Connecticut Community Foundation stewards more than 450 charitable funds that have been entrusted to us since 1923. Our goal is to invest strategically to meet the current needs of our community while preserving the endowment’s value so we are able to continue to serve residents in the future.
As a public charity, the Foundation adheres to the highest financial disclosure standards. See documents below:
- Audited Financial Statement
- IRS Form 990, IRS Form 990-T
- Tax-Exempt Public Charity Determination Letter
- Connecticut Solicitation Registration
- 2015 Annual Report
Our Investment Options
The Foundation’s investment policies are overseen by an Investment Committee comprised of active and retired investment managers and other individuals knowledgeable in the investment field. This committee, with assistance from an independent consulting firm, recommends asset allocation strategies and investments to the Board of Trustees, and monitors the performance of the investments on a quarterly basis against designated benchmarks.
Donors to the Foundation may select from the following investment options for their funds:
- Balanced endowment fund – This investment option is available for both permanent and nonpermanent funds. This pooled fund offers a broadly diversified portfolio of publicly traded mutual funds, providing full disclosure and liquidity. The focus is on index funds which mirror the market at low cost. Further information on the balanced endowment fund’s individual mutual funds and their returns is available. Contact us at 203.753.1315.
- Money market type vehicle – This investment option is available only for nonpermanent funds. This pool offers a money market type vehicle for donors who wish to expend their funds within a shorter timeframe, usually fewer than 2-3 years.
Investment return, net of investment manager fees, for the Foundation’s Balanced Endowment Fund and comparable indices for the period ending 3/31/17 are:
|Year to Date||Last 12 Months||Last 3 Years||Last 5 Years|
The Foundation invests its endowment assets for total return (interest, dividends, capital appreciation/depreciation). Each individual fund at the Foundation receives its pro rata share of the total return.
Annually, the Board of Trustees establishes a spending rate. The Foundation’s spending rate for 2017 is 5.20 percent. A 12-quarter moving average (ending one year prior to the beginning of each current year) of ending endowment market values is used to determine spending for grants and scholarships.
For permanent endowment funds, a portion of the payout is assessed for action grants, an administrative fee and a Foundation investment management fee. This assessment is calculated quarterly based on the prior quarter’s ending market value For non-permanent donor advised funds, action grants, the administrative fee, and the Foundation management fee are are calculated quarterly based on the highest market value in the prior quarter.
The Board of Trustees has historically approved a prudent rate of spending, taking into consideration historic rates of return and inflation. Studies of endowment funds consistently show that spending rates significantly greater than five percent have the potential to erode the value of the endowment after inflation.