While competitive grants may be crucial to your organization's operations, they are likely your least reliable source of revenue. An endowment fund generates a permanent, predictable stream of income for your mission.
Agency endowment funds guarantee your nonprofit a steady stream of income for your charitable mission. Nonprofits can request grants from their fund on a recurring schedule or as needed, while the rest of their fund grows in perpetuity. This ensures your organization will thrive year after year, allowing your good work to continue forever.
Nonprofits that establish endowment funds benefit from Akron Community Foundation's financial stability, reputation, economies-of-scale investment benefits, ability to accept complex gifts, and fundraising support. Endowments also attract donors who prefer a permanent alternative to annual giving.
Benefits of an Agency Endowment Fund
Your fund agreement offers the flexibility to meet immediate needs, yet ensures assets are always there to support your long-term mission. The community foundation protects them from being spent for any other purpose.
Our investment strategy aims for superior long-term returns with minimal risk. We take our responsibility of preserving the endowment for future generations seriously, and our Finance and Investment Committee is committed to maintaining a diverse, balanced portfolio managed by trusted advisors.
Akron Community Foundation can accept a variety of gifts to your fund, including more complex gifts like closely held stock and real estate that may be difficult for most charities to manage. We process gifts quickly and systematically, so you and your donors can capitalize on upswings in the market. We also offer you the ability to accept online donations to your fund via a unique, easy-to-remember URL, which you can share on your website or social media channels, or in traditional print materials.
Once the community foundation receives a gift to your fund, we process and acknowledge that gift immediately, usually within 24 hours. We reconcile your fund monthly and mail quarterly financial statements to the fund representative of your choice.
When your endowment fund grows, we all benefit. Our development and donor services staff is ready to offer you creative ideas for growing your fund. They can also meet with your staff and board to help determine how your endowment fund fits into your overall fundraising plan.
Having an endowment fund at Akron Community Foundation shows you are a viable, sustainable organization. It also gets your name in front of thousands of community foundation donors and fundholders, both in print publications and on our website.
Agency endowment funds can be started with as little as $5,000. Once your fund is established, the community foundation collects a nominal annual fee of about 1.93% to cover administration and investment fees. This fee includes personalized services that are generally not available through relationships with institutional fund providers.
Ways Your Donors Can Give
Akron Community Foundation can accept a wide variety of assets from donors who wish to support your organization's endowment fund.
Cash
Cash gifts may be deducted up to 60% of adjusted gross income for income tax purposes. Contributions over that limit can be carried over for up to five years. Gifts can be made via cash, check or credit card.
Publicly traded securities
Donors receive a double benefit if the stock has appreciated: an immediate charitable deduction for the fair market value of the securities donated and exemption from any capital gains tax on the appreciation.
Qualified Charitable Distributions
For donors age 70 ½ or older, a qualified charitable distribution (QCD) made directly from their IRA to your endowment fund at Akron Community Foundation can help them avoid paying taxes on the distribution and reduce any RMDs for the year.
Closely held stock
By donating a portion of their privately held stock, donors can receive a fair market value deduction for the contribution and avoid paying capital gains tax on illiquid assets that have greatly appreciated in value.
Bequests
Donors can include your endowment fund in their will or trust to ensure your organization's mission is supported long after their lifetime. Donors who name any fund at Akron Community Foundation in their estate plans are welcomed into our Edwin C. Shaw legacy society.
Life insurance
Many donors find that the protection offered by life insurance is no longer needed later in life, making life insurance policies an ideal gift. If the policy is paid up, your donor will receive an immediate tax deduction for the policy's cash surrender value.
Real estate
Gifts of real estate can include a house, apartment building, farm, vacation home, commercial building or land. Once accepted, Akron Community Foundation has a separate LLC set up to handle these types of gifts for your fund.
Other property
Some donors may prefer to give their automobile, antiques or jewelry. Akron Community Foundation can accept these more complex gifts, too, but most will require an appraisal by an impartial party.
The Benefits of Working with Us
- Active financial oversight and investments by the nation's top managers, who maintain a diverse, balanced portfolio
- Hands-on support from experienced professionals, including major gift consultations, strategic planning, donor cultivation and stewardship, and fund analytics
- Exclusive marketing and development resources to help you grow your endowment and elevate your planned giving program
- Immediate gift processing and written tax acknowledgments for all fund contributions
- Annual third-party audit and safeguarding of the fund's assets to ensure the fund's charitable mission is carried out forever
- Ability to accept complex gifts, including closely held stock
- Pledge management for all multiyear gift commitments
- Unlimited gift tracking and recognition for memorial and honorary gifts
- Low administrative fees that stay in your community