Benefits of using the Community Foundation as an endowment-building vehicle include:
Economies of Scale
Your organization receives the benefit of investment economies of scale, as your funds will be pooled together with other funds of the Community Foundation for investment purposes. This can lead to greater diversification, greater growth, greater income, and lower investment fees.
Relief of Administrative Burdens
The Community Foundation receives and processes all gifts to your endowment fund with proper acknowledgement to the donor and notification to your organization. Additionally, your board is relieved of the responsibility for choosing investments and filing tax returns with respect to its endowment fund at the Community Foundation.
Spending Policy Expertise
The Community Foundation helps you set the parameters for distributions to your organization from your endowment fund. Your organization then has the flexibility to choose to reinvest all or part of the distribution in any given year.
Planned Giving Expertise
The Community Foundation has expertise in handling a wide variety of gifts, allowing you to introduce your donors to more innovative and tax-minimizing ways of giving.
Your organization gains recognition among a wider range of potential donors through publication of the existence of the your endowment fund by the Community Foundation in its annual report and other promotional materials.
Third Party Protection
A fund at the Community Foundation provides your organization with safeguards to ensure that the endowment will be utilized as planned at the time of establishment of the fund.
The Community Foundation is a public charity and therefore all gifts to your endowment fund will qualify for maximum deduction under federal tax laws.
The Community Foundation provides annual audited financial statements to your organization upon request.
Knowledgeable, professional staff provide prompt attention to your needs.
The Foundation has a record of reliability and dependability.
The annual administrative fee for endowed funds is 1%.