Types of Funds
The Foundation offers a variety of fund options for individuals, families, businesses and non-profit organizations. Our personalized service offers efficient and flexible ways for donors to be charitable through the Community Foundation. Our staff works closely with donors to assist them in selecting the right fund to fulfill their philanthropic aspirations. Fund-holders can determine how much or how little they want to be involved with their fund.
The unique quality of a donor-advised fund is that donors may recommend distributions to charities most important to them at their convenience. Donor-advised funds are popular, flexible and provide an easy way to support the organization, causes, groups and issues that donors care about most now, and in the future. A donor-advised fund may be created by any individual, family, group, business or organization and donors obtain an income tax deduction for the value of the appreciated assets at the time their gift is made to their donor-advised fund. A Donor- advised fund allows the donor the opportunity to combine income tax planning with charitable giving.
Donor-advised funds may be established as temporary (non-endowed) or permanent (endowed) funds. You can also donate a variety of assets to your fund. Donor-advised funds may be named to recognize the donor(s), a family member, friend, or organization. Or, you can name the fund to ensure your anonymity.
A primary benefit of donor-advised funds is that you may remain actively involved in the grantmaking process well after making your gift, while avoiding the administrative and regulatory headaches and costs of establishing a private foundation. The Community Foundation is responsible for all administration associated with the fund, including due diligence investigation of grant recipients and management of assets.
Field of Interest Fund
Field of interest funds are designed for donors who have interests in a particular area of funding but who wish to rely on the Foundation to make specific grants in support of those interests. For example, you may be concerned about environmental issues and want your fund to support groups and projects that the foundation finds most compelling and that might not be supported through other grants programs of the foundation.
You may specify an issue area, a particular cause, or a specific geographic area as the focus for the grants you wish the Foundation to make in the name of your fund. However, if you wish to remain involved with the Foundation as an advisor regarding grants made from the fund, then the Foundation will consider the fund a donor-advised fund, even though it may reflect a specific area of interest.
Field of interest funds may be created by any individual, family, group, business, or organization. Funds may be named for the donor, a family member, friend, or organization. Or, you can name the fund to ensure your anonymity. Field of interest funds may be established as expendable or endowed funds. You can also donate a variety of assets to your fund.
A primary benefit of field of interest funds is that as a donor, you can be assured that grants will be made that support the issues you care about. At the same time, you do not need to be actively involved in the grantmaking process. And like donor-advised funds, you avoid the administrative headaches and costs of establishing a private foundation. The Community Foundation is responsible for all administrative tasks associated with the fund - including due diligence investigations regarding prospective grant recipients and management of assets.
Scholarship funds are an important way to support the educational goals of students. In choosing whom you would like to support, you can specify a particular school (either the school from which the student is graduating or is attending), a special talent or academic area, or a specific geographic area - or you could specify that the scholarships you support be based on a statement of need.
Donors may establish or transfer existing scholarship funds to benefit students at all education levels. Some donors choose to stay involved through advisory relationships, while others name advisory committees to assist in the selection of recipients. Either way, the Community Foundation handles the necessary paperwork and ensures that scholarships and grants are distributed in an equitable manner. Click here for our current Scholarship Funds.
A designated fund is one in which the donor can designate a specific charitable organization or purpose to be the beneficiary. This is an easy way to support the organization you care about most, now and in the future.
A primary benefit of a Designated Fund is that the gift continues long after you have passed away. Also, if the charity comes into misfortune, the Foundation holds variance power that would redirect your gift to a like organization. Your gift will not be lost if the charity would cease to exist.
An unrestricted fund is a fund in which the donor wants his/her charitable giving to accomplish the most for the community’s quality of life. With this type of fund, it is up to the foundation to identify current needs in the community, and the responsibility of selecting grantees rests with the Community Foundation Grants Committee. This type of fund is a great way in which the donor can meet a variety of community needs year after year
Organization Endowment Fund
The Community Foundation is used by local nonprofit organizations to manage their endowment funds. For as little as $5,000 an endowment can be created. An organization endowment fund holds assets for a charitable organization and generally distributes investment income to the organization on a semiannual or annual basis. Through economies of scale, organizations benefit from The Community Foundation’s investment portfolio diversification and low investment fees. The Foundation's years of experience with the nonprofit community enables us to assist other charitable organizations in managing their assets. By establishing an endowment fund at the Foundation, nonprofit organizations are relieved of the administrative burdens and costs associated with holding its own endowment fund, while receiving a steady stream of income for operations, programming or other organizational needs.
Deferred gifts allow donors to leave a charitable legacy. The three major types of deferred funds include bequests, charitable remainder trusts and life insurance policies. Our staff would be happy to discuss the benefits of these contributions with you.