Agency Fund Management
Jefferson Community Foundation’s two kinds of Agency Funds — Endowment Funds and Stewardship Funds — offer nonprofits a simple and efficient way to invest their assets.
Agency Funds benefit from investment into a $160 million pool held at Greater Tacoma Community Foundation. Being part of this larger pool gives an Agency Fund the benefit of a diverse investment strategy, strong oversight, and low investment fees that typically come only with very large funds. Unlike investing via a major national corporation like Schwab or Fidelity, the fees paid to JCF work to strengthen local nonprofit support services like workshops, trainings, etc.
Agency Stewardship Funds allow an organization to withdraw money at any time upon a majority vote of their Board of Directors. These funds can be held in a long-term, short-term, or socially responsible investment pool and all or part of the fund can be requested at any time.
Agency Endowment Funds are held permanently at JCF and are invested in the long-term investment pool. They grow over time to ensure a lasting source of income for the agency. These are appropriate for
organizations that (a) are confident in their ability to cover their annual operating budget without withdrawing the Endowment’s principal; (b) seek to ensure their viability into the long-term future; and (c) have a significant base of major donors who would be willing to contribute to an endowment through additional gifts or estate plans.
How Does It Work?
- The agency’s board determines how much they would like to place in the fund and chooses the type of fund.
- JCF sets up the fund in the name of the nonprofit which has online access to quarterly fund statements.
- The fund is placed in one or more of JCF’s investment pools. All gains and losses are credited to the Agency Fund.
- The Agency may add to the fund at any time.
- JCF handles investment management and administrative responsibilities so the agency’s staff and board can concentrate on fulfilling the organization’s mission.