- Any donor (an individual or the organization) may make the contribution to establish the Fund. While a Fund may be created with a nominal amount, no distributions are made until the Fund balance reaches $10,000. Agencies have a 5-year grace period to build the Fund to the $10,000 level.
- The Community Foundation invests the gift in stocks and bonds for maximum yield and minimal risk.
- Based upon the performance of the investment, the Community Foundation makes annual distributions to the Agency once the minimum payout level has been reached. Excess earnings are reinvested into the Fund to offset the effects of inflation and help to grow the Fund.
- The Community Foundation assesses against the fund a small annual fee of less than 2% to cover Foundation administrative costs and investment management fees.
- The Agency's endowment governing board uses its discretion when determining how the annual distribution might best be used. The Community Foundation will, from time to time, request reports outlining the purposes for which the annual distributions have been spent.
The Agency's permanent fund is not a separate Trust and may receive additions of any amount, at any time, by anyone.
As of the end of 2010, the Community Foundation was administering more than 138 agency endowments, each one designated to benefit a specific local organization.