Agency Endowment Funds established at Community Foundation of Middle Tennessee give nonprofit organizations the opportunity to safeguard their charitable funds to ensure the future of their work and their mission. The purpose of creating this “charitable savings account” is to provide important ongoing support for the operation of the organization now and for generations to come. It’s lasting. Endowment Funds are indicators that the agency’s leadership is planning for the future.
How it Works
- The agency makes a gift to Community Foundation of Middle Tennessee.
- The Fund is established with this initial agency gift and the completion of an agreement outlining terms and conditions.
- Our professional staff supports the agency in its efforts to grow its endowment, while keeping within the policies and procedures of the Community Foundation.
- Anyone may make gifts at any time to the Agency’s Endowment Fund. These gifts may be cash, publicly traded or closely held securities, bequests, planned gifts, insurance, IRAs, Remainder or Lead Trusts, real property, etc.
- While the Community Foundation must own the Fund, the assets are reported on the agency’s financial statements.
- Our professional staff handles the administrative details and assists the agency, while keeping within the policies and procedures of the Community Foundation.
- Fund activity information is available online. Gifts and grants are updated daily and Fund Statements, including investment results, are updated monthly. Complete Fund Statements are mailed semi-annually.
Financial Facts
- Agency Endowment Funds can be established with a minimum gift of $5,000.
- Approximately 5% of the balance of the Fund is available annually for the agency’s use.
- Funds are invested in a diversified portfolio designed to manage market risk, dampen market volatility and ensure steady growth over time.
- In addition to an annual investment fee, all funds will be charged an annual administrative fee of 0.4% on the balance of the Fund.
Getting Started
- Discuss an Agency Endowment Fund with the Community Foundation’s staff.
- Make a gift to Community Foundation of Middle Tennessee and complete the Fund agreement.
- Join the Community Foundation, as together, we connect generosity with need.
Benefits of an Agency Endowment Fund
Provides a reliable source of income to support your organization’s mission and programs, ensuring long-term sustainability.
Managed by experienced investment professionals, ensuring prudent management and growth of the fund’s assets.
Enhances your organization’s credibility with donors, showing a commitment to long-term financial health.
Provides donors with confidence that their contributions will have a lasting impact, encouraging larger and more frequent gifts.
Offers a steady revenue stream, reducing the pressure to constantly raise funds and allowing focus on mission-driven activities.
Creates a lasting legacy for donors and the organization, making a perpetual difference in the community.
May provide tax benefits to donors, encouraging charitable contributions.
Often connected to community foundations, fostering a sense of collaboration and support within the local nonprofit sector.
Katie Marchetti
Vice President of Philanthropic Services
Interested in setting up a Agency Endowment Fund?
We are ready to help you, today! Contact Katie Marchetti, our Vice President of Philanthropic Services to learn more.
