Investment Policy and Fees
The Community Foundation of Utah uses a total return approach to investment management. Total return describes the change in fund value over time resulting from interest, dividends, and capital appreciation as a result of both realized and unrealized gains. The Foundation's Investment Committee guides the Community Foundation's investments in compliance with the Investment Policy approved by the Board. The Foundation maintains an internal accounting system that tracks all contributions, investment earnings, fees, expenses, and distributions. Each fund is allocated its pro rata share of monthly income, appreciation, and investment management expenses realized in the Community Foundation investment pool.
You may download our 2012 fee schedule here.
Investment Pool
The guiding philosophy of the Pool's management is prudent stewardship of funds entrusted to the Community Foundation for the benefit of the charitable organizations and philanthropists we serve. Our financial objective is to provide the greatest level of support for current, as well as future, grant making and administrative needs while maintaining the purchasing power of the Foundation's charitable assets over time. Our primary investment objective is to invest endowment funds with a focus on diversification to help control risk, achieve long-term growth, offset inflationary impact, and allow for distributions and fees.
Investment options
Our job is to manage funds so that they grow as quickly as possible with a limited amount of risk. We have a number of investment options, and these can be changed to meet a donor's goals, especially as the fund grows in size.
Download a pdf of our investment policy.
Each named fund within Community Foundation of Utah is assessed administrative and investment management fees. This fee schedule is effective as of January 2010 and replaces previous schedules.
Administrative Fee: The administrative fee supports the Foundation as a steward of charitable resources and a provider of wide-ranging community services. The administrative fee is an annual rate based on the type of fund. All administrative fees are charged according to the fee schedule below, or a minimum of $250 per year, whichever is higher. Funds are also charged for direct costs incurred by the fund, such as appraisal fees, legal fees and probate costs. Variation from the fee schedule may be approved on a case-by-case basis.
Investment Fee: The Foundation’s professional investment managers charge separate fees to cover custody, investment management, and trading activity. Investment fees are assessed monthly on current market value. Investment performance results are reported net of investment fees.
|
Fund Type |
Description |
Fee |
|
The Utah Fund |
As community needs change, so will the programs that the fund supports. No minimum gift |
2% of M/V |
|
Field of Interest |
Donors select a specific area of interest, such as the arts, environment, children or health, and establish a fund to benefit it. Minimum gift: $5,000 |
2% of M/V |
|
Donor Advised Fund |
Allows individuals, families or businesses to recommend nonprofits and programs to receive grants while growing the principal. Minimum gift: $5,000 |
First $500,000=1% of M/V |
|
Scholarship |
A board-approved volunteer committee reviews applications for the scholarship and selects the recipients based on your criteria. Minimum gift: $5,000 |
Varies depending on circumstances, please call the foundation |
|
Nonprofit Endowment |
Provides endowment funding for a specific nonprofit organization, and can be set up to allow the organization to continue to build the fund over time. Minimum gift: $5,000. |
No fee until the fund reaches $50,000. .5 % + $100 per distribution |
- For Field of Interest and the Utah Fund, the Community Foundation of Utah Board or a separate Fund Advisory Board recommends when distributions are appropriate and amounts, recipients, etc.
- For DAFs, minimum distribution is $100 or 0.5% of M/V whichever is greater until the fund reaches $1mm in M/V. All fees are levied quarterly, based on average M/V of the assets during the quarter.
