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Endowment Partners

Nonprofit organizations establish endowment partner funds to permanently support their operations and programs. The advantages of creating and maintaining an endowment partner fund are particularly compelling during periods of economic uncertainty. Every dollar earned from endowment investment is one less that you need to raise.

 

  • Benefits of Endowment Partner Funds

    Benefits of Endowment Partner Funds

    • Long-term viability and stability. An endowment will provide your nonprofit organization with a steady income stream to offset operations, fund new and innovative programs, and support other mission-critical activities.
    • Attractiveness to donors. An endowment is a sign that your organization will be around for a long time, which offers a further incentive for prospective donors.
    • Saved time and resources. You can deepen your nonprofit’s focus on its core mission, as you require less time for administration and management.
    • Professional guidance. OCF philanthropic advisors provide professional advice on complex gift transactions and can execute deferred gifts, such as charitable gift annuities, for your donors.
    • Professional management. Our investment program combines the assets of permanent charitable funds for investment, so that each fund benefits from the strength of a large pooled portfolio. The result is high-quality, diversified investment management at reasonable costs.
  • OCF Endowment Partners Program

    OCF Endowment Partners Program (EPP)

    Are you wondering if your organization is ready for an endowment? Here are the primary financial and organizational factors that typically indicate success in our endowment programs:

    • Leadership. In our experience, nonprofits that are able to adapt to changing needs gain the most from endowments. Strong and experienced management, successful leadership transitions, and an active and diverse board are related indicators of success.
    • Financial responsibility. Nonprofits that enjoy financial stability, fiscal accountability, a broad base of support, and a sound spending policy are usually able to maximize the benefits of an endowment program.
    • Fund development capacity. To develop successful endowment funds, nonprofits should have enough staff and volunteers to complete projects, as well as the potential to raise matching funds and a strong commitment to long-term fundraising strategies.

    Getting Started with EPP

    If you would like to become an endowment partner, we ask that you complete an organization profile for review by OCF management. Upon approval, your nonprofit organization and OCF will sign a mutually acceptable governing contract known as a fund agreement, as well as a separate acknowledgement statement. As an endowment partner, you will then transfer a minimum of $25,000 to OCF, which we will administer under the terms of the fund agreement.

    For more information on establishing an endowment partner fund, please contact an OCF philanthropic advisor in your region.

    Already have an endowment partner fund?

    If you have questions about your organization’s fund, please contact:

  • Adding to Your Fund

    Adding to Your Fund

    As an endowment partner, you will want to grow your endowment and add to your OCF fund.  Although some organizations successfully build their endowments by contributing a portion of annual revenues, most use fundraising efforts to support their endowment funds.

    Donations

    When your nonprofit relies on donations to grow its endowment, the raised monies are given directly to your organization and your group acknowledges the contribution. You may then choose to send the donations to OCF, which we will add to your endowment. 

    Securities

    For more information on handling securities, please contact:

  • Distributions

    Distributions

    Here are some details governing the distribution of your endowment partner fund.

    Spending Policy

    OCF makes distributions from permanent endowment partner funds based on the spending policy set forth in OCF’s investment policy, which calls for the OCF board to set an annual payout rate for permanent funds. Our current rate is 4.5 percent.

    The annual distribution amount from each fund is calculated by applying the payout rate to the fund’s average market value over a 13-quarter period ending on September 30 of the previous year. For example, the 2013 distribution is calculated at 4.5 percent of the average of values for the 13 quarters ending September 30, 2012.

    Distribution Schedule

    Typically, distributions from endowment partner funds are made semiannually. Half of the annual amount is paid in June and the other half in December.

    New Funds

    It is OCF’s policy to invest new funds for six months before making distributions. In the first year, the amount available for distribution from a new fund is prorated, based on the date of the contribution.

    • Example I: A fund established in December 2015 will receive a full-year, 2016 distribution based on the amount of the gift. Half of the distribution will be paid in June and the other half in December.
    • Example II: A fund established in April 2016 will receive a prorated distribution for 2016. Because the fund will exist for eight months of the year, the distribution will be 8/12ths, or 67 percent, of a full-year distribution. It will be available for December 2016 distribution.

    Fund Additions and Distributions

    Generally, when a large gift is made to an established fund, the average market value will be adjusted to incorporate the gift. Considerations will be given to how large the gift is in relation to the total market value of the fund.

    Reinvesting Distributions

    An endowment partner may elect to reinvest all or part of the annual distribution back into the fund. Reinvested distributions add to the fund balance and are not available for distributon in future years. 

    For more information, please contact:

  • Planned Giving

    Planned Giving

    The Oregon Community Foundation supports endowment partner organizations in building their endowment through deferred gifts (also called planned gifts). OCF's philanthropic advisors are available to meet with your board or donors, either individually or as a group, to discuss how they can contribute to your endowment, enjoy income for life -- or a specified number of years -- and obtain an income or estate tax benefit. When the trust or gift annuity ends, all or part of the remaining assets may be directed to the organization's endowment fund at OCF to provide ongoing support for your organization. 

    • Charitable remainder trusts. The minimum amount to fund a CRT is $100,000. OCF may act as trustee for no fee. If OCF does act as trustee, we require at least 50 percent of the charitable remainder to be designated for the organization’s fund at OCF. The remaining 50 percent may be distributed directly to the organization. 
    • Charitable gift annuities. A minimum of $25,000 can create a gift annuity. At the end of the term of the gift annuity, the residuum may be designated for the organization’s fund at OCF.

    Click here to download a PDF of OCF's Endowment Partner life income gift options. 

    To learn more, please read about OCF’s planned giving program, or contact an OCF philanthropic advisor in your region.