Fully Accountable

Helping our community thrive. Today. Tomorrow. Forever.

The prudent investment and management of assets is a primary function of the Community Foundation of the Holland/Zeeland Area’s Board of Trustees. CFHZ is a publicly supported 501(c)(3) organization and as part of our commitment to transparency, Foundation records such as the annual audit, the IRS Form 990, investment policies, managers and fees are readily available. An independent public accounting firm, Plante & Moran, PLLC, prepares our financial statement as part of the Foundation’s annual audit. Interested parties may access the full audit and 990 financial information below or on Candid’s Guidestar website. Candid is an organization that gathers and publicizes non-profit organization data to help donors make informed giving decisions.

CFHZ Investment Management

The majority of charitable assets under management by CFHZ are invested in our main investment pool. The main pool is a highly diversified portfolio pooled with more than 600 funds and houses our Community’s Endowment assets.

CFHZ Board of Trustees has ultimate responsibility for the investment portfolio and delegates responsibility to its Investment Committee for implementing and monitoring the investment policy.

Investment strategy icon

Investment Strategy

The Foundation has adopted an investment strategy emphasizing broad diversification. Diversification helps to reduce portfolio volatility (variability of returns) and maximize investment returns at appropriate levels of risk over time. Donors to the Foundation are assured that their funds are prudently and professionally managed.

Performance Objective

The primary objective of the investment policy is to provide for long-term growth of principal and income within reasonable risk tolerances to enable the Foundation to make grants on a continuing and consistent basis. The total net return should at a minimum exceed the Consumer Price Index plus 5% on an annual basis. The focus is on reasonable and consistent long-term capital appreciation with the primary emphasis placed on maintaining real growth of assets net of inflation and fees.

NEPC – Investment Consultant

Effective January 2020, the Foundation has selected NEPC to act as the Foundation’s independent investment consultant, assisting in developing and attaining fund investment objectives. NEPC’s work includes: establishing objectives and policy, offering alternative models for asset allocation, identifying appropriate managers or funds, and producing timely quarterly reports that monitor performance of individual managers against similar managers as well as performance of the funds against objectives and appropriate benchmarks.

Spending Policy

A foundation’s spending policy determines how much of the investment portfolio will be available for distribution and how much will be retained for reinvestment. The Foundation utilizes a total return approach, consistent with the applicable standard of conduct set forth in the Michigan Uniform Prudent Management of Institutional Funds Act (UPMIFA). The expenditure is calculated as a percentage of the total market value of the funds over a trailing 12 quarter period ending September 30. The Board gives due consideration to donor intent and standards allow principal, income and capital appreciation in excess of what is necessary to preserve the long-term purchasing power of the fund to be allocated to support Foundation programs. The Foundation generally limits its annual spending (grants and administrative fees) to no more than 5% of the 12 quarter average market value of each fund.

Asset Allocation

The Foundation has adopted a long-term target asset allocation intended to meet with investment objectives of the fund over time. This allocation includes traditional strategies (US and Foreign equities and fixed income), Private Equity, and Flexible Capital which includes alternative and real asset strategies (hedge, real estate, energy). Use of these strategies is common among endowment and foundation portfolios today. Please give us a call at 616-396-6590 with questions about investment management.

Actual Allocation

Actual Allocation — 12/31/2025

47% 11% 15% 11% 8% 7%

Long Term Target Allocation

Long Term Target Allocation

49% 12% 9% 6% 10% 12%

Investment Performance

The 1-year return on the Foundation’s investment portfolio as of December 31, 2025 is 11.5%. The average annual return for the 3-year period is 10.6%, 5-year period is 6.9%, 7-year period is 9.4%, and 10-year period is 8.2%. Please give us a call at 616-396-6590 with questions about investment management.

CFHZ Historic Investment Returns

CFHZ Historical Investment Returns

1 Year 3 Year 5 Year 7 Year 10 Year

Investment Options

In addition to the main investment pool, non-endowed fund holders may recommend the following investment options for the assets held in their charitable fund:

Index Funds

Vanguard Total World Stock Index Fund
Vanguard Total Bond Market Index Fund
Fund holders may recommend any split between these two Vanguard funds.

Cash

Funds will be held in a cash investment pool, presently invested in U.S. Treasury Cash Reserves (UTIXX)

Celebrating 75 Years of Impact

Learn More