Not-for-Profit Agency Endowments

On April 17th, 2014, Anstiss & Co.’s Director of Not-for-Profit Services, Jayne A. Andrews, CPA, gave a presentation entitled “Agency Endowments: What They Are and How They Work” at the Greater Lowell Community Foundation.

An Agency Endowment Fund is established by a not-for-profit organization for the benefit of the organization to provide an ongoing source of income for operations and programs.  A community foundation controls the funds and makes annual distributions to the not-for-profit organization based the foundation’s spending policy.  There are multiple reasons to create an agency endowment fund, including:

  • The organization lacks the resources to manage/invest its own endowment
  • A donor to the organization restricts the funds for use in an endowment
  • Community foundations achieve economies of scale by pooling investments
  • It provides a reliable source of revenues and organizational stability in perpetuity
  • To ensure the revenue stream is used for a specific purpose

For more information on agency endowments, contact Jayne Andrews.

contact us