Investment Approach and Service Fees

Our investment approach is determined by our total assets and the cash flow requirements of our various Funds. Three investment pools are currently managed by our Investment and Finance Committee. Each pool has a different target allocation, intended to meet the unique cash flow needs of the Funds within the pool:

Long Term Pool - All endowed funds. Equities 70% Bonds 25% Money Market 5%

Mid Term Pool - Non-Endowed Funds, intended to be disbursed over several years. Equities 20% Bonds 75% Money Market 5%

Short Term Pool - Non-Endowed Funds, intended to be disbursed within one year, or if distribution plans are unknown. Money Market 100%

Until such time as our asset levels are higher, the Board has directed our Investment and Finance Committee to limit our investments to no-load mutual funds, cash, and other cash equivalents. At our current asset levels, this approach is seen as the most cost effective and prudent. The Investment and Finance Committee has selected index-type mutual funds that meet the investment objective of each pool.

Whatcom Community Foundation
Administrative Service Fee Policy

Fund Administrative Service Fees

Your annual fees cover normal administrative costs to manage your investment and grantmaking and may also provide funds to support our community leadership activities. Additional fees may be assessed for required outside consulting, legal work, or the processing of large numbers of gifts or disbursements. Expense ratios associated with our investments are less than 0.3% at present. We do not provide financial benefits of any sort to third-party participants in the gift planning process. Currently, we do not charge a separate investment management fee.

ENDOWED FUNDS

Fee

Endowed funds will be charged an administrative service fee on the following progressive scale:

1.50% on the first $499,999.99 of fund assets
1.00% on fund amounts between $500,000 to $999,999.99
0.75% on fund amounts between $1 million and $4,999,999.99
0.50% on fund amounts above $5 million

The fee schedule will be applied to the total dollar amount in multiple endowed funds contributed by a single donor.

For example, a single donor maintains three endowed funds as follows:

Endowed Fund #1: $ 400,000.00
Endowed Fund #2: $ 300,000.00
Endowed Fund #3 $1,700,000.00
Total Single Donor Endowed Funds $2,400,000.00

Fee Calculation: (1.5% X $499,999.99) + (1.0% X $499,999.99) + (0.75% X $1,400,000.00) = $23,000.00 (Or an average fee of 0.9583%)

NON-ENDOWED FUNDS

Fee

Non-endowed funds will be charged an administrative service fee on the following progressive scale:

2.00% on the first $499,999.99 of fund assets
1.50% on fund amounts between $500,000 to $999,999.99
1.25% on fund amounts between $1 million and $4,999,999.99
1.00% on fund amounts above $5 million

For example, a single donor maintains three non-endowed funds as follows:

Non-Endowed Fund #1: $ 400,000.00
Non-Endowed Fund #2: $ 300,000.00
Non-Endowed Fund #3 $1,700,000.00
Total Single Donor Non-Endowed Funds $2,400,000.00

Fee Calculation: (2% X $499,999.99) + (1.5% X $499,999.99) + (1.25% X $1,400,000.00) = $35,000.00 (Or an average fee of 1.4583%)

Assessment of Fee

1. The full annual fee will be levied on the balance in the fund on the first day of the new fiscal year.

2. The full annual fee will be levied on the sum of all new gifts received during the fiscal year either: a) at the end of the fiscal year, or b) sooner if a recommended distribution during the year would not leave adequate funds for the appropriate fee assessment.