Agency Funds

This type of fund holds assets for a charitable organization and may reinvest income or distribute income to the organization on an annual basis. This type of fund may be a non-endowed fund, an endowed fund or a quasi-endowed fund. Quasi-endowment funds allow the board of the organization to access income and principal upon written request and approval of majority of the Board of Directors of the Foundation. Endowment funds are established as a permanent endowment that allow for 5% of the market value or less to be distributed on an annual basis. The Board of Directors approves all distributions from agency funds.

An agency fund is established by a local nonprofit organization to serve as the endowment fund that supports its future operations. The Fort Dodge Community Foundation holds and invests the endowment assets, providing responsible and professional fund management. Distributions from the fund are granted back to the agency to be used at the discretion of its governing board.

As a nonprofit organization, the Fort Dodge Community Foundation understands the importance of local partnerships. A partnership with the Community Foundation is more than just financial investment management; it's about strengthening nonprofit organizations. This partnership helps agencies become more successful in accomplishing their missions by enhancing their capacity, partnering in education and training and increasing their impact on citizens in the community.

Agency Endowed Fund

A permanent endowment fund gives organizations the opportunity to create a fund that generates investment income, year after year, which can be drawn down in set annual payments to the organization, or reinvested in the fund to grow over time. The permanence of an endowment fund is both appealing and reassuring to donors and nonprofit boards of directors who seek the enduring value of a dedicated source of income to support the organization they love, today and forever.

Agency Non-Endowed Fund (Pass-Through Fund)

These funds give organizations the opportunity to save non-endowed dollars in a professionally managed fund that can generate investment income, year after year, but also remains fully accessible with a vote of the nonprofit's board. A portion of the earned income can be drawn down in set annual payments or reinvested in the fund to grow over time, according to the organization's needs. It's a flexible, simple way for nonprofits to build funds for a project or future operational needs.

Advantages of Establishing an Agency Fund

  • Enables board members and volunteers to focus on the agency mission and endowment building while the Community Foundation handles investment of the endowment. 
  • Promotes donor confidence by ensuring permanent assets are segregated in an endowment overseen by a professional investment manager.
  • Builds assets to ensure a stable future by selecting from multiple investment options.
  • Allows the combination of funds into professionally managed portfolios allows greater diversification of investments and access to investment vehicles that would not be possible for individual funds.
  • Adds visibility to your agency's fund as part of the Community Foundation family, which can help in marketing and fundraising.


For more information on agency funds, contact Randy Kuhlman, CEO, at 515.573.3171 or rk@fd-foundation.org.