Why Setup a Nonprofit Agency Fund?

Boys & Girls Clubs Agency Nonprofit Funds
Nonprofit agency funds at The San Diego Foundation are investments setup by organizations themselves, such as local Boys & Girls Clubs, that support long-term operations and goals.

Nonprofit leaders understand that much of the day-to-day management of an organization is heavily dependent upon successful fundraising. In order to generate positive, lasting change, nonprofits need the resources to do so.

Yet more time spent on fundraising means less time dedicated to the overall mission of the organization.

That’s why many decide to establish nonprofit agency funds to help stabilize revenue generation.

Current State of Nonprofits

In recent years, the way nonprofits fundraise and generate revenue has evolved. Innovative business models such as social enterprise and impact loan funds are becoming more viable in the industry.

In addition, recent changes to the U.S. tax law are causing more and more leaders to rethink their charitable strategies. According to the Council on Foundations, donations to the nonprofit sector could decline by as much as $24 billion per year as a result of the new tax law.

If those projections become reality, then the 10,844 nonprofit organizations in San Diego will look toward newer solutions that help maintain and grow their impact.

Stability in the nonprofit sector is critical today, more than ever.

Long-Term Solution

Nonprofit agency funds at The San Diego Foundation are investments setup by organizations themselves to support their long-term operations and goals.

These funds, particularly endowment funds, help smooth out the ups and downs of long-term fundraising by creating a sustainable pool of money that an organization can rely on. Agency funds also show the community and potential donors that an organization is committed to its mission and here to stay.

Nonprofit agency fund benefits:

  • Stable source of revenue
  • Builds peace of mind with board and donors
  • Relieves pressure on fundraising
  • Enables program growth and expansion
  • Reduces economic uncertainty
  • Increases operational flexibility
Many local nonprofits have already invested in their future by setting up nonprofit agency funds. Not every organization is the same, but The San Diego Foundation and its team of fund advisors can help nonprofits determine the financial model that best meets their needs.

Find out if a nonprofit agency fund is right for your organization.

Contact our Charitable Giving Team today!

  • Or call us at (619) 235-2300.

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