A nonprofit can create an agency fund with the Foundation to support its operations and programs. The nonprofit gains a professionally managed endowment, enabling the nonprofit to focus on serving its constituents. More than 70 charitable organizations in Worcester County have established funds with the Foundation.
Are you ready for endowment?
Does your organization enjoy overall fiscal stability? Can you meet current operating expenses with reserves adequate for emergencies? If so, your organization may be in a position to consider raising money for an endowment. The addition of an endowment to your financial structure suggests that you are preparing for the future.
The commonly accepted meaning of endowment is a fund that is kept in perpetuity to provide income and earnings for a charitable cause or institution. An endowment is a corpus of money that the organization has decided to set aside and not invade.
"Gifts from generous donors have enabled us to create this endowment and build a sustainable future not dependent on year-to-year fundraising. With our Foundation agency fund, we can invest in socially responsible funds and accept such gifts as stocks and bequests. We have an ideal partner in the Foundation, which has supported our work with grants from the start." - Kaska Yawo, Founding Executive Director of African Community Education (ACE)
How Greater Worcester Community Foundation Can Help
Once you’ve decided to create an endowment, questions emerge. How will these funds be managed? What assurances will you give donors about perpetual stewardship? What is your investment strategy?
One solution is to establish an Agency Fund at the Foundation. We offer flexibility to organizations as they build endowments reserves. An Agency Fund lets you:
- Invest in the market with professional management and a disciplined strategy.
- Benefit from the Foundation’s ability to manage all types of gifts, current and deferred.
- Ensure donors that gifts will be used as intended, in perpetuity. You may name a suitable replacement beneficiary, to be used in case of dissolution.
- Increase public recognition for your agency, as your Fund is listed in the Foundation’s
Annual Report and other publications as an option for donors.
How it works
- Agency transfers a gift of $10,000 or more to create an Agency Fund.
- Foundation invests the Agency Fund within its investment portfolio, crediting the Fund with its share of income and market appreciation.
- Foundation accepts and acknowledges any gifts made to the Fund.
- When money is needed, the Agency requests a distribution.
Contact Kelly Stimson
Vice President of Philanthropic Services
508-755-0980 ext 112
Contact Jacob Vazquez
Want to Share this Information?
Check out a sample Fund Agreement
African Community Education Program Fund
One of the country's largest African-born communities resides in Worcester, home to nearly 20,000 refugees and immigrants from Africa. Since 2006, African Community Education (ACE) has assisted thousands of these families in achieving educational success and socio-economic stability. Through its partnerships with the Worcester Public Schools and resettlement agencies, ACE provides children and families with wraparound services, from early literacy playgroups, after-school mentoring, and workforce development to English and citizenship classes.