Types of Funds
There are various types of funds at the Hancock County Community Foundation. You can tailor your charitable legacy by choosing to establish one or more of these.
A Community Enrichment Fund is best suited for the donor who: Community Enrichment Fund is the donor’s broadest option. A Community Enrichment Fund can reach out to all charitable organizations serving the arts, education, health, and human services. The Foundation funds those projects that best meet the community’s most pressing needs, even when those needs change over time. By making a gift or bequest to create a Community Enrichment Fund, a donor can create a living legacy that will grow and change as the community does.
- wants his or her gift to have the broadest impact on the community over time.
- is motivated to “give back” rather than to support a particular charitable organization.
- is considering creating a private foundation for broad charitable purposes.
- wants his or her gift to remain flexible to respond to changing community needs.
Donor Advised Fund
Donor-Advised Funds allow donors to simplify and consolidate all their charitable giving without the expense, legal, and administrative burdens of running a private foundation. Donors who establish a Donor Advised Fund retain the right to recommend grants to charitable agencies. The donor gets a full charitable deduction in the year the fund is created and a single receipt for gifts to the fund rather than the many gifts to individual charities made from the fund. Donors can name other advisors to the fund. Staff can help identify effective projects in the donor’s areas of interest. Donor Advised Funds can support charities across the country.
A Donor-Advised Fund is best suited for a donor who:
- wants flexibility to support different charities.
- wants to involve a spouse, children, or associates in charitable giving.
- currently makes cash gifts to charities but would benefit by giving appreciated property.
- has an income that fluctuates, but who wants to maintain a steady level of charitable giving.
Field of Interest Fund
Field of Interest Funds allow donors to address a cause or issue of particular importance to them without being locked into naming specific charities. The donor names the purpose of the fund, such as arts, environment, or youth. The Foundation identifies projects that can most effectively accomplish that goal at any given time.
The Field of Interest Fund is most appropriate for the donor who:
- has an interest in a charitable cause rather than specific organizations.
- recognizes that charitable organizations change in mission.
- is considering creating a private foundation to support a cause.
A Designated Fund names a charity or charities to benefit from the fund. The donor has the assurance of knowing that the charity they choose will forever benefit from their support. However, if the organization ceases to exist, the Foundation’s Board will preserve a donor’s intent by redirecting the fund toward an agency with a similar mission.
The Designated Fund is ideal for the donor who:
- wishes to support a particular charity but wants third-party oversight to ensure that principal is not invaded or that the gift is used as he or she specified.
- wants to support several named charities through one substantial gift.
- desires to make an endowed gift to a new, small, or struggling organization or a charity that does not have extensive investment management capability.
A Scholarship Fund can be set up in the donor’s name so that deserving young people can obtain an education. A Scholarship Fund can be set up to make awards based on any of the following: schools, colleges or universities the student attends, fields of study, geographic area students are from, or other interests.
A Scholarship Fund is ideal for the donor who:
- has strong ties to education.
- wants to encourage students to select a certain area of study, college or university.
- is passionate about providing educational opportunities for young or returning students.
Nonprofit Operating Fund
Nonprofit operating endowments (also referred to as Nonprofit Endowments) are established by nonprofit organizations to provide a perpetual stream of operating revenue to sustain their work for generations to come. Nonprofit operating endowments may also be established by donors who wish to specify a particular charitable organization as a recipient of their generosity.
Community foundations are ideal partners to non-profits in establishing and helping to build an Nonprofit Operating Endowment fund. Our staff will help a non-profit organization build a basic plan to grow their endowment fund, help make donor calls, and respond to inquiries. The Community Foundation’s staff and professional legal counsel will also provide support in securing gifts to any nonprofit endowment fund.
For more information about Nonprofit Operating Funds, click HERE.
HCCF Operating Endowment Fund
An Operating Endowment Fund is for donors who are interested in supporting the Hancock County Community Foundation so it will be available for all citizens forever. Like Agency Endowment Funds, an Operating Endowment Fund is kept in perpetuity to provide HCCF an ongoing stream of revenue generated by the investment of the principal of the fund.
Non-Permanent funds, also known as Pass-Through Funds, are component funds of HCCF, but only temporarily. Charitable gifts are made to a designated fund at the Foundation for redistribution when certain conditions, as defined in the fund agreement, are met. Many times, funds of this nature are established for a community project or initiative to further a philanthropic cause, but lack charitable status to enable supporters’ tax benefit. When appropriate, HCCF partners with these worthy organizations to enrich and enhance their efforts. We ensure proper stewardship of donations on behalf of all parties, and donors enjoy tax benefit from their gifts.
In addition, HCCF may act as the Fiscal Sponsor of a non-501c3 organization doing charitable work until the organization can establish itself as a nonprofit charity. Funds of this nature are considered by the HCCF Board on a case-by-case basis.
Services may include:
- Accept gifts of cash, checks, credit cards, stocks, and real estate (forms of appreciated property) for the purpose of funding the project/organization
- Provide a link located on the organization’s website to the Foundation’s website for online donation purposes
- Provide individualized acknowledgement letters for each gift received that includes receipt of charitable gift and eligible tax deduction
- Provide year-end giving records to donors
- Track pledges and send annual reminders of pledge commitments
- Record gifts received and provide current fund status to the organization as needed, but no less than on a monthly basis
- Provide organization with funds as requested
- Feature efforts in HCCF publications, including newsletters, reports and on the website
- Provide recognition of donors that they are receiving a tax-deductible contribution
- Provide the peace of mind that donors enjoy when giving to a reputable, local, non-partisan organization known for managing and stewarding the generosity of community members for the purpose of enriching and enhancing life in Hancock County.
Fees for philanthropic administration services for non-permanent funds vary.