about community foundations · today is that of community foundations. they build and strengthen...

ABOUT COMMUNITY FOUNDATIONS

Helping donors do good work…forever.

What are Community Foundations? One of the fastest growing sectors of organized philanthropy in the United States today is that of community foundations. They build and strengthen communities by making it possible for a wide range of donors to create permanent charitable endowments to meet critical needs. Through philanthropy that is visionary, flexible, and inclusive, community foundations have become catalysts for improvement in their communities. Special Features of Community Foundations Community foundations serve citizens in all 50 states and in many countries worldwide. In the U.S. alone, community foundations, collectively, hold over $82 billion in assets and make local grants of approximately $6.5 billion annually to a wide variety of nonprofit activities including the arts, education, environmental projects, health, urban affairs, and social services.* Community foundations offer many services and benefits to donors. The foundations routinely work with families, individuals, estate planners, and attorneys to design gift plans that fit every economic situation so that donors can receive the greatest benefit from their charitable contributions and ensure that their philanthropic dollars are used to the fullest extent. Nearly every type of gift – such as real estate, stock, and life insurance – can be contributed to a community foundation. Gifts are made through bequests and by living donors who want to be actively involved in local philanthropy. *Foundation Center, 2014

Community Foundations Provide a Simple, Powerful and Highly Personal Approach to Giving A community foundation is a publicly-supported philanthropic institution governed by a board of private citizens chosen to represent the public interest and for their knowledge of the community. The foundation administers individual funds contributed or bequeathed to it by individuals, other agencies, corporations, and other sources. Community foundations uniquely serve three publics: donors, the nonprofit sector, and the community as a whole.

505.883.6240 albuquerquefoundation.org

ABOUT OUR COMMUNITY FOUNDATION

We can help you make a lasting difference.

The Albuquerque Community Foundation is a tax-exempt public charity created by and for people in the Greater Albuquerque Area. We enable those with philanthropic interests to easily and effectively support the issues they care about — immediately or through a planned gift. You can establish a charitable fund by contributing a variety of assets and can then recommend grants — in your name, if you choose — to nonprofit groups you want to support. Unique Features of the Foundation

Personalized Service. For individuals, families, and private foundations, we offer efficient stewardship of their philanthropic funds, professional grant-making and monitoring, and the most generous tax benefits provided by law. Local Expertise. Our professional staff has an in-depth understanding of the issues, opportunities, and resources that shape our community. We monitor all areas of community need, including arts & culture, at-risk children & youth, education, environmental & historic preservation, health, and human services. We can help you learn more about the organizations and programs that make a difference in areas you care about most. Community Leadership. We invest in the long term and bring people and organizations together, convening diverse voices to address local issues and opportunities. Our business is building community. Things We Know:

• Needs will change, unfortunately they will never cease. • Impact matters—Collaboration increases impact. • We support the entire community.


The Foundation Administers a permanent community endowment comprised of many gifts, large and small, and uses the earnings from that endowment to make grants to other nonprofit organizations. Since our establishment in 1981, our total grant distributions are nearly $60 million, and we have funded over 10,000 grants to nonprofit organizations serving the Greater Albuquerque Area.

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Ten reasons to give through your community foundation

1. We are a local organization with deep roots in the community.

2. We have broad expertise on community issues and needs.

3. We provide highly personalized service tailored to your charitable and financial interests.

4. Our funds help people invest in the causes they care about most.

5. We accept a wide variety of assets, and can facilitate even the most complex forms of giving.

6. We partner with professional advisors to create highly effective approaches to charitable giving.

7. We offer maximum tax advantage for most gifts under state and federal law.

8. We multiply the impact of gift dollars by pooling them with other gifts and grants.

9. We build endowment funds that benefit the community forever and help create personal legacies.

10. We are a collaborative community leader, coordinating resources to create positive change.

History & Today: • In 1981, the founders of the Albuquerque Community Foundation each

contributed $10,000 (a considerable sum at the time). The Foundation was thus begun with an extraordinary idea: Charitable giving should be the responsibility of many, not just a select few. Driven to improve the greater Albuquerque area, the Foundation has grown to become a leader in community philanthropy.

