Creating a charitable fund within the Community Foundation is quick and easy. Following are six simple steps to guide you in the creation of your own personal fund.
What Are My Goals?
What do you want to achieve through the establishment of a fund? Do you have a favorite charity or charitable purpose that you would like to support? Or, are you interested in providing scholarships for younger generations?
You may simply wish to create an unrestricted fund that will serve the emerging needs of your community in any charitable field. With such funds, the Community Foundation will be responsible for responding to the most urgent charitable needs in the name of your fund.
Permanent recognition is an important benefit provided by the Community Foundation. We are in the best possible position to fulfill this objective for you. By creating an endowment fund, your fund will receive recognition in perpetuity.
What Are My Options?
You can realize nearly any charitable intent by choosing from the variety of fund types offered by the Foundation. These fund types can be created as “endowment funds” (permanent resources for the community) or as “pass-thru funds” (temporary charitable vehicles that close upon the fulfillment of their charitable purpose.)
Endowment funds are permanent funds that distribute a percentage of the fund’s value for those charitable purposes set forth in the written agreement between you and the Community Foundation. The name of the fund will receive perpetual recognition as all grants will carry the name of the fund. In addition, the Community Foundation provides profiles of its endowment fund donors in each of its annual reports. A gift of $10,000 or more will enable a fund to be classified as an endowment.
Pass-thru funds are temporary funds in which all of the assets of the fund are available for distribution. Often, donors will create a pass-thru fund with the objective of adding to the fund over time in order to reach endowment status. A gift of $500 or more will enable you to open a named fund.
What Type Of A Fund Should I Consider?
Once you have determined your goals, you will want to consider one or more of the following fund types.
- Donor Advised
- Scholarship Program
- Grantmaking Program
- Field Of Interest
- Agency-Institutional Endowment
- Combination Of Charitable Purposes
What Name Shall I Give To My Fund?
A fund’s name is a permanent part of that fund. Whenever a grant is made from a fund, that grant will be recognized by the fund name. Choosing a name is an important consideration when creating a fund. The following examples may be helpful to you.
- Name of the individual establishing the fund
(John Smith Endowment Fund)
- Name of the couple establishing the fund
(John and Jane Smith Endowment Fund)
- Name of the family represented by the donor
(Smith Family Endowment Fund)
- Name of a favorite charity or charitable purpose
(Fox Valley Healthcare Fund or Geneva Fund for the Arts)
- Name of a deceased loved one
(John Smith Memorial Endowment Fund)
What Is The Best Way To Make My Gift?
The following methods of giving will help you to create your fund now.
- Closely Held Stock
- Real Estate
- Transfer Of A Private Foundation
- Charitable Lead Trusts
Should you wish to have a fund created at a future time, these methods may be used.
- Life Insurance
- Charitable Remainder Trusts
- Charitable Gift Annuities
What Do I Do Now?
After you have considered the many possibilities available to you, we will do the rest. Please contact us by telephone or e-mail. We will go over all of the details with you and help design an agreement that will govern the administration of your fund. You may wish to visit us as well. The entire process will take an hour or less of your time. Please contact us today if we may answer your questions or provide additional information.