Open an Agency Fund

An Agency Fund is a cost-effective and easy way for your nonprofit organization to invest in its future. Your donors can be confident that the fund will be professionally managed to build a reliable source of continuing support for your good work. The Community Foundation’s economies of scale provide your organization the benefits of a diverse investment portfolio and low investment fees that typically come only with large funds.

Nonprofits can use an agency fund to invest their reserves, or establish and build an endowment to support the long term dreams of the organization.

How it Works

  • We work with nonprofits to learn about their organization’s needs and can setup an endowed (principal is guarded from spending) or unendowed (fully expendable) agency fund in the name of your nonprofit organization. Your fund is pooled to take advantage of the Community Foundation’s investment options.
  • The minimum to open an Agency Fund is $25,000. Your board determines how much to contribute for the initial investment to establish your fund. Your organization or donors may then add to the fund any time.
  • We work with your staff to understand the nuances of accepting complex asset gifts to your fund, like stock, trust, appreciated assets (such as art) and bequests.

One

Focus your mission. When you open an Agency Fund, your organization is immediately taking advantage of the investment, accounting, and gift processing expertise of the Community Foundation, which means you can focus on your organization’s programs and services.

Two

Receive complex gifts. The Community Foundation has the capacity to accept assets such as appreciated securities and real estate as charitable gifts. This makes it easier for your donors to support your organization with assets other than cash, making your fundraising efforts more comprehensive and appealing without having to add the capacity to handle those kinds of gifts.

Three

Accept planned gifts. By having an Agency Fund at the Community Foundation, you can more easily receive planned gifts, such as bequests, and we can serve as the trustee of a charitable remainder trusts.

four

Take advantage of the Community Foundation’s investment strategy. By having an Agency Fund at the Community Foundation, your agency’s assets will be invested along with the assets of our donor-advised funds and the other funds established by families, individuals, and nonprofit organizations. And you’ll be able to take advantage of investment options not typically available to individuals or single organizations.

five

Sequester assets for future use. Many organizations appreciate the value of not mingling assets designed for long-term use with assets used for daily operations. And funds that are raised for a particular use will be protected from being used for other purposes in the future, since the purpose will be specified in a Fund Agreement.

six

Minimize record-keeping and reporting. The Community Foundation takes care of all reporting and tracking of your fund, including any IRS filings. Your organization receives a quarterly financial statement detailing the assets in your fund.

seven

Benefit from your association with us. We are a local organization with deep roots in San Joaquin County. Many donors have more confidence when a smaller organization’s long-term assets are handled by a well-known institution.