Types of Endowment Funds
Endowed Funds Come in All Shapes and Sizes
While fund types vary and each is established according to an individual donor’s intent, one thing remains constant: they all make a difference – today and forever. And because endowment funds are pooled for maximum benefit and invested to achieve long-term growth, they enable donors to make the greatest impact in the community.
Questions about establishing a fund?
Agency Endowment Funds are created by an agency or donor to give longevity and financial support to an organization. Once the fund reaches $10,000, a distribution is either given to the organization or reinvested into the endowment. Through this type of fund, nonprofits have a lasting source of income.
Designated Funds support one or more nonprofit organization(s) as chosen by the donor. Designated funds ensure continuous gifts to the fund holder’s favorite charitable organization(s), perpetuating their charitable goals.
Donor Advised Funds
Donor-Advised Funds permit donors to participate in the funding process by suggesting grants to nonprofit organizations. This type of fund provides convenience and flexibility by allowing donors to support various charitable organizations over time through one initial donation. For some, this is an attractive alternative to a private foundation.
Field of Interest Funds
Field of Interest Funds allow donors to support broad areas of interest such as education, the arts, the environment, or youth services. Through competitive grants to organizations working in the fund’s defined area of interest, donors can make an impact in a lasting, meaningful way.
Scholarship Funds help students pursue their academic goals and can be established by companies, organizations, families, or individuals. Scholarships may have merit or need-based criteria and can be designated to assist students from a certain school, a designated community, or those entering a specific field of study.
The Community Foundation is proud to have established the first school endowment fund in the country. School Endowment Funds support students by providing funding for non-traditional educational opportunities such as field trips, arts programs, camping trips and scholarships. Community members can donate to a school endowment fund or create a fund of their own.
Donor Bill of Rights
Philanthropy is a tradition of giving and sharing that, we feel, is essential to the quality of life. To assure that the Community Foundation of Lorain County merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the Foundation, we have declared all donors have rights. Please read further to understand how we work to protect you, our supporters, at all times.