“This gives UWFV a cost-effective way to invest its long-term funding knowing it can access all of its funds whenever it needs them,” said UWFV president Tamara Van den Brink. “We also see this as a great leadership opportunity to invest in a community partnership with the foundation.”
The fund was established with a deposit of $123,000 and plans are to add to it when more funding is available.
Earlier this year the Foundation created a policy that would allow it to provide an investment management service to local non-profits who want to put money away for future growth and want to see it earning money, but not at too much of a risk, said ACF chair Wendy Neufeld.
“We can see this working for other local non-profits, where, for example, they are raising money for a new building or some other capital project over several years and the board doesn’t want to have to become experts in investment,” said Neufeld. “ACF can provide this service at a very affordable price because we have an endowment of close to $10 million so our fees with our investment manager are considerably less than what, UWFV, for example, would have to pay to invest $123,000.”
She said the investment policy that guides the management of funds is conservative but generates income and includes an an investment committee that monitors results.
A number of non-profits, including the United Way Fraser Way, have permanent endowment funds with ACF generating annual operating revenue.