Outside Advisor Policy

Outside Advisor Policy

ferry_walkwayAll assets contributed to funds established at Bainbridge Community Foundation will be managed by the foundation. The foundation’s funds may be pooled for investment purposes; however, there are certain situations in which investment management may be delegated to additional managers.

Any fund considered for investment management outside of the foundation’s main investment pool must meet all nine of the following conditions set forth for by the foundation’s board of trustees.

  1. The funds under consideration would already be under the investment management of the financial institution.
  2. The charitable asset would become an asset of Bainbridge Community Foundation and be under the control of the board of trustees.
  3. Bainbridge Community Foundation would retain the financial institution as a fund manager over the specific asset. The financial institution must comply with the foundation’s investment policies, except those directed specifically at other accounts or investment managers.
  4. The financial institution shall take instructions (both written and verbal) only from authorized employees of Bainbridge Community Foundation (never from the donor who created the fund).
  5. The financial institution would be subject to quarterly and annual reviews by Bainbridge Community Foundation’s Finance and/or Investment Committee, as are all other fund managers.
  6. Bainbridge Community Foundation and the financial institution would enter into an agreement covering ongoing management, fees, and other pertinent information.
  7. A minimum of $200,000 would be required to establish this arrangement.
  8. All activity within the fund (earnings, dividends, gains/losses) would be separately posted to the fund. It would not share in the investment activity of any other of the foundation’s funds. A separate accounting arrangement would be established to track activity in the fund.
  9. Bainbridge Community Foundation may terminate the relationship with an investment manager upon 30 days’ written notice to the professional advisor should there be noncompliance with the fund agreement or substandard investment performance as benchmarked by appropriate investment indices and current investment policy.

Financial institutions are defined to include certified financial planners, registered broker/dealers, investment advisors, and banks. For more information, or to receive a copy of these conditions, please contact Jim Hopper, Executive Director, at 206-842-0433.

“You don’t realize the impact of the ripple effect of going to community organizations until you become part of the process.”
—Susan Callan, Bainbridge Community Foundation Donor