One of the best advantages of our Giving Fund is that you are able to claim an immediate tax deduction for your gift – yet take the time to prayerfully consider which charities you wish to support.
Meanwhile, Funds can grow through one of our investment portfolios. Funds with a balance that exceeds $100,000 may be placed in more than one investment portfolio. Funds with a balance that exceeds $300,000 are available for separately managed investment. Our policy is to allocate earnings and losses (less administrative costs) to the Fund each month.
The following are NCF’s five investment portfolios:
Pools Without Equity Exposure
The Money Market Pool
- This pool seeks preservation of principal by maintaining a stable fund value, while paying interest that is commensurate with institutional money market fund rates.
- NCF makes every effort in managing this pool to avoid all capital losses by restricting investments to highly liquid, short-term fixed income investments.
The Bond Pool
- This pool is intended for NCF Giving Funds seeking income and modest capital appreciation with a distribution horizon of one to three years or more.
- The pool seeks steady income and relatively stable principal values by investing in a portfolio of investment grade bonds.
- The duration of this fund is relatively short as a way of minimizing principal fluctuations.
Longer-Term Pools With Equity Exposure
The Conservative Pool
- This pool is intended for NCF Giving Funds with a distribution horizon of three or more years.
- The pool seeks both income and modest capital appreciation by investing in a diversified mix of asset classes that includes global equities, fixed income, commodities, and risk-reducing alternative investments.
- Of the three equity pools, the Conservative Pool has the lowest equity exposure and the highest exposure to fixed-income investments.
The Balanced Pool
- This pool is intended for NCF Giving Funds with a distribution horizon of five or more years.
- The pool seeks income and capital appreciation that is appropriate for the intermediate-term time horizon.
- This pool also invests in a diversified mix of asset classes that includes global equities, fixed income, commodities, and risk-reducing alternative investments but with a heavier weighting to equities than in the Conservative Pool.
- The likely volatility of the Balanced Pool will usually be greater than the Conservative Pool but less than that of the Growth Pool.
The Growth Pool
- This pool is intended for NCF Giving Funds with a distribution horizon of seven or more years.
- As the pool with the longest investment time horizon, this pool seeks long-term capital appreciation and has the heaviest weighting to equities.
- This pool is nonetheless invested in a diversified mix of asset classes that includes global equities, fixed income, commodities, and risk-reducing alternative investments.
- Of the three equity pools, the Growth Pool is the most volatile with the greatest potential for capital appreciation and also the greatest risk of loss.