Financial information

The North Carolina Community Foundation consistently meets rigorous, objective standards for operational and investment quality, integrity and accountability.

NCCF openly provides financial information to the public as a part of our commitment to transparency. Tax return information via Form 990 and the current audit report are available to the public. Additional financial information is provided in the Annual Report and in quarterly fund statements sent to fundholders.

Investment portfolio

Prudent investment stewardship is essential to our mission of building long-term charitable assets for the benefit of our communities. Our donors benefit from a collective investment approach that affords individual fundholders access to investment managers and products. With NCCF, donors may achieve broader diversification through alternative asset styles and liquidity options not usually available to individual investors.

Investment philosophy

The perpetual nature and long-term perspective of philanthropy are the bases for the Foundation’s investment philosophy. Philanthropic investing has a longer-term horizon than personal investing, retirement investing or intergenerational investing.

Investment objective

The Foundation’s overall objective is to preserve and protect fund principal while achieving a long-term, average return sufficient to cover a 5% spending policy plus an administrative fee and any potential inflation over a complete market and economic cycle. Achieving this objective requires the assumption of a moderate level of risk, a long-term investment horizon and asset diversification.

Investment strategy

Historically, equity investments have outperformed both fixed income (bonds) and cash (certificates of deposit and money market accounts). A moderate asset allocation of 70% equity (stocks), 20% fixed income, and 10% alternative investments is appropriate for the long-term perspective of philanthropic investing and the investment objective to preserve fund principal and an appropriate return.

Layers of stewardship

The investment portfolio is overseen by the NCCF Finance Committee, a sub-committee of our statewide Board of Directors. Our investment partners are approved by the Finance Committee. The committee and NCCF staff, with the assistance of our investment advisor, closely monitor our roster of select investment managers for adherence to the Investment Policy Statement, performance expectations and professional and ethical behavior.