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Question and Answer

Can non-profits establish funds too?

Published Tuesday, July 21, 2015 8:30 am by Kevin Sheward

Last Friday we solicited for your questions as part of a "Fan Question Friday" and we have had some great responses! Of course, your questions don't have to wait until another "Fan Question Friday", feel free to send us questions anytime. We are more than happy to answer them!

The first question we are going to answer is this:

"How would a not for profit go about establishing a fund at the MCCF to further their objectives?"

 

Great Question! 

Before we answer the "how", we want to affirm the "can". 

YES! Establishing funds at the Foundation is not just for individuals. Businesses (for charitable purposes) and non-profits can establish funds at the Foundation. We have many funds established by non-profits that support their current and future work. The benefits to establishing a fund are numerous, which will be covered in the second part of the question: how do you establish a fund?

The first step for a non-profit to establish a fund at the Foundation is to determine the goal: 

-Are you wanting to build funds for the future?

-Are you wanting to meet current needs?

There are two types of funds non-profits can establish to help them further their mission. 

AGENCY ENDOWMENT FUND
- Principle is protected, while the earnings are used to support the needs of organization now and in the future.
- Pooled with other Foundation funds and invested by a professional team of investment managers. This leads to maximized returns and lower fees.
- Can accept non-cash gifts (stocks, real estate, life insurance etc.)
- The permanence of an endowed fund assures potential donors that their gifts will have long term impact. 
- Increased Awareness in the community

 

Agency Advised Non-permanent Fund
- The principle and earnings are available to be spent for the work of the non-profit.
- Pooled with other Foundation funds and invested by a professional team of investment managers. This leads to maximized returns and lower fees.
- Can accept non-cash gifts (stocks, real estate, life insurance etc.)
-Non-permanent funds can be used during capital campaigns or for operating purposes, giving the non-profit flexibility to meet current needs while also generating maximum investment results. 
- Increased Awareness in the community

 

Establishing one, or both, of these funds at the Foundation is a fairly easy process that starts by giving us a call (765-644-0002) or sending us an email (info@madisonccf.org). From there we will schedule a meeting with the appropriate representative(s) of the organization to talk over the needs of the organization and the desired outcomes. Once we have established that the options available from the Foundation are right for the organization, and that the organization's mission fits within our broader purpose, appropriate paperwork will be drawn up and funds can be established. 

If you are part of a non-profit organization considering your financial options, the Foundation could be just the place you need. Give us a call or send us an email and we would be happy to share more information with you, answer any questions, and discuss your options! 

 

Thank you to our special fan who submitted this question, we appreciate your participation!

-Your Madison County Community Foundation

 

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