The Community Foundation Martin – St. Lucie (TCFMSL) Agency Endowment Fund
We know how important it is to protect and sustain your agency to ensure it can meet its mission. Setting up an agency endowment fund provides a vehicle for savings that is designed to live in perpetuity and provide a steady source of income that can ensure the viability and sustainability of your nonprofit agency.
Creating an agency endowment fund under the umbrella of The Community Foundation Martin – St. Lucie (TCFMSL) allows you to reap the benefits of an endowment fund without the associated administrative burdens and costs. TCFMSL is ready and equipped to assist as you consider taking this important and visionary step to ensure the future of your agency.
How It Works
- TCFMSL will meet with your agency to craft and review an agreement outlining the terms and conditions related to establishing an agency endowment fund nested within TCFMSL.
- You will have the ability to restrict portions for specific purposes
- If a donor makes an endowment gift to benefit a certain program or function, the TCFMSL can continually identify the gift balance and its intent
- If you want several funds for different purposes, the TCFMSL can keep the balances separate and distribute accordingly
- To officially establish an endowment fund at TCFMSL your agency will seed the endowment with an initial gift or gifts
- Once the agreement is completed and the fund is established with the initial agency gift your agency endowment fund will be operational.
- TCFMSL professional staff will handle all the administrative details and tasks of the agency endowment fund. You will have access to all information related to the management of the fund.
- 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.
- Pursuant to regulations, TCFMSL must own the fund, however the assets are reported on your financial statements.
- Gifts and grants are updated on a regular basis and fund statements including investment results are updated monthly.
- Complete fund statements are available semi-annually.
- Agency endowment funds can be established with a minimum gift of $25,000.
- We suggest following our spending policy which allows for approximately 4% of the balance of the fund to be available annually for your agency’s use-unless otherwise specified by you.
- Funds are invested in a diversified portfolio designed to manage market risk, dampen market volatility and ensure steady growth over time.
- Your board will not need to establish an investment committee to oversee the investments.
- No matter the size, the agency’s endowment will benefit by being part of TCFMSL’s investment pool, which is:
- Highly diversified
- Governed by the our Board of Directors and Investment Committee
- Guided by TCFMSL’s Investment Policy
- Further guidance is provided from our outside independent investment fund consultant
- Our professional staff will support your agency in its efforts to grow its endowment, while keeping within the policies and procedures of TCFMSL.
- The agency may be listed in certain collateral materials as well as listed on TCFMSL’s web site and in the TCFMSL annual report.
Administrative and other fees associated with the fund are competitive and customary.