For Non-Profits

The Benefits of Using a Community Foundation for Nonprofits

Has your organization considered opening a Nonprofit Agency Fund? It's a great way to sustain organizational initiatives, programs, and services long into the future. Benefits include:

  • A source of annual funding to help meet challenges in resources or to bridge operational/fiscal gaps with a minimal impact on staff time.
  • Strategic options for you and your donors who want to give to your fund at any time, including cash, stock, or complex assets like real estate, especially when your organization needs a skilled partner to assist with complicated and unusual circumstances.
  • Reducing long-term financial risk by partnering with seasoned investment managers, and utilizing strategies that might not otherwise be available.
  • Receiving quarterly investment updates to view the latest performance of your charitable assets.
  • A supportive partner to advance your work with major donors when arranging planned gifts, including charitable gift annuities, charitable trusts, and charitable remainder trusts.
  • The affiliation of your nonprofit with the reputation of Legacy Endowment Community Foundation, a local and regional resource with top rating seals of transparency and trust achieved through by Charity Navigator and GuideStar.
  • Facilitating new and existing donors' ability to contribute at any level to your agency fund.

In addition, as a result of deepening relationships with donors, your organization can be the recipient of an unexpected accumulation of unrestricted planned gifts and bequests. This can happen over time or in a singular event. A nonprofit organization/agency may build up assets beyond the scope of their annual operating budget needs, capital campaign expenditures, or strategic plan initiatives. While a sense of security and often a reduction in annual fundraising goals may result from such abundance, holding onto significant assets with very few or no planned expenditures can easily become a breach of guidelines set forth in the Uniform Prudent Management of Institutional Funds Act (UPMIFA), specifically, that UPMIFA requires charities to invest these assets using a modern portfolio standard, taking into account:

General Economic Conditions

The possible effects of inflation or deflation

Expected tax consequences of investment decisions

The role of each investment in the whole portolio

The expected total return from income and appreciation of investments

Other resources of the organization

How Legacy Endowment Helps Your Nonprofit:

Serves as a UPMIFA-compliant home for reserve funds

Manages reserve funds, eliminating some or most of the tasks required if you do this yourself

Prevents you from having to turn away donors because you cannot accept their funds

Enables you to be thoughtful about how to spend funds since you don't have to rush to disperse them right away

Access our expertise by connecting with our philanthropic advisors

Contact us to set up a call to explore the possibilities. 

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