What is a nonprofit endowment fund?
Your organization establishes an endowment fund with the Community Foundation in perpetuity. An annual payout based on the Community Foundation's spending policy is designated to your nonprofit. This option is best for organizations that want to assure donors that the endowment's principal will remain intact or honor a donor's bequest to the endowment fund.
What are the benefits and services of placing assets with the Community Foundation?
What are the fees and what do they cover? Is there a minimum?
The current administration fee is based on the value of the fund. Please view the Fee Schedule HERE.
Who owns the fund and how are the funds accounted for?
Nonprofit funds are legally owned by the Community Foundation and are accounted for in accordance with the Statement of Financial Accounting Standards No. 136. To comply with this standard, the community foundation records an offsetting liability for the fair market value of the agency nonprofit funds. Organizations report the fair market value of the fund as a beneficial interest in an asset held by the community foundation.
What happens to our endowment at the Community Foundation if our organization goes out of existence?
In order to preserve donor intent, the charitable earnings will be redirected by the Community Foundation’s Board of Directors to the most similar cause that can be found.
Why would a donor choose to leave money in their will or invest in an endowment for local organizations through the Community Foundation rather than giving directly to the local organization?
Donors may feel more comfortable leaving money for the benefit of their favorite organizations through the Community Foundation. Locally, the Community Foundation for Palm Beach and Martin Counties has a 45-year history of meeting donors’ wishes and building long-term, revenue producing endowment funds t0 benefit the community forever.
Why do donors decide to make major gifts through the Community Foundation instead of making a gift directly to an organization?
There are 3 main reasons that individuals make major gifts to organizations:
Donors may feel more comfortable using the Community Foundation because of its history of successfully managing long-term investments and for the greater assurance that principal will not be invaded by the agency.
What are some of the considerations before deciding to partner with the Community Foundation?
Considerations include the size of the annual operating budget, scope of the mission, capacity of staff and Board, and age of the organization. Many organizations find it advantageous to work with the Community Foundation because they benefit from the instant credibility that comes with partnering with one of the area’s most respected community organizations, where major gifts are stewarded regularly and investments produce solid returns.
For more information and a list of local agencies that have an endowment with the Community Foundation, click HERE.