The CRCF can help you establish an endowment fund which is a permanent gift to the Community Foundation that is invested for growth and income with a portion of the income being granted every year to a charitable cause. The donor or organization can name the fund to commemorate an event or maybe memorialize a person. Below we answer some of the common questions on Endowment Fund
1. Name of Fund – What can I name it?
The donor or organization can determine the name.
2. Fund Balance – How much do I need to fund it? How long do I have?
The donor or organization will need a minimum of $5,000 for Community Service, Designated/Agency, and Field of Interest funds in 5 years to make it an active fund, or $7,500 for a Scholarship fund in 5 years to make the fund active.
3. Irrevocability – In an emergency, can I get any portion returned?
The Foundation policy has been that funds will not be returned.
4. Fund Investment – How is it invested?
The Investment Committee under the direction of the Board of Directors controls the investment process.
5. Fund Type – What type of funds can I consider?
There are 5 fund types outlined below:
- Field of Interest
6. Donor Control – Once established, do I have any control?
The creation of an endowment transfers the control to the CRCF Board of Directors.
7. Reports – Will I be informed of balances within the fund?
There will be one report each March/April at the completion of the Annual Audit. Additional updates are available upon request.
8. Annual Grant – When will the grants be made and how much will it be?
It will be made in conjunction with the timing as determined by the type of fund. The Foundation has a spending policy of 5% less the administrative fee for that type of fund. All funds have a .9% administrative fee except a scholarship fund which is 1.5%.
9. Fund Promotion – Do you have ways to promote the fund with us?
We can provide recommendations on methods to promote the fund. Also, the Foundation has publications available.