NONPROFIT AGENCY FUNDS
Agency Funds are established by a local nonprofit organization to provide support for the organization. Partnering with North Lee Community Foundation allows nonprofits to invest in a larger pool of assets, which can lead to greater growth, greater income and lower investment fees. All gifts to the organization’s endowed fund are tax deductible and may benefit from the 25% state income tax credit through the Endow Iowa Tax Credit Program. Distributions from the fund are granted back to the agency to be used at the discretion of its governing board. Nonprofits can create their Agency Fund as an endowed, or quasi-endowed fund.
A public charity under section 509(a)(1), 509(a)(2), or 509(a)(3) as well as a unit of government may establish an agency fund at North Lee Community Foundation. Nonprofit Organizations/Agencies have choices for establishing an Agency Fund at North Lee Community Foundation.
A permanent endowment fund gives organizations the opportunity to create a fund that generates investment income, year after year, which can be drawn down in set annual payments to the organization or reinvested in the fund to grow over time. The permanence of an endowment fund is both appealing and reassuring to donors and nonprofit boards of directors who seek the enduring value of a dedicated source of income to support the organization they love, today and forever.
AGENCY QUASI ENDOWMENT
These funds give organizations the opportunity to save non-endowed dollars in a professionally managed fund that can generate investment income, year after year, but also remains fully accessible with a vote of the nonprofit’s board. A portion of the earned income can be drawn down in set annual payments or reinvested in the fund to grow over time, according to the organization’s needs. It’s a flexible, simple way for nonprofits to build funds for a project or future operational needs.
For more information on establishing an Agency Endowment, please contact us!