Cranbrook & District Community Foundation
Fund Options
Cranbrook & District Community Foundation has a great variety of fund types. They can be divided into two major categories:
ENDOWMENT FUNDS
Where gifts are kept in perpetuity to generate income for grant making or other distributions. These endowments may be given for general community purposes (unrestricted funds), for particular purposes (restricted funds), for support of named agencies (designated funds), or in support of an area of interest (field-of-interest-funds).
FLOW-THROUGH / TEMPORARY FUNDS
Where gifts are not held permanently, but rather used (flowed through CDCF) over a period of time to provide for grant making or other specific purposes. Flow-through funds are often used by other charities who wish to have CDCF manage their funds. This relieves the charity of the task of managing the funds themselves, plus gaining the benefits of investing a larger pool of money.
Within these two categories, the monies can be broken into more categories depending on where the income from the fund will be returned.
For investment purposes, all funds are pooled together. For record tracking purposes, each fund is accounted separately from all others. Investment earnings are calculated and allocated proportionally to each fund on an annual, quarterly or monthly basis. Grant disbursements are tracked on a fund-by-fund basis.
1. General / Community Fund
What it is: Fund held for general charitable purposes, enabling CDCF to respond to a broad range of community needs & opportunities. Also referred to as unrestricted, undesignated, or discretionary funds.
How it works: Donations of any size are made to the community fund. The CDCF Grant Making Committee chooses the recipients of the income based on the current needs of the community.
2. Named Fund
What it is: The CDCF may offer donors of significant gifts an opportunity to be recognized in perpetuity through a fund named for the donor, family, corporation, association, deceased person, honouree, event or entity. The minimum amount required to establish a Named Fund with CDCF is $10,000, but that may be accrued over a number of years -- it is not necessary to give that amount in one lump amount. The purpose of the fund may vary depending on the wishes of the donor(s) or honouree.
How it works: The fund is created by an individual or family. The fund may be held within the Community Fund allowing the Grant Making Committee to choose the recipients of the income, or it can be set up within a field-of-interest fund or as a donor-designated fund.
3. Field-of-Interest Fund
What it is: Funds intended to provide support for a general area (such as education or the environment) without limitation to a specific organization or beneficiary.
How it works: Suggested fund options include: education, health, the arts, environment, social services, youth and seniors.
4. Designated Funds
What it is: Funds which support particular agencies or organizations, as named by the donor. Income is dispersed at least annually to the specific beneficiaries.
How it works: Donor indicates, in writing, the names of the beneficiary organization(s) to receive the annual income. CDCF continues to monitor the designated beneficiaries to ensure they are meeting the original intent of the donor. If a charity significantly changes its focus, or merges with another, or closes its doors, or the purpose it serves becomes obsolete, CDCF will adjust disbursements to the nearest similar purpose of the original intent of the donor.
5. Donor Advised Fund
What it is: The donor, or an advisory committee named by the donor, give CDCF recommendations on distributions from time to time. An Advised Fund can also be set up in a will naming the advisor(s) who will make recommendations on distributions from the fund, provided CDCF has been consulted in advance and has agreed to such a provision.
How it works: In all disbursements, the chosen charity must be a registered charitable organization. The purpose of the grant must be charitable. The organization is reviewed by CDCF to confirm eligibility.
6. Operating/Administrative Fund (Administrative Endowment Fund)
What it is: A fund created to offset the operating & program expenses for CDCF.
How it works: Contributions to the Administrative Endowment Fund provides a source of income to cover operating costs.
7. Flow-Through/Temporary Funds
What it is: Non-permanent, pass-through funds received for distribution over a period of time for a specific project.
How it works: For grant making, the funds are passed through CDCF to a charitable organization in the same manner as the income of the foundation's permanent designated funds.
8. Agency Endowment Fund
What it is: Funds established by charitable organizations as permanent funds to ensure ongoing source of support for their programs and operations. The agency transfers ownership of the fund to CDCF's Community Endowment Fund under agreement and the annual income is distributed to the agency. Like Named Funds, there is a $10,000 minimum to set up an Agency Endowment Fund.
How it works: An agency creates a designated fund at CDCF. The fund is owned by CDCF, however, the income is directed to the agency. Donors can make contributions to the fund through the agency or directly through CDCF.
9. Memorial Fund
What it is: Many people today, when faced with the death of a family member or friend, prefer to provide some tangible support for charity rather than receive a multitude of flowers. A memorial fund, established in the name of the deceased, and supported by one large or many small gifts, creates a legacy, a perpetual remembrance.
How it works: At the time of death, the family asks for contributions to the CDCF in the obituary notice. After the death, a family member may approach CDCF (or CDCF may initiate the contact) to establish a fund in memory of their loved one. If the total contributions total $10,000 or more, a named fund may be set up.
10. Corporate Fund
What it is: A fund created by a corporation to distribute gifts to the community on an annual basis.
How it works: The corporation sets up a fund at CDCF. Depending on the size of the fund it can be created as a Named Fund within CDCF, a Donor Advised Fund, or as a Designated Fund. The corporation is recognized as the donor for all gifts made from the Corporate Fund.
11. Opportunity Funds:
Since an endowment requires a sum of 10 thousand dollars to be fully endowed you can begin a fund with a 10 year commitment. The following funds are in the development stages. the blue line shows the 10 thousand dollar required threshold and the red shows the stage of development.
801B Baker Street,
Cranbrook,
British Columbia,
Canada V1C 1A3
(250) 426-4195
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