Investment Approach and Service Fees
Our investment approach is determined by our total assets and the cash flow requirements of our various Funds. Our investment pool has a conservative growth target allocation, intended to meet the unique cash flow needs of the Funds within the pool:
- Long Term Pool – All permanent and non-permanent endowed funds are invested in Equities 60% Bonds and Money Market 40%.
All funds established at the Community Foundation of Fayette County are managed according to the Investment and Spending Policy approved by the Board of Directors. The Investment Committee oversees investment activities and recommends changes and monitors investment managers.
The Board has entered into Agreements with Investment Managers to direct our investment practices.
The Foundation has Agreements with: Janney Capital Management, PNC Wealth Management and Wells Fargo.
The Investment Committee has recommended index-type mutual funds and a balanced portfolio of equities and fixed income that meet the investment objectives of each pool.
We recognize the trust you place in us when you contribute charitable assets to the Foundation. We understand how important our stewardship is to you and the causes you care about. As a prudent steward, we have an investment management philosophy that honors our commitment to our Fund holders and our shared goal of building a healthy community. Our “total return” approach to investing reflects our desire to build a long-term partnership of powerful, rewarding philanthropy.
Investment Management Fees
CFFC is assessed an annual investment management fee which we negotiate with our investment firms for their management of our assets. Currently this is 50 basis points with Janney Montgomery Scott and PNC Wealth Management and 55 basis points with Wells Fargo.
The fees paid to the investment firms cover investment services, performance reporting, and attendance at informational meetings with our investment committee.
How to Transfer Securities
A contribution of appreciated securities can produce significant tax savings for you and help you be more philanthropic than you thought possible. That’s because you receive a double benefit: an immediate charitable deduction for the current fair market value of the securities you contribute, and you are not subject to any capital gains tax on the appreciation in value. The fair market value of your contributed securities can be deducted up to 30% of your adjusted gross income. In addition, if the amount is larger than you can use in one year, you can carry the surplus as a charitable deduction over the next five years.
Procedures for donating stock to the Community Foundation of Fayette County
- Notify your investment advisor or broker that you are making a gift of stock to the Community Foundation, including:
- Name of stock and number of shares to be transferred
- Name of fund(s) at the Community Foundation to be credited
- The stock to be transferred to the Community Foundation’s clearing or brokerage account. Ask your investment advisor or broker to call us 724-437-8600 for specific instructions.
- Notify the Community Foundation of the same information plus:
- Approximate value of shares
- Anticipated date of transfer
- Once the stock is received in our investment account, we will instruct our managers to sell (immediately in most cases) and send the proceeds by check for credit to the specified fund.
- Our investment manager or broker will provide the high, low and mean value of the stock on the date of transfer and the amount of the net proceeds.
- The Community Foundation sends acknowledgement of the donated value (tax-deductible amount) to the donor, based on the average of the high and low traded values of the stock on the date of the transfer.
- The proceeds are credited to the fund.
Professional Financial Advisors
The Community Foundation can assist you and your client in structuring gifts that maximize tax savings, while establishing an enduring community legacy. We add our expertise to yours to ensure that your client makes educated decisions while selecting from a full spectrum of options. We invite you to contact us about your clients’ needs and see how we can work together to reach their charitable giving goals.
If you have any questions about these procedures, please contact us 724-437-8600 or e-mail to firstname.lastname@example.org.
We are thankful for the opportunity to support you in creating powerful, rewarding philanthropy to make Fayette County a stronger, more vibrant community for all. We recognize that the return earned on philanthropic funds is critically important and we strive to be responsible stewards safeguarding and growing the community’s charitable giving dollars. We welcome your questions and comments about the Community Foundation of Fayette County and thank you for your continuing partnership in philanthropy.