• The Foundation strives to make sure every philanthropic investment returns the greatest emotional, civic, and financial benefit possible.

For more information and ideas on ways to integrate your financial and estate planning with charitable giving, ask your professional advisor and contact us.

ENDOWMENT An endowment is a forever fund that is invested and only the earnings are spent.

Give to the Future of Your Community. You’ve lived here. You’ve worked here. You are part of this community’s past and present. By creating an endowment fund with the Albuquerque Community Foundation, you can invest in this community’s future. How it Works:

• Choose to endow your gift to the Albuquerque Community Foundation—ask us about options for making gifts over time that add up to this minimum amount.

• The principal of your fund is never spent, and it can grow over time to generate an increasing stream of funding devoted to your interest areas and this community.

• Earnings are used to make grants that meet community needs. Your gift—and all future income from your gift—is a permanent source of community funding that makes good works possible, forever.

Your Legacy of Giving. When you choose to endow your gift, you have the opportunity to make a difference during your lifetime and, at the same time, provide for the community you care about for generations to come. As needs, opportunities and the nonprofit organizations that address them change over time, your wishes are preserved, and grants continue to make life better in the name of the fund you established. A Nonprofit’s Source of Stability. Leaders of a nonprofit organization may also look to the community foundation to hold their organization’s endowment because they know that having a constant source of funding helps them respond to emergency needs as well as plan for the future and sustain the good work they do. Together for Greater Advantage. Gifts endowed by the community foundation are pooled with others to achieve maximum investment efficiency and return. They grow and benefit community with guidance from experienced local leaders and expert investment managers.


A Lasting Contribution Known for her independent spirit and generosity, Ida May Cowen was admired by all who knew her. Born in 1896 and the eldest of seven children, Ida May sewed clothes and worked in a dry goods store. Her top priority in life was always to help the less fortunate. A gift from Ida May’s estate established an endowment fund with $55,000 in 1992. Since that time, the fund has awarded over $87,000 and the current fund balance is $74,000. That is the power of endowment.


2019 BOARD OF TRUSTEES

Walter E. Stern, Chair President Modrall Sperling William P. Lang, Chair-Elect President Albuquerque Journal & Starline Printing Beverly Bendicksen, Treasurer President Sandia Financial Consulting, LLC Patrick V. Apodaca, Secretary SVP & General Counsel PNM Resources Carl M. Alongi REDW LLC Arellana Barela Cordero Southwest Capital Bank Kathleen D. Davis Kathleen D. Davis, Consulting, LLC Paul DiPaola U.S. Bank

Anna Doss Junior League of Albuquerque William E. Ebel CLU, ChFC, MSFS, AEP

Northwestern Mutual Glenn Fellows, FAIA SMPC Architects Debbie Harms NAI Maestas & Ward Rebecca Harrington Community Member Steve W. Keene Moss Adams LLP Pam Hurd-Knief Philanthropic Advisor Debbie Johnson CNM Albert T. (Ted) Jorgensen Titan, Inc. and Sound & Signal Systems of New Mexico

Kenneth C. Leach, Attorney Kenneth C. Leach & Assoc, P.C. Steve Maestas Maestas Development Group Marcus Mims, CPA CliftonLarsonAllen LLP Linda H. Parker Parker Center for Family Business Jerrald J. Roehl The Roehl Law Firm, P.C. Anne Sapon NM Health Connections George Stanfield Retired Banking Executive Julie Weaks Gutiérrez, Past-Chair Geolex, Inc. Jose Viramontes MediaDesk


Impact Funds. Your gift is highly flexible and available to meet the breadth of community needs—including future needs that may not yet be imagined. Your community foundation’s program experts evaluate all aspects of community wellbeing—arts and culture, economic development, education, environment, health and human services, neighborhood revitalization and more. Impact gifts empower us to make strategic grants, where need and opportunity are greatest.

