An excellent financial opportunity available only to nonprofits
Any nonprofit which has a 501(C)(3) designation from the State of Florida can establish an Agency Fund with $25,000 through the Charlotte Community Foundation (CCF). The nonprofit will receive an annual distribution at the end of 12 months. (Currently 4%) Agency Funds are pooled with CCF assets under management ($15M) and will reflect market gains or losses over time. Agency can either take the distribution and/or use it for nonprofit needs or can instruct CCF to add the distribution to the fund, thereby allowing the fund to grow. Any investment earnings over the 4% distribution are added to the fund.
The Non-Endowed Agency Fund
After 12 months of establishing the Agency Fund, the nonprofit may withdraw funds in any year at any time. This non-endowed Agency Fund will earn an annual distribution in accordance with the Foundation’s Distribution Policy, which is currently 4%. Funds belong to the nonprofit and can be removed in event
of unexpected needs. Administration fees are 1.5%.
The Endowed Agency Fund
These are permanent investments under the stewardship of the CCF Board of Directors and professional money managers. Endowed funds remain in perpetuity and become a portion of CCF assets under management, providing an annual distribution in accordance with the Foundation’s Distribution Policy, currently 4%. Administration fees are only 1%.
Advantages of An Agency Fund
- Agency Fund participants become CCF Partners.
- The nonprofit can utilize our organizational assets and facilitate the investment process.
- CCF handles all the “back office work” such as IRS reporting and compliance, investment services, administration, etc. required while the nonprofit focus is on their mission.
- CCF provides the oversite of investments and alleviates the nonprofit’s fiduciary responsibility.
- As a CCF partner, the nonprofit gains exposure through CCF marketing and promotion, which could encourage prospective donors to donate to the nonprofit through CCF.
- Partnering with CCF demonstrates the nonprofits commitment to sound fiscal management and long term fiscal planning to donors.
- Partnering with CCF provides a way for donors to donate complex gifts such as stocks, life insurance or property.