Nonprofit and Community Fund FAQs
- Is there a minimum amount to establish a fund?
- How will our assets be invested?
- How much income will we receive from the fund?
- Does the Community Foundation charge a fee for this service?
- Can we spend the principal?
- Who may apply?
- What are the requirements?
- How do I apply?
Is there a minimum amount to establish a fund?
Yes, the minimum amount to establish a fund is $50,000.00.
How will our assets be invested?
Your assets will be combined with Grand Rapids Community Foundation assets and managed as a pool according to current investment policy. Click here to view the Community Foundation's investment policy.
How much income will we receive from the fund?
Each fund generates an annual amount of spendable income. The amount of income you will receive is based on the Community Foundation's spending policy. The current spending level is set at 5.0% of a sixteen quarter rolling average market value. The level of spending will always be between 4.0-5.75% of the current market value, that typically falls in the 4.5% range. The Community Foundation's administrative fees are deducted from the spendable income.
Does the Community Foundation charge a fee for this service?
Yes, there are two charges for funds held with the Grand Rapids Community Foundation. One is the investment manager fee and the other is our administrative fee. The investment manager fee is set by the various managers and will vary from year to year. Our administrative fee is per the schedule below. The fee income generated by this is used to defray administrative and program costs to the Foundation for managing each fund. The following fees will apply until revised by the Board of Trustees.
Nonprofit Funds:
- .5% of M/V +$15 per transaction if over 10 gifts per year
Community Funds:
- On the first $5,000,000 - 1% of M/V
- On the next $5,000,000 - .75% of M/V
- On the next $5,000,000 - .50% of M/V
- On the remaining balance - .25% of M/V
All fund fees will be per the fee schedule or a minimum $250 per year; whichever is higher.
Can we spend the principal?
- The Grand Rapids Community Foundation is committed to growing endowment funds so the future of your organization is always well supported. To that end, the principal of your investment should be preserved. The Internal Revenue Service requires that funds within a Community Foundation be considered assets of the Foundation. The income earned from the fund is for organizational use only.
- Potential partners should be aware that removing funds from the Foundation is discouraged and the investment strategies are decisions of the Grand Rapids Community Foundation’s Investment Review committee. We believe that with a fund at the Community Foundation, you will enjoy the ease of watching your fund grow and while using the income for key projects that help you remain true to your mission.
Who may apply?
Nonprofit Funds
- Any 501(c) (3) nonprofit organization in Kent County is eligible.
Community Funds
- Special guidelines exist for this type of fund which is available to distinct communities in Kent County. Community Funds are established for the benefit of the founding community which will receive an annual income distribution from the fund. Grantmaking will be managed by a pre-determined committee of community advisors with assistance from Grand Rapids Community Foundation program staff. Funds of this type must bear a name which is appropriate for its purpose. Please contact a member of the Community Foundation development staff for the guidelines about this type of fund.
What are the requirements?
Nonprofit organizations and communities must express a strong commitment to establishing and building endowment by:
- Submitting a signed leadership commitment form
- Submitting an Endowment Fund Application
- Agree to abide by the National Committee on Planned Giving Model Standards of Practice
How do I apply?
To begin your application, please click here.
Thank you for your interest in starting an endowment fund at the Grand Rapids Community Foundation. A development staff member will contact you to discuss your application within a week of submission.
© Grand Rapids Community Foundation - 185 Oakes Street SW - Grand Rapids, Michigan 49503 - 616.454.1751
