Types of Charitable Funds
Unrestricted: Most flexible fund to address future needs. Part of a competitive grant process with applications and reviewed by volunteer committees.
Field of Interest: Gives foundation flexibility to address future needs while still remaining in the donors’ area of interest, i.e. all grants must address educational needs, senior services, or the environment.
Designated: Provides steady source of income for particular agency/church/program; may have more than one grantee beneficiary if donor chooses. The CFO provides oversight to ensure grants go to proper location. $10,000 minimum to grant.
Donor Advised: One charitable deduction for the year or many years. CFO staff handles distribution of grants and serves as liaison between donors and grantees. May name successor advisors or convert fund to another type upon death. A good alternative to a private foundation. The CFO offers several different types of donor-advised funds starting at $2,500.
Benevolence funds: Established by employers to meet employee or dependent unmet emergency needs through personal crisis or disaster relief. Foundation serves as charitable conduit and ensures strict IRS guidelines are met. Specific process for grantmaking.
Scholarships: Assists students with higher-education costs. CFO staff handles all the paperwork & back office functions in accordance with IRS. Donors help shape criteria. Minimum to establish a scholarship fund is $15,000.
Nonprofit agency fund: Nonprofits/agencies establish endowment or capacity (temporary) funds with the CFO or one of its affiliates. As a partner, the organization receives a host of services by CFO including back office administration, investment management and professional development/education. Minimum to open: $2,500. Minimum balance $1,000.
Funds are assessed an annual administrative fee that is assessed quarterly to provide personalized services while supporting the Community Foundation’s mission to enhance the quality of life in southern Missouri. Fees are based on the type of fund. Funds with a balance of more than $2 million have the opportunity for discounted fees.
Funds with balances of $250,000 or more can often continue to managed by the financial advisor of the donor's choice. This allows for a true partnership and team approach between the advisor, the CFO and the donor — all working together to accomplish the charitable goals.