Agenda - 10-09-2012 - 1 - Laserfiche WebLink

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7 Accounting of an Agency Fund on Form 990 Financial accounting standards require that assets transferred by a nonprofit to an Agency Fund be accounted for both as an asset of the nonprofit and as a liability by TCF. The nonprofit includes the assets on its books and reports the balance of its Agency Fund as of the ciose of its fiscal year. (Line 10, Part IV on Form 990 or Line 24, Part 1 on Form 990-EZ) TCF issues quarterly statements which show fund balance, earnings, gifts and distributions. For assistance with completion of Form 990, nonprofits should seek professional tax advice. Legal Control Distinct from the accounting rules above, a nonprofit transfer of assets to an Agency Fund at TCF also transfers legal ownership and fiduciary responsibility of the assets. As a result, all distributions from Agency Funds are subject to approval by TCF's Board of Directors. Approval is routinely granted from nonendowed funds and from the accrued Spendable of endowed funds, Can.a Nonprofit Request More than 5%of its Endowed Agency Fund? Approval of a distribution in an amount greater #han the accrued 5% Spendable triggers the fiduciary responsibility vested in the Foundation's Board of Directors, TCF's Board holds a variance power over all Foundation assets, which is the power to modify a restriction or condition on the distribution of funds for a specified charitable purpose. The reservation of variance power to TCF's Board of Directors is necessary to the Foundation's tax-exempt status as a publicly-supported charity. , � nonprofit may request a single distribution from an endowed Agency Fund beyond the accrued 5% 5pendable provided one of the following conditions is met: > The distribution is for the purpose of enabling the nonprofit to acquire or renovate a capital asset; � or > The nonprofit faces unexpected financial needs not likely to recur which the distribution will address. Requests for such distributions are not binding on the Foundation and will be submitted to the Foundation's Board of Directors for approval. Gifts to an Agency Fund from Nonprofit Supporters Donors can contribute unrestricted gifts directly to a nonprofit Agency Fund at TCF, whether endowed or nonendowed. Cash contributions can be made online by credit card and by check made payable to TCF or to the Fund by name. TCF also accepts gifts of publicly-traded securities, business interests, or reai estate, The Foundation staff can assist with complex gifts, and will provide written acknowledgement of all gifts to , Agency Funds. TCF Services for Agency Funds Nonprofits that create Agency Funds at the Foundation enjoy a variety of unique benefits and services. ' > Expert Financial Management. TCF offers diversified investment portfolios overseen by an investment committee and an independent investment advisor under a sound investment policy. > Personalized Consultation. �Foundation staff can work with a nonprofit on complex gifts, planned giving and nonprofit best practices, > Recognition. Organizations that have Agency Funds are recognized as nonprofit partners in TCF print and online publications, > Convenient Fund Access. Fund activity and TCF news can be reviewed online. Printed fund statements are mailed within 45 days after the end of each quarter. > Connections. Be part of the broader TCF family; join Foundation convenings on community issues and needs. For more information on Agency Funds,contact Libby Richards,TCF's Nonprofit and Community Engagement Officer 324 Blackwell Street,Suite 1220,Durham NC 27701•919.474.8370•libby@trianglecf.org