Several of MCF's sub-funds have been set up for by not-for-profit (NFP) organisations looking to secure the future of their organisation and their work in the community, by starting to build an endowment.

This is another way in which Melbourne Community Foundation can support the important work of organisations in the NFP sector.

There are a range of advantages for NFPs setting up a Sub-fund. It can provide the basis for longer term sustainability and greater independence from external funding sources. By being removed from the organisation’s balance sheet, funds can be stored and built on for a specific purpose further down the track, rather than absorbed into recurrent expenditure.

The Sub-fund can also be used to expand the organisation's support base, by offering an independent and secure option for donors’ gifts.  Learn more about how to secure a Not for Profit's future through Melbourne Community Foundation below.

Please find following details of the not-for-profit organisations involved with MCF.  

• Abbotsford Convent Fund
• Ardoch Future Fund
• Australian Environment Grantmakers Network
• Australian Federation of University Women Victoria Scholarship Fund
• Fitted For Work
• Travellers Aid Fund
• Turning Point Charitable Fund

• Women's Health Victoria Fund

   

Assisting Not For Profits to secure their future

Securing a Not for Profit organisation’s future through a permanent source of income is not only sound long-term planning, but it also provides peace of mind and appeals to donors. 

Investing funds with MCF utilises a cost and tax effective investment vehicle which has performed at, or above, market rate; has an ethical overlay on its investments and which is operated by another not-for-profit organisation. MCF is staffed and governed by a group of like-minded people with similar values, working to address issues of disadvantage and improve the quality of life of those in the community.

Benefits of setting up an endowment fund with MCF

• Donations to a sub-fund of Melbourne Community Foundation are tax deductible and the sub-fund is income tax exempt. 
• No establishment costs – simply complete a ‘Request to Establish A Sub- Fund’ form. 
• No ongoing administrative or reporting requirements for the NFP.
• Low cost, no hassle.  MCF's annual administration fee is 1.35% of sub-fund capital and the investment management fee is 0.3%. 
• While sub-funds are separately identified for investment purposes, the funds benefit from forming part of a pooled investment.
• Income can be distributed to the not for profit organisation for any purpose, including core costs or for innovative projects.
• Capital from sub-funds can also be distributed if necessary.
• Donations to the sub-fund need not form part of the NFP’s balance sheet, but can be accounted for separately.
• The endowment carries the extra protection against any misuse by a NFP as MCF is the Trustee of the fund.
• Development of greater independence from external funding sources in the long term.

In addition, an MCF sub-fund has the potential to expand and grow the NFP's supporter and donor base:

• as an independent and secure option for donors gifts
• as an additional mechanism to attract funds which complements and supports the organisation’s overall fund raising strategy
• with the possibility of attracting funds from existing Melbourne Community Foundation donors.

For more information, contact the MCF office:
 

Melbourne Community Foundation

Suite 6, 19 – 35 Gertrude Street

Fitzroy  VIC 3065

Phone (03) 9412 0412

Facsimile (03) 9415 7429

Web: www.communityfoundation.org.au

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