General Fund Information

Fund Information

The Fund Information document is used in tandem with the Fund Applications to serve as our fund agreements with donors. It summarizes policies and procedures and is meant to answer common questions for our fund holders. Donors sign the Fund Application to acknowledge receipt of the Fund Information.

It is important for donors to read the Fund Information so they are aware of the policies that apply to their gift prior to making the gift. This includes that the gift is irrevocable and the Board has right to exercise power of variance.

You can find the most recent version here.


Variance Power

To learn more about Variance Power, click here.


Types of Funds

There are a variety of funds you can choose from when establishing your fund with the Quad Cities Community Foundation. Learn more about them here.


How Donors Can Give

There are a variety of ways donors can give. To learn more, visit the How Donors Can Give section of the handbook.


What Happens Once a Gift is Made

Acknowledgement Flowchart

See the process of acknowledgement by downloading this flowchart.


Investments
Financial gifts to the Quad Cities Community Foundation typically come for one of two purposes: for permanent endowment or to create a non-endowed fund to benefit a purpose with a shorter time horizon. Investments are handled differently in those two cases.


Investment of Endowment Funds
Financial gifts to one of the Community Foundation's endowment funds are managed by professional investment firms and monitored by the Community Foundation's Investment Committee. Assets are spread among asset classes, risk factors, investment-management organizations, economic sectors and industries. The endowment may use mutual funds, individually managed assets, or separate-account management to implement the investment strategies. To achieve the necessary investment returns, the endowment assumes appropriate levels of risk associated with capital markets.

Visit our website to learn more about our investment strategy.


Investment of Non-endowed Funds
Financial gifts to one of the Community Foundation's non-endowed funds are also monitored by the Community Foundation's Investment Committee but there are choices available for those donors based on the time horizon and objectives of the fund. Donors may recommend their fund be split amongst five different options. All five options are invested in low-cost Vanguard Index Funds and include the Vanguard Prime Money Market, Vanguard Short-Term Bond Index Fund, Vanguard Balanced Index Fund, Vanguard Growth Index Fund and Vanguard Value Index Fund. As a part of the fund application process, donors determine what percentage of the assets they would like invested in which mutual fund. Fund balances are rebalanced to those percentages on a quarterly basis.

Granting Flowchart

Grant request (directive) comes in through a variety of ways (phone, email, MyFund, etc.), eventually becoming a written directive used for processing and documentation of proper fund holder authorization. Learn more about the granting process by downloading the flowchart.

Spending Policy

An endowment fund is meant to last forever yet still generate an annual funding stream to benefit a specific purpose. The calculation to generate the annual funding stream is called a spending policy. At the Quad Cities Community Foundation the spending policy rate is 4.5 percent of the average balance for a trailing 20 quarters (or the number of quarters the fund has been in existence if less than 20 quarters). This calculation is done at the end of each calendar year after the year-end balance has been determined. Fund balances are reported to donors as non spendable and spendable. The balance is included at the bottom of each quarterly donor statement as well as on MyFund.

For non endowed funds there is no spending policy applied because the funds are 100 percent spendable by the nature of the fund.


Fees

Fund Administrative Fee

The Quad Cities Community Foundation assesses an amount to all funds for administrative support of the Foundation. The fees support the Foundation's charitable activities, mission and general administrative support to administer the fund. Fund fees vary but generally have a foundation support charge of 1 percent with a minimum of $25 per quarter plus investment management fees. For more details on the Foundation support charge, please see the Foundation Support Charge Policy.

Investment Management Fees

Investment management fees are allocated and charged to each fund on a quarterly basis. Investment management fees are charged by the investment firms and banks managing the Quad Cities Community Foundation’s accounts. The fees vary annually based on investments and size of accounts. Learn more here.


Fund Reporting

MyFund in an online portal where Fundholders can view fund balances, statements, gift and grant history.  Fundholders with donor-advised funds can also recommend grants and research nonprofits.  The gift and grant history can be exported to Excel.

Affiliates can view their unrestricted endowment, operating endowment and non-endowed operating fund on MyFund.  You may also view project funds and Iowa County Endowment Fund, if applicable, and other funds for which your Affiliate Advisory Board recommends grants.

Download the tutorial here.


Iowa Specific

Endow Iowa Tax Credit

The Endow Iowa Tax Credit is awarded on a first-come, first-served basis for gifts made to a permanent endowment fund. It was established for the benefit of Iowa charitable causes, at a qualified community foundation, such as the Quad Cities Community Foundation. The 25 percent tax credit can be claimed by individuals, businesses, or financial institutions.  Donors have up to five years to use the tax credit. 

You can learn more in our FAQ for Endow Iowa.  This also includes illustrations of how the tax credit could benefit taxpayers when donating cash or appreciated securities.  This is a good document to share with anyone who wants to learn more about the tax credit.

When the Community Foundation receives a gift is that is Endow Iowa eligible, the Community Foundation sends the tax credit application and return envelope to the donor along with the acknowledgment letter. This is generally done for eligible gifts greater than  $100. Once the donor returns the completed application to the Community Foundation, it is signed by the Community Foundation staff and forwarded onto the Iowa Economic Development Authority (IEDA). The IEDA then sends a tax credit award letter to the donor and the Community Foundation. The IEDA processes the applications in batches, so depending on the time of year, a donor may not receive a tax credit award letter for a few months.

You can read a more in-depth overview of how tax credit applications are processed in the Steps for Processing Endow Iowa Tax Credit handout.

You can check to see how much of the tax credit is remaining here. Please keep in mind that this number does not take into account applications that have been submitted to the IEDA, but not processed yet. 

Iowa County Endowments

The County Endowment Fund Program is administered by the Iowa Economic Department Authority.  It is a separate program from the Endow Iowa Tax Credit Program.  It allows for a percentage of the state's gaming tax revenue to be distributed to community foundations in the 85 counties that do not hold a state issued gaming license. Seventy-five percent of the funds are granted to charitable projects within their counties and the remaining 25 percent is placed in a permanent endowment fund, which is intended to attract other donations and provide a source of permanent funding for charitable projects within the county. For more details on making grants from Affiliate County Endowment funds, click here.

Learn more here.