Image: dam releasing water.
Best for - Established Nonprofit organizations that want:
- Access to their operational reserves yet retain the ability to place them at market risk to potentially provide a rate of return *Past returns are no guarantee of future performance;
- To invest a gift from a donor that is intended to protect the principal and provide financial support for the long term.
The assets of an Agency Fund reside on the accounting books of the agency/organization that opens the Fund, and the Fund is listed as a liability on the accounting books of CTCF.
Only the agency/organization that establishes this Fund will transfer/make contributions to it, individual donors will not.
How can my organization establish an Agency Fund?
You will need to fill out the “Fund Agreement” which includes choosing a unique name for your Fund. The Fund Agreement outlines the parameters of your Fund, and areas such as the following are addressed:
- Who will be the 2 primary advisors for the Fund?
- Are there any restrictions on how or when the Fund can be accessed (for operational expenses or not, only to support particular programs, after a certain timeframe, etc.)?
- Does your organization want the Fund to be invested?
- Administrative costs to open and maintain the Fund.
To review a copy of the Fund Agreement or for more information, call or email Julie Johnson at (512) 863-4186 or firstname.lastname@example.org.