We work closely with our nonprofit partners to help them grow their endowments and generate a reliable revenue stream.

Benefits of Endowment Partnership

Dozens of area nonprofits partner with our foundation on their Nonprofit Organization (NPO) Endowments because it enables them to:

• Realize the security of placing their financial assets with world-class investment professionals Boston Trust Walden;
• Take advantage of Our Investment Strategies, which consist of a proven, diversified, asset-allocation approach;
• Obtain lower investment expenses than they could typically receive on their own; and
• Produce a predictable, perpetual revenue stream that supports their operations and programs.

An NPO Endowment Fund makes annual distributions to the nonprofit. The distribution rate is set by the Foundation — currently, 4.25%. The goal is to provide long-term protection of the principal. Each agency’s funds are invested as part of our overall investment pool, but tracked as distinct, separate funds. This fund type is good for organizations seeking to build up and sustain a regular stream of income while the principal value of the fund continues to grow.

The Fine Print

We ensure that all nonprofits who establish an NPO Endowment fund with us are aware of the following:

• Your endowment’s assets technically become the property of our foundation – as required by IRS regulations – so that we can maintain our status as a public charity. However, the agreement establishing your endowment fund will clearly state that we can only use the funds for the purposes specified in our fund agreement with you – that is, for the benefit of your nonprofit organization or its successors. Read more about Our Financial Accountability.
• Placing these assets with us may protect them from liability and litigation. Placing them with us can also help nonprofits avoid the temptation of overspending from their endowments to meet short-term needs.
• The minimum to establish an NPO Endowment Fund is $10,000. The annual investment fee for NPO Endowment funds currently averages 0.46 percent. We also charge an annual administrative fee of 1 percent of the fund’s balance to help cover the costs of investment oversight and fund management. These fees enable us to serve all our donors and partners efficiently and cost effectively. Read more about Our Fees.
• We provide a number of accounting and record-keeping services as part of our financial oversight of NPO Endowments, including issuing the annual financial statements on your funds, processing new gifts and sending IRS gift-acknowledgement letters. More information on our online Fundholder Portal.
• We can also accept, process and manage a wide array of gifts for your fund, including appreciated securities, real estate, closely held stock, insurance policies, tangible personal property and bequests. Read more about Gifts We Accept.
• In the event that your nonprofit organization ceases to exist, loses its nonprofit status or the original purpose of the NPO Endowment fund becomes obsolete, our board maintains “variance power” to change the beneficiary or purpose of the endowment. This means our board can give the fund a renewed charitable purpose that is as close as possible to the one intended in the original fund agreement to ensure the assets continue to make an impact forever. Your nonprofit organization may also designate a contingency or default beneficiary in the fund agreement if you prefer.
• Your nonprofit organization may request that your endowment funds be returned under certain conditions.

We would welcome the opportunity to work with you on your endowment.