The Nebraska Community Foundation works with community, organizational and donor-advised affiliated funds serving 250 communities located in 80 counties. NCF and its affiliated funds have reinvested $269 million in Nebraska since 1994.
Certificates of Deposit (CDs) may be purchased for an affiliated fund in the following circumstances:
The interest rate to be earned by affiliated funds on CDs is as follows, consistent with interest earned on cash:
Contact the NCF accounting staff if you believe that a CD would be appropriate for an account within your affiliated fund. If circumstances warrant, NCF will proceed with purchasing a CD. NCF will request rate quotes from three banks. Banks to be contacted will be those in the affiliated fund’s local community. If there are fewer than three banks in the community, interest rate quotes will be solicited from a bank(s) within the county, nearby towns or surrounding region. Donors or FAC members may not specify that NCF obtain rate quotes from, or place a CD with, a particular bank, as that could present an actual or perceived conflict of interest.
CDs will not be purchased with a maturity of less than six months, as the incremental interest earned over that from NCF’s cash account is minimal for shorter terms. CDs will not be purchased with a maturity of more than five years due to interest rate risk and the likelihood that the cash may be needed in a shorter time frame.
All CDs will be purchased in the name of the Nebraska Community Foundation. Officers of NCF will be the signers on the CDs. NCF’s accounting records will reflect each CD in the affiliated fund and account for which it was purchased.
If the amount to be placed in CDs (in combination with any other accounts NCF may have deposited at such bank) at a bank exceeds the FDIC insurance limit, NCF shall require the bank to provide additional insurance, a repurchase agreement, or some other form of security for the portion of the CD(s) that is not covered by FDIC insurance. To the extent that accrued interest causes the balance to exceed the FDIC insurance limit by an immaterial amount, no such additional security will be required.
Halli Whitten (l) and Marissa Galardi (r) help a resident at Duffs Friendship Villa in Nebraska City use technology to communicate with loved ones. Marissa is chair of the NCCFF youth advisory committee.Read more →