While arguably the recent collapse of Silicon Valley Bank sent its biggest shockwaves through the startup and banking sectors, nonprofit organizations are not immune from the ramifications. Charitable organizations’ concerns range from specific worries that the bank’s successors will reduce or stop lending and support for affordable housing and community programming initiatives, to wide-ranging uneasiness throughout the broader nonprofit sector about the safety of money held in banking institutions across the country.

Indeed, a nonprofit’s accounts at a bank are subject to the same FDIC rules as a for-profit company, with a few additional twists that could allow a nonprofit to diversify. Finance committee members on your board of directors certainly are aware of this and may be encouraging the rest of the board and staff leadership to review your organization’s reserve fund policies and even check in on your organization’s endowment practices.

If your organization has already established a reserve fund or endowment fund here at the Winona Community Foundation, you know that the community foundation is committed to helping you meet the needs of the people you serve for the long term.

Here are a few reminders about how the Winona Community Foundation team partners with you and your board of directors to keep your funds safe and supporting your mission:

  • A fund at the community foundation is a cost-effective option for a nonprofit to access investment options that might not otherwise be available. Overseen by an independent board of directors made up of community leaders, the community foundation is built to provide the highest level of investment oversight.
  • The community foundation can help your organization structure and accept gifts of real estate and other hard-to-value assets.
  • By having a fund at the community foundation, our team can step in as your behind-the-scenes back office, giving your board and staff more time to focus on your programs and donors.
  • The team at the community foundation is adept at navigating the specific accounting standards that are unique to complex fund accounting and gift planning.
  • The community foundation team can help establish investment policies and gift acceptance policies, making it easier for you to engage in fundraising discussions and have the time to do it.

As always, the community foundation is here to help. Our tools and services make it easier for you to grow your reserve funds and endowments. We look forward to continuing to work together.