Fiscal Agency Funds - Woodbury Foundation

Fiscal Agency

Fund

Simplifying Fund

Management For Nonprofits

Fiscal Agency Funds can be established by nonprofit organizations who are looking to take advantage of the fund management capabilities of the WFC, allowing them to remain focused on the work that helps fulfill their mission. Funds can be either permanently restricted (endowments) while others can be temporarily restricted and can be accessed at any time (non-endowed). The WCF may hold agency funds from many different types of organizations including schools, churches, historical societies, and many other nonprofit organizations or organizations organized for charitable purposes.

Opening a fund can be very simple. The WCF will meet with an organization’s staff and leadership to understand their Board’s approved goals and objectives of the proposed fund, prior to the Fund’s establishment. The goals and objectives are not determined by the WCF, rather they should be approved by the organization’s board prior to or soon after the initial conversations. Based on the goals and objectives of the proposed fund, a Fund Agreement will be drafted which will establish the legal understanding between the WFC and the organization regarding the type and use of the funds and the schedule of distributions. The agreement is signed by leadership of both the WFC and the organization.

What benefits are there to having an Agency Fund?

Organizations that open fund with the WCF receive a number of services and benefits.

Gift Planning

Gift Planning allows organizations to receive contributions anytime, and the WCF can accept direct gifts from donors, including non-cash assets like stock or real estate. This assistance helps nonprofits explore various charitable giving options to maximize contributions.

Investment Management

Investment Management helps organizations manage limited resources by providing oversight. This allows staff and board members to focus on their core mission and responsibilities, alleviating the burden of being overworked.

UPMIFA Compliance

For permanently endowed funds placed at the WCF, we work together to ensure compliance with the law that governs nonprofit endowments adopted by the state of Minnesota.

Enhance Visibility

The WCF enhances visibility and reputation within the Woodbury community, focusing on residents’ well-being. Partnering with the WCF helps organizations build trust and awareness among potential donors.

How much will it cost my organization?

Fees are established based on the amount of WCF administration time expected to be required to work with donors to accept donations to your organization, coordinate with and answer the organization’s questions and process the organization’s Grant or Distribution Request(s) and these will be detailed in the Fund Agreement. Fees are currently 0.375% of the quarterly average account balance (equivalent to 1.55 annually) with a minimum cost of $37.50 ($150 annually). Additionally, the Fund may be assessed any investment management fees (which are netted out of investment returns reported by the WCF). Funds invested in the money market fund have no investment fees. Fees will be reviewed in detail prior to the opening of any fund.

How can contributions be made to an Agency Fund?

The Fund Agreement will establish the minimum initial amount required to establish a Fiscal Agency Fund. Funds of less than $5,000 will be restricted from paying out grants until this threshold amount is met. Temporarily restricted funds will be accepted and distributions from those funds will be subject to the conditions set forth in the Fund Agreement(s). Subsequent contributions to any Agency Fund will be accepted in any amount, subject to the WCF’s Gift Acceptance Policy. An agency may have more than one fund.

How are Funds invested?

When the WCF and the organization are developing the Fund Agreement, the non-profit will be asked to examine a standard description of types of investment portfolios (for example, balanced, growth or aggressive growth) which the donor feels best matches their risk tolerance and this will then be documented in the Agreement.

The organization will receive a quarterly and a total calendar year statement of your fund’s activity and performance as part of the pooled fund’s activity and performance. You can also access your fund through the Foundation’s donor portal at any time to view the fund status and request donations from the fund.

Making grants and distributions from Funds – how does that work?

Organizations may make distribution or grant requests per Fund Agreement by completing a Distribution Request, with a minimum distribution of $250. Please note, organizational requests/recommendations are technically not binding as IRS rules require that the Foundation WCF must make a final approval of all distributions. However, the WCF will, in all cases, rely heavily on the organization’s wishes and as long as the distribution is allowable by law (and the is consistent with the Fund Agreement), requests will be granted.

Thank you for considering establishing a fun with the Woodbury Community Foundation!