Agency Endowment Funds
Agency endowment funds are permanent funds which are invested in the Community Foundation of Gaston County’s main investment pool and which distribute annual earnings back to the organization for its operations or other purposes designated by donors when the fund is established.
The donor or charitable organization determines the amount used to establish the fund but a minimum or $10,000 is suggested. Organizations can add to the amount over time. Annual distributions to organizations are set by the donor, but on average, distributions are approximately 5% of the fund’s average balance. Additional investment performance is added to the fund balance to ensure that the fund’s income stream keeps up with inflation.
It is important to note that in establishing an Agency Endowment Fund only one beneficiary is named for the fund which means the designated beneficiary is the only recipient of a grant from that fund.
Using the Community Foundation of Gaston County for endowment management has many advantages for a charitable organization. We provide:
- Professional investment services which include access to higher quality money managers, diversification in investments, and access to asset classes for which you might not otherwise qualify.
- All administrative and accounting services including check writing, donor acknowledgment and recognition.
- Assistance with fund development and planned giving. Endowment fund can serve as a portal for planned gifts (i.e. stocks, real estate, insurance and trust instruments).
- Enhanced visibility
For donors who wish to contribute to endowments for a specific charitable organization, the Community Foundation of Gaston County offers the assurance that their contribution will be professionally managed. Donors can be recognized for gifts to charitable organization endowments through the Community Foundation of Gaston County’s publications and annual reports.