Individuals, corporations, and charitable organizations open agency funds with Tulsa Community Foundation (TCF) to make charitable giving both more efficient and more meaningful. Agency funds create endowments (long-term reserve funds) for local charities and nonprofit organizations.
A permanent agency fund, or charitable giving fund, is a long term funding plan, not contingent on the success of current or future fundraising efforts, the current economic climate or a specific funding source. With a charitable giving fund, organizations may rely on a consistent stream of funds. These funds may be used to subsidize annual operations, specific projects, facility maintenance, or other goals established by the fund advisors or nonprofit board of directors. Each year TCF distributes funds to the organization to use in whatever manner it chooses. In addition, an organization may request distributions in excess of the TCF’s standard approved distributions rate, or it may advise the reinvestment of the distribution.
Today, TCF supervises over 250 Agency Funds, which serve charities throughout Oklahoma and the nation. An agency fund can be created in less than 24 hours with an initial contribution of $5,000. At a time when many foundations require organizations to have an endowment before the foundation will award a grant, an agency fund at TCF is a simple and effective part of a nonprofit’s fiscal health. Once activated, the fund provides a distribution to the chosen organization within one year.
In addition, charitable agency endowment funds at TCF offer several distinct advantages:
Agency Convenience
- TCF accepts virtually any appreciated asset including privately held or publicly traded stocks, real estate, artwork, retirement assets and tangible personal property. Upon liquidation, the proceeds transfer directly the agency’s fund or for current use by the organization.
- After opening an agency fund. TCF assumes responsibility for all administrative tasks, including the issue of a receipt for direct donations.
- In addition, the foundation oversees the investment management, accounting, financial reporting and an annual certified audit for each endowment fund.
- The Foundation features lowered investment fees of .40% (40 basis points). These lowered rates are offered by pooling funds, thus capitalizing on the additional buying power of a larger fund.
- When investing funds, TCF focuses on long term growth capacity. Although, TCF recommends the moderate asset allocation for agency funds, an organization may recommend any asset allocation allowed by TCF’s investment policy.
- TCF’s investment committee meets quarterly to review investment performance and select investment managers, freeing the boards of affiliated organizations of these responsibilities. Nevertheless, organizations may advise the foundation of alternate investment allocation strategies that seem more prudent for an agency’s specific needs.
- Legally, TCF claims ownership for the funds given by the agency and managed by the foundation. However, in most instances, the endowment balance remains on the books of the chosen organization as an asset.
Financial Security
- By taking legal responsibility for all funds, TCF ensures the protection of the donor’s original philanthropic goal. In the event of lawsuits or bankruptcy that results in the termination of the chosen organization, TCF holds the fund and distributes its proceeds to charities most congruent with the objectives of the previous organization.
- The board of the chosen organization and the TCF Board of Trustees jointly monitor the endowment fund for the given organization. Shared fiduciary responsibility protects the services the organization provides for the eastern Oklahoma region, both today and in the future.
- TCF invests all funds with skilled financial managers. All financial advisors associated with the foundation meet our investment policy guidelines.
- When unusual circumstances of need or opportunity exist, the chosen organization’s board may recommend or request a distribution of all or any portion of the assets to the organization. Such distributions may also include assets that do not have donor restrictions, including principal. Before this action, the TCF Board of Trustees must conclude that such distributions are neither unreasonable nor inconsistent with the charitable purposes of the foundation and the organization.
Community Connections
- Tulsa Community Foundation raises awareness among individuals, corporations and nonprofit organizations, helping each to understand the necessity of endowment funds for the future well-being of our community.
- When possible, TCF works to connect individuals and corporations directly to nonprofit organizations with similar philanthropic objectives.
- Philanthropists and prospective donors receive annual reports and newsletters by mail. These documents provide compelling information for the donor and public recognition for nonprofit organizations.