Many people think of donations as a one-time lump sum of money given to a charity. But donations can also be set up so that donated money has the power to give year-after-year. This perpetual giving is called an endowment fund, and is a popular choice for many donors in our communities. Endowment funds can be set up in many different ways. One specific type of endowment fund is called an agency fund.
How an agency fund works
For all endowment funds, a donor works with the Community Foundation to invest a sum of money. This investment is managed by the Community Foundation, and every year, in perpetuity, earnings from that investment are given to one or several charities.
Agency funds are a special type of endowment fund that are usually established by a registered charity. When the charity creates an agency fund with the Community Foundation it means that all earnings from that fund will be paid out to the charity that created the fund.
For charities, one of the benefits of agency funds is that they can start a planned giving program, talking to members and supporters about making a gift to the endowment fund to support the long term sustainability of the charity.
For donors, agency funds provide another giving option that also offers the donor confidence that a gift to the charity will be managed professionally and will be available top support the charity in perpetuity. The power of donors coming together to support a charity’s long-term sustainability change the viability of a charity!
To browse our agency endowment funds, please visit our Funds page.
If you are thinking of creating your own fund, please contact us. We’d love to offer advice or assistance. Aaron McRann: firstname.lastname@example.org or phone 250-488-0036.