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 in Microsoft Word format)
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 in Microsoft Word format)
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 in Microsoft Word format)
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 in Mircosoft Word format)
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 in Microsoft Word format)
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 in Mircosoft Word format)
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 in Microsoft Word format)
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 in Microsoft Word format)
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 in Microsoft Word format)
