What is a nonprofit endowment?
A long-term fund held and managed by the Community Foundation on behalf of a nonprofit organization. The nonprofit may receive annual distributions for unrestricted use.
What investment services do you provide?
The Community Foundation maintains a balanced portfolio comprising domestic and international stock, bonds, notes, T-bills and money market holdings. Fund performance varies, of course. Nonprofit endowments have a number of investment pool options, including a traditional pool, a socially responsible pool and a passively invested pool. All investment allocation and performance is monitored quarterly by our Investment Committee.
How much can we withdraw from our fund?
We encourage you to consider a 5% annual payout, with any balance reinvested in principal. If you’d like to withdraw more than 5%, you’re welcome to do so – unless a specific donor has earmarked the funds for a more permanent investment. That said, you’re not required to withdraw anything, and you may reinvest any earnings.
What does it cost?
1.15% annually, based on the market value of the fund, plus investment advisor charges of less than 40 basis points (<0.4%). We compute and assess this fee quarterly; the fee is deducted from the fund’s earnings.
Who owns the fund?
The Community Foundation Boulder County owns your fund on your behalf. We hold, manage, invest and reinvest the assets of the fund mingled with the assets of other funds (the separate identity of each fund is maintained). The Community Foundation presently holds endowments for a range of nonprofit organizations with fund assets up to six figures.
How do we get started?
Contact us at Philanthropic Services. We'll walk you through the steps.