Donor Advised Funds. Enjoy ongoing involvement. When you establish a Donor Advised Fund, you work with our professional program staff to identify possible grants that may benefit a variety of causes and organizations important to you. Your recommendations are submitted to our local board for approval, and grants are distributed in the name of your fund.

Now and Forever Funds. For those who want to see their philanthropic dollars make both an immediate and a perpetual impact, the Now & Forever Fund is a perfect vehicle. Half of the annual distributions (50%) are available to fund grants each year. The other 50% are added to the fund. As this permanent fund grows, the dollars available for grantmaking will grow.

Field-of-Interest Funds. Focus your gift on an important area of community life, such as enriching education, safeguarding health, strengthening families, improving neighborhoods, cultivating arts or protecting the environment. You identify your personal interest when making your gift; our board awards grants to community organizations and programs that are making a difference in the area you select.

Designated Funds. Direct your charitable gift to benefit a specific nonprofit organization or purpose. Your gift can provide an ongoing funding stream for a senior center, museum or virtually any nonprofit charitable organization. Nonprofit organizations may also begin their own Agency Endowments through the community foundation, using our capabilities to accept complex gifts and to build a lasting endowment.

Scholarships. Invest in your community’s future and show students you care, all with the guidance and personal services of your community foundation. You determine the criteria students must meet to receive the scholarship you establish. With your assistance, students achieve their academic and career-oriented goals—from preschool to postgraduate work.


Establish a Fund in Your Name Any of these funds can be established in your name or in the name of your family, your organization or anyone you wish to honor. All grants made—today and in the future—are awarded to charities in the name of the fund. It’s a beautiful way to link your community investment with a special person or purpose, forever.

CHARITABLE FUNDS

Great giving options. Choose the one that is right for you.

STUDENT AID FUNDS

Investing in deserving students.

Student Aid Funds are an appealing way for individuals, families, businesses and other groups of people to support education and strengthen the community. Whether you create a new scholarship program or contribute to one of the many existing ones, your gift can help students achieve their lifetime dreams.

How it Works:

• You make a gift to the Foundation — you may give cash, appreciated stocks, real estate, or other assets.

• We establish a Fund in your name, in the name of your family or business, or in honor of a person or organization you choose.

• Our staff helps you to determine eligibility requirements — whether they are based on a student’s field of study, academic achievements, extracurricular activities, financial need, background, or geography.

• We handle all the administrative details and award aid to deserving students in the name of the fund you establish.

• Your fund is pooled with the Foundation’s other endowment scholarship funds and invested. Over time, earnings from your fund are used to make awards. Your gift and all future earnings from your gift are a permanent source of community capital, helping to accomplish good work forever.

• You receive tax benefits in the year(s) your gift(s) are made. • You receive updates on the impact your gift is making in our community.

A Student Aid Fund begins with a gift of $50,000, which can be grown over five years.


Valuing Education Shirley Speiwak was a remarkable woman whose life spanned almost the entire twentieth century. She valued education and understood how financial constraints could hamper students from achieving their educational goals. When planning her estate, Mrs. Spiewak wanted to help “fill the gap” for college students. With the help of the Student Aid Fund established by Mrs. Speiwak, the Albuquerque Community Foundation awards over 130 grants annually for New Mexico students attending college and in need of a little help to make ends meet.













The Albuquerque Community Foundation provides a simple, powerful and highly personal approach to giving. We offer a variety of giving tools to help you achieve your charitable goals. You can make a gift of cash, stocks, bonds, real estate or other assets to the community foundation. Most charitable gifts qualify for maximum tax advantage under federal law. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial or estate advisor and contact us.

DONOR ADVISED FUND

Stay involved in the giving experience.

Donor Advised Funds keep giving personal, long after you’ve made your gift. Establish a fund, and make ongoing suggestions for how grants from that fund are used to improve life in our community. How it Works:

• Make a gift to the Albuquerque Community Foundation—you can give cash, appreciated stocks, real estate or other assets.

