowment is pooled with our other funds to provide maximum return and lower fees.
- Our experienced staff can help you develop planned giving programs and assist with investment management and administrative details.
How It Works
- A fund may be established with a minimum gift of $10,000 and you can add to it any time.
- Our staff helps you complete a fund agreement.
- We set up a fund in the name of your nonprofit.
- Your nonprofit has 24/7 online access to financial statements.
- Earnings are distributed to your organization annually as grants, supporting your programs forever.
- Agency Funds become assets of the Community Foundation. As a permanent fund of GTCF, we eliminate the need for individual nonprofits to create an investment policy and monitor investments, as we handle all administrative details including investment management.
- Grants are distributed to your organization annually per our spending policy, supporting your programs forever.
Five Steps to Opening an Agency Endowment Fund
- Talk to our staff. We’re happy to discuss the pros and cons of creating an endowment fund with your executive director or chief financial officer before you involve your board in the process. Contact Barb Granger at 253.345.4170 or by email at firstname.lastname@example.org to set up a meeting.
- Engage your board. If you decide to move forward, you’ll probably talk first to the board committee that handles your finances. We’re happy to work with you to prepare an objective case comparing the advantages and drawbacks of your current program versus an endowment fund with Greater Tacoma Community Foundation.
- Complete the paperwork. Our fund agreement is all you need to get started. Most people have questions about variance power and the irrevocability of gifts made to the Community Foundation. Please contact us with any questions you may have.
- Tell us about your goals. We’re here to help your organization achieve its mission in the long run. If you want to market this new endowment fund to your current or prospective donors, or to others in the community, we can provide assistance. We often help nonprofits structure their donors’ major and planned gifts to build their endowment funds.
- Let us handle the administrative details. Once your fund is established, we handle all investment management and investment oversight activities. It is our job to invest the funds, conduct quarterly reviews of their performance against benchmarks (via our Investment Committee), and consider changes where performance is lagging.
To get started or discuss any questions, please contact Barb Granger at 253.345.4170