Agency funds are ideal for nonprofit organizations interested in a simple and effective way to build an endowment. You can focus on your core mission, while we provide the professional investment expertise and complex gift acceptance to help grow your endowment.
The Foundation holds the assets of a nonprofit organization and distributes a fixed percentage – typically 5% – each year. Additionally, agency funds assist in creating long-term financial sustainability for the nonprofit through gift planning and endowment building.
Features of agency funds:
- Permanent funds – the organization cannot take the money back
- Invested in the Foundation’s investment pool
- Distributions are made once a year, and if the organization decides not to receive the disbursement, the money is put back into the fund and reinvested.
Reasons to have an agency fund at Atlanta Jewish Foundation:
- Gatekeeper – The fund ensures that endowment-type funds function as true endowments.
- Complex gift acceptance – A non-cash gift, such as a piece of property, can be a welcome contribution for a nonprofit organization. But a small nonprofit organization might not be equipped to accept such a gift. We can help.
- Protection – The nonprofit’s board cannot invade the principal during difficult economic times, except in rare circumstances.