An Agency Fund is established by a nonprofit organization for itself. For example the Board of Directors at the Bunnell Street Art Center started an Agency Fund to benefit the Art Center for years to come.

A Designated Fund is establised by a donor for an organization. For example, the Homer Community Food Pantry has a Designated fund that a donor started for them.

Many organizations that have Agency Funds also have Designated Funds. These funds are separate to comply with IRS and nonprofit accounting standards.

When a nonprofit establishes an agency fund, or a donor chooses to establish a designated fund for a nonprofit they have the option of choosing to endow it or not.

Starting an endowment with the Homer Foundation typically requires a minimum initial contribution of $10,000. This threshold ensures that the fund can generate sufficient investment earnings to effectively support its designated purpose while covering necessary administrative costs. 

Endowed funds generate 4% in spendable funds each year based on a 12 quarter rolling average. All else the same, a few years after establishing, approximately, $400 a year, called your spendable balance, will be put into an account for you to take out and use as you like or roll back into your fund. The remainder, principal, will continue to grow and provide you with operational funds year after year.

Yes. Agencies have full control over how they use their annual payouts from Designated or Agency funds, as long as the funds are used in a manner that supports their mission. These payouts provide a reliable source of funding year after year—essentially money that does not need to be raised through ongoing fundraising efforts and can support the organization in perpetuity.

The Homer Foundation pools all invested funds into a professionally managed, diversified investment portfolio through Vanguard Mutual Funds, managed by Mercer Financial Services.

You can start an acorn account with as little as $1. This allows you to grow your fund over a set period of time, right now is 5 years, so that you can reach the $10,000 minimum to endow your account.

The limitation is that you do not have access to use the fund as it grows. Once you reach $10,000 or $15,000 (depending on which fund you decide to persue) you can begin to use it or it can start making grants out of it. If for any reason it does not make it to that amount within 5 years then the funds get absorbed into the Homer Foundation.

Administrative fees are essential for the Homer Foundation to cover the costs of managing funds, processing grants, providing donor services, and operating efficiently. These fees allow us to continue our mission of strengthening the community through philanthropy.

The Homer Foundation charges a monthly administrative fee based on your fund’s average market value. This fee is 1% annually, and at least $100, which means we withdraw 1/12 of 1% each month from your fund.

Your annual fund statement will include a clear breakdown of administrative fees charged to your fund.