Thank you for your interest in creating a fund with us. Opening a fund with your local community foundation is a wonderful way to give back to the community you care about, to the causes that are important to you. Below is a quick guide to help you think through the key decisions when opening a fund.
1. What is the Fund's Purpose
You may have causes that are close to your heart, specific charities in mind or perhaps you want to support the areas of greatest need in the community. Some sample wording for your Fund’s Purpose are:
The Fund will support the Foundation’s general charitable purposes.
The Fund will support the Foundation’s charitable work in the local community and causes the Donors care about—such as the environment, youth programs, and health & wellness.
The Fund will support grants in these focus areas: animal welfare, elder care, sport and fitness, healthcare, medical research, and medical equipment.
2. How Will the Fund Grant
Do you want to be involved with determining how grants are made from your fund, perhaps make it a family decision? Do you have causes or Fields of Interest you want to support, but have the Foundation determine where to grant? Or you can have the Foundation where the greatest needs are, based on the Foundation’s Grant Committee decisions. When a donor sets up a fund, there are different levels of restrictions they can place on the fund.
- Donor Advised Only – Some donors open a fund and then inform us where to donate each time.
- Donor Advised/Work with Foundation – Some look to the Foundation and Grants Committee to make recommendations on which grant applications to fund and select from those.
- Donor Directed – Most funds are established with a clear purpose of the types of needs or fields of interest the fundcan support. When the grant committee selects grant applications to fund, these are then matched to the funds and granted out. This is our most common fund structure.
- Unstated/Open – Others don’t include a purpose (generally a bequest, without a fund opened) or have very broad purposes such as ‘for the benefit of the community’. Those funds are generally used for the Foundation’s granting programs.
3. Fund Structure Options
Funds can be set up in one of two ways:
- Flexible funds can grant out any amount to a registered Canadian charity. These are often donor advised funds or the board may establish some guidelines as to how the funds will be granted out.
- Endowment funds maintain the initial donation and grant out the income earned, net of fees.
4. Fund Name & Image
What would you like to call the fund? It can be a person’s name or perhaps something of significance to you.
Do you have an image you would like us to use on our website? Otherwise we can source a generic image that reflects the fund’s purpose.
5. Types of Gifts
Your fund can be opened with the following:
- Cheque
- Give in a Will or a Bequest
- Publicly Traded Securities
- RRSPs, RRIFs, and TFSAs
- Life Insurance Policies
- Charitable Remainder Trust
Learn more of gift types here. Once your fund is opened, you and others can also make gifts online. For most funds the minimum initial amount required to open a fund is $10,000.
Summary
We know that each gift is a unique expression of what you care about most. It reflects your values and your hopes for the future. We can help you set up a fund with flexible giving options and match your philanthropic goals with community priorities. Please contact us to let us help you open your fund and start making an impact in the community.