A fund set up by a Nonprofit to hold assets transferred from it or donated directly by donors. Grants from the fund may be made back to the Nonprofit from income and/or from principal.

When a Nonprofit wants professional management of its funds, or wants to set aside reserves or quasi-endowed funds but have access to them in case of future need. An opportunity fund can also be used for a capital campaign and can provide assurance to donors that funds will be handled well.

A Nonprofit may transfer its own funds into an Opportunity Fund, or donors may give to it directly. 

What are the minimums?

An Opportunity Fund should maintain a minimum balance of $10,000. We ask that no grants be requested for less than $250.

What are the fees?

Opportunity Funds pay 1% of the trailing 12-quarter average fair market value of the fund as an administrative charge. Fees and expenses of the Master Fund or mutual funds in which assets are invested are assessed directly to your fund, and usually run 0.5% to 0.75%.

How are the funds invested?

The Foundation has control over the investment and reinvestment of the Fund. Assets of the Fund may be commingled for purposes of investment with other assets of the Foundation. Ordinarily, funds are invested in the Master Fund for The Minneapolis Foundation. Investment policies are available for your review. Other options include a Money Market Fund, a Bond Fund, and a Socially Screened Mutual Fund.

How are the assets treated for accounting purposes?

If all of the funds are transferred from the Nonprofit, it is an agency fund, and the Nonprofit may continue to list the assets on its own books and on its 990. If funds are given to The Minneapolis Foundation directly by donors, it is a non-agency fund. In such a case, the Nonprofit may footnote it on their financial statements, but may not list it as the Nonprofit’s own assets. A fund holding both kinds of gifts may be divided provided each fund meets the $10,000 minimum balance. Donors may make gifts online by credit card or directly to The Minneapolis Foundation for non-agency funds, but not to agency funds. Refer to FASB Rule 136.

How can we request grants?

Let us know who at your organization is authorized to request grants, and any restrictions your Board has placed on such requests. Grants can be recommended on-line using Donor Express, or can be recommended by mail or by fax.

How can we add to our fund?

Your Nonprofit may transfer assets to your agency fund at any time. Your donors may contribute to your non-agency fund at any time, in any amount, using any of the following: cash, closely held stock, partnership interests, publicly-traded securities; real estate, and life insurance. Online credit card donations may also be made. Gifts of illiquid assets must be pre-approved and require the review of our Gift Acceptance Committee. 

How are gifts acknowledged?

All on-line contributors receive an electronic (e-mailed) receipt. Gifts of $250 and above are acknowledged by the Foundation in writing.   Non-profit organizations will receive a list of contributors to their funds with contact information so they can personally acknowledge the donations. 

What if our Nonprofit ceases to exist?

TMF is a community foundation, and as such has a “variance power”. If it is no longer possible to support the original charity, the following paragraph becomes effective:

The Board of Trustees shall have the power to modify or eliminate any restrictions, condition, limitation or trust imposed with respect to any funds or property the title to which has become vested in this corporation if, in the sole judgment of the Board of Trustees, such restriction, condition, limitation or trust becomes unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the community or area served by this corporation.

TMF will then match as closely as possible the mission of the original Nonprofit and distribute the income to a similar Nonprofit or for a similar purpose.