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6 <br /> triangle community Nuts and Bolts of <br /> FOUN�ATION Nonprofit Agertcy Funds <br /> Triangle Community Foandation partners with nonprofit organizations by o#fering an array of services for <br /> endowments or operating reserves. Having a fund at TCF allows a nonprofit to concentrate on its core <br /> mission rather than investment management and reporting. <br /> What is a Nonprofit Agency Fund? <br /> By definition, an Agency Fund is established by a charity at a community foundation for the charity's own <br /> benefit. Agency funds: <br /> > are created by 501c3 publiclysupported nonprofits with a transfer of assets <br /> > make grants back to the nonprofit(and to no other organization) on a scheduled basis or on demand <br /> > maintain a$10,000 minimum balance <br /> Investment Options <br /> Upon the transfer of assets, a nonprofit selects one of TCF's investment portfolios based on the nonprofit's <br /> � ,risk tolerance, financial goals and donor restrictions. Details about the asset allocation and managers that <br /> 'comprise TCF's investment portfolios are available upon request. � <br /> Agency funds can be invested as: <br /> > Permanently Endowed <br /> > Equity Oriented Nonendowed <br /> > Fixed Income Oriented Nonendowed <br /> > Pass-through Nonendowed (not invested) <br /> Endowed vs. Nonendowed <br /> Endowed Agency Funds are permanent funds which can distribute up to 5% of the fund's value (the <br /> "Spendable") on an annual basis. Endowments help ensure the long-term sustainability of an organization by <br /> providing a permanent source of support. TCF offers one investment portfolio for endowed funds. . <br /> > The spending policy (currently 5%) is set by TCF's Board of Directors. Each quarter the Spendable is <br /> calculated on the balance of the endowed fund. In order to minimize market volatility, the calculation <br /> takes into account the fund's daily average for the present quarter and the average balance for the <br /> trailing 12 quarters. <br /> > The nonprofit can request distributions of the fund's Spendable every quarter or every year, reinvest <br /> the Spendable into the endowment, or allow the Spendable to accumulate. The Spendable is not <br /> invested and does not earn income for the fund. <br /> Nonendowed Agency Funds are invested funds that allow greater flexibility because distributions are not <br /> limited by the 5% spending policy. The nonprofit can request distribution in any amount above the required <br /> fund minimum. Nonprofits choose from three investment portfolios for nonendowed funds. <br />