An endowment fund is a permanent endowment that prohibits granting from the original corpus of the fund. The principle stays intact and grants from this fund are consistent with the annual available to spend policy of 4%.

Once established, the donor may recommend charitable organisations to receive grants from the fund. The Foundation administers the fund, including all paperwork and grant disbursements to recipient charities.

Establishing donors may choose to appoint fund advisors to the Fund who will continue to make contributions and recommend grants beyond their lifetimes, creating a philanthropic legacy [1]

[1] BCF shall have all powers, other than those retained by the Donor pursuant to the terms of its fund agreement, necessary or desirable to carry out the intent or purposes of the Fund, including, but not limited to, the power to retain, invest and reinvest all or any part or parts of an Endowed Fund. BCF commingles the endowed Fund Assets with those of other funds for investment purposes. The Fund Advisory Committee shall be given access to review the accounting related to the Fund and any co-mingled accounts on no less than an annual basis.

Non-endowed funds function like charitable chequing accounts, offering a donor the capability of making grants to nonprofit programmes periodically over an agreed, finite time. A non-endowed fund uses the capital donated in its entirety and does not generate interest over time. When all the capital has been administered according to the donor’s wishes, the fund ceases to exist. The non-endowed fund has an expected annual spend-out. An annual minimal fee is charged on fund balances**.

A quasi-endowment fund is a board-designated (versus donor-designated) permanent or donor-directed fund that functions as an endowed fund but which is not subject to any legal prohibitions against spending. While subject to the same spending policy as an endowment fund, the Board of Directors can authorise the spending of the principal and a change in the nature of the fund.

1. Hybrid – With a commitment to the endowment a donor can maintain a spendable balance at their own discretion. The cash balance is held in a deposit account where it can earn modest returns at no risk while remaining accessible to the donor for grantmaking at-will.
2. Agency Fund – A nonprofit can create an agency fund in the form of an endowment to support its own operations and programmes. The professionally managed fund is a valuable vehicle for donors who like to plan their giving, for example via payroll deductions that go towards a designated nonprofit.

Donor Advised Funds are ideal for donors who want to support multiple organisations and programmes throughout the year. Foundation staff can help identify programmes of interest, vet them, process grants and report back to the donor with an impact report. This is an excellent way to establish a fund that bears your company or family name.

Donors may use Field of Interest Funds to support specific areas prioritized by the community foundation such as the arts, children and youth, the environment, the elderly, or health and human services. Within these broad fields, the Board of Directors has the flexibility to make grants that address the current and changing needs of the community. The community foundation’s Field of Interest Funds’ advisory committees make grant recommendations to the Board for final approval.

Income from a designated fund is given annually to specific named charitable organisations. If the named charity is no longer active or providing a needed service, or if the purpose of the fund becomes impractical or impossible to fulfil, the Board of Directors of the community foundation may select another recipient with a similar purpose.

A nonprofit can create an agency fund in the form of an endowment to support its own operations and programmes. The professionally managed fund is a valuable vehicle for donors who like to plan their giving, for example via payroll deductions that go towards a designated nonprofit. The Foundation manages the endowment in perpetuity, enabling the nonprofit organisation to focus fully on serving its constituents.

A Cedarberry Fund allows donors who are not yet able to make the minimum required commitments for donor-advised endowment funds, to build a fund over time. This fund requires an initial seed investment of $2,500 with a pledge of additional investments. When the fund reaches maturity for this fund-type (a core balance of $10,000), the Cedarberry Fund matures to become a permanent endowment, at which point Foundation staff work with the donor to determine the fund’s giving priorities.

Unrestricted Funds—endowed or non-endowed—provide grants that respond to the most pressing community needs. These funds are flexible and will thus be available to meet unanticipated needs and emerging issues as they arise. This fund is ideal for donors who want their philanthropy to meet critical needs of the day—and of years to come.