Establishing an Agency Fund
Rely on our financial expertise and purchasing power for investment of your endowment, operating reserves or designated fund. Join our community network of donors, fund advisors and nonprofit agencies, by establishing a nonprofit fund.
- Professional oversight and investment management under the supervision of the Area Foundation’s Investment Committee and local experts familiar with modern portfolio theory and knowledge of the South Texas community
- Investment purchasing power - funds are pooled with other Area Foundation assets to lower investment expenses. Each fund accrues its own share of the earnings and is accounted for separately by the Foundation.
- Investment reviews and economic perspectives - including on-site presentations and question-and-answer sessions, timely analysis of historic performance and forward-looking strategies.
- Planned giving - The Area Foundation’s planned giving staff can provide expertise, administer gifts and assist potential donors and their advisors on technical gift planning issues.
- Acceptance of diverse assets for designated funds - The Area Foundation can receive unique gifts (assets like privately held stock, mutual fund shares and real estate) that may be highly tax advantageous to donors but difficult for nonprofits to own or process. Proceeds from liquidation of these assets can be added to the agency’s fund, invested or distributed to the agency according to the donor’s stated purpose.
Types of funds for nonprofit agencies
Nonprofits can establish an investment fund with the Area Foundation to take advantage of our expertise and purchasing power while maintaining control over their assets. We offer a variety of balanced and diversified investment pools. Nonprofits choose the option that best meets their financial goals.
While competitive grants may be crucial to your organization’s operations, they are likely your least reliable source of revenue. An agency endowment fund can generate a predictable stream of income for your mission while the rest of your investment grows in perpetuity – so you can do good forever. Agency endowments may be established by a nonprofit or a donor(s) on behalf of the nonprofit. The funds contributed become assets that are controlled by the Area Foundation for the purpose specified in the fund agreement by the agency or donor(s).
A nonprofit or donor(s) may establish a designated fund with the Area Foundation that stipulates the amount and frequency of distributions to be made to the nonprofit. The fund agreement may designate that distributions will be used for general operations, specific programs or capital/maintenance projects. All funds contributed to a designated fund become assets of the Area Foundation for the benefit of the agency and for the purpose specified in the fund agreement.