Create a Fund
Identify your giving goals. Do you want the fund to be permanent (endowed)? Will there be restrictions to a field of interest or a specific organization? The Community Foundation offers a variety of types of funds flexible to meet your individual needs.
Decide whether you wish to participate in grant making decisions or leave that task to the Foundation’s Board of Directors.
Determine what type of assets will be used to establish the fund. Donors have many options. You decide what works best for you and your income tax situation.
Decide when to give. Are you able to make an outright gift now or a series of gifts during the next 2 to 5 years or do you wish to consider making a planned gift through your estate plan to establish the fund?
Finalize the gift by choosing the fund’s name, signing a fund agreement and arranging for the transfer of assets to the Foundation. A minimum may be required to establish a fund.
The Cedar Falls Community Foundation will make examples of fund agreements available upon request. For more information contact the Cedar Falls Community Foundation.
These funds are established by non-profit 501(c)(3) organizations. Contributions from many different donors are collected and invested with the Cedar Falls Community Foundation. Distributions are granted to support the programs or operations of the non-profit organization. Funds may be named in honor of an individual, family, organization, or business. If you are interested in establishing an Agency Fund, contact the Cedar Falls Community Foundation.
There are two types of designated funds. A donor may specifically assign a non-profit organization to benefit from the fund. Alternatively, the donor may elect to support a particular area of community life such as the arts, education, health care, seniors or youth. The Cedar Falls Community Foundation actively searches for worthy projects within the defined field of interest and offers grants or awards only to those organizations or projects that fulfill the mission and the intent of donor’s field of interest. Other donors can designate that contributions be deposited to any designated fund. If the donor’s designated organization ceases to exist or ceases to deliver the services that the fund was designated to support, the Cedar Falls Community Foundation will seek alternatives to carry out the donor’s intentions and desires. Funds may be named in honor of an individual, family, organization, or business. If you are interested in establishing a Designated Fund, contact the Cedar Falls Community Foundation.
Designated Non-Permanent Funds
When individuals or groups join together on a grassroots project for the community, they may come to the Community Foundation so their project is eligible to accept tax-deductible donations. The Community Foundation is not able to accept every proposed project, however if accepted, a Designated Non-Permanent Fund Agreement and Fiscal Sponsorship Operating Agreement will be developed. If you are interested in establishing a Designated Non-Permanent Fund, contact the Cedar Falls Community Foundation.
Donor Advised Funds
With this type of fund, donors can consolidate their charitable giving into one invested fund. Donors receive a tax deduction for contributions to the fund. Once the fund is established, donors may recommend grants be made to any 501(c)(3) public charity. Grants are made from the fund with the approval of the Community Foundation Board in the name of the fund and the donor receives recognition for the gift. Funds may be named in honor of an individual, family, organization, or business. If you are interested in establishing a Donor Advised Fund, contact the Cedar Falls Community Foundation.
A scholarship fund allows donors to help deserving students further their education. Donors may designate any level of education from preschool to postgraduate work as well as field of study and eligibility requirements. Funds may be named in honor of an individual, family, organization, or business. If you are interested in establishing a Scholarship Fund, contact the Cedar Falls Community Foundation.
Testamentary funds are established by individuals who wish to create a charitable legacy for the community. These funds are established via a planned gift through your estate. These funds will be administered according to the guidelines specified in your estate plan. The Cedar Falls Community Foundation can work with you during your lifetime to develop a formal agreement describing how the fund will operate after your death. Funds may be named in honor of an individual, family, organization, or business.
Unrestricted funds are essential to building a flexible and responsible community endowment that can respond to changing and emerging needs. These funds enable the Cedar Falls Community Foundation to make grants to a variety of community organizations, programs and services. Unrestricted funds are established without designation as to how the contributions and/or earnings will be spent. The Foundation’s Board of Directors determines how the fund can most effectively meet the community’s most pressing needs. Funds may be named in honor of an individual, family, organization, or business.
Any of the preceding funds may be established as endowed or non-endowed.
Endowed funds are created when a donor instructs the Community Foundation to invest a gift to generate spendable resources in perpetuity to fulfill his or her intent. Distributions are limited to the Fund’s distributable income determined in accordance with the Foundation’s spending policy.
Non-endowed funds may be of a permanent or non-permanent nature and differ from endowed funds in that distributions are not limited to the fund’s distributable income. Non-endowed funds often receive contributions from multiple donors, including the general public.
Permanent non-endowed funds are created when a gift is sufficiently large to have a multi-year impact but the donor does not specify whether the gift should be expended or held in perpetuity. Permanent non-endowed funds are invested as if they were subject to the terms of an endowed fund. However, the Community Foundation Board has the discretion to spend all or part of the gift amount for the purpose designated by the donor.
Non-permanent funds are generally held for limited period of time and are generally used to support a specific project. During that period of time the gift amount and all of the earnings are expended as the donor specified so that no funds remain at the end of the term.