FAQ

We take great care to invest wisely and transparently to produce income to tackle your charitable goals. With a nearly 40-year track record as an outstanding fiduciary, we are strong and stable –ranking among the top 100 community foundations in the nation.

How does endowed giving work at the Community Foundation?

Our endowment is a permanent, sustainable source of financial support made possible by philanthropists like you who partner with us to make life better in Broward. Your gift to the Community Foundation creates an endowed charitable fund, invested for the long-term in a diversified portfolio with a horizon in perpetuity. As we shepherd and grow your fund through careful investment, grantmaking from your fund increases over time. Your fund benefits from being part of a large institutional investment pool, with broad diversification and access to elite investment managers usually unavailable to individual investors.

How does endowed giving strengthen Broward?

The purpose of endowment is to grow permanent support to tackle big issues facing our community today and for generations to come. By investing endowed gifts, the Community Foundation produces a steady stream of annual grants to support community needs and specific causes forever. Through the power of endowment, we build resources to keep pace with big challenges in our fast-growing community.

What is our investment philosophy?

Our goal is to earn a return that allows your charitable fund to make meaningful grants while also growing your fund’s endowed principal for increased giving power in perpetuity. Our objectives are:

• Grow principal of endowed funds

• Achieve long-term returns in excess of grantmaking and the rate of inflation

• Earn investment returns that meet or exceed performance benchmarks

• Carefully balance risk vs. return

What is our grantmaking policy?

Each year, 5 percent of an endowed fund’s balance is available to grant to qualified nonprofit organizations. Unlike private foundations, which are required by law to make annual distributions, the amount available to grant from a fund at the Community Foundation may be carried over from year to year to enable you to make larger grants that create greater impact in the community.

Who manages our endowment investments?

The Community Foundation’s Investment Committee includes career investment professionals and highly experienced business leaders. They set objectives and undertake quarterly reviews to monitor the portfolio and report back to our Board of Directors. The investment committee is supported by an independent investment consulting firm.

What are our fees?

Community Foundation charitable funds provide an annual mission support contribution that powers the Foundation’s community leadership efforts and enables unmatched donor services that maximize the impact of your charitable giving. Our operating expenses are consistently less than 2 percent of our total assets, which aligns with industry standards.

For more information about the annual mission support contribution, please contact the Philanthropic Services Department at info@cfbroward.org or 954-761-9503.

Do You Have an Environmental, Social and Governance Investment Option?

Yes. You may choose to have your endowed gifts invested in our new ESG investment pool. ESG investing is widely seen as a way of investing “sustainably” where investments are made with consideration of the environment and human well-being, as well as the economy. It is based upon the belief that the financial performance of investments is increasingly affected by environmental and social factors.

Can I keep my current investment advisor?

You can maintain your long-term, trusted relationship with your personal investment advisor when establishing an endowed fund with a gift of $1 million or more. Subject to approval by the Foundation’s Investment Committee and compliance with all applicable rules and guidelines, the Foundation will retain your advisor to manage the investments for your fund.

Endowment: For Good, Forever

What types of endowed charitable funds does the Community Foundation offer?

The Community Foundation offers several fund types to help you accomplish your philanthropic goals:

Unrestricted Fund: Your fund provides dedicated support to tackle our community’s most pressing needs as they evolve over time.

Field of Interest Fund: Your fund supports a particular cause that means the most to you, such as education, health, economic independence, food insecurity and more.

Donor-Advised Fund: You play a more active role in advising how grants from your fund are awarded to address the issues you care about most.

Designated Fund: Your fund supports specific nonprofit organizations you are passionate about in perpetuity, providing long-lasting support versus a one-time gift.

Scholarship Fund: Your fund will support education and vocational opportunities to help students achieve their full potential.

Nonprofit Endowment Fund: Enables a nonprofit organization to benefit from the Community Foundation’s diversified investment portfolio and financial expertise to create a perpetual source of support.

To learn more about our endowed charitable funds, visit our website at www.cfbroward.org or scan this QR code to download our booklet, Your Charitable Fund Made Easy.