2012 Annual Report - Arizona Community Foundation

ARIZONA COMMUNITY FOUNDATION PAGE 29Nonprofits have two choices for establishingan organizational fund, both offering areliable source of financial support for theorganization over the long term, thanks toprofessional management.NONPROFITFUNDSNONPROFITENDOWMENTFUNDA permanent endowment gives organizations theopportunity to create a fund that generates investmentincome, year after year, which can be drawn down inset annual payments to the organization, or reinvestedin the fund to grow over time. The permanence of anendowment fund is both appealing and reassuringto donors and nonprofit boards of directors who seek theenduring value of a dedicated source of income to supportthe organization they love, today and forever.NONPROFITRESERVEFUNDThese funds give organizations the opportunity to savenon-endowed, medium-term or emergency dollars in a professionallymanaged fund that can generate investment income, year after year,but also remains fully accessible with a vote of the nonprofit’s board.A portion of the earned income can be drawn down in set annualpayments or reinvested in the fund to grow over time, accordingto the organization’s needs. It’s a flexible, simple way for nonprofitsto build toward a project or future operational needs.