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AGENCY ENDOWED FUNDS

Agency Endowed Fund

An Agency Endowed Fund can be established at CFAAC with a minimum of $25,000. Your organization can add to the endowment at any time. The fund can be named after your organization, in honor of a major donor, or another name that reflects your organization’s mission. 

Your organization’s endowment monies are safeguarded to meet the future needs of the organization. CFAAC will manage your fund, report to the IRS and the State of Maryland, prepare quarterly statements, and distribute income to your organization. The assets in the endowment continue to be recorded on your organization’s balance sheet even though they are legally held and managed by CFAAC. 

Your organization will receive quarterly financial reports on the status of the endowment, including gifts, grants, fees, and investment returns.  You will also have access to the online portal to review the status of your fund at any time.

Why Establish an Agency Endowed Fund at CFAAC?

Permanence

Building a permanent endowment is a critical step in ensuring your nonprofit’s long-term success. An endowment fund at CFAAC will assure your donors that they are contributing to a stable, growing organization, and to a purpose that will endure forever. If your organization should ever cease operations, CFAAC will redirect the income of the endowment to a foundation with a similar purpose.  

Investment Expertise

Agency Funds are invested in CFAAC's Long-Term Growth pool for maximum return with minimum financial risk. Your endowment is pooled with the overall assets of CFAAC, which reduces investment management costs and allows exposure to sophisticated investment vehicles. Over time, your endowment should grow as the result of better-than-average investment results and low management fees. 

 
 

Income

An endowment provides a relatively constant source of income for your organization. Distributions may be made annually according to CFAAC's spending policy. CFAAC's current spending policy rate is 4% for 2018. All income above fees accrues to your endowment. You may elect to save this additional income for future spending or return it to the principal. 

Visibility

Through CFAAC’s promotional efforts, your organization’s endowment will be publicized throughout the community. In addition, your organization will become a CFAAC partner for community fundraising efforts such as Endow Maryland.

The Endow Maryland tax credit applies only to gifts to permanent, endowed funds at qualified Maryland community foundations. These gifts will generate many times the initial value of the gift in benefit of Anne Arundel County forever..

Endow Maryland Tax Credit
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