Basic Fund Types
All of the funds at the Foundation fall into two basic categories: each fund is either an endowment fund or a pass-through fund.
- An endowment is a fund established with the intention of providing grants forever, so grants are made only from the interest earned by the fund.
- A pass-through is a fund established with the intention of providing grants until the original donation is depleted, so grants are made from the interest and the original donation.
Specific Fund Types
Whether creating an endowment or a pass-through fund, donors may choose from a wide variety of fund types that specifically suit their interests and their financial needs. Each type of fund agreement offers different donor options and different advantages.
- Discretionary or Unrestricted Funds offer the broadest giving option. Grants from such funds may be made to the project or organization that the Foundation’s board of directors determines meets the greatest need in the community. Establishing a new fund requires a minimal gift of $5,000.
- Designated Funds are established to benefit specific charitable organizations that are named by the donor. A new fund requires a gift of $5,000 to establish it.
- Field of Interest Funds create grants that meet needs in a particular field or geographic area that is of interest to the donor. Areas of interest might include youth, the elderly, health, the environment, arts and culture, community development, etc. Such a fund requires a minimum gift of $5,000 to establish the fund.
- Donor-Advised Funds provide donors with the greatest convenience and flexibility. Donors can recommend distributions to specific charities in which they are interested to the Foundation’s board of directors. A donor-advised fund requires a $5,000 gift to establish a new fund.
- Discretionary Scholarship Funds provide educational scholarships without taking advice or recommendations from the donor during the scholarship selection process. This type of scholarship fund requires a $5,000 initial gift.
- Advised Scholarship Funds provide scholarships to individuals, where the donor wishes to be involved in the selection process for the scholarship recipients. Under the legal provisions of the Pension Protection Act, however, the donor may only participate in the selection process as a member of a larger advisory committee. Starting this type of scholarship fund requires a minimum $5,000 gift.
- Advised Agency Funds are established at the request of a charitable organization (the “agency”) to provide support for the agency’s tax-exempt activities as advised by the agency.
- Remembrance/Memorial Funds are discretionary (unrestricted) in nature and allow specific individuals to be remembered or honored while at the same time helping the community. Any amount will be accepted. These gifts will be pooled and earnings will be used as directed by the Foundation’s board of directors.
- Seedling Fund donors pledge annual gifts toward an endowment fund goal of $5,000 that is to be achieved within five years of the first gift installment. Contributions my be made monthly, quarterly, semi-annually or annually as long as the annual contribution is at least $1,000. All interest and dividents earned by the fund remain in the fund to help it grown. When the fund balance reaches $5,000, the fund converts to an unrestricted fund, a designated fund, a field of interest fund, a donor-advised fund, etc.
