Financial and Investment Information
At The Community Foundation we take our fiduciary responsibilities seriously. As a public trust we manage more than $100 million in total assets and over 400 charitable funds.
Investment
We help you meet your philanthropic goals through sound financial principles and careful stewardship. We seek to provide clear information about the Foundation’s investment management and performance.
For our endowed funds, our investment objective is to preserve the investment portfolio’s real value through asset growth that will cover granting, administrative and investment fees, accounting the rate of inflation.
Oversight of the Foundation’s investment portfolio is provided by the Board of Directors and Investment Committee. The Investment Committee is composed of Board and community members with significant experience and knowledge in the financial management industry and a passion for the Foundation’s work. Working together with Mercer Advisors, our Investment Advisor, the Investment Committee reviews investment policies, performance and allocations.
Read More about our Investment Options
Finance
When you entrust your charitable dollars to us, we help you meet your philanthropic goals through sound financial principles and careful stewardship.
We seek to provide clear information about the Foundation’s financial position and fees. We accept gifts to support charitable purposes in San Luis Obispo County and beyond. We believe it is our responsibility to the community to report on the Foundation’s financial position and to ensure that assets we hold are well managed. The Community Foundation San Luis Obispo County is a NonProfit Public Benefit Corporation under Section 501(c)(3) of the Internal Revenue Code.
Financial & Administrative oversight of the Foundation is provided by the Board of Directors and Finance & Administration Committee. The Finance & Administration Committee is composed of Board members with significant experience and knowledge in these areas. The Finance & Administration Committee meets six times a year to review all financial and administrative policies, Foundation financial statements and operating budget, and human resources topics.
Oversight of the Foundation’s annual audit and preparation of the Foundation’s tax returns is provided by the Board of Directors and Audit Committee . The Audit Committee is composed of Board and community members with significant experience and knowledge in these areas. Working together with Caliber Audit & Attest, the firm preparing the audited financial statements and tax returns, the Audit Committee ensures that appropriate internal controls are in place and that the financial statements accurately portray the financial condition of the Foundation.
IRS Determination Letter
Our EIN number is 77-0496500
Click on links below to view the Foundation’s audited financial statements.
Click on links below to view the Foundation’s Form 990 (IRS Organization Information Return).
Learn More About The Community Foundation Investment & Finance
Who manages the investments?
The Foundation’s Investment Committee, composed of community volunteers with professional investment, legal, and nonprofit experience, establishes investment policy and asset allocation ranges and monitors overall investment performance. Mercer Advisors serves as the Foundation’s discretionary investment manager, responsible for day-to-day portfolio management and selecting underlying investment managers within the parameters established by the Committee. The Committee reports to the Board of Directors and reviews investment performance quarterly.
How are investment managers selected?
Mercer Advisors evaluates and selects underlying investment managers based on factors including organizational strength, investment philosophy and process, fees, staff, and performance across different market environments. Mercer generally favors managers with established multi-year track records. The Investment Committee provides ongoing oversight of Mercer’s manager decisions and overall portfolio performance.
How is investment performance monitored?
The Investment Committee meets regularly to review in-depth performance analyses for each portfolio, benchmarked against peers and appropriate indices. The Investment Advisor also provides ongoing updates, including monitoring organizational changes at investment firms that could affect future performance.
Can investment managers change?
Yes. Mercer Advisors may add or remove underlying investment managers as part of its discretionary management of the portfolio and within the asset allocation ranges established by the Investment Committee. Changes may reflect factors such as sustained underperformance, style drift, organizational changes, or loss of key talent. Mercer generally favors managers with established multi-year track records and evaluates performance across both up and down markets. The Investment Committee reviews manager decisions and overall portfolio performance quarterly.
How are investment returns measured?
Returns are measured on a total return basis, encompassing interest, dividends, and realized and unrealized gains and losses. The Investment Committee uses portfolio analytics — including geometric return, maximum drawdown, and Sharpe ratio — to evaluate long-term, risk-adjusted performance.
Why is the portfolio diversified across asset classes?
Diversification helps reduce overall portfolio risk while pursuing more consistent long-term returns. Our portfolios include a mix of domestic and international equities, fixed income, and other asset classes designed to perform differently under varying market conditions.
Why are assets pooled for investment?
Pooling charitable assets allows funds to benefit from greater diversification, lower investment costs, and access to institutional-quality investment management. Each fund maintains its own identity and receives its proportional share of investment returns through the Foundation’s unitized investment system.
What is the difference between an endowed and non-endowed charitable fund?
An endowed fund is designed for long-term growth, with a portion distributed annually under the Foundation’s spending policy while the remaining assets continue to be invested. Non-endowed funds also receive professional investment management but allow the full balance to be distributed at any time, offering greater flexibility.
Can I change my investment strategy?
To request a change, simply submit a written request and complete the Investment Strategy Amendment Form. Changes are processed in accordance with the Foundation’s investment policies.
What happens if investment markets decline?
Like all professionally managed investment portfolios, charitable funds will experience periods of market volatility. Our portfolios are broadly diversified and managed with a long-term investment philosophy designed to help manage risk while supporting the long-term growth and sustainability of charitable assets. Market fluctuations are a normal part of investing, and investment decisions are not based on short-term market movements.
How often are investment returns credited to my fund?
Investment returns are allocated to each fund monthly through the Foundation’s unitized investment system. Each fund receives its proportional share of investment income and market appreciation or depreciation based on the number of units it holds.
How do grants or withdrawals affect my investment balance?
Grants, fees, and other distributions are deducted from your fund’s balance as they are processed. The remaining assets continue to participate in the selected investment strategy, allowing charitable resources to remain invested until they are needed.
Can my financial advisor continue to be involved?
Absolutely. We welcome collaboration with your financial advisor, CPA, attorney, or other professional advisors. Our team regularly works alongside advisors to help ensure charitable giving strategies align with a donor’s philanthropic goals and overall financial and estate planning.
What fees are associated with my charitable fund?
Fees are assessed quarterly and include a Foundation services fee based on fund size and complexity, along with investment management fees through Mercer Advisors passed through at cost (currently approximately 0.25%–0.30% annually). Please refer to our online Fee Policy for current Foundation fees and details.
Questions
Have a questions you don’t see answered on this website? Contact us via email or (805) 543-2323.
