Establishing an Organizational Fund at the Cleveland Foundation

It seems that just when a charitable organization is needed most by its constituents, funds from private, philanthropic and government resources become all the more difficult to obtain. Thus, forward-thinking board members of foundations and charitable organizations are discovering the need to establish stable, predictable sources of income that look to the long-term needs of their organizations. A designated fund through the Cleveland Foundation can serve as part of an organization’s funding mix and help to stabilize its revenue.

Organizational Partner Benefits

The Cleveland Foundation can be a great help in establishing an organizational fund for a charitable organization. Classified for tax purposes as a public charity rather than a private foundation, the Cleveland Foundation exists to manage funds by donors for the benefit of a specific charitable cause or the general welfare of the community. The Cleveland Foundation can be described as a community savings account – a pool of endowed assets.

For its organizational partners, the Cleveland Foundation is honored to provide:

  • Ongoing financial stewardship by an expert donor relations team composed of attorneys, accountants and development professionals with decades of experience
  • Planned giving expertise and consultation to assist in giving opportunities
  • Financial education and strategy seminars for an organization’s staff and volunteers
  • Online giving directly through the Cleveland Foundation website

Organizational Partner Advantages

The Cleveland Foundation and its professional staff offer many advantages in holding and managing a charitable organization’s fund:

  • The organizational fund enjoys the advantage of being invested in a larger pool of assets, which can lead to greater growth, greater income, and lower investment fees.
  • While comingled for investment, the designated organization’s fund will not be used for other purposes. All gifts to the fund will be restricted for the organization’s benefit only.
  • All gifts are income tax deductible at the highest levels allowed.
  • The Cleveland Foundation handles investment management and oversight, including all accounting and financial reporting.
  • The designated charitable organization can receive payouts at scheduled intervals.

Organizational Partner Services

Organizational partners receive an assigned donor relations professional on the Cleveland Foundation staff who can answer questions and provide fund updates. Additional services include:

  • Quarterly statements and access to the Cleveland Foundation’s online donor portal
  • Recognition in the Cleveland Foundation’s publications and on the foundation website, reaching a broad audience of potential donors
  • Invitations to attend the Cleveland Foundation’s educational events
  • Gift acknowledgement letters for donors when giving directly to the fund

The Cleveland Foundation staff can also offer organizational fund partners more sophisticated planned giving devices such as charitable gift annuities, charitable remainder trusts and charitable lead trusts.

To learn more, please contact a member of the Advancement Team at 1-877-554-5054 or 216-861-3810.