Comments on: Chase Community Giving… what if you win? http://www.2amtheatre.com/2010/06/25/chase-community-giving-what-if-you-win/ thinking outside the black box... Thu, 02 Feb 2012 05:04:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Aaron Andersen http://www.2amtheatre.com/2010/06/25/chase-community-giving-what-if-you-win/comment-page-1/#comment-413 Aaron Andersen Wed, 21 Jul 2010 22:30:43 +0000 http://www.2amtheatre.com/2010/06/25/chase-community-giving-what-if-you-win/#comment-413 There may be an efficient way to establish a $20,000 endowment, after all. Community Foundations (like the Chicago Community Foundation and Evanston Community Foundation) will often accept a small agency endowment into their assets, and distribute money out to the agency per their standard spending policy. Other communities may have similar foundations. If you won $20,000 from Chase, and are still trying to decide what to do with it, take a look at your local community foundation.<br><br>But you have to accept their spending policy and asset allocation, and, by extension, their risk profile. This means that you would certainly NOT want the $20,000 to be permanently restricted by Chase. Permanently restricted means you can never spend the $20,000 principal, not ever, and if the balance drops below $20,000, you will have to replenish it. But if $20,000 is a really big deal to your organization, that means it would probably be really hard to replenish any lost assets. Instead, you will want the Chase money to be considered Board-designated, unrestricted endowment. That means that the donor didn't set limits, but the Board chose to do so. There may be an efficient way to establish a $20,000 endowment, after all. Community Foundations (like the Chicago Community Foundation and Evanston Community Foundation) will often accept a small agency endowment into their assets, and distribute money out to the agency per their standard spending policy. Other communities may have similar foundations. If you won $20,000 from Chase, and are still trying to decide what to do with it, take a look at your local community foundation.

But you have to accept their spending policy and asset allocation, and, by extension, their risk profile. This means that you would certainly NOT want the $20,000 to be permanently restricted by Chase. Permanently restricted means you can never spend the $20,000 principal, not ever, and if the balance drops below $20,000, you will have to replenish it. But if $20,000 is a really big deal to your organization, that means it would probably be really hard to replenish any lost assets. Instead, you will want the Chase money to be considered Board-designated, unrestricted endowment. That means that the donor didn't set limits, but the Board chose to do so.

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