Position your nonprofit for long-term success with an agency fund. Agency funds are a simple and efficient way to build reserves and ensure long-term sustainability for the organization.
45
Agency Funds
24
Local Nonprofits
$7.8+ Million
Invested
Agency funds are investment accounts set up by a nonprofit organization and managed by the Community Foundation of Harrisonburg and Rockingham County. Work with us and benefit from our investment oversight and expertise. Your nonprofit benefits from being a part of a larger, diversified investment pool with access to professional advisors at an affordable cost.
Agency funds are a secure, simple, and strategic way for your nonprofit to invest in its future. Join 24 local organizations with investment funds managed by TCFHR for the following benefits:
Managing investment funds is challenging, potentially costly, and time-consuming. Let us do the work for you, so that you can focus on your mission, which is what you do best.
Joining your funds in the investment pool with other funds belonging to peer nonprofits and philanthropic-oriented donors is a way of showing solidarity and hope for the future.
Funds can be established with a strict spending policy to protect longevity, a spending policy that allows for emergency spending with board approval, or a short-term spending strategy with no maximum expenditure set.
TCFHR has a proven record of competitive investment returns, working under the expert supervision of local, community-based financial professionals.
Your fundholding here can significantly expand development possibilities. We process gifts of publicly traded securities at no cost for agency fundholders.
We can work with you on other complex gifts such as real estate, personal property, retirement assets, life insurance, planned gifts, and private foundation assets
When you have questions, our team is available to support your organization. Our staff includes a Certified Public Accountant.
With an agency endowment, we’ll take care of the endowment management by calculating annual distributions for you.
How do I establish a nonprofit agency fund?
Funds can be established easily and quickly. Our team is available to present to your leadership and board members. TCFHR collaborates with organization representatives throughout the establishment process. Once your board approves establishment of the agency fund at TCFHR, the fund can be named. The nonprofit must also name a person authorized to take distributions from the fund. TCFHR staff will draft a fund agreement. Once the fund agreement letter is signed, the assets can be transferred to a fund.
Is there a required minimum balance?
Our minimum balance is $5,000.
How are funds invested?
Long-term assets consist of:
Short-term assets consist of funds where distribution is planned or is likely within 12 months.
Do disbursements have to be made every year?
No. Your organization decides whether to take annual distributions from endowed funds. Agency funds can be non-endowed or endowed depending on the purpose set by your organization. Non-endowed funds may be withdrawn at any time.
What do the fees cover?
The fees cover all administrative tasks assumed by TCFHR. Tasks include recordkeeping, investment, filing all required reports, monitoring the charitable status of recipients of such grants, and quarterly statements of fund activity.
How do I record an agency fund in our financial statements?
Agency funds and their activity remain reported on your nonprofit’s financial statements under U.S. Generally Accepted Accounting Principles (GAAP).
What are some other benefits to working with TCFHR?
Nonprofits with agency funds at TCFHR may enjoy the increased visibility as part of our larger giving community. An agency fund may enhance the organization’s fundraising prospects: Some donors wish to support charities, but prefer the relative long-term security of TCFHR, particularly if they want to ensure their gifts are endowed forever. Agencies also benefit from our high quality, cost-efficient administration and stewardship services.
What should I do if a donor wants to establish a permanent endowment to benefit my nonprofit?
Your donor can set up a meeting with us and we’ll go over options. One option for prospective fundholder/s with the goal of benefiting a certain nonprofit is to start a fund called a designated endowment. Gifts can be made to these funds by any donor. Naming the endowment after the nonprofit helps TCFHR to more easily promote giving to the fund on its website, to other fundholders, and the public. TCF provides assurances that the endowment is managed for the benefit of the nonprofit in perpetuity, but there are guidelines put in place in the fund agreement in the eventuality that the nonprofit closes. Usually that language stipulates that the endowment should benefit another nonprofit most closely resembling the original intent or purpose of the fund.