• We set up a special fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

• You receive tax benefits in the year your gift is made. • You recommend uses for the fund—working with our professional program

staff to support the causes and organizations you care about most. • Your recommendations are presented to our community foundation board for

approval. • We handle all the administrative details and issue grants to charities in the

name of the fund you establish (if you prefer, grants can be made anonymously).

• Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to make grants that benefit community. Your gift—and all future earnings from your gift—is a permanent source of community capital, helping to do good work forever.

• A Donor-Advised Fund begins with a $25,000 contribution, which can be made at one time or grown over 5 years.


A Personal Connection

Greg and Diane Harrison Ogawa feel it is important to teach their two daughters about philanthropy. They established the Ogawa Family Fund that will ultimately be advised by their daughters to tackle the problems of their day. Greg and Diane feel "there is no better single vehicle than a permanent endowment fund with ACF to address not only the needs of today but those of the future." The Ogawas established their fund in celebration of their 40th birthdays and Greg's remission after a year-long battle with cancer. Creating an endowed fund is a "testament to their faith in the future and a belief that their family would be together to help it grow and make a difference in the community.













More Benefits Donor Advised Funds are convenient, flexible tools for individuals, families, businesses or groups that want to be personally involved in suggesting grant awards made possible by their gifts. If you have a range of community interests, you may find that it’s an ideal vehicle for fulfilling your charitable wishes. Donor Advised Funds are typically less costly and easier to administer than other forms of philanthropic giving (such as family or corporate foundations). Your gift can be combined with others to increase its impact, and you can add to the fund you establish at any time, receiving tax benefits with each new gift. You can establish a fund today and make grant recommendations now or in the future. And if you endow your gift, it becomes a permanent community funding resource.

The Albuquerque Community Foundation provides a simple, powerful and highly personal approach to giving. We offer a variety of giving tools to help you achieve your charitable goals. You can make a gift of cash, stocks, bonds, real estate or other assets to the community foundation. Most charitable gifts qualify for maximum tax advantage under federal law. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial or estate advisor and contact us.

CHARITABLE GIFTS

Achieve the greatest good with a creative giving solution designed around you.

Outright Gift. You may make a charitable gift of cash, stocks, bonds, real estate, or other assets and qualify for a tax advantage under federal law. You can give to an existing fund or establish a new fund to support your favorite interest now and in perpetuity. Bequest By Will. You may designate a gift or portion of your estate and, in some cases, be eligible for a substantial reduction in federal gift and estate taxes. Appreciated Stock. When you make a gift of appreciated stock, your gains are put to good use. Your gift of stock is reinvested in your community, and your gift qualifies for a tax deduction based on the stock’s full market value; you avoid capital gains taxes that would arise as a result of the stock’s sale. Life Insurance. Life insurance is a very cost-effective gift. Old policies can be assigned to the Albuquerque Community Foundation, or new policies may be purchased with the Foundation as owner and beneficiary. Retirement Accounts. You may donate money from retirement accounts and receive significant tax benefits. Different accounts have different advantages and opportunities for giving less money to the government and more money to the charity of your choice. Charitable Remainder Trust. You may place cash or property in a trust that pays annual income to you (or another named beneficiary) for life. After your death, the remainder of the trust transfers to the Foundation and is placed into the charitable fund you have selected. You receive income tax benefits for the year in which you establish your trust. Charitable Lead Trust. You may place cash or property into a trust that pays a fixed amount to the Foundation for the number of years you select. Once the period ends, the assets held by the trust are transferred to the beneficiaries you name. In some cases, you receive a substantial reduction in federal gift and estate taxes.


You Receive Personalized Service Each individual, family or organization we work with has distinct charitable interests—and unique financial circumstances. We help you make the most of both, so you receive the greatest return on your community investment. Contact us to learn more.


