Types of Funds

One of your considerations in creating a fund is determining what fund type will help you carry out your charitable goals. The information below provides an overview of the types of funds available, and our staff will be happy to help guide you through the process.

There Are Two Categories Of Funds:

Permanent Funds – gifts to permanent funds are never spent. Gifts are invested, and a portion of the fund is used to fulfill the fund's charitable purpose.

Permanent funds may be endowed or quasi-endowed. Learn how these differ.

Pass Through Funds – gifts to pass through funds, along with the fund's investment return may be used to fulfill the fund's charitable purpose at any time during the life of the fund.

Fund Types – permanent and pass through funds may be any of the following fund types:

Unrestricted Fund

For the donor who chooses to give a gift with no restrictions, an unrestricted fund allows the Community Foundation's Board of Trustees to allocate the proceeds from your fund to the most appropriate charities. Because the charitable needs of the community are continually changing, you may feel that a group of living individuals will be better able to assess current situations than a written document from the past. An unrestricted fund is most suitable, since these all-purpose funds are the most flexible in meeting the emerging needs of the community.

Designated Fund

For the donor who wants to designate favorite charities, a designated fund allows you to direct the proceeds from your fund, specifying the amounts or percentages to each charity. If one of the organizations ceases to operate or no longer offers the type of service that interests you, we will find one that does—so that your gift remains vital and meaningful.

Donor-advised Fund

For the donor who would like to be involved with the fund, a donor-advised fund allows you to maintain an advisory role in how the proceeds from your fund are disbursed. The Community Foundation's Executive Committee and/or the Board of Trustees must approve all grants awarded from any fund. The proposed gift must fit within the charitable purposes of the Community Foundation and within specific Internal Revenue Service requirements. You offer advice during your lifetime and may designate a family member to make advisements once you are no longer living. Otherwise, the fund may become an unrestricted fund or a restricted fund according to your instructions. Read the Community Foundation's donor-advised fund policies.

Scholarship Fund

For the donor who would like to provide financial assistance to students pursuing a post-secondary education, a scholarship fund is an excellent option. Donors indicate the scholarship criteria and may serve in the minority on the scholarship selection committee.

Agency Fund

An agency fund allows a nonprofit to partner with the Community Foundation by taking advantage of its expertise in managing charitable funds. The result helps the nonprofit further their mission by ensuring long-term financial support.

Fiscal Sponsorship Fund

A fiscal sponsorship fund allows start-up organizations and groups addressing an emerging or short-term need to work with the Community Foundation.

All permanent and pass through funds are assessed a small management fee. Learn more about minimum distributions and management fees by fund type.