Agency Funds Provide a Stable Base for Nonprofit Organizations

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By: Jennifer Fox

Our community is a better place because of our nonprofit organizations. Whether they provide basic needs for our most vulnerable, help us be healthier through activities, or develop arts and culture for the community, we are better because of their work.

But, that work is not easy. A typical nonprofit employee wears many hats, including day-to-day operations, special projects and programs, HR, and marketing. But without the proper funds, none of this work would be possible, and our community could not be served.

This is why support for our nonprofits through endowment funds at the Foundation is vital to the continuation of services benefiting our community. And while this is commonly accomplished through generous donors, like you, creating endowment funds that benefit the nonprofit directly, sometimes nonprofits can invest in themselves for their future needs.

A nonprofit organization can establish a permanent endowment to provide a stable source of income, now and forever, by creating an Agency Fund. These dollars are invested along with the rest of the endowment funds held by the Community Foundation, and each year the nonprofit receives a payout to help it provide services.

Though building an endowment requires dedication, it alleviates pressure to raise operating dollars and serves as a base to help with the ups and downs of economic business cycles. That is a smart investment for important work.

Agency funds provide stability, control, and longevity for organizations doing great work. Beyond the obvious benefits, agency funds also serve as an example to the community that the organization has achieved financial stability and intends to carry on its mission for generations to come.