Managed Funds are endowment funds entrusted to us by other charitable organizations for investment management purposes only. They are slightly different from charitable funds as they carry additional legal considerations and different accounting treatment.

How It Works: An established fund is deposited by the organization or owner of the fund to be invested with the capital of the community foundation. Income is returned on a regular or periodic basis.

Advantages: Managed Funds provide better investment return and lower cost to the charitable organization through the pooling of assets. The funds may be called at any time by the charity (usually allowing a grace period 1-3 months) to cover unforeseen expenses or cost overruns.

Disadvantages: Being able to withdraw the fund not only exposes the agency to loss of protected capital but also may counter the intentions of the donors and volunteer solicitors or Board members who assisted the organization to accumulate the fund.

If you would like to know more about our Managed Funds as a possible solution for your non-profit, contact us at 902-490-9916.