Nonprofit Agency Funds

When you establish an agency fund at the Community Foundation it ensures your nonprofit receives a return on its cash reserves, while creating a permanent stream of revenue for your agency.

Fund Options

Your nonprofit has the option to choose either an endowed or non-endowed fund.

Non-endowed funds—called agency flex funds—can be used when and how you see fit. They remain safe and secure, until you need them, under our stewardship.

Agency endowment funds are permanent investments, which we invest in the market and manage on behalf of your organization. The distribution of funds are made from the earnings, without touching the original contribution—or principal.

Community Foundation Santa Cruz County can help nonprofits set up agency funds
The Community Foundation helped us.

Agency endowment funds give your nonprofit an opportunity to safeguard your original investment, while building a stable funding stream for the future.

Agency Endowment Funds will

  • Protect your organization’s endowed monies for future needs.
  • Provide annual income, depending on market performance.
  • Demonstrate to your donors a commitment to long-range financial planning.
  • Provide a way for donors to give complex gifts such as stocks, life insurance or property.
  • Increase investment yield, as your endowment is pooled with our other funds to provide maximum return and lower fees.

Our professional staff can provide your nonprofit with a comprehensive package of resources on planned giving to assist with building your endowment fund and illustrations of how it can grow.

How it works

  • Your board determines how much you would like to invest long term.
  • Funds can be established with a minimum gift of $25,000.
  • Your organization works with our professional staff to complete a fund agreement.
  • We set up a fund in the name of your nonprofit organization.
  • The fund remains as an asset on your nonprofit's books.
  • Your organization has 24/7 online access to financial statements.
  • You and your donors can add to the fund at any time.
  • We handle all the administrative details including expert investment management.
  • Earnings from your fund are distributed as grants to your organization annually; supporting your nonprofit’s programs and services forever.
  • Sample agency endowment fund agreement [PDF 125 KB].

Agency Endowment Funds at the Community Foundation

California Grey Bears have an agency flex fund at Community Foundation Santa Cruz County
Our agency flex fund allows us to build for the future or meet current needs as we need to,” said Grey Bear’s Executive Director Tim Bratton.

An agency flex fund is a non-endowed fund, meaning both the principal and the earnings are available for use by your agency. This makes it ideal for operating or building capital reserves.

Agency Flex Funds will

  • Allow your nonprofit full access to the balance of the original gift and all future earnings from the gift.
  • Provide your organization with investment expertise and secure returns.
  • Provide you a way to accumulate funds for a capital campaign or simply as a way to receive a better return on a cash reserve.
  • Provide you a way for donors to give complex gifts such as stocks, life insurance, or property to benefit your organization.
  • Increase your investment yield, as agency funds are pooled with our other funds to provide maximum return and lower fees.

How it works

  • Your board determines how much you would like to invest.
  •  Funds can be established with a minimum gift of $25,000.
  • Your organization works with our professional staff to complete a fund agreement.
  • We set up a fund in the name of your nonprofit organization.
  • The fund remains as an asset on your nonprofit’s books.
  • Your organization has 24 hour online access to your financial statements.
  • You and your donors can add to the fund at any time.
  • We handle all the administrative details including expert investment management.
  • Your organization may advise grants from the fund in any amount at any time to itself, or other nonprofits, if desired.
  • You may direct us to treat the fund as an endowment, subject to the Foundation’s spending policy, yet still retain your access to all the funds at any time.
  • Sample agency flex fund agreement [PDF 125 KB]

Agency Flex Funds at the Community Foundation