Funds may be endowed or remain fluid. Endowed funds are the most preferred, as they provide grant funding in perpetuity and enjoy a much greater long-term rate of return. Non-permanent, or “pass-thru” funds are usually established as administrative tools for non-profit organizations or as temporary granting tools for donors who wish to see their funds depleted within a lifetime.
Through an unrestricted fund, the donors allows the community foundation discretion on the use of available grant dollars for a broad range of community issues. This provides the foundation the opportunity to respond to changing community needs.
Most donor-advised funds are unrestricted, in which the donor actively participates in the grant-making process by recommending to the community foundation’s board of directors the purpose and/or organization(s) that might receive the available grant dollars. The foundation’s board then has final approval of these recommendations. Donor-advised funds may contain purpose restrictions within their fund agreements, however, which limits the distribution of grant monies to fit within the restrictions placed by the donor.
Field of Interest
For a field of interest fund, the donor instructs the community foundation to utilize available grant monies in a certain program area, such as education, health, youth, the environment, etc., with the foundation determining the specific recipient(s).
A designated fund is simply that–a fund which provides grant dollars to the specified — or “designated” — recipient.
These funds are established to provide support for individuals pursuing some training or educational opportunity, as outlined in each individual fund agreement. Grants may be awarded to educational institutions for the benefit of the students selected. Foundations may classify a scholarship fund as a designated fund if the designated organization–instead of the foundation’s selection committee–handles the process of selecting recipients.
These funds can be either non-permanent or endowed, depending on whether the entire fund is to be available for “spending”, or if only the allotted percentage of investment income is to be used for operating or administrative costs. Some operating/administration funds are listed as designated pass-thru funds for expenses.
A charitable organization or group, or even a charitable fund, may choose to participate in the mission of the Foundation by becoming a supporting organization. Supporting organizations follow the guidelines and practices of a community foundation, but maintain separate boards and committees. SO programs and activities are subject to the approval of the OCCF Board of Directors.
To honor a loved one, friend, or someone you admire or to pay homage to someone who is an outstanding example of humanity themselves.
The memory of a loved one is sacred, and the establishment of a fund in the name of a loved one who has passed on creates an eternal tribute to their memory.
TO ADDRESS A NEED
We all have causes we believe strongly in, and the creation of a fund–or a gift to an existing fund–that addresses that cause is an easy and fitting means of making a difference in the area you feel
Loyalty to an organization, created through a strong bond between an individual and the work the organization performs and the individuals involved in the organization, is a major factor in the establishment of many funds that are designated for an admired or esteemed charitable organization.