Fees / Fund Distributions

Preservation of  Capital

The Foundation sets its annual spending policy for permanent funds by applying a percentage, determined annually by the Board of Directors based on the recommendation of the Investment Committee, to a fund’s average net balance.  Average net balance is based on a rolling eight quarter market value as determined by the Investment Committee.  

 

In determining the applicable percentage, the Investment Committee considers the Foundation’s history, spending policies in place at other community foundations, and the foundation’s responsibility to preserve the purchasing power of its permanent funds over time.

The amount that can be expended annually from permanent funds is determined annually by the Board of Directors based on the recommendation of the Investment Committee. This amount applies to endowed funds and to funds that may not meet the technical legal requirements of an endowed fund but that are intended by the donor to be of long duration. 

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Distribution Rate

The current distribution rate of the Keokuk Area Community Foundation is 4.5%. This decision was based on careful consideration of three key factors:

• Market Forecasts

• Understanding that a distribution rate of 5.0% would not enable the funds to realize the Keokuk Area Community Foundation’s investment objectives.

• A desire to align the Keokuk Area Community Foundation’s distribution rate with those of the majority of community foundations nationally.

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Fees

The Community Foundation’s fee for administering funds is based on the market value of the fund. Assessed quarterly, the current annual fees are listed below for endowed and non-endowed funds.

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Donor Advised and Designated Funds

• Up to $1 million: 1.50%

• Next $2 million: 0.50%

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Scholarship Funds

• 2.0%​

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Nonprofit Funds

• Up to $1 million: 0.50%

• Next $1 million: 0.25%​​​

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The Board of Directors periodically reviews fees and has the authority to make changes when appropriate.