Types of Funds
Establishing a Fund
The Community Foundation of the Ozarks is committed to assisting donors with the establishment of funds that meet a wide variety of charitable purposes. Foundation staff members take great pride in their ability to work with donors in crafting fund documents that are purposeful and appropriate.
A fund may be established within the Community Foundation of the Ozarks by an individual, a family, a corporation or an organization. Individuals establish funds by bequest or during their lifetime.
Unrestricted Funds: The most desirable and flexible type fund. Quality of life for our posterity can be provided through current donors’ wise realization that needs will emerge which could not have been anticipated. Unrestricted funds empower the Foundation’s Board of Directors to make grants addressing the community’s most important needs as they arise.
Field-of-Interest Funds: A field-of-interest fund in the area of one’s greatest concern, such as “education” or “the arts” provides direction to the Board of Directors without naming specific nonprofit agencies. A preference may be stated for an agency known to be offering appropriate services. This fund’s wisdom lies with the flexibility for the future it permits.
Donor Advised Funds: Charitable donors able and willing to establish funds in life can experience the joy of charitable giving and provide periodic advice to the Community Foundation Board concerning grant recipients. Donors may change recommended recipients, but recipients must be nonprofit tax exempt organizations operating for the public good; in order to preserve the tax deductibility of the amount given, it is understood that decisions rest with the Foundation’s Board. Minimum for this type of fund is $25,000.
Designated Funds: Restrict the annual earnings to a specific charitable entity, providing a permanent source of funds for that agency. Scholarship funds are a type of designated fund.
Organizational Endowment Funds: Nonprofit organizations (agencies) who wish to establish an endowment fund and do not wish to divert staff or board resources to its management or who wish to provide donor reassurance that the fund remains separate from operating funds, may place the endowment with the Foundation for management. Distributions of earnings will be made to the organization on a regular basis, to be used however the organization desires.
Family and Community Funds: Smaller donor-advised funds - you can start with as little as $2,500 - that allow families to make charitable gifts through the Community Foundation of the Ozarks. These funds provide a wonderful opportunity for families who want to engage in meaningful acts of philanthropy.
Scholarship Funds: A type of designated fund that provides donors, organizations, universities or companies the opportunity to offer financial support to students.Scholarship funds are endowment funds that must reach the $10,000 level.
Corporate Charitable Endowment Funds – With a minimum gift of $25,000, the goal of an endowment is to grow over time to maintain the spending power of grants. These funds smooth the available output as input may vary. Each year approximately 5% of the fund’s fair market value is available for a corporation’s grantmaking recommendations.
Corporate Unrestricted Funds – CFO uses distributions from unrestricted funds for community grantmaking.
Corporate Grantmaking Funds – With a minimum starting gift of $2,500, a business can add to the fund and make grant recommendations at any time. This fund can also be converted into a Corporate Charitable Endowment Fund when it reaches the appropriate level.
While the Community Foundation stands ready to provide general information about ways of giving and types of funds, each individual should consult his or her tax advisor or attorney for specific information. We are pleased to work with local attorneys, accountants and financial advisors to meet donor needs and interests.