Investment and Distribution of Fund Monies

How the Community Foundation Invests and Distributes Fund Monies

Since 1986, the Community Foundation has distributed more than $34 million back to the community!

Professional investment managers safeguard and invest the Community Foundation's funds. An investment committee comprised of members of the Community Foundation's Board of Trustees and others with investment expertise sets the overall investment policy and monitors the performance of these managers. The Community Foundation's accounts are audited annually by an independent auditor and are available for public review.

The Community Foundation's current investment managers for pooled funds are:

  • Anchor Capital Advisors LLC
  • Apex Capital Management
  • Brown Investment Advisory & Trust Company
  • Constitution Capital Partners, LLC
  • Crestline Management, L.P.
  • Davenport & Company, LLC
  • Eagle Capital Management LLC
  • First Eagle Investment Management, LLC
  • Frederick County Bank
  • MacKay Shields
  • Morgan Stanley
  • Northern Cross LLC
  • Oppenheimer Global Equity
  • Permal Capital Management, LLC
  • PNC Institutional Investments
  • Prudential Trust Company
  • Sandy Spring Bank
  • Sona Bank
  • Wilmington Trust Investment Advisors
  • WMS Partners, LLC
  • Woodsboro Bank

Under the Community Foundation’s “$100,000 policy,” donors who create funds with $100,000 or more may recommend an investment option – either using the Community Foundation’s pooled funds, as state above, or an alternative one.  The Community Foundation’s Investment Committee considers all suggestions and presents its final investment recommendations for investments to the Board of Trustees based on the best way to achieve the fund’s purpose and impact. The Community Foundation’s current investment managers for funds invested within the “$100,000 policy” are:

  • Family Heritage Trust Company
  • First United Bank & Trust
  • Maryland Financial Planners
  • Merrill Lynch
  • Morgan Stanley Private Wealth Management
  • Wells Fargo Advisors LLC

For more information about these investment managers or their rates of return, please contact the Community Foundation.

One hundred percent of each donation specifically earmarked for a particular fund is added to that fund. Thus, the Community Foundation meets its operating expenses in three ways:

  • First, the Community Foundation receives many gifts from donors designated for operating expenses, including gifts received from members of The Widening Circles Society.
  • Second, the Board of Trustees solicits gifts to be placed in a special fund called The Administrative Endowment Fund to support operations.
  • Third, each fund is assessed a small management fee to help offset the costs of administering the Community Foundation. Scholarship funds are assessed a management fee of 1.5 percent annually. All other funds are assessed 1 percent per year.  The minimum annual fee charged each fund is $200. (please note: management fees and minimums are changing as of October 1, 2014. Please check this page for updated information.)

Distribution of Fund Monies

The Board of Trustees has established a policy of appropriating 5 percent of the previous year-end fund balance to the charitable cause for which the fund is intended to support. Allocations from the Community Foundation's funds are made by the Board of Trustees, according to the agreement made between the donor and the Community Foundation.

Grant Distributions: All requests for grants from unrestricted funds are first reviewed by the Foundation's Grants Committee.  Recommendations are then presented to the full Board for consideration and approval.

Grant distributions from donor-advised funds: fund distribution recommendations must be made by the fund's authorized representative in writing. The proposed gift must fit within the charitable purposes of the Community Foundation and within specific Internal Revenue Service requirements. The Community Foundation's Executive Committee and/or the Board of Trustees must approve all grants awarded from any fund.

Allocations and grants are made to tax-exempt, not-for-profit charitable organizations primarily serving Frederick County in the areas of education, the arts, health, social services, and the conservation and preservation of historical and cultural resources.  Distributions from designated funds are sent annually to the charitable cause for which the fund was intended.

Grant amounts from unrestricted funds vary depending upon the nature and needs of the organizations and the fund’s investment return.

The Community Foundation's annual grantsmaking process distributes monies from unrestricted endowment funds as well as several other funds.  There is no formal application; however, there are specific guidelines.

Scholarship Distributions: Scholarships are awarded annually through an online application and review process with consideration of specific scholarship fund guidelines.

Click here to read the Community Foundation's Statement of Investment Objectives and Policies

Confidentiality

The Community Foundation of Frederick County considers the security of its records and its confidentiality regarding donors and contributions to be of the utmost importance. The Community Foundation’s records are never sold, shared or used by other organizations. When a gift is made to a fund, the fund’s founder is notified of the donor’s name and contact information, but not the amount of the contribution. Exceptions to this practice may be made at the donor’s request.

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