FUND TYPES
Donors may create Endowed, Intermediate, or Non-endowed Funds according to their specific needs, or may contribute to a previously established fund that supports causes they favor.
Endowed Funds are permanent funds in which the assets are managed by the Foundation with an investment strategy of spending a portion of the earnings while preserving the principle investment for a longer-term strategy.
Intermediate Funds are non-endowed funds in that they are treated like endowment funds for the purpose of investment, while allowing for a larger allowance for charitable distribution.
Non-Endowment (Annual) Funds allow for maximum flexibility to the donor or fundholder. The fund maintains a minimum balance, allowing for any amount over that balance to be available for charitable distribution.
Any one of these Fund structures may then be tailored to fit a specific type of fund, as noted below:
Make a gift to the Foundation, and then remain actively involved in recommending grants from the fund.
Designated and agency funds benefit a specific agency or agencies. If a donor wants to set up the fund, it is called a designated fund. If the agency itself wants to place assets with us, either restricted for its endowment or unrestricted assets, it is called an agency fund. Either way, the fund provides support for the agency’s operations. The Foundation also holds the “variance power,” which allows it to redirect funds if, for example, the beneficiary agency goes out of business or ceases to serve its original purpose. This power protects the original donor’s intentions.
Provide assistance for individuals attending institutions of higher education or vocational schools.
Target gifts to address needs in an area of particular interest (e.g. child abuse; performing arts; environment.
Helps the Foundation be able to respond to requests for community needs.