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SERVICES FOR ENDOWMENT OR EXPENDABLE FUNDS |
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Services Provided
- Financial statements for each fund, including investment activity and itemized lists of donations and disbursements
- Acknowledgment of gifts made to the fund, receipts meeting current IRS regulations, and thank you letters to all donors
- Independent audit of all financial transactions
- Required IRS annual tax returns filed on behalf of the fund’s activity
- Inclusion of fund description in HAF’s Yearbook with circulation of 8,000
- Upon request, assistance with press conference at fund’s inception and/or press release at time of grant award
- Professional charitable estate planning assistance for potential donors to the fund
Investment Management
The Humboldt Area Foundation (HAF) manages $80 million in assets and currently pools investments for over 600 funds. Investing on a pooled basis produces significant economies of scale, including: (a) enhanced diversification of assets across investment styles and money managers; (b) enhanced access to money managers that might otherwise be unavailable due to account size minimums; and (c) reduced costs due to the application of size-sensitive fee schedules to an expanded asset base.
HAF participates in the American Funds Community Foundation Program. Specific American Fund mutual funds are joined with selected funds from the mutual fund family of DFA (Dimensional Funds Advisors) to acquire optimum results. Investment services have been expanded to include the services of local investment advisors.
The Humboldt Area Foundation also invests some expendable funds in low-risk or non-risk investments. These returns vary by the month.
Asset Allocation
The Humboldt Area Foundation's assets are allocated as follows:
20%
| International Equities |
| 25%
| Fixed Income Fund | 50%
| U.S. Equities |
| 5%
| Real Estate Securities |
Investment Returns
This asset allocation has produced the following total net returns. All returns are reported net of investment fees as of June 30, the last day of HAF’s fiscal year.
2000
| 9.80%
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| 2004
| 17.35%
| 2001
| .94%
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| 2005
| 11.19%
| 2002
| -4.93%
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| 2006
| 12.45%
| 2003
| 3.06%
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| 2007
| 17.85%
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Administrative Fees
The annual rate of support for Foundation services is one and one-half percent (1.50%) of the principal balance, a portion of which is taken from the income generated by your fund each quarter. There is a minimum fee of $150 per year for expendable funds.
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