Policies and Terms of Service

Our Board of Directors appoints an Investment Committee to manage our charitable assets. The committee establishes and reviews investment guidelines and evaluates investment performance on a regular basis. Our investment policy is similar to that of most community foundations: to have a diversified and balanced portfolio. The objective of the investment policy is to provide a return that preserves and grows our charitable assets, while ensuring a consistent stream of revenue to issue grants and scholarships.

To help us meet our investment goals, we engage Fund Evaluation Group (FEG) as independent consultants. FEG advises the Investment Committee on investment policy and asset allocation. FEG also advises on manager selection and performance review of our Core Portfolio, which is our primary investment pool. Wilmington Trust is custodian for the Core Portfolio. We also maintain investment pools managed by Buckingham Strategic Wealth, RKL Wealth Management, and Weik Capital Management.

In addition to our Investment Committeee, our Audit Committee assists the Board of Directors in fulfilling its oversight responsibilities related to our financial, operational and compliance information. The Audit Committee oversees our financial reporting process and annual independent audit and reports results of its activities to the Board.

Our Spending Policy is a formula that determines the annual charitable payout as a percentage of the average fair market value of each endowed fund. Our current Spending Policy is 4.5% of an endowed fund’s value. By adhering to the Spending Policy, we can distribute grants and scholarships in perpetuity. When annual earnings exceed a year’s distribution from a fund, the excess is retained in endowment principal. This strategy is intended to grow fund assets, thereby ensuring that the funds will fulfill their purpose in perpetuity.

In addition to the annual distributions determined by our spending policy, we charge a management fee to all funds we manage based on the type of distributions they make. The minimum management fee charged to a fund at Berks County Community Foundation is based on an endowed fund size of $50,000.

Berks County Community Foundation does not fund special event sponsorships, table purchases, program advertisements/listings, or tickets.  

There are two exceptions to this rule: (1) when a current foundation board or staff member is being honored, or (2) when a current foundation staff member sits on a group’s board or committee. In those cases, we may consider a program listing and/or table sponsorship. 

The Community Foundation supports nonprofit organizations through the distribution of grants from a variety of funds created by local donors. These grants support organizations and causes at more significant levels than those ordinarily sought through event sponsorship.  

To learn more about grant opportunities that may be available for your organization, explore our website and subscribe to our e-newsletter. 

Note that the Community Foundation may choose to advertise in certain publications from time to time as part of its own marketing efforts.  

The Community Foundation provides meeting space in our building during regular business hours at no charge for:

• Organizations exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code

• Government organizations

No partisan political events may be held in the building.

Berks County Community Foundation requires that nonprofit organizations receiving grants from discretionary funds meet the following standards:

• A Board of Directors governs the organization.
• Board ensures the organization complies with appropriate accounting practices.
• Board ensures the organization complies with local, state and federal laws.
• A majority of Board members are not employees of the organization or relatives of employees.
• Board approves an annual operating budget and receives periodic financial statements.
• If an audit is required, Board meets with audit firm and can meet them without an employee present.
• Board ensures that the organization has written personnel policies and job descriptions.
• Board sets compensation for highest ranking employee based on appropriate comparability data.
• Board ensures grantee adheres to Conflict of Interest policy that has been adopted by the Board.
• Board has term limits unless a majority is elected/appointed by an outside entity.
• Board reviews the performance of the highest ranking employee.
• If there are no paid employees, Board reviews the performance of the Executive Director or Board Chair.

As of January 1, 2025, donor advised funds managed by Berks County Community Foundation will only award grants to nonprofit organizations based in the United States. This policy allows the Community Foundation to verify a nonprofit organization’s status with the IRS through GuideStar, a trusted resource that provides information and data about IRS-recognized tax-exempt organizations and faith-based nonprofits.