Investment Philosophy & Purpose

Our Philosophy

One of the Foundation’s most important responsibilities is our stewardship of charitable funds entrusted to our care by donors large and small.  We have a broadly diversified investment portfolio that is structured to first, preserve the capital of each gift, and secondly, to grow the gift sufficiently to maintain purchasing power and provide for future needs.

The Investment Policy Statement of the Foundation is designed to ensure prudent management of Foundation assets consistent with the long-term interests of its stakeholders while adhering to the State of California Uniform Prudent Management of Institutional Funds Act (UPMIFA).

The assets of the Foundation represent a pool of donations from individuals and organizations.  The donations may be (a) unrestricted in purpose with investment earnings to be spent at the discretion of the Foundation, (b) restricted in purpose with the principle and/or investment return to be distributed as designated by the donor, (c) charitable remainder trusts and gift annuities, (d) pass-through, or (e) any other asset of the Foundation, subject to the provisions of the Articles of Incorporation and Bylaws of the Foundation.  The unrestricted and restricted assets shall be invested as a pool in accordance with this investment policy.

Our Purpose

The purpose of this Investment Policy Statement (“IPS”) is to assist Legacy Endowment…the Community Foundation (“Foundation”) Investment Committee (“Committee”) in effectively supervising, monitoring and evaluating the investment of the Foundation’s assets (“the Funds”) on behalf of the Foundation’s Board of Directors (“Board”). 

The Foundation’s investment program is defined in the various sections of the IPS by:

  • Stating in a written document the Committee’s attitudes, expectations, objectives and guidelines for the investment of the Funds’ assets.
  • Setting forth an investment structure for managing all assets of the Foundation.  This structure includes various asset classes, investment management styles, asset allocation and acceptable ranges that, in total, are expected to produce a sufficient level of overall diversification and total investment return over the long-term.
  • Providing guidelines for any investment managers that moderate the level of overall risk and liquidity assumed in that investment portfolio, so that all the Foundation’s assets are managed in accordance with stated objectives.
  • Encouraging effective communications and understanding regarding investment performance between the Committee, the Board, and investment managers.
  • Establishing formal criteria to monitor, evaluate, and compare the performance results achieved by investment managers on a regular basis.
  • Complying with all applicable fiduciary, prudence, and due diligence requirements that experienced investment professionals would utilize, and with all applicable laws, rules, and regulations for various local, state, federal and international political entities that may impact the Foundation’s assets.

This IPS has been formulated based upon consideration by the Committee of the financial implications of a wide range of policies and describes the prudent investment process that the Committee deems appropriate.