Fund Options
One of the strong advantages to any donor who wishes to set up an endowment fund, or otherwise make a contribution to a particular community cause or program, is the Foundation's flexibility with regard to fund design. The Foundation has the capacity to establish any one of a number of different endowment funds, and if any of the following options do not fit a donor's needs, a 'customized' fund designed to include the donor's precise wishes can be established. The range of the more common types of funds are described in the following:
This fund often tends to consist of a wide range of both larger and smaller donations, coming from a variety of sources including individuals, families, corporations and other Foundations. The donations allocated to this type of fund provides the Foundation with the greatest flexibility to respond to community needs through its granting process.
Field of Interest Funds
These funds are similar in nature and operation to the Community Fund, with the key exception that the donor identifies an area of interest that they wish to target their support (e.g. heritage, children and youth, poverty reduction, education, etc.) The donor prescribes to the Foundation's Grants Committee which type of projects or areas of interest that he/she wishes to support.
Donor Advised Funds
Donor advised funds enable the donor to have direct input and participate in the selection of those charities or projects that will benefit from their gift. The donor can select this type of fund in lieu of establishing a family trust or a private foundation. Existing foundations are able to transfer their assets to a Community Foundation to achieve higher financial returns and reduce administrative costs while continuing to remain involved in allocating grants.
Designated Funds
A designated fund provides the donor (an individual or and organization) with the opportunity to specify which particular charity or charities they would like to support in perpetuity. In the event that an organization ceases to exist, or the donor is deceased and has not named a successor beneficiary, the Community Foundation will redirect the funds to a named fund within the Community Fund.
Charitable Organization Endowment Funds
These are funds that are created on behalf of Registered Charities. Once this type of fund is established with a Community Foundation, the individual Charity can be confidence that there is an established investment structure in place to professionally administer the Charity's endowment. And once established, the Charity may encourage their ongoing donors to continue to contribute to their endowment fund.
Emerging Funds
An Emerging Fund provides the donor(s) with the flexibility to establish an endowment in any of the above fund categories. In establishing this fund, the donor gives an initial donation and makes a subsequent pledge to meet an established total dollar amount for the fund within five years of the initial gift. There is no granting of funds to community organizations or groups until such time as the pledge level is met.
CFPEI Administration Fund
The Operating Endowment Fund is a fund designed to allow donors to make financial contributions to a fund that help the Foundation meet its annual operating costs.
Future Funds
Future Funds provides donor(s) with the opportunity to create a fund through an initial contribution at the time of signing an agreement with the Community Foundation (a minimum of $5000) with a statement of granting interests determined by the donor(s). Furthermore, the financial threshold to be reached before granting commences and the fund is a component of the donor(s)' estate plan.
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