COMMUNITY FUND CHALLENGE GRANT PROGRAM
The Community Fund Challenge Grant Program is a program to challenge rural communities to establish their own permanent community assets. The challenge comes in the form of a grant from the Foundation made available to select communities that raise new permanent endowment. The goal of the Program is to ensure that rural areas have permanent resources to address local challenges and opportunities. Established and supported by local individuals, businesses, and organizations, these "community savings accounts" become a source of capital to strengthen the community for generations.

How does it work?
The Foundation will award $1 for every $3 raised by select communities in matching permanent endowment. The maximum award from the Foundation is $5,000. Communities will have 12 months to secure the contributions/pledges. When the required matching funds are reached, the community has the option of spending the challenge grant or they can invest it by adding to their endowment fund. The Foundation will hold, invest, and manage each Community Fund - income from which will be available to support charitable activities that serve the residents of the community.

Program Administration:
Funds are held in a separate endowment fund for the select community. Distributions are made from the fund when the total reaches $20,000 or more. When the endowment reaches the $20,000 threshold, STWDF will distribute up to 5% of the Fund's annual value at pre-determined intervals (no less than quarterly).

Eligibility:
Participation is restricted to current community grantees. Eligible Contributions include cash and/or marketable assets. STWDF must receive all gifts within 12 months of the community's acceptance into the program. To qualify for the challenge grant, the community must have raised its entire endowment goal. In the event the required amount of is not raised, the challenge grant will not be awarded but all funds contributed will remain within the STWDF. (Application Form)

Fine Print:

- Matching funds are made to selected communities when the Community Fund is formally established AND after the funds are received by the Foundation.
- Gifts into the endowment are irrevocable and subject to the variance power of the Foundation Board of Directors.
- All funds in the Community Fund endowment are invested through the commingled fund of the Foundation.

What is Endowment?
Endowment is a combination of charitable contributions or funds permanently invested to produce a continuing stream of income. The income is used to make grants for a wide range of charitable activities. Similar to a savings account, an endowment's principle is left alone to earn interest - a certain percentage of which becomes available for spending.

Endowment Distributions
As the intent of this program is to create permanent endowment that will grow and serve the community's needs forever, the principle will be considered a perpetual component fund of the Foundation. Contributions can be added to the Community Fund at any time. The Foundation will invest the principle along with its other funds to produce a reasonable mix of income and capital appreciation. Distributions will be paid to eligible charitable organizations or other activities that benefit the general public within in community with fees assessed annually according to the current Foundation policy.