What is an Agency Fund?
An agency fund is established by a tax-exempt nonprofit organization. This fund type lets the nonprofit focus on its mission instead of spending time identifying and supervising investment managers. It also helps nonprofits with gift planning and endowment-building to ensure their long-term financial sustainability.
Why should you create an Agency Fund at the Community Foundation of South Jersey?
The Community Foundation of South Jersey is a resource for charitable organizations whose collective mission is to make a difference. Our goal is to provide resources and services that build the capacity of nonprofit organizations to offer effective services.
When a nonprofit organization opens a fund at the Community Foundation of South Jersey, the organization joins a community of fund holders. The Foundation invests the nonprofit fund in an investment pool designed and managed for long-term charitable purposes, leaving the nonprofit organization free to focus on its mission.
How does an Agency Fund work?
- A nonprofit organization establishes the fund with the Community Foundation.
- The donors of the nonprofit make contributions to the nonprofit or the fund.
- The nonprofit organization makes contributions to the fund.
- Grants are typically made back to the nonprofit organization, based on its needs.
- A nonprofit organization can make grants to other 501c3 in good standing with the IRS as long as the grant donation supports the charitable intent of the fund.
Who should consider an Agency Fund?
Nonprofit organizations seeking a diversified pool of investments to support their mission impact. When a nonprofit creates a fund at the Community Foundation and pools its assets with other Community Foundation assets, it can focus on growing the organization rather than managing its assets. Nonprofit organizations that have a solid individual donor base should consider an endowment.
Nonprofit Organization Benefits
- Assistance with Gift Transactions: The Community Foundation can assist nonprofit organization donors and advisors to execute complex transactions and deferred planned giving, including gifts made with appreciated securities (including closely-held business stock), tangible personal property, real estate, gifts from bequests, and charitable gift funds.
- Consolidated Record Keeping: The Community Foundation maintains complete records of donations, provides quarterly and annual statements, and issues confirmations of contributions and grants. You can also access your fund information online.
- Joint Investment: The Community Foundation maintains the nonprofit fund’s long-term investment performance, maximizing returns through professional investment management and diversification along with a pool of more than $1 billion (through our affiliation with the Community Foundation of New Jersey), including more than $105 million in the South Jersey region.
- Regional Impact: Fees on the nonprofit’s fund, which are reasonable and competitive, support the Community Foundation's work throughout the region.
- Stability and Responsibility: A fund at the Community Foundation shows donors that a nonprofit organization is serious about its long-term financial stability.
- Major and Planned Giving Expertise: The Foundation’s professional staff is experienced in helping donors achieve their goals through a major or planned gift. We can assist your organization as you work with your donors, helping them make a gift to your fund using the most effective assets.
- Gift Acknowledgment: The Foundation ensures that all the donors to the fund are promptly and properly acknowledged for their gifts.
- Increased Visibility: The Community Foundation will periodically include the nonprofit organization’s fund information in reports, newsletters, and other media.
Fund Guidelines
The minimum initial contribution to establish a fund is $25,000.
Gifts can be made from cash, stocks, bonds, mutual funds, closely held securities, and certain private and restricted securities to your Fund. We may also accept gifts of other assets.
Governance
A Board of Trustees of South Jersey residents and community leaders governs the Community Foundation of South Jersey.
Help support your mission over time.
To establish an agency fund, or for questions, call 856-528-3385.