A key purpose of a successful community foundation is to provide efficiencies in all charitable activities. ECCF provides economies for joint management of pooled funds for those who hold and manage charitable funds (i.e. family foundations, charitable trusts or the endowment and reserves of nonprofits). The cost of managing a large pooled fund at ECCF (which includes time, paperwork, fees and fiduciary responsibility) is lower than the cost of managing each smaller fund individually. And through ECCF’s professional fund accounting, the value of each individual fund is clearly delineated in quarterly reports to each donor. Each fund maintains its own distinct purpose, advisor and relationship with ECCF staff.
The Community Foundation’s services provided to our Fundholders include, but are not limited to, custodial and investment management, accounting, grantmaking advice and procedures, regular reports to Fundholders on the fund’s activity and performance, and all filings and compliance with regulatory bodies. Two modest fees are charged for these services, one fee for the investment management itself, and one fee for ECCF’s services.
Fees vary with the size and type of the fund. Specific information on fees is presented in the Fund FAQs Section under Start a Fund. ECCF staff will detail specific figures as the fund is discussed.
As the Foundation’s pool of Funds grows, fees decline. Its largest pool currently carries a fee below 60 basis points (under six-tenths of one percent). ECCF is a nonprofit itself, so we are careful to keep the fees as low as possible while still providing high quality service.
Important distinction: The majority of fees charged by ECCF are used to support the services to Essex County charities, as opposed to fees charged by commercial managers, which go into corporate coffers.