HELPING YOU SERVE YOUR CLIENTS

CHARITABLE PLANNING TOOLS AND SOLUTIONS

FREQUENTLY ASKED QUESTIONS

CONSIDERING A PRIVATE FOUNDATION?

FOR FINANCIAL ADVISORS

RECOGNIZING OUR CHARITABLE PARTNERS

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Investment management
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Glossary
 

Partnership Policy

Financial institutions often have a unique role in assisting potential donors to choose the Foundation for their charitable giving.  Financial institutions include certified financial planners, brokers, investment advisors, and banks.

Through our Partnership Policy, you can manage your clients’ assets outside of the Community Foundation’s investment pool. The assets become the property of the Community Foundation (thereby enabling your client to receive a tax deduction). Nevertheless, we retain your firm as the investment manager and you continue to invest the funds under the Foundation’s Investment Guidelines, with a periodic performance review.

The Partnership Policy explains the conditions under which the Community Foundation for Southwest Washington may enter into investment partnerships with local financial institutions.  The following is the list of conditions, which shall apply for Community Foundation assets to be managed outside its pool of funds, under the adopted asset allocation policy.

1. The funds under consideration must be new money to the Community Foundation. As such, the new money may be received from an existing donor to add to an existing fund or to create a new fund. Future gifts from the donor may go into the Community Foundation’s pooled investment fund or into the donor’s existing Community Foundation non-pooled fund.   

2. The charitable asset would become an asset of the Community Foundation, and be under the control of the Foundation’s Board of Directors.

3. The Community Foundation would retain the financial institution as a fund manager over the specific asset.  The financial institution must comply with the Community Foundation Investment Guidelines.

4. The financial institution would be subject to quarterly and annual reviews by the Investment Committee, as with all other fund managers.

5. The Community Foundation and financial institution would enter into an agreement, covering ongoing management, fees, and other pertinent information.

6. A minimum of $200,000 would be required to establish this kind of arrangement.

7. All activity within the fund (earnings, dividends, gains/losses) would be separately posted to the donor’s fund.  It would not share in the investment activity of the pool.  A separate accounting arrangement would be established to track activity in the fund.

  Partnership Policy Flow Chart