Fund Administration

Since our establishment in 1998, Tahoe Truckee Community Foundation has responsibly managed the philanthropic contributions of thousands of donors.

It is important that the charitable dollars entrusted to us be available in perpetuity, which requires long-term investment strategies.  However, the Foundation also works to maximize dollars available today so that we can distribute a portion of these resources to invest in our community now.

The thoughtful stewardship of these assets is a critical responsibility.  Managing the Foundation’s growing asset base is a key component of its philanthropic stewardship as the Foundation continues to build on its strong foundation for future growth.

Investment Philosophy

The Foundation’s Investments Committee, comprised of Foundation Board Members and volunteers with investment and financial expertise, is responsible for all aspects of investment activities, including investment policy, asset allocation, and performance review.  This committee holds the Foundation’s approved investment managers to the highest standards of ethical behavior and professional performance.

The Foundation has worked to diversify asset allocation and has set high performance standards for our investment managers, UBS. We maintain a commitment to a total return investment philosophy, including a 4.5% spending policy to ensure the ongoing viability of funds. Any investment return earned over the spending policy and fees is added to the principal, thus combating inflation, overcoming down markets, and growing endowments for the benefit of grantees.

Managing the Foundation’s growing asset base is a key component of its philanthropic stewardship as the Foundation continues to build on its strong history for future asset growth.

Spending Policy

Since inception, Tahoe Truckee Community Foundation has applied a total return spending policy for its endowments.  Funds are invested for maximum total return (within board approved asset allocation policy), without distinction between income and capital gains.

The market value of the fund is measured over the past 12 quarters, and currently 4.5% of the average of those values is made available for grants.  If a fund is too new to have been invested for 12 quarters, calculations are made based on the history of the fund.

This method correctly puts the focus on the long-term growth of the endowment principal.  This in turn encourages the appropriate use of equities in the fund, helping the fund to grow faster than inflation.  It also has a “smoothing effect” by creating a more predictable grant stream than an income-only approach.

Advised Fund Guidelines

TTCF holds endowed and non endowed donor advised funds, allowing donors to support the issues and organizations that they care about.  Endowed Donor Advised Funds require a minimum balance of $10,000 and non endowed funds require a $2,500 minimum balance.  Here’s a summary of Advised Fund Guidelines.  Complete Charitable Fund Guidelines

Grant Recommendations

• The minimum grant recommendation is $200.  There is no limit on the number of grant recommendations an advisor can make from his or her fund.
• Grants may be recommended online, by mail, or by fax.
• Donor advisors may recommend distributions from the fund if they are consistent with the charitable purposes of the Foundation.  The Foundation will consider and evaluate all recommendations.  Such recommendations will be solely advisory, and the Foundation is not bound by such recommendations.
• Grant recommendations will be paid by the 15th and 30th of each month.
• As a donor’s company policy allows, grant recommendations may include corporate matching gift forms.
• Recipient organizations must either be recognized as exempt public charities under section 501(c)(3) of the Internal Revenue Code or be religious organizations, educational institutions, nonprofit hospitals and medical research organizations, or governmental entities.  (Private foundations are not eligible for donor-advised grants.)

Grant recommendations cannot be approved for these reasons

• If the donor or designee is entitled to a material benefit from the organization (such as athletic booster club benefits, dinners or other special events)
• Pledges or other legally-binding financial obligations
• Political campaigns or lobbying activities
• To support a specific person or family, including assistance with scholarships, humanitarian efforts, salaries or bills, or to assist specific persons following a catastrophic event, accident or injury

Fees: fee schedule

Investment Returns: TTCF’s Investments performance reports are compiled quarterly.  Please contact us for the latest report.

For more information on fund administration at the Foundation, contact Kristi Darzynkiewicz, Controller at 530-587-1776