One of the ways we support the nonprofit community in northeast Georgia is through nonprofit agency funds that help ensure your organization has the ability to meet the needs of current and future generations. The Community Foundation currently manages more than 50 agency funds for various nonprofit and governmental organizations. Working with the Foundation offers a cost-effective investment option and frees your staff from time consuming administrative and investment responsibilities so you can remain focused on your core mission.
Benefits and Services for Agency Funds:
Professional and Diversified Investment Management
When you decide to place your agency fund with NGCF, it becomes a part of our pool of invested funds. Investing as part of this pool permits greater diversification of your fund across many more asset classes than would be possible investing it individually. NGCF’s pool of funds is managed using a diversified strategy intended to preserve the purchasing power of endowment assets in perpetuity, while at the same time generating a steady return for current purposes. The pool is invested on a “total return” basis (combining capital appreciation and earned income), with a variety of asset classes used to lower volatility and risk. Within each asset class, we retain highly skilled investment managers who specialize in that particular class. To ensure that NGCF’s portfolio is managed effectively, our Investment Committee, made up of board members with appropriate expertise, meets regularly to oversee investment discipline and manager selection, to develop best strategies and appropriate benchmarks, and to closely monitor the performance, allocation, and style adherence of the fund managers. Please note that past investment performance does not predict future results.
Fund Management Services
NGCF provides several accounting and record keeping services to agency fundholders, such as fund statements (via online access or by mail), processing of new gifts and IRS gift acknowledgement letters, and income distributions to your organization. We can also process and manage various types of gifts to the fund, including appreciated securities, real estate, closely held stock, insurance policies, tangible personal property, and bequests.
Increased Donor Confidence
Having a fund with the Community Foundation affiliates your agency with a respected public charity. It sends a signal to your donors, existing and prospective, that you take endowment building and asset management seriously. You are partnering with an organization that specializes in carefully stewarding and protecting charitable capital.
Also, this affiliation can be especially helpful if your organization is new to major gift fundraising, planned giving, or wishes to attract new donors. Your NGCF fund can also provide increased exposure to potential donors and the general public through listings on our webpage and in other publications.
Spending from the Fund
NGCF will distribute to the agency a portion of its fund’s value each year according to a pre-determined formula, calculated to enable the fund to grow over the long term while supporting annual distributions and staying ahead of inflation. As a general principal, spending should be in the range of 5% of the fund’s balance. Alternatively, many agencies choose to reinvest these distributions to the principal portion of the fund. Agencies may also request distributions that exceed the spending formula amount; such distribution requests are addressed on a case-by-case basis.