Fund Options at Community Foundation
Endowed Funds & Non-Endowed
Funds -The first decision a donor makes in establishing a fund at CFA is
whether the fund is to be endowed or non-endowed.
ENDOWED FUND – a permanent gift
whereby the principal is invested and never touched ensuring the donor’s
long-term intent of its use. The gift is invested and annually a portion
of the earnings is available to be granted to the philanthropic cause defined
by the donor.
NON-ENDOWED FUND – can use the
principal donated and any earnings to benefit the philanthropic cause defined
by the donor.
DONOR ADVISED & CORPORATE
ADVISED FUNDS -Essentially, a charitable savings account, this option is our
most popular and makes giving easy. Individuals, families or companies can make
tax-deductible contributions at any time. Grants are then made to any number of
US 501(c)(3) nonprofits, churches, schools or public entities at the discretion
of the donor(s).
DESIGNATED AND AGENCY
These Funds benefit a
non-profit organization the donor supports. Donors name the designated
organization(s) that will benefit from this Fund. A nonprofit can also
establish this type of Fund to support its own charitable mission, ensure
continuity of its programs and meet emergencies and financial deficits.
FIELD OF INTEREST
These Funds benefit an
interest and cause that is important to the donor. Donors may define the field
of interest broadly or specifically such as the arts, childhood obesity, or a
particular community or parish.
These Funds provide
assistance to students at any education level or for a specific institution.
They can also be established to honor a loved one. Scholarship awards are
granted to the student and designated entity per purpose and criteria.
From these Funds, the
CFA Board of Directors award grants to organizations that meet emerging needs
and opportunities in the communities we serve. These Funds are the most timeless
in terms of community impact.
Funds established in
response to a natural disaster, or in the event that one may occur, can accept
tax-deductible contributions, which in turn are granted to the victims to help
meet their needs.
A donor can establish
a Fund with CFA to be funded with a future "planned gift”. The most popular
planned gift is a simple bequest, via will. Other planned gifts include
charitable remainder trusts or charitable lead trusts, gifts of remainder
interest in a home or real estate, life insurance proceeds and life estates.
Today, the donor determines the type of Fund and its future beneficiaries. This
is a simple and powerful vehicle to create a legacy for oneself and one’s