Investment Information

Unrestricted Contributions: Unrestricted contributions to The Arlington Community Foundation are used generally, to support our programs, initiatives, and operations.

Restricted Funds: Donors may also give contributions with restrictions relating to spending and/or investment and management. Restricted funds will be administered in accordance with the donor's requirements, assuming they are compatible with the Foundation's charitable mission.

Endowed Funds: Donors wishing to create endowment funds must establish the fund with a minimum amount, as defined by the Foundation's Board of Trustees. Endowed funds may be advanced with both income and principal, and they are generally pooled for investment purposes.

Non-permanent Funds: Donors may establish non-permanent funds with a smaller contribution than is required for endowed funds. These funds are advanced through principal.

Diversification: It is the policy of the Foundation that not more than 5% of the Endowment Accounts may be invested in any individual security. In this context, a mutual fund is not considered to be an individual security.  

Investment Options: The Board of Trustees selects the investment options for all endowment funds, excepting donor-advised, donor-designated, or agency endowment funds. The Foundation offers three investment options for these funds. Donors may recommend one option, taking into account the grant making and distribution plan for that particular fund. Certain requirements and restrictions apply. Investment options include:

Growth Option

The asset allocation for this investment option is approximately 70 percent equities and 30 percent fixed income. The objective is to grow the principal while providing some current income. This investment option is best suited for funds with a long term investment horizon. There is greater exposure to equity market risk than interest rate risk.

Balanced Option

The asset allocation for this investment option is approximately 50 percent equities and 50 percent fixed income. The objective is to provide a balance between current income and growth of principal. This investment option is best suited for funds that desire an income stream and growth of principal through some exposure to the equity market. There is exposure to both equity market risk and interest rate risk.

Fixed Income Option

The assets of this pool are invested in government-backed fixed income securities, mortgage-backed and asset-backed securities, as well as investment grade and high yield corporate bonds. The objective is to provide current income while attempting to preserve principal. This investment option is best suited for funds that desire a current income stream and no exposure to equity market risk. There is exposure to interest rate risk, which can result in either appreciation or depreciation of principal.