Financial Stewardship

The Arizona Community Foundation takes great pride in providing clear, transparent information about our investment management and performance, our financial position, and our administrative fees.

Investment Objective

The Arizona Community Foundation's Investment Objective is to develop, implement and monitor prudent investment management of the Foundation’s capital market assets in order to secure, over time, acceptable inflation and risk adjusted total rates of return for both the total fund and the individual asset classes authorized for investment.

These returns must be consistent and competitive in order to fund the Foundation’s annual grantmaking and operating expenses, to preserve the asset base, and to enhance the asset base through capital appreciation.

Guiding Principles for Endowed Funds

Endowed funds held in the Long Term Pool are, by definition, perpetual funds. The Foundation can afford to take a very long-term view in setting the investment policy. Consquently, the Long Term Pool accepts market volatility. This supports its objective for investing in equity and fixed income markets and diversifying strategies that are designed to achieve 10-year expected rates of return that exceed inflation and ACF's spending policy rate.

External asset management

At the donor’s request and recommendation, charitable assets of a certain size may be managed by external money managers who are independent of the donor and agree to abide by investment guidelines and policies prescribed by the Arizona Community Foundation. Call our Philanthropic Services team at 602.381.1400 to learn more.

Spending Policy for Endowed Funds and Spending Guideline for Non-Endowed Funds

The ACF Spending Policy for Endowed Funds & Spending Guideline for Non-Endowed Funds [PDF, 119KB] provides the maximum amount for annual grantmaking from endowed funds. Also referred to as the “spend rate,” this spending policy is set by ACF's Board of Directors and establishes the maximum amount available for granting each year from endowed (permanent) funds held at ACF. For non-endowed (spendable) funds, the policy does not apply and instead, serves as a guideline for donors.

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