Build Your Endowment
We work closely with our nonprofit partners to help them grow their endowments and generate a reliable revenue stream.
Benefits of Endowment Partnership
Dozens of area nonprofits partner with our foundation on their Agency Endowments because it enables them to:
- Realize the security of placing their financial assets with investment professionals who have secured and grown endowment funds for more than 30 years;
- Take advantage of Our Investment Strategies, which consist of a proven, diversified, asset-allocation approach;
- Obtain lower investment expenses than they could typically receive on their own; and
- Produce a predictable, perpetual revenue stream that supports their operations and programs.
More than 50 nonprofits have established Agency Endowments with us to date, including the United Way of Southeastern Connecticut, Safe Futures, the town of Pomfret and the Children’s Museum of Southeastern Connecticut. View the complete list of our nonprofit endowment partners
The pool of Agency Endowments under our stewardship is currently valued at over $3 million. Each agency’s funds are invested as part of our overall investment pool, but tracked as distinct, separate funds. We distribute a portion of the funds back to our agency partners every year, according to a pre-determined spending formula that is carefully calculated to allow the funds to grow, while providing a reliable income stream.
The Fine Print
We ensure that all nonprofits who establish an Agency Endowment fund with us are aware of the following:
- Your endowment’s assets technically become the property of our foundation – as required by IRS regulations – in order that we can maintain our status as a public charity. However, the agreement establishing your endowment fund will clearly state that we can only use the funds for the purposes specified in our fund agreement with you – that is, for the benefit of your agency or its successors. Read more about Our Financial Accountability
- Placing these assets with us may protect them from liability and litigation. Placing them with us can also help nonprofits avoid the temptation of overspending from their endowments to meet short-term needs.
- The annual investment fee for Agency Endowment funds currently averages 0.77 percent. We also charge an annual administrative fee of 1 percent of the fund’s balance to help cover the costs of investment oversight and fund management. These fees enable us to serve all our donors and partners efficiently and cost effectively. Read more about Our Fees
- We provide a number of accounting and record-keeping services as part of our financial oversight of Agency Endowments, including issuing the annual financial statements on your funds, processing new gifts and sending IRS gift-acknowledgement letters.
- We can also accept, process and manage a wide array of gifts for your fund, including appreciated securities, real estate, closely held stock, insurance policies, tangible personal property and bequests. Read more about Gifts We Accept
- In the event that your agency ceases to exist, loses its nonprofit status or the original purpose of the Agency Endowment fund becomes obsolete, our board maintains “variance power” to change the beneficiary or purpose of the endowment. This means our board can give the fund a renewed charitable purpose that is as close as possible to the one intended in the original fund agreement to ensure the assets continue to make an impact forever. Your agency may also designate a contingency or default beneficiary in the fund agreement if you prefer.
- Your agency may request that your endowment funds be returned under certain conditions.
We would welcome the opportunity to work with you on your endowment.