INVESTMENT MANAGEMENT

The Albuquerque Community Foundation is a public foundation that was established in 1981 to serve a broad range of charitable purposes in the Greater Albuquerque Area. Because we expect to operate in perpetuity, wise stewardship of the funds entrusted to the Foundation is essential to its mission. Therefore, the Board of Trustees of the Foundation has adopted policies and procedures to ensure its accountability to donors, beneficiaries, and the Greater Albuquerque Community. The Foundation structured its investment philosophy around the concept of complementary Investment Managers who are responsible for specific asset categories and management styles. In implementing its philosophy, the Foundation uses separate accounts, commingled funds, and mutual funds to accomplish its objectives. Management of the funds is a long-term responsibility. Therefore, long-term objectives — of at least 20 years’ duration — are the standard to be observed. Philosophy The central objective of our investment philosophy is to provide a stable and increasing stream of income for our funds’ charitable beneficiaries. Long-term, full diversification through all viable investment categories is desired in order to eliminate dependence on one or two categories, which is an approach that could adversely impact returns. Investment Committee The Investment Committee of the Foundation consists of 10 members, with at least three members appointed from the Board of Trustees. Other Investment Committee members (those not also on the Board) serve at the discretion of the President of the Board of Trustees, who appoints all Investment Committee members. Members serve three-year terms and may serve a maximum of three consecutive terms. The Investment Committee meets at least on a quarterly basis to review investment performance, asset allocation, and all other matters related to fiduciary oversight of investment assets. Investment Objective The objective of the total return investment management program is to produce growth and income sufficient to support both donor goals and fund objectives. Specifically, the long-term objective shall be a total return (the sum of earned interest and dividends and realized and unrealized gains or losses less all investment management costs) greater than or equal to the administration fees plus the product of the current principal amount multiplied by the sum of the rate of inflation (as calculated based on the Consumer Price Index) and 4.0%. Significant emphasis is placed upon the preservation and enhancement of the purchasing power of the amount of principal assets in the investment account. Distribution of Funds Our distribution policy recognizes the inherent conflict between serving current community needs while maximizing the growth of Foundation assets. The current annual distribution percentage is 4.0% of the average balance (during the fiscal year) of each fund.


INVESTMENT MANAGEMENT

Investment Consultant The Investment Committee has engaged an independent investment consulting firm to assist the Committee’s activities. The Consultant is expected to be proactive in recommending changes in investment strategy, asset allocation, and Investment Managers as situations warrant change.

As of November 1, 2016, the Foundation began utilizing the services of RVK. RVK is registered with the SEC under the Investment Advisors Act of 1940 as an Investment Advisor with no affiliation with any bank, brokerage firm, or money manager. Established in 1985, RVK is one of the few remaining full-service investment consultants that is 100% employee owned and solely focused on non-discretionary strategic investment consulting. RVK maintains a strict, no-conflict of interest policy that is well known throughout the investment community. Client fees are the only source of revenue for the firm. RVK has extensive experience serving endowment and foundation clients and currently serves several other endowments and foundations in New Mexico, in addition to the Albuquerque Community Foundation. RVK serves as a trusted advisor committed to exceptional and proactive client service with a long-term investment focus. RVK will work with the Foundation to design and deliver a portfolio tailored to the funds’ mission-critical objectives and tolerance for volatility and strives for the portfolio with the highest return for the level of acceptable risk. Asset Allocation The Investment Committee has evaluated the various investment asset classes available, considering the historical rates of return and relative levels of risk associated with each. The Investment Committee recognizes that, over the long-term, the allocation among various asset classes may be the single most important determinant for investment performance. An asset allocation policy was developed using appropriate best practice tools such as a mean/variance optimizer or other tools as appropriate. Asset Allocation Policy amended May 2018:

Target Range

Equity 48% 38% - 58% Fixed Income/Cash 11% 1% - 21% Real Estate 13% 8% - 18% Real Assets 5% 0% - 15% Multi-Strategy 10% 0% - 20% Private Equity 13% 3% - 23%


