Creating an Agency/Project Fund

An “Agency or Project Fund” is a fund that a charitable group or nonprofit organization creates at the Community Foundation to obtain fiscal sponsorship of its programs and activities and to work toward long-term support and stability.

Steps to Starting an Agency/Project Fund

  • Agency/project leaders review “Agency and Project Fund Policies and Procedures”
  • Agency leaders contact the Community Foundation staff to discuss the fund
    – agency must be an existing 501 (c)(3) nonprofit organization
    OR
    – group without a 501 (c) 3 must have a mission statement, board structure, ability to incorporate with the State of Illinois as a charitable corporation, and agree to obtain liability insurance for any activities involving the public
  • Agency leadership approves opening a fund at the Community Foundation
  • Agency and Community Foundation complete and sign a Fund Agreement; Agency presents a check to open the fund
  • Community Foundation board approves the new fund
  • Agency may begin using the fund

Important Considerations

  • IRS regulations require IPCF to own the assets in the funds it administers. Therefore, establishing a fund requires the Agency to transfer title to the assets irrevocably to IPCF
  • The Agency may choose either an equity or cash option for its Community Foundation fund
  • IPCF charges a fee for each component fund to cover the costs of the Community Foundation’s services. The amount of the fee is subject to change
  • IPCF may charge additional fees for event management, grant management, or other fund administration duties requiring additional staff time and services

Benefits of an Agency/Project Fund

  • Quality cost-effective administration and stewardship services
  • Ability to accept gifts of stock, real estate and other assets
  • Credibility
  • Education concerning nonprofit best practices and procedures
  • Charitable networking opportunities
  • Professional investment management
  • Agency fund is included in IPCF’s Form 990 tax return and annual audit