The Role of the Community Foundation

Only the Community Foundation can ensure that all of these things will happen, and that the money has been driected by your donors for the long-term enefit of your organization will continue to serve that purpose.

Because the money that you entrust with CCCF essentially belongs to the Community Foundation on your behalf, future boards will not be able to tap into the principal of your endowed fund.  The endowment will also be safe from any legal claims that could be made against your organization.

Funds placed with the Community Foundation are invested for maximum return with minimum financial risk.  Over time your endowment should grow as the result of better-than-average investment results - CCCF funds have enjoyed an average of 15% annual growth during the past five years. (Prior investment result is no guarantee of future performance.)

High investment return will enable the Community Foundation to distribute more each year to your agency - typically, 5% of the average annual assets. Or, you may leave funds with the Foundation to grow over time - there is no required annual distribution for community foundation funds.

The purpose of your endowment - such as for operations, scholarship or specific programs - will be clearly spelled out in the intial documents that are drafted at your direction.  once again, because your endowment is protected by the Community Foundation, future boards maynot change the purpose for which the endowment is created.

Assistance with Donors

Your endowment will become an attractive bequest vehicle for individuals who care about your organizationm but want to make certain gifts will be used as the specify. CCCF can provide that reassurance, plus help you make presentations to key prospects.

The Community Foundation also allows your donors to realize the full deductible valule for gifts of appreciated stock and property, and they receive the maximum value permitted for gifts of cash.  CCCF can also handle more complex gift arrangements on your behalf.

Should your prospects have certain restrictions they wish to apply to their gifts, or want to divide their gifts among more than one charitable cause, the Community Foundation can see that their wishes are met.  The Foundation can also manage gifts as separate"named funds", or as scholarships or memorial tributes.

Cost and Organization

There is no cost to establish a non-profit endowment, and the foundation's annual fee to manage your fund is just 1% of the annual asset value.  You can assign advisers (such as your current board) to oversee the continued purpose of the endowment fund; or the board of directors of the Community Foundation can serve in that capacity.

Should your agency or service club ever cease to exist, or change its funtion, the board of the Communty Foundation will ensure that the priginal purpose(s) to which this endowed fund was directed - as well as any terms of individual donors' gifts - will continue to be honored.

Of course, your endowment will be prominently referenced in all of the Community Foundation's annual reports and materials.  Youo will be invitied to our annual development conference, have access to various development tools and programs, as well as be able to reserve the historic Lincoln Building in West Chester for related development meetingd and events.

Our new "Endowment Development Program" gives you cost-effective access to a professional development specialist, who can work with your staff and board to create a succesfull, long-terem planned giving program.

The Community Foundation is the only charitable vehicle that providees this sort of cost-effective service, control, and flexibility.  We presently manage over 40 permanent endowment funds for Chester County non-profit organizations, representing $2.5 million in assets.  We look forward to serving your agency as well.

Getting Started

If your organization has not yet startted an endowment, creating one could be the most important thing that you your board can undertake.  There are four four things in particular that directors should be alert to:

Protect the principal from possible invasion by future boards or staff

Help the fund increase in value through wise investment decisions.

Make certain that distributions from the fund will always be used as intended.

Promote your endowment by making it a key part of agency development efforts.