Types of Funds

Types of Funds

When creating a fund through the Community Foundation, donors choose one or more type of funds(s). The “types” determine how charitable grants from income are distributed.

Donor Advised Fund: A donor advised fund is a fund for which the donor and his or her family members make recommendations for grants, subject to the approval of the Foundation’s board of directors. Our most popular fund option, donor advised funds provide maximum convenience and flexibility by enabling donors to address a wide variety of issues as their charitable interests and priorities change over time. The Foundation manages check writing, reporting and paperwork. Many donors choose this type of fund to simplify their annual giving.

The Foundation offers two types of donor advised funds:

  • Flexible endowment funds allow you to make grants, as long as you maintain a balance of at least $10,000. These funds will accrue investment returns, which can add to the amount available for grant-making. The Foundation charges and administrative fee*. See Fee Schedule.
  • Endowed Funds are designed to continually grow charitable assets, thereby leaving a lasting resource for the community. Only a portion of the income earned on the fund’s assets is available for grant-making each year, with the emphasis on growing the principal for long-term use. This choice is best for those whose philanthropic vision extends far into the future.

A donor who creates an advised fund can identify a successor or the organizations that the fund will continue supporting in the donor’s name after death. The Foundation’s stewardship ensures that the donor’s charitable intent is fulfilled in perpetuity.

The minimum gift to establish a named donor advised fund is $10,000.

Create a donor advised fund when you have an active interest in supporting a number of causes and want to remain both involved and flexible in your charitable objectives. The donor advised fund is also a good option if you want to involve future generations in family philanthropy. Because the Foundation handles all the administrative and reporting tasks, a donor advised fund can simplify and streamline your charitable giving and record keeping.

Field of Interest: A field of interest fund supports a broadly defined area such as the arts, the environment or health or a more narrow interest such as dental care for children of low-income families. Fund holders identify their area of interest and can participate in the grant-making process or utilize the Foundation’s expertise to identify worthy grantees. The minimum gift to establish a named field of interest endowed fund is $10,000.

Creating a field of interest fund is best when you are passionate about a community issue and want the flexibility to support it in perpetuity, without necessarily committing your funds to a specific organization.

Unrestricted Funds: An unrestricted fund recognizes that a community’s challenges and opportunities will change. It provides flexible resources to support innovative responses. Fund holders entrust the Foundation with the selection of promising projects to receive grant funding through a competitive process based on community needs. As with all of the Foundation’s funds, distributions are made in the name of the fund or anonymously as requested. The minimum gift to establish a named unrestricted fund is $10,000.

Creating an unrestricted fund is best when you want your gift to have maximum impact on the community’s most pressing needs- now and forever.

Nonprofit Funds A nonprofit fund is an endowed fund created by a nonprofit organization or by an individual on behalf of a nonprofit. An initial gift of $10,000 can establish a nonprofit fund that allows the principal to grow in perpetuity. Gifts of all sizes can be made to an existing endowment.

Placing endowment funds at the Community Foundation ensures the long-term stewardship and objective fiscal management of a nonprofit’s funds. It also frees nonprofit staff from the burdens of endowment management and reporting, so they can focus on fulfilling their mission.

More than 25 nonprofits have chosen to secure all or part of their endowment with the Community Foundation. For a complete listing of nonprofit endowment funds, contact the Foundation.

Designated Fund: A designated fund is a way to support specific nonprofits for generations to come. Many donors recognize their annual gifts are a critical resource for the nonprofit organizations they support. Designated funds name specific nonprofits that are the beneficiaries of their grants and ensure that support in the donor’s name continues in perpetuity.

Creating a designated fund is best when you have supported select organizations for years and want that support to continue forever.

Corporate Funds A corporate fund can be a donor advised, field of interest or nonprofit organization fund created to facilitate corporate philanthropy. If you own your business, have substantial holdings in closely held stocks or are charged with managing your corporation’s charitable giving, giving through the Community Foundation offers tax advantages, eliminates record keeping and administrative hassles and gives your business access to the guidance of our professional staff for both grant making and gift planning.

  • Establish a fund in your company’s name with a donation of $10,000 or more.
  • Donate cash or other business assets. Contributions are tax deductible and you can make additional donations at any time. Making larger donations in more profitable years helps reduce your dependence on annual cash flow to sustain corporate giving levels.
  • Decide which requests for support to fulfill and recommend those grant recipients.
  • The Foundation handles all administrative paperwork, legal and audit fees and correspondence with grant recipients.
  • Our efficient administration of your giving program means more of your charitable resources are directed in to the community.