Nonprofit Agency Funds

How A Nonprofit Fund Works:

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1. The Nonprofit Board decides to establish a Nonprofit Fund 

Funds can be established as an endowed, non-endowed, or 

quasi-endowed fund. An endowed fund must be established with a minimum gift of $1,000.

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2. The Fund is managed by the Community Foundation

The fund is managed in accordance with our investment philosophy. You and your organization’s donors can add to the fund at any time.

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3.Distributions (Grants) from the fund are made upon your request

Use our online portal to request distributions to the organization.

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Types of Funds:

Agency Endowment
A permanent endowment fund gives organizations the opportunity to create a fund that generates investment income, year after year, which can be drawn down in set annual payments to the organization, or reinvested in the fund to grow over time. The permanence of an endowment fund is both appealing and reassuring to donors and nonprofit boards of directors who seek the enduring value of a dedicated source of income to support the organization they love, today and forever.

Agency Quasi Endowment
These funds give organizations the opportunity to save non-endowed dollars in a professionally managed fund that can generate investment income, year after year, but also remains fully accessible with a vote of the nonprofit’s board. A portion of the earned income can be drawn down in set annual payments or reinvested in the fund to grow over time, according to the organization’s needs. It’s a flexible, simple way for nonprofits to build funds for a project or future operational needs.

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Benefits of Nonprofit Funds:

• The fund grows overtime and provides a stable funding stream.

• Donors who contribute to your endowment are eligible to receive the Endow Iowa tax credit only offered at qualifying community foundations like ours.

• The Community Foundation receives and processes gifts, manages the investments, and makes distributions to your nonprofit.

• Organizations with endowed or quasi-endowed funds can invest in a larger pool of assets, which can lead to greater growth, greater income and lower investment fees.

• We can handle complex gifts from your donors like grain, stock, life insurance, bequests, or property.

• You gain additional exposure through the Community Foundation’s marketing and communications.

• You have access to the Development Team at the Community Foundation to help you with questions and assist you with your goals for fund.

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