Once we set up a fund, can the agency draw from it in case of emergencies?

What you are describing is an "emergency fund", not an endowment.  The entire concept of an endowment is based upon never depleting the principal.  If you anticipate future emergencies, you may want to create both types of funds.  Furthermore, it would be misleading to donors to ask for donations to an endowment, then invade the principal.

What happens if the Community Foundation goes out of business?

That rarely, if ever, happens to community foundations, but should it occur, you would have the right to transfer the assets to any other community foundation, most of which have endowment management services, or to another public charity.

Are there any restrictions as to how distributions from our endowment can be used?

Not so long as the use is for charitable purpose.  For example, annual distributions to support your non-profit agency's operations would qualify, as would support for the programs it provides.  Grants made for scholarships and for re-granting purposes, as long as the selection processes are fair, would also be appropriate.  In order to meet IRS regulations, CCCF must be made aware of, and hold final approval for all fund distributions.

Can we tell you where our fund should be invested?

The Community foundation uses SEI Corporation as the primary manager of its endowed funds.  CCCF has also approved several other investment managers and funds, from which to choose, including a "sin-free" fund.

How do you support agencies that have endowments with CCCF?

CCCF is happy to provide technical support to help grow your endowment, let you host fundraisers and development meetings at the Lincoln Building, and will review your proposals for "fundability".  The Community Foundation can host meetings with key prospects for you, make referrals to estate planning professionals, and cosubmit with you for grants from external funders.  CCCF also sponsors an annual development conference for endowed agencies.

How often do you report on the status of endowed funds?

Reports are issued quarterly.  They detail contributions made, fees charged, interest and dividends earned, and any distributions that have been made. Distributions typically occur in the period following 6/30 report, and represent 5% of the average annual asset value of your fund.

Won't funders think we are "rich" if we have an endowment, and therefore be less willing to give us grants?

Just the opposite.  Funders tend to think more highly of organizations that have created endowments; they have more faith in the agency's long-term potential because it has a guaranteed stream of income.  Also, with more and more requests, funders appreciate the efforts of agencies to become at least partially self-sufficient

Will individual donors consider us more seriously for bequests if we have an endowment?

That depends upon how well you promote and communicate its existence. Calling it a "Legacy Fund", for example, creating a separate brochure, and referencing the fund regularly in your agency newsletter, will help generate donor interest.  CCCF staff are also available to meet with key bequest prospects on your behalf and can make professional referrals for consulting and estate planning help where needed.