The Community Foundation values integrity and sustainability. We invest donor funds transparently and prudently so they will be available for grantmaking now and for future generations.
Fiscal Responsibility
The Community Foundation of Central Wisconsin’s (CFCWI) financial strategy governs the stewardship, growth, and distribution of foundation assets in alignment with fiduciary duty, donor intent, and long-term sustainability across all fund types. CAPTRUST serves as the Community Foundation’s Outsourced Chief Investment Officer (OCIO), holding discretionary authority to manage asset allocation, security selection, and rebalancing within the parameters established by the Investment Policy Statement (IPS). This structure delegates day-to-day investment decision-making to CAPTRUST while retaining fiduciary oversight at the Investment Committee and Board level.
Investment Policy Statement (IPS)
The IPS is the governing document establishing the Community Foundation’s investment objectives, asset allocation targets, risk tolerance, permissible asset classes, spending policy, and benchmarks for performance evaluation. Under the OCIO model, the IPS defines the boundaries within which CAPTRUST exercises discretionary authority, making it the primary mechanism by which the Board and Investment Committee maintain control without managing investments directly.
The IPS is reviewed at the January Investment Committee meeting and approved at the February Board meeting, ensuring alignment with market conditions, foundation size, and mission priorities.
Investment Committee
This Board-appointed committee is responsible for oversight of CAPTRUST’s performance and IPS compliance, rather than for making direct allocation decisions. The committee reviews quarterly performance reports, evaluates CAPTRUST’s execution against IPS targets and benchmarks, recommends IPS revisions to the full Board, and conducts periodic due diligence on the OCIO relationship, including fee review and any RFP process.
Asset Allocation & Diversification
Under the OCIO model, CAPTRUST diversifies investments across asset classes (equities, fixed income, alternatives) based on the time horizon and risk profile appropriate to each fund category, exercising discretion within IPS-defined ranges rather than seeking case-by-case approval for individual allocation decisions.
Spending Policy
The spending policy ensures that endowed funds function into perpetuity while minimizing the impact of market volatility.
- 4% of the 12-quarter trailing average balance of the fund.
- Funds with less than 12 quarters of history are calculated on the average of all trailing quarters’ fund balances.
For more information about our financial approach, please contact our office at (715) 342-4454 or email foundation@cfcwi.org.
Stewardship Through Every Season
As the Community Foundation of Central Wisconsin closes another fiscal year, it is a fitting time to reflect on the stewardship of the charitable assets entrusted to the Community Foundation and the communities they are intended to serve. Investment markets...
