Do we need to build an endowment?

Yes.

Whilst a sub-fund can be started with as little as $10,000 and is expected to build to $30,000 within a couple of years, over time the sub-fund needs to be maintained at a minimum of $100,000.

As an endowment fund, we invest for both capital and income growth. We are required to distribute 80% of income annually which is calculated at the overall, consolidated fund level. The terms of the trust deed do allow us to distribute capital, and we regularly distribute well in excess of our requirement.

This allows individual sub-funds flexibility in making grants – some chose not to grant for a period of time in order to accumulate capital, others who are maintaining a minimum balance of at least $100,000, chose to ‘flow through’ additional donations for distribution.

What Next?

• What are the fees involved?
• View profiles of other Corporate Programs
• More information about the National Community Foundation
• Why use the National Community Foundation?
• Information about Workplace Giving Programs 
• Contacting the National Community Foundation