Ongoing support for operations
If you work in the nonprofit field, you likely have a basic understanding of the benefits of an endowment. An endowed fund provides a permanent source of funding for operations and programs in addition to your typical mix of donations, grants, and earned income. It could offer a cushion for years when fundraising doesn’t go as well as you hoped. Or, it might fill in the gaps if circumstances outside your control limit your capacity to offer programs that normally generate revenue. Endowment funds generate income through all economic climates, offering stability during times of economic uncertainty.
Every dollar earned by your endowment is one less dollar you need to raise from grants and donations. It’s also one less dollar that comes with restrictions attached. Endowment earnings can be applied to your most urgent needs. Or, they can be re-invested in years you don’t tap your endowment to build your earnings over time.
Put your money to work supporting your mission
Starting up an endowment at a small or medium-sized nonprofit might seem intimidating. You may not know how much you need to get it off the ground. You may be unsure of the best tools for managing your investment. You may be unsure of the accounting implications and whether you have the capacity on your staff to meet all the requirements.
That’s where CFGV comes in. If you start an agency endowment with us, we pool your endowed dollars with those of other funds, reducing the investment management fees. We also provide oversight from our experienced investment committee, saving your staff and board members time and empowering you to focus on enhancing your programs and delivering on your mission. Endowment funds, often referred to as “agency funds,” have special IRS rules and accounting standards. As part of our administration of your agency fund, we help you remain in compliance. To help offset those administrative costs, CFGV charges a very small fee for establishing and maintaining agency endowment funds.
If you’d like to speak with someone from CFGV about starting an agency endowment to support your nonprofit’s work in the Gunnison Valley, please give us a call at 970-641-8837 or reach out via our contact form.
Current Agency Funds Held by CFGV
We are honored to partner with the Gunnison Valley organizations listed below on their endowments. If you wish to make a gift to support one of these organizations, click through to their website. If you’re not sure how to designate your gift for their endowment, please contact the organization directly for assistance.
Paradise Place School Endowment
Nurturing young minds in Crested Butte
Simplified Summary
What is an Endowment and Why Should Nonprofits Care?
An endowment is like a special savings account for nonprofits that helps them have steady money, even when donations are low. Think of it as a financial safety net that:
- Provides money during tough times
- Helps organizations worry less about fundraising
- Gives flexibility to spend money where it’s most needed
The Big Deal About Endowments:
Imagine having money that keeps working for your nonprofit, no matter what’s happening in the economy. Every dollar from an endowment means one less dollar you have to ask someone to donate.
The Problem Many Small Nonprofits Face:
Starting an endowment can seem super complicated. It’s like trying to solve a puzzle with lots of tricky pieces – how much money do you need? How do you manage it? What about all the complicated rules?
How CFGV Helps:
The Community Foundation of the Gunnison Valley makes this easier by:
- Combining money from different groups to save on fees
- Providing experts who know how to handle investments
- Helping nonprofits follow all the important financial rules
- Charging only a tiny fee for their help
Want to learn more? Nonprofits can call CFGV at 970-641-8837 to get started.