THE COMMUNITY FOUNDATION OF FREDERICK COUNTY

Comparison of

Endowment Funds versus Quasi-Endowment Funds

	Endowment Fund	Quasi-Endowment Fund
Minimum to start a fund	$10,000	$10,000
Life of fund	Perpetuity	Perpetuity
Distribution policy	Distributes net income only, which is primarily income and dividends. Contributions to the fund are never spent and are held as a permanent part of the fund.	Distributes a percentage of the market value on an annual basis. The Community Foundation’s current distribution policy is 5 percent of the market value based on March 31 for scholarship funds and June 30 for all other funds. Contributions to the fund may be spent if provisions are made in the fund agreement.
Investment options	The Community Foundation offers a balanced portfolio, with heavier weights in stocks than bonds, and with a small portion in money markets. Other investment options will be considered at the Donor’s recommendation if the fund exceeds $100,000.	The Community Foundation offers a balanced portfolio, with heavier weights in stocks than bonds, and with a small portion in money markets. Other investment options will be considered at the Donor’s recommendation if the fund exceeds $100,000.