nonprofits

Agency Funds

Establish a consistent stream of revenue

As part of TFEC’s mission, we aim “to stimulate philanthropy and enhance the quality of life in the community through accumulating, managing, and disbursing financial assets.” We achieve that mission by helping nonprofit organizations build a permanent endowment fund that supports their agencies’ missions in perpetuity.

The process of building a successful agency fund requires commitment, over many years, from the entire nonprofit organization. The temptation to spend contributions for current operations is strong. This requires steadfast dedication to the principle of investing for the future. When an organization’s endowment fund is established and growing, the benefits of this commitment will be apparent. Income earned from the fund can be reinvested for compound growth or can provide a predictable income stream. Fund income lessens the pressure to raise current operating dollars and helps to smooth the ups and downs of economic business cycles. Additionally, an agency fund sends a positive message to donors: the organization has achieved a key measure of financial stability and intends to carry out its mission for generations to come.

TFEC currently manages more than 150 Agency Funds for nonprofit organizations. Your organization can benefit in the following ways:

• Stability and Responsibility: A fund at TFEC shows donors that your organization is serious about its long-term financial stability. We have a reputation for accounting excellence, and we can provide single-fund reporting.
• Prudent Investment Management: TFEC maintains top-ranking investment performance by maximizing long-term returns and negotiating lower fees. Agency funds also generate a relatively stable income stream due to TFEC’s judicious spending policies.
• Major and Planned Giving Expertise: TFEC’s professional staff is experienced in helping donors achieve their goals through a major or planned gift. We can assist your agency as you work with your donors.
• Assistance with Gift Transactions: TFEC can assist your donors and advisors to execute complex transactions and deferred planned giving, including gifts made with appreciated securities (such as closely-held business stock), tangible personal property, real estate, gifts that provide donors with lifetime incomes (such as Charitable – Remainder Unitrusts), and gifts from bequests.
• Marketing Support: TFEC can assist with efforts to market your agency fund by ghostwriting, guest authoring, or editing articles for newsletters, brochures, websites, and direct mail letters.
• Free Access to Counsel: TFEC’s attorney is available to provide assistance in structuring complex gift plans. In most cases, there is no cost to the donor or the organization.
• Gift Acknowledgement: TFEC ensures the all of the agency’s fund donors are promptly and properly acknowledged for their gifts.
• Increased Visibility: TFEC includes the fund in its annual report and on its website. Organizations can create links to their fund on TFEC’s website and enable donors to make direct gifts through our website.

 Agency Funds FAQs