Overseeing investment management for more than 700 component funds that make up The Community Foundation for Greater New Haven is one of the most important responsibilities of the Board of Directors. The Board’s Investment Committee recommends all modifications to the Statement of Investment Policy, establishes the long-term asset allocation model (see chart below), selects all managers to implement each component of the long-term model, sets market-driven performance benchmarks for each manager, and monitors all practices and performance of the investment strategies and managers.
In 1984, The Foundation established a separate charitable corporation – The Community Foundation for Greater New Haven, Inc., (Corporation) to provide donors with another avenue for fulfilling its charitable intentions. In addition to the Corporation, The Foundation's four trustee banks are: Wachovia, Bank of America, NewAlliance and People’s United Bank.
The Foundation’s investment strategy is that of a total return approach to endowment management. This long-term strategy seeks to provide a predictable, increasing amount of revenue for grantmaking while maintaining the endowment’s purchasing power against the effects of inflation. To achieve these goals, The Foundation has implemented disciplined and integrated spending and investment policies.
The Corporation's spending policy provides an annual distribution based on a Spending Rate equal to five and three-quarters percent (5.75%) of a 20-quarter rolling market value average, with a “cap” and “floor” overlay. This cap and floor allows the distribution, in periods of favorable markets, to increase while also protecting the endowment’s erosion in a prolonged period of adverse market conditions. The “cap”, or maximum distribution, is equal to 5.75% of the current market value and the “floor”, or minimum distribution, is equal to 4.25% of the current market value. The amount available for distribution from those funds held at each of the Trustees is based on a Spending Rate of five and one-quarter percent (5.25%), which is calculated in the same manner as is done for the Corporation.
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The Community Foundation for Greater New Haven
Financial Statements (2008)
Form 990
IRS Designation Letter
The Valley Community Foundation (Affiliate)
Financial Statements (2008)
Form 990
IRS Designation Letter
The communities' charitable assets are held either by The
Foundation's corporation known as the The Community Foundation for
Greater New Haven, Inc. (The Corporation) or in trust by one of four
trustee banks: Wachovia Bank, Bank of America, NewAlliance Bank, and
People's United Bank. Donors determine whether a trustee or the
Corporation will manage.
Each document below shows a snapshot of the relative investment
performance of The Corporation, including those endowments managed
for the Valley Community Foundation, and its two largest
trustee banks, and includes each entity's market-driven investment
performance benchmark as reported by Colonial Consulting, LLC.
Investment performance 4th Quarter 2009
Investment performance & asset allocation 3rd Quarter 2009
Investment snapshot 2nd Quarter 2009
Investment performance 2nd Quarter 2009
Investment performance 1st Quarter 2009
In addition to benchmarking the performance against market-driven indices, The Corporation also compares its performance against its community foundation peers nationally. Since inception of the national survey, The Corporation has consistently ranked among the top of its peer group as reflected in the chart below.
The chart represents the Council on Foundations’ national investment survey comprising more than $18.6 billion in charitable assets of more than one hundred of community foundations, for the periods ended December 31, 2008 as reported March 14, 2009. All data is expressed as percentages, and annualized for periods of more than one year, and before the payment of investment management and custodial fees. n = number of survey participants. The lavender bar represents The Corporation. The maroon bar represents Peer Foundations. The yellow bar represents excess performance by The Corporation vs. Peer Foundations.
Administrative Fee Policy
The administration of more than 700 component funds making up The Community Foundation for Greater New Haven is the responsibility of the professional staff. Generally, not more than 1% of a trailing 4-quarter market average calculated annually is charged to endowed funds for administrative, investment, and philanthropic services provided by The Community Foundation.
Due diligence is conducted by The Community Foundation staff to insure that nonprofits receiving grants are in good standing, and that all appropriate audit, tax filing, and related reports are complete.
Organization Endowment Fee Policy
The Foundation provides organization endowment services for 501(c)(3) organizations, and all other exempt organizations considered on a case-by-case basis, subject to Board of Directors’ approval.
For organization endowment funds with a market value less than or equal to $100,000, an annual fee of $25.00 is assessed. For information on fees associated with organizational endowments with a market value greater than $100,000, contact Angel Fernandez-Chavero at afernandez@cfgnh.org or (203) 777-7072.