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Donors may elect from a variety of fund types, which vary in the degree of involvement the donor may have in awarding the grants from the fund to carry out the donor's intent. Contributions to any of these funds are an immediate tax deduction at the time the gift is made to the Foundation, regardless of when distributions are made to charitable causes.
Donor Advised Funds
- Give donors maximum flexibility in making annual distributions to charitable organizations they wish to support
- Donors may recommend grant distributions at any time
- Non-endowed (non-permanent) advised funds may be established with a gift of $10,000
- Donors may establish an endowed advised fund (permanent) with a minimum gift of $50,000
- Annual Administrative Contribution ~ 1.25% on the first $1 million; 1.0% on the next $1 million; 0.75% on the next $2 million; 0.50% on the remaining balance of the fund.
- In addition, from each gift to establish or add to a Donor Advised Fund, 1% is contributed to the Community Endowment Fund.
Benefits: Immediate tax deduction at the time gift is made, while grants can be recommended over time and years; only one charitable gift receipt to track; no paperwork to track; quarterly statements with detailed information; gift can be made annonymously; investment and growth of assets is possible for larger funds; may include others, such as children as advisors to the fund; ability to tap into the knowlege and expertise of the foundation staff on nonprofits and the challenges in the community.
Designated and Agency Endowment Funds
- Donors may create a designated endowment fund for specific nonprofit or religious organizations, which will receive annual grant distributions from the fund in perpetuity
- Nonprofit agencies may create endowment funds for the benefit of the agency itself and receive grant distributions annually in perpetuity
- May be established with a minimum gift of $25,000
- Annual Administrative Contribution ~ 1.00% of the first $500,000; 0.75% on the next $1 million; 0.50% on the remaining balance of the fund.
Field of Interest Endowment Funds
- Donors may create endowment funds from which grants are to be made within broadly defined categories of interest (such as the arts, education, the environment, etc.)
- The Foundation's board of directors and professional staff develop strategies and award grants to achieve maximum effect within the donor's specified area of interest
- May be established with a minimum gift of $25,000
- Annual Administrative Contribution ~ 1.25% of the balance of the fund.
Flexible Focus Endowment Funds
- Donors entrust the grantmaking from the fund to the Foundation's board of directors and professional staff, who continually monitor the well-being of the community to discern just how philanthropy might best advance the nonprofit sector, and award grants based on the ever-changing conditions and needs in the community
- May be established with a gift of $25,000
- Annual Administrative Contribution ~ 2% of the balance of the fund.
Scholarship and Award Endowment Fund
- Donors may establish a scholarship fund for students with defined characteristics and may participate in the selection process as a member of a committee
- Donors may establish a scholarship fund for a particular college or school and allow the school to select the recipient scholar
- Maybe established with a minimum of $50,000, but a balance of $100,000 must be maintained for the awarding of scholarships
- Annual administrative contribution ~ 2% of the balance of the fund.
Acorn Funds
- Donors may open fund with only $1,000, bringing it up to the $10,000 minimum over a five year period
- May make one grant per year not to exceed 10% of the balance with a minimum gift amount of $250
- Annual Administrative Contribution - none until balance reaches $10,000.
Non Endowed Agency Funds
- Not-for-profits may create a non-endowed fund and make annual grants from the fund. Any annual distribution requests must be at the $10,000 level or above
- Deposits unlimited
- Minimum to establish fund: $500,000, Minimum balance in the fund: $25,000
- Annual administrative contribution: same as agency endowment (see above).
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