The long-term investment goal of The Community Foundation is to achieve an annualized return that is 5.5% more than the rate of inflation and is net of fees and expenses. The majority of our assets are invested in equity or equity-like securities, with fixed income securities used to lower the short-term volatility and provide income stability during market downturns. Fund fees vary from .5% to 2%, depending on the type of fund a donor establishes and the size of the gift involved.
Investments in various pools are reflective of both long-term perspective and grant making needs of the funds. We allow donors to select the option that best matches the time horizon of their charitable giving plans. When donors establish funds, they recommend that their contributions be allocated to one of the following options:
- Permanent Pool: invested for long term growth and appreciation across multiple investment managers. The pool’s objective is to preserve real (inflation adjusted) purchasing power net of annual distributions for grants and expenses.
- Intermediate Pool: invested to meet the needs of funds with one- to three-year grant making goals.
- Short Term Pool: Invested to meet the needs of funds with less than one-year grant making goals.
- Independently Managed Arrangement: our newest alternative, this is a customized investment option where advisors can manage and invest charitable assets on behalf of the donor.
Our pools are managed by an Investment Committee comprised of experts in the field. They report to the full board and are accountable for the Investment Consultant and Managers, setting the Investment Policy.