Community Foundation Fund Types
1. Unrestricted Funds offer the broadest giving option, allowing grants to be made to wherever the Foundation board of directors determines our community’s needs are the greatest. Requires gift of $5,000 to establish.
2. Field of Interest Funds create grants that meet needs in a particular field or geographic area that is of interest to you. Areas of interest might include youth, elderly, health, environment, arts & culture, etc. Requires gift of $5,000 to establish.
3. Donor-Advised Funds provide donors with maximum convenience and flexibility. Donors can recommend distributions to specific eligible charities in which they are interested. Requires gift of $5,000 to establish.
4. Designated Funds are established to benefit specific charitable organizations that are named by the donor. An endowment fund is a designated fund that preserves the principal of the fund while making annual distributions of income earned by the fund to the charity. If the named organization ceased to exist, the Foundation would redirect income from the fund to achieve the original purpose. Requires gift of $5,000 to establish.
5. Remembrance Fund is discretionary in nature and allows individuals to be remembered or honored, and at the same time helps the community. Any amount will be accepted. These gifts will be pooled and earnings will be used as directed by the Foundation’s Board of Directors.
6. Seedling Fund donors pledge annual gifts toward an endowment fund goal of $5,000 that is to be achieved within 5 years of the first gift installment. Contributions may be made monthly, quarterly, semi-annually or annually so long as the annual contribution is $1,000. All interest and dividends earned by the fund remain in the fund to help it grow. No fees are charged until the fund balance reaches $5,000 and converts to a Donor-Advised Fund, Field of Interest Fund, Unrestricted Fund or Designated Fund.
The Seedling Fund is a concept based on a gift made by Benjamin Franklin. When Franklin died in 1791, he left $5,000 to the citizens of Boston. Franklin’s will specified that the money should be left to compound for 100 years. In 1891, part of the assets founded the Franklin Institute. The remainder of the assets was left to compound for another 100 years. In 1991, the fund terminated, leaving a gift of almost $5 million for the purposes stipulated in Franklin’s will.