INVESTMENT PERFORMANCE

Annual Rates of Return

1994 0.0% 2003 1.2% 2012 9.8% 1995 14.4% 2004 16.4% 2013 10.2% 1996 16.2% 2005 8.2% 2014 6.1% 1997 17.0% 2006 9.4% 2015 -4.5% 1998 18.6% 2007 20.3% 2016 7.3% 1999 8.9% 2008 -23.7% 2017 14.8% 2000 10.6% 2009 13.6% (18 mos)* 2018 -2.7% 2001 0.0% 2010 10.2% 2002 -7.3% 2011 -1.7%

The Albuquerque Community Foundation changed its fiscal year end from June 30 to December 31 in 2008. From 1990 through 2007, the fiscal year period is July 1 of the previous calendar year through June 30. Beginning in 2008, the fiscal year period is January 1 through December 31. *This represents the return for the eighteen-month period of July 1, 2007 through December 31, 2008. The twelve (12) month return for July 1, 2007 through June 30, 2008 was .1%. (The average return for the Foundation’s peer group for the same period was –4.2%.) The six (6) month return for July 1, 2008 through December 31, 2008 was –23.8%. Average Returns (through December 31, 2018)

25.5 year average return 6.9% 15.5 year average return 6.3% 10.5 year average return 6.3% 5.0 year average return 6.3%


SPENDING POLICY

FUNDS’ DISTRIBUTION AMOUNTS:

ALLOCATION OF EARNINGS AND FEES

The Albuquerque Community Foundation recognizes the inherent conflict between serving current community needs while maximizing the growth of the Foundation assets. In seeking to maintain a balance between these diverse objectives, the Foundation has adopted the following rules, which constitute its Spending Policy, for determining funds’ distribution amounts:

Except as provided below, the recommended standard spending policy will be 4.0% of the time-weighted average balance of each fund for the previous twenty quarters. If a fund does not have historical fund balances for twelve quarters, then its distribution amount shall instead be calculated based on the total number of historical quarterly balances that the fund has, until such time as it has a twenty-quarter history; provided, however, that a fund generally must have a minimum of four historical quarters before a distribution is made. A fund’s time-weighted average balance will be computed by averaging the fund’s monthly ending balances, after allocation of investment gains or losses, and fees, during each quarter, and then averaging the quarter-ending balances. The Foundation will allow nonprofit organizations to receive a distribution up to 5.5% of the time-weighted average balance of a fund. Nonprofit organizations which want to take a distribution higher than the recommended standard spending policy must contact the Foundation to discuss the decision. The nonprofit organization Board Chair would be required to sign a form acknowledging the discussion of its options and must attach the nonprofit’s board minutes which show the board approved decision. Donor-advised and organization fund agreements allow additional distributions above the 4.0%, with certain conditions as detailed in the agreements.

If provided for in the endowment agreement or other gift instrument, a distribution may be made during the first twelve months following the establishment of a fund. The distribution percentage can be modified by a vote of two-thirds of the Trustees by May 31st of any year. Investment gains or losses from pooled investment accounts are allocated to each endowment fund on the last day of each month. The allocation is determined by dividing each fund’s daily average number of units for the month by the total of the daily average of all units in the pool and applying this fraction to the earning/losses in the investment accounts for the month. Any remaining distributions will be added to principal for purposes of determining distributions the following calendar year. The management fee will be charged quarterly based on the time-weighted average balance of each fund after allocation of investment gains or losses.


VARIANCE POWER

By United States Treasury Regulation, the governing body of a community foundation must have the power to modify any restriction or condition on the distribution of funds for any specified charitable purpose or to any specified organization if, in the sole judgment of the governing body, such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the community or area served. The governing body must be able to modify the restriction without obtaining the approval of any participating trustee, custodian, or agent of the community foundation.

This requirement is commonly referred to as the “variance power” and has historically been the hallmark of community foundations: the ability of the governing body to exercise the function of cy pres without having to first obtain court approval. Under cy pres, a court will change the purpose of a charitable trust to the nearest similar purpose when the trustor’s purpose cannot be achieved because it is impossible, impracticable, or illegal. The standards which the regulations set forth for when a governing body should exercise the variance power are slightly broader than the standards that a court would use when exercising the doctrine of cy pres. An advantage of allowing a community foundation to make the change is that it, unlike a probate judge, is a charitable specialist and it is better able to identify the best charitable use of the funds for the community.

