Nonprofit Agency Endowments
Public charities throughout the area can turn to the Greater Sabetha Community Foundation for many services. There are many advantages to working with us, due to the scope of resources and expertise we offer.
The Community Foundation advocates endowment-building because this source of permanent capital helps organizations plan for a stable and secure future. Many local nonprofit organizations are already building endowments with us to benefit their organizations. Their endowment funds provide these organizations with a reliable, ongoing source of financial support. We enhance their efforts by leveraging our expertise, systems and excellent financial management and oversight.
The Importance of Endowment
Endowment funds provide a source of ongoing annual financial support to address charitable causes. This source of funding can be invaluable in uncertain economic times when other support may no longer be available. During stronger economic periods, an endowment can provide funding to expand support and act as seed money for the development of new programs and services.
Endowment also provides intangible benefits. Giving to an agency's endowment creates the opportunity for donors to leave a lasting legacy of support. A nonprofit organization with an endowment is sending a message to its donors that the organization will be here fulfilling its mission for decades to come.
What is an Endowment?
An endowment is a pool of assets - a portion of which is made available for charitable purposes annually in January. The remaining assets and investment returns are retained in the endowment to provide for growth of the endowment over time. An increasing amount of support will be available from the endowment over time as it grows.
Why Build Endowment with the Community Foundation?
It's our mission! The Community Foundation exists to create a permanent source of community capital benefiting the residents of Riley County in perpetuity. Nonprofit agencies that build endowments with us benefit from distinct advantages:
- Reduced overhead and administrative costs. The Community Foundation handles all gift processing, record keeping, tax reporting, administrative services and audits.
- Professional investment management of the endowment, overseen by our Trustee Investment Committee comprised of local community professionals.
- Expert investment oversight by leveraging existing Community Foundation systems and the "buying power" of our entire endowment investment pool.
- Competitive investment and administrative fees through economies of scale, due to the size and breadth of the Community Foundation
- Public visibility of your organization's endowment through publications such as our Annual Report and social media.
- The ability to provide special recognition for donors who wish to create a named fund for your nonprofit.
- Easy acceptance of all types of gifts including cash, marketable securities, real estate, private business interests, insurance and other complex or non-cash assets.
- Technical assistance with major and planned gifts that benefit the endowment.
- Planned gift options, including charitable gift annuities, which allow donors many selections for supporting endowment funds.
How Endowment Increases Donor Satisfaction
Donors want to see their contributions benefit your nonprofit and grow over time. The Community Foundation helps you and your donors by:
- Our local investment professionals monitoring your accounts.
- Assisting agencies in the marketing of tax and planned gift opportunities.
- Providing support to a donor's professional advisor to facilitate gift planning.
Ongoing Administrative Services Detail
The Community Foundation is responsible for the administration of the endowment - which frees the nonprofit agency from the costs and hassles of gift processing, investment and other record keeping. Here's how it works:
- Annual distributions are available from the endowment to the nonprofit agency at their request. In most cases, these annual grants are for general operating support.
- The distribution is 4% of the fund value as of December 31, determined each January.
- The amount and computation method are reviewed annually and subject to change by the Community Foundation's Board of Trustees.
- The endowment fund receives its share of the investment return of our endowment investment pool which is designed to grow over time.
- Contributions to the fund will support the nonprofit agency in perpetuity - or, in the event the agency ceases to exist or loses its tax exempt status, similar nonprofit agencies. This assures donors to the endowment that the programs they want to support will be supported now and in the future.
- Assets contributed to the endowment become permanent assets of the Community Foundation though their use is dedicated to support the nonprofit agency.
- The Community Foundation collects a total fee of approximately 1.2% annually from the endowment. That covers all administration (1%) and investment (.2%) expenses - an extremely attractive total fee compared to the costs of independently managed endowments. Earnings for endowment funds are posted net of fees.
If you are interested in learning more about the services the Greater Sabetha Community Foundation can offer to your organization, call us at (785) 284-2894 or (785) 285-1765.
The endowment pool is managed with a long-term perspective where principal is preserved and enhanced over time. Total return, consistent with prudent investment management, is the primary goal.
Funds invested in the endowment pool are subject to a spending plan that makes a percentage of the Fund's average market value available for grants each year.
To view our investment policy, click here.
To view our investment performance history, click here.
Nonprofits place their endowment funds with the Community Foundation for a variety of reasons, including investment expertise, efficiency, and access to planned giving advice and services. As is always the case, each nonprofit entity should consult with its own auditors in determining the best solution for its needs.
Managing Your Fund
The Greater Sabetha Community Foundation provides an online service for nonprofit agency partners. They can view fund balances as well as grant and gift transactions, with information updated daily. Click here to log in to Donor Central.
Creating a Fund
How To Get Started
Any 501(c)(3) public charity can establish an endowment fund at the Greater Sabetha Community Foundation in two simple steps:
- Complete a fund agreement with the Community Foundation to establish the endowment. For a consultation, please contact our office at (785) 284-2894 or (785) 285-1765
- Make an initial $10,000 contribution, from your nonprofit agency or from a donor
That's it! Your endowment is ready to receive additional contributions at any time, and in any amount.
For more information and to learn more about how your nonprofit agency can benefit from the support offered by the Greater Sabetha Community Foundation, please contact:
Greater Sabetha Community Foundation
P.O Box 111
Sabetha, KS 66534
(785) 284-2894 or (785) 285-1765