Investment Pools
The Community Foundation’s investment pools are managed by our Investment and Finance Committee.
Each pool has a different target allocation, intended to meet the unique cash flow needs of the Funds within the pool:
Long-Term Pool – All endowed funds. Equities 62% Fixed Income 25% Real Estate 5%, Impact Investments 5%, Cash Equivalents 3%
Socially Screened Long-Term Pool – All endowed funds. Socially-Screened Equities 62% Fixed Income 25% Real Estate 5%, Impact Investments 5%, Cash Equivalents 3%
Mid-Term Pool – Non-Endowed Funds, intended to be disbursed over several years. Equities 25% Fixed Income 65% Real Estate 5% Cash Equivalents 5%
Short-Term Pool – Non-Endowed Funds, intended to be disbursed within one year, or if distribution plans are unknown. Cash Equivalents 100%
The Board has directed our Investment and Finance Committee to limit investments to no-load mutual funds, cash, and other cash equivalents. At current asset levels, this approach is seen as the most cost effective and prudent. The Investment and Finance Committee has selected index-type mutual funds that meet the investment objective of each pool.
Administrative Fees
Nominal annual fees help fuel our community work and cover normal administrative costs to manage investments. Additional fees may be assessed for required outside consulting, legal work, or the processing of large numbers of gifts or disbursements. Expense ratios associated with our investments are less than 0.3% at present. We do not provide financial benefits of any sort to third-party participants in the gift planning process. Currently, we do not charge a separate investment management fee.
Endowed Funds Fee Structure
Endowed funds will be charged an administrative service fee on the following progressive scale:
1.50% on the first $499,999.99 of fund assets
1.00% on fund amounts between $500,000 to $999,999.99
0.75% on fund amounts between $1 million and $4,999,999.99
0.50% on fund amounts above $5 million
The fee schedule will be applied to the total dollar amount in multiple endowed funds contributed by a single donor.
For example, a single donor maintains three endowed funds as follows:
Endowed Fund #1: $ 400,000.00
Endowed Fund #2: $ 300,000.00
Endowed Fund #3 $1,700,000.00
Total Single Donor Endowed Funds $2,400,000.00
Fee Calculation: (1.5% X $499,999.99) + (1.0% X $499,999.99) + (0.75% X $1,400,000.00) = $23,000.00 (Or an average fee of 0.9583%)
Endowed Fund Fee Assessment
Fees will be assessed monthly, based on the fund balance on the last day of each month. The fee assessed will be one-twelfth of the appropriate annual fee rate.
Non-Endowed Fund Fee Structure
Non-endowed funds will be charged an administrative service fee on the following progressive scale:
2.00% on the first $499,999.99 of fund assets
1.50% on fund amounts between $500,000 to $999,999.99
1.25% on fund amounts between $1 million and $4,999,999.99
1.00% on fund amounts above $5 million
For example, a single donor maintains three non-endowed funds as follows:
Non-Endowed Fund #1: $ 400,000.00
Non-Endowed Fund #2: $ 300,000.00
Non-Endowed Fund #3 $1,700,000.00
Total Single Donor Non-Endowed Funds $2,400,000.00
Fee Calculation: (2% X $499,999.99) + (1.5% X $499,999.99) + (1.25% X $1,400,000.00) = $35,000.00 (Or an average fee of 1.4583%)
Non-Endowed Fund Fee Assessment
Fees will be assessed monthly, based on the fund balance on the last day of each month. The fee assessed will be one-twelfth of the appropriate annual fee rate. In addition, the full annual fee will be levied on any new gifts received during each month at the end of the month.
“It was a privilege working with the Community Foundation on the Ferndale Library project. Not only did they bring financial resources and philanthropic expertise to the table—they also came with the creativity and collaborative spirit that are essential to the success of complex community projects like our library.”
—NORINE AMEND Chair, Friends of the Ferndale Library
