Comparison of Endowed Charitable Fund Options

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Unrestricted Field-of-Interest Donor-Advised Designated Scholarship
Fund Description Allows staff and Foundation Board to assess community needs and respond with grants for both emergencies and long-term solutions, while meeting changing needs in the community. Target your gift to address needs in a specific area of interest to you while allowing the Foundation Board the flexibility to assess and meet community needs in that area. Convenient, flexible tool for individuals, families, businesses or groups who want to be personally involved in suggesting grant awards. Allows you to give back to one or more specific organizations that have touched your life or that support a mission you believe in. Assist local students who meet your eligibility criteria, as approved by the Foundation Board, in pursuing academic goals.
Areas of Philanthropic Interest All One specific area – ex. education, literacy, the arts, youth, health, environment, etc. Wide range or specific area may be indicated. One or more specific nonprofit organizations. Education
Donor Involvement in Distributions? Donor allows the Foundation Board to respond to changing community needs. Donor names a field they would like their fund to benefit and allows the Foundation Board to respond to changing needs within the field. Donor and successors make recommendations for distributions from the fund. Donor names the organization(s) which will receive the distributions from the fund in perpetuity. Donor and/or donor family may serve as a member of the scholarship selection committee as approvedby the Board.
Minimum Gift Amounts** $10,000 $10,000 $10,000 $10,000 $20,000
Spending Policy 4% of the fund value as of Sept. 30th each year after the minimum gift amount is reached. 4% of the fund value as of Sept. 30th each year after the minimum gift amount is reached and maintained. Up to 5% of the fund value as of December 31st each year after the minimum gift amount is reached and maintained. 5% of the fund value asof December 31st each year after the minimum gift amount is reached. 5% of the fund value as of September 30th each year after the minimum gift amount is reached.
Can Additional Gifts be Made? Yes Yes Yes Yes Yes
Fees/ApplicableCosts* Min. $100 or 0.75% Min. $100 or 1% Endowed: Min. $200 or 1 %Non-Endowed: Min. $250 or 1.5% Min. $200 or 1% Min. $250 or 2%
Philanthropic Outcomes Supports the community with its most critical needs now and in the future. Supports the community with its most critical needs within an area of interest to the donor now and in the future. Charitable gift deduction in one year supports multiple issues/organizations of interest to the donor now and in the future. Provides ongoing financial support to designated organization(s) that are of interest to the donor. Assists local youth in furthering their education.

 

*Based on the average balance of the fund for the previous four quarters as of 12/31.
**Named endowment funds may be established with less than the minimum amount if a written pledge is made to reach the minimum within five years. If the minimum gift amount is not reached within five years, the fund balance will be transferred into the Foundation’s general unrestricted endowment fund.