If you have any questions about establishing a fund to benefit your organization, please contact the Foundation at 805-543-2323 or at info@cfsloco.org.
Frequently Asked Questions
What is the difference between an endowed Agency Fund and a non-endowed Agency Investment Fund?
An endowed Agency Fund is designed to provide long-term, ongoing support for your organization. Contributions are invested, and a portion of the fund is distributed each year according to the Foundation’s spending policy, while the remaining assets stay invested to support future generations.
A non-endowed Agency Investment Fund also benefits from professional investment management, but the full balance remains available for distribution with board approval. This option offers greater flexibility for organizations that may need access to funds for operating reserves, capital projects, strategic initiatives, or future opportunities.
In simple terms: endowed funds are intended to provide permanent annual support, while non-endowed funds provide investment growth with greater access to the principal when needed.
What is the minimum needed to establish a Nonprofit Agency Fund?
$25,000 in cash, securities or other property. Contributions can be added to the fund at any time and in any amount.
Can our organization establish more then one type of fund?
Yes. Many nonprofit organizations establish multiple funds to support different goals. For example, an organization may maintain an endowed Agency Fund to provide long-term annual support while also establishing a non-endowed fund for reserves, capital projects, or future initiatives. Organizations may also establish donor-facing funds, such as scholarship or designated funds, depending on their charitable goals.
Can a donor create a planned gift to benefit our organization?
Yes. Donors can establish charitable funds or planned gifts that support your organization through The Community Foundation. This may include bequests, charitable trusts, beneficiary designations, real estate gifts, or other complex assets. Our team works with donors and their advisors to help structure gifts in a way that supports both the donor’s goals and your organization’s long-term sustainability
Who would be managing our investments?
The Foundation’s Investment Committee, led by Foundation staff and overseen by the Board of Directors, governs all investment activity by establishing investment policies, setting asset allocations, selecting investment managers, and monitoring performance on an ongoing basis.
Working within the guidance of the Foundation’s Investment Committee, Mercer oversees day to day portfolio management and ongoing monitoring in alignment with the Foundation’s investment policies. They bring deep experience partnering with community foundations and understanding the unique goals and fiduciary responsibilities that come with this work.
What are the fees associated with administering and investing the fund?
Fund fees depend on variables such as balance and fund type. Please contact us at 805-543-2323 or at donorservices@cfsloco.org to obtain the fee schedule relevant for the type of fund your organization might be interested in establishing.
Investment management fees are charged separately and are passed directly to the Foundation’s external investment managers. These fees support professional portfolio management of the Foundation’s investment pools. Any fund that opts to employ an investment strategy incurs Investment Management Fees.
Each fund will bear its proportionate share of any investment or custodial fees, which is approximately 0.20-0.30% annually, assessed quarterly, unless otherwise noted in the fund agreement. The fee is subject to fluctuate as investment selection changes are made within the portfolios. Funds that opt to remain in a money market strategy do not incur this fee.
What investment options are available?
Long-Term Portfolio 70% Equities / 30% Fixed Income
For organizations building reserves intended to support long-term sustainability and future initiatives.
Moderate Portfolio 50% Equities / 50% Fixed Income
- Balanced growth and stability for mid-term reserves, seeking growth while managing market volatility.
Conservative Portfolio 30% Equities / 70% Fixed Income
- For organizations with near-term liquidity needs, emphasizing capital preservation and stability.
Money Market Option 100% Money Market
- For organizations focused on capital preservation and near-term access. Minimal market risk exposure.
