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FAQs about Nonprofit Endowment
Funds
What is a Nonprofit Endowment Fund?
A nonprofit endowment fund is a permanent source of income for
your agency that provides stability through economic ups and downs.
It gives donors the opportunity to provide for the future needs of
your agency.
What are the advantages of having a Nonprofit
Endowment Fund at the Delaware Community Foundation?
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Increased visibility
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As part of the DCF family of funds, your
agency's endowment is listed in the annual report and other
publications.
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Your fund will be in an excellent position to
receive additional gifts from your donor base, as well as from
other donors in the community.
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The DCF has a strong reputation in the major
donor and estate planning communities, as well as with other
local gift facilitators.
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Investment expertise
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Your agency can put its time into pursuing its
mission, secure in the knowledge that your donors’ gifts are
under the stewardship of the DCF.
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Our professional investment committee draws on
the same energies and talents that guide the billion-dollar
investment portfolios of some of America's largest corporations.
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Your agency gains the benefit of being part of a
portfolio valued at close to $230 million.
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Your fund will be included in the Foundation’s
annual independent audit.
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Planned Giving Support
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The DCF's professional gift planning staff will
help your donors structure current and deferred gifts to your
endowment.
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Your donors will be presented with a wide range
of gift options and, if needed, will be referred to professional
advisors for additional advice.
What is planned giving?
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Planned gifts are made from assets other than cash
and enable donors to maximize charitable support, reduce tax
burdens, and often receive income for life.
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The most common type of planned gift is the
charitable bequest.
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Other forms include life income gifts such as
charitable gift annuities, pooled income fund gifts, and
charitable remainder trusts.
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By establishing an endowment and marketing planned
giving, your agency can involve donors who may not make large
lifetime gifts, but who can make deferred gifts.
How is the income from a Nonprofit Endowed Fund
distributed?
Once a year, the DCF and the agency agree on a
percentage of funds to be distributed during the remaining year,
typically ranging from 5% to 7%. These guidelines ensure your agency
the greatest long-term benefit.
What if my organization needs the funds held by
DCF?
When you create a fund, you are making an
irrevocable gift to the DCF, and we retain ultimate control over all
of the assets entrusted to our care If your agency needs to spend
principal from its endowment, we require your Board to authorize the
request. The DCF’s Board will review any restrictions made on
contributions to the fund before distributing principal.
What are the DCF fees?
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The DCF assesses an administration fee based on
the asset size of the fund.
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For assets up to $500,000 1.00%
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For the next $500,000 .75%
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For assets over $1,000,000 .50%
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For assets over $2,500,000 .25%
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Investment management fees are passed through to
each fund at our cost, which generally ranges between 0.50% -
0.65% annually.
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Every effort is made to keep both our costs and
fees to a minimum while offering a unique philanthropic service to
the community.
What action is required to establish a fund?
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Call Mary Hopkins, Esq., Vice President for Gift
Planning, at 302/504-5224 or
mhopkins@delcf.org.
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Complete a simple standard agreement for nonprofit
endowment funds and have the Chairman of your Board of Directors
or Executive Director sign the agreement.
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Your agency has two years to meet our minimum fund
size of $10,000.
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