Yo Yolo Community Fund

So, the Barbara Neu Memorial Scholarship is being set up with the Yolo Community Foundation--what are they all about? 

Say hello to the YCF

Yolo Community Foundation (YCF) was founded in 2001 by a group of community-minded Yolo County residents. YCF promotes philanthropy by serving as a public foundation through which: 1) community members pursue their own charitable goals; 2) local nonprofits benefit from YCF programs and events; and 3) youth learn the meaning of community involvement and service. 

YCF is thus well-suited in its mission to support our effort with the Barbara Neu Memorial Scholarship Fund. Also, with its 501(c)(3) status granted by the IRS, the Yolo Community Foundation is registered as a public, nonprofit charitable organization, which makes donations to the fund tax deductible. As an affiliate of the larger Sacramento Region Community Foundation, it also provides our fund with important administration, compliance, reporting, governance and other services. 

For example, scholarship funds housed at the Sacramento Region Community Foundation are subject to the Pension Protection Act of 2006, and the Foundation provides uniform oversight to all scholarship funds to ensure appropriate Fund Committee composition and guard against conflict of interest. Depending on the ultimate set-up, it will also assist with the scholarship payouts.

Further, as this is to be an Endowed Scholarship Fund, meant to exist in perpetuity to carry out its stated purpose, the Sacramento Region Community Foundation will for its affiliate, the Yolo Community Foundation, invest the money designated to the fund via its selected investment advisor. Like all endowed funds, it will help us establish an appropriate scholarship amount (or scholarships, if we deem fit) to ensure that the Fund retains enough money to award scholarships every year into the future without tapping the principal (or fund corpus). As noted, the money donated to the fund is invested in a portfolio of stocks and bonds, much like a 401 K, and the return on this invested capital is what is used to pay the scholarship recipients.

Of course, the YCF/SacRegF charges a fee for its services as does their investment advisor, and this must be factored into how much the fund pays out each year. Each Community Foundation has its own guidelines for this, set in accordance with the Uniform Prudent Management of Institutional Funds Act (UPMIFA).   

In subsequent posts, we'll look at some of the other funds, including scholarship funds supported by the Yolo Community Foundation and share some due diligence on the investment advisor it uses.   

Meanwhile, check out the websites of both the Yolo Community Foundation and the Sacramento Region Foundation. You might also want to take part in their Big Day of Giving on May 3.