News
17.9% Calendar Year Return on Endowment
January 12, 2010 – London Community Foundation will be in a position to grant from most field of interest funds and donor directed funds, including registered charity endowment funds, in 2010.
Andrew Chunilall, the director of finance with the Community Foundation, is pleased to see the return rebound from the 2008 year to date return of negative 15.4%.
"Ninety percent of our funds are now in the black," says Chunilall. "Our assets have climbed back above $42 million."
Martha Powell, CEO of the Community Foundation thanks the community for their ongoing support over the past year.
"Throughout the ups and downs of the last year, we remained committed to our community. Thanks to the support and generosity of our fundholders, new donors, and faithful supporters, we were able to grant even when it was financially difficult to do so."
In 2009 the Community Foundation awarded $964,500 in grants, supporting over 70 organizations.
Powell does warn that the traditional Small Grants Program is not scheduled to resume in 2010 and that the Community Foundation is continuing with the Urgent Need Grant Program introduced last year amid the economic recession.
“We know that although our endowment is in recovery, our local economy is still in need. The majority of the earnings from the Community Fund, traditionally distributed to the community through the Small Grants Program, will be used for the urgent need of those most vulnerable in our community.”
The exact amount available for 2010 community grants will not be known until late February after the annual audit is completed by a third party.
Powell says there has been another sign of recovery: renewed interest from potential donors and non-profit organizations.
“In 2009 we heard from several charities interested in establishing an endowment fund within the Community Foundation.”
Starting a registered agency endowment fund at a local community foundation is part of a sound financial strategy for many non-profit organizations.
Non-profit agencies with endowment funds managed by the Community Foundation receive the benefit of a diverse investment portfolio and low investment fees that typically come only with very large funds. Each year they can count on a source of funding outside of annual fundraising efforts, donations, and successful grant applications.
Also, because a community foundation is a local public charitable foundation it must adhere to strict government and public reporting regulations. It is also accustomed to handling everything from a $10 cash donation to complex stock transfers, estate gifts, and gifts of life insurance.
London Community Foundation currently manages the endowments of 23 local charities, 3 of which were established in the past 19 months.