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Creating a Nonprofit Agency Fund


Non-profit organizations may establish an Agency Fund at the Kitsap Community Foundation (KCF) that will permanently support their organization. Participating in this Agency Fund provides efficient and effective stewardship of an organization's endowment.

  

Benefits of Having an Agency Fund:

Participation in Our Professionally Managed Investment Program — The investment program combines the assets of permanent charitable funds for investment. Each individual fund benefits from the strength of a large pooled portfolio. The result is high quality, diversified investment management with reasonable costs.

Increase Long-Term Viability and Stability — Endowments provide your non-profit organization with a steady income stream to offset operations, fund new and innovative programs, offer tuition assistance and support other mission-critical activities.

Attract Donors — An endowment communicates that your organization will be around for a long time, which offers a further incentive for prospective donors.

Save Time and Resources — Deepen your non-profit's focus on its core mission, as you require less time for administration and management of your endowments. We structure in ways to easily grow and add to your fund.

Build Skills and Contacts — We work with many professionals that can assist your group and your donors in establishing complex gift transactions. We work with your board members and professional advisors to assess goals and develop strategies. We occasionally provide educational opportunities, including endowment-building seminars, grant-writing workshops and wealth-management presentations.


Is an Agency Fund the Right Choice for Your Organization?

The advantages of creating and maintaining an endowment are particularly compelling during periods of economic uncertainty. Every dollar earned from endowment investment is one less that you need to raise.
Is your organization ready for an endowment? Consider some of the key financial and organizational indicators that influence success in our endowment programs.

Leadership — In our experience, non-profits that are able to adapt to changing needs over time gain the most from endowments. Strong and experienced management, successful transitions of leadership, and an active and diverse board are other leading indicators for success.

Financial Responsibility — Groups that enjoy financial stability, fiscal accountability, a broad base of support, and a sound spending policy are able to maximize the benefits of an endowment program.

Fund Development Capacity — To develop successful endowment funds, groups should have sufficient staff and volunteers to carry projects through to completion, as well as the potential to raise matching funds and a strong commitment to long-term fundraising strategies.


Establishing an Agency Fund

To establish an Agency Fund, we ask that you contact KCF's executive director or your organization's legal counsel. A discussion with your board, professional advisors, and or directors and KCF will facilitate review and establishment of an agreement. Upon KCF Board approval, your non-profit organization and KCF will sign a mutually acceptable governing contract, known as a fund agreement, and a separate acknowledgement statement. You will then transfer a minimum of $10,000 to KCF, which we administer under the terms of the fund agreement.

Typically, distributions from Agency Funds are made annually. An endowment partner may elect to reinvest all or part of their annual distribution back into the fund. Reinvested distributions to the fund balance are not available for distribution in future years.

Already have an Agency Fund? For more information and questions regarding your organization's fund, please contact Kol Medina, President & CEO of KCF by email at   or phone 360.698.3622.
 

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