Managed Funds

What It Is:

Endowment funds entrusted by other charitable organizations to the Community Foundation for investment management purposes only. They are generally discouraged because they do not complement the Foundation's mission of building permanently endowed charitable funds and carry additional legal considerations and different accounting treatment.

How It Works:

An established fund is deposited by the agency or owner of the fund to be invested with the capital of the community foundation. Income is returned on a regular or periodic basis.

Advantages:

Provides better investment return and lower cost to the agency through pooling of assets. The funds may be called at any time by the agency, usually allowing a grace period of one to three months, allowing the agency to cover unforeseen expenses or cost overruns.

Disadvantages:

Being able to withdraw the fund not only exposes the agency to loss of protected capital but also may counter the intentions of the donors and volunteer solicitors / Board members who assisted the organization to accumulate the funds.

Securities regulations license investment managers to provide investment advice for a fee. Fund agreements must be prepared such that the foundation is providing administration and not investment management services, and fiduciary responsibility for suitability of the investment policy and ongoing investment monitoring remains with the agency.

Activity must be tracked separately from endowment fund “donations and grants”, as “deposits and withdrawals”, and excluded from total assets when completing the T3010 for computing disbursement quota.

Privacy Policy

At The Community Foundation of Nova Scotia, we work with donors to ensure the desired and appropriate degree of recognition or anonymity. Our donors are protected from unwanted solicitations – we do not share donor information with other organizations. For more information, please see our Privacy Policy (PDF 160k).