The easiest case for exercising the variance power is when a charity that was the beneficiary of a designated fund goes out of existence. Through its monitoring function, a community foundation can exercise the variance power if it determines that a charity has significantly changed the nature of its operations. It can also exercise the variance power if an activity is no longer a worthy charitable purpose (e.g., a trust to fund research to find a cure for polio or AIDS after such a cure is found).


WHY FEES?

The Albuquerque Community Foundation is a tax-exempt public charity primarily serving the Greater Albuquerque Area. The Foundation encourages philanthropists to easily and effectively support the issues they care about through a variety of charitable instruments — immediate and planned. We invest the endowment pool for a targeted average annual return of 5.2% plus CPI. The central objective of the Foundation’s investment philosophy is to provide a long-term total return that covers all fees, the Consumer Price Index and facilitates the distribution of a certain percentage of the time-weighted average balance of each fund each year (per the Foundation’s Spending Policy). Our mission is to build, invest and manage endowment funds to enhance the quality of our community through informed strategic grantmaking. We pledge to:

• Maintain an excellent investment program • Provide clear and accurate information about your fund • Respond to your inquiries and correspondence promptly • Understand the emerging needs of Albuquerque • Engage new generations of philanthropists • Offer fund advisors opportunities to partner with other donors • Recognize the community spirit of our donors

The Foundation offers excellent endowment management for a modest fee. For an endowment fund of up to $1,000,000, the Foundation’s annual management fee is 1.5% of the average daily balance of the fund. The fee is assessed quarterly. This fee is much lower than the cost of creating and administering a separate private or public foundation. Management fees for organization funds are calculated differently. Approximately 50% of the Foundation’s operating budget is supported by management fees. Each fund shares the cost of a competent staff providing the services of a multi-million dollar foundation to donors whose funds may start with as little as $10,000. Each endowment fund is also allocated its proportionate share of the investment consultant fee – which is currently approximately 0.155%. The management fee and investment consultant fee are shown on the fund statements mailed quarterly. All of the Foundation’s investments are managed by outside advisors. The investment returns of the funds reflect payment of those advisors’ fees. Currently, these fees are approximately .957%. These various fees enable the Foundation to provide the high-quality customer service, financial acumen, and investment performance philanthropic donors deserve.


ENDOWMENT FUND ADMINISTRATIVE FEE SCHEDULE

Endowment Funds are combined with other funds of the Albuquerque Community Foundation for investment purposes and allocated their pro rata share of the investment income, net of the investment fee. The Foundation maintains the same investment strategy for all funds. Administrative Fees Each fund shares the cost of a professional staff, along with the cost of investment advice provided by the combined expertise of the Foundation’s Investment Committee, investment consulting firm, and fund managers providing the services of a multi-million dollar foundation to individuals, families and organizations. The Foundation monitors a fund’s investments, pays out grants from the income, files the tax return (if applicable), and handles all other administrative requirements. Administrative fees are charged quarterly.

Donor-Advised Fee Schedule: From $0 to $25,000 (Grow a Fund) 0.50% Above $25,000-$1,000,000 1.50% Above $1,000,000 to $2,500,000 1.25% Above $2,500,000 to $5,000,000 1.00% Above $5,000,000 0.75% Field-of-Interest Fee Schedule: From $0 to $10,000 (Grow a Fund) 0.50% Above $10,000-$1,000,000 1.50% Above $1,000,000 to $2,500,000 1.25% Above $2,500,000 to $5,000,000 1.00% Above $5,000,000 0.75% For example, the annual administrative fee for a fund with an average balance of $4,000,000 would be computed as follows: the first $1,000,000 at 1.50%, the next $1,500,000 at 1.25%, and the remaining $1,500,000 at 1.00%, for a total annual administrative fee of $48,750.

505.883.6240

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about community foundations · today is that of community foundations. they build and strengthen...

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