TYPES OF FUNDS
Southern Tier West Development Foundation serves a variety of donors who share a common concern - supporting all that is good about the region. Through the Foundation, individuals, families, businesses, nonprofit organizations, and even other foundations create permanent charitable funds that help the region meet the challenges of changing times.

Establishing a fund with us is a quick, simple and rewarding process. Following an initial conversation with a staff or board member to discuss the donor's wishes, the donor determines what type of fund is most appropriate. A draft fund agreement is then presented to the donor, who has the opportunity to make revisions. After this agreement is approved and signed by the donor and a Foundation representative, the fund is officially opened.

To accommodate the varying needs and interests of donors, we offer several types of funds. Donors may add to their funds at any time, and others may contribute to any fund within the Foundation. All donations are tax deductible. Staff regularly reports to donors who establish funds regarding their fund's financial performance and grant distribution.

Perhaps one of the most gratifying benefits of creating a fund with the Foundation is that it allows a donor to establish a permanent legacy in his or her family name. This legacy will provide ongoing support to the organizations and causes that are most important to the donor.

There are no minimum requirements to open a fund; however, funds must reach $5,000 within a reasonable period of time before grants can be made from the fund. A brief description of each fund type follows.

Discretionary Funds
Also referred to as unrestricted funds, Discretionary Funds give the Foundation the greatest flexibility in responding to present and future charitable needs of the region. Donors contributing to or creating a Discretionary Fund rely on the expertise of the Foundation Board and staff to identify and evaluate the most effective uses for the fund. (sample Discretionary Fund agreement)

Field of Interest Fund
A Field-of-Interest fund allows the donor to invest in a specific area he or she cares about within the Foundation's eligible activities. With this option, the donor relies on the Foundation staff's knowledge and experience to identify organizations capable of making the greatest impact in the specific area that motivates you most. (sample Field of Interest Fund agreement)

Donor Advised Fund
A Donor Advised Fund gives donors the privilege of suggesting the eligible organizations or communities to receive grants. While the decision remains with the Foundation, it listens closely to its donors and does its best to honor their recommendations that are consistent with the Foundation 's charitable objectives. (instructions, sample fund agreement form, and other materials required to initiate a Donor Advised Fund.)

Designated Fund
A Designated Fund allows donors to name specific charities as the recipient of the distributions generated by the fund. Designated Funds allow donors to support specific charities while the Foundation makes sure the grant remains relevant over time and responsive to changing circumstances. (sample Designated Fund agreement)

Administrative Endowment Fund
Contributions to this fund are made to support the operation of the Foundation and its activities. The principal and income of this Fund may be used to defray current operating expenses at the discretion of the Board of Directors. Income from this Fund in excess of current administrative needs of the Foundation may be used to augment the income from the Discretionary Fund. (sample Administrative Endowment Fund agreement)

Community Fund
A Community Fund is a permanent charitable endowment that specifically supports non-profit, government and other public agencies with a particular defined area. Local citizens knowledgeable about the area serve as the grantmaking advisors. (See Guidelines) Grants focus on building the assets and resources that already exist in the community to increase economic development opportunities, enhance the quality of life and promote civic betterment. Each Community Fund Advisory Board is encouraged to review and recommend local discretionary grants to the Foundation who retains the authority to award and administer any grants made. (sample Community Fund agreement)

Agency Endowment Fund
A non-profit organization that may have received a bequest, charitable remainder trust, or a previously established endowment may establish an Agency Endowment Fund within the Foundation. The Foundation provides professional management of the endowment relieving the organization from the administrative burden and allowing the non-profit to focus on its mission. Donors may add to these funds at any time and in any amount. An Agency Endowment Fund carries a $10,000 minimum. (sample Agency Endowment Fund agreement)

NON-ENDOWED FUNDS

Acorn Funds
Acorn Funds - as the name implies - are funds that start small and grow as dollars are "planted" within it. A donor who wants to establish a fund with a limited (minimum of $200) initial contribution can create an Acorn Fund. Acorn Funds allow donors to invest in the future in installments. Grants can be made from Acorn Funds after they reach the $5,000 minimum and are converted to an endowment fund. (sample Acorn Fund agreement)

Flow-Through Fund
Under certain circumstances the Foundation will accept and manage non-endowed, temporary Flow-Through Funds designated for a specific charitable purpose that benefit the region and are consistent with the mission of the Foundation. Flow-Through Funds are good if you want to make a contribution to a worthwhile project or service in your community, either alone or with others, and you want the full amount of your gift to be available now. You create or add to a non-permanent pass-through fund, the principal amount and any earnings of which are disbursed for the specified purpose. The tax advantage to the Flow-Through donor is that he or she gets an immediate tax deduction when the gift is made. (sample Flow-Through Fund agreement)