Steps to Start a New Fund
It is easy to establish a charitable fund at Richland County Foundation to meet your specific interests, both now and in the future.
We will walk you through the following steps to set up a new fund:
- Determine your charitable interests and intent.
- Select the type of fund that best meets your purpose. When you choose to establish an endowed fund your original gift remains intact and is invested for growth. A portion of the earnings, as defined by the spending policy can be granted to public charities.
- Select the name of your fund. You may use your name or the name of a family member, a name representing your favorite cause, as a memorial, or a name that allows you to be anonymous.
- Decide on a timeline for giving. Funds can be established immediately or as a deferred gift or bequest through your will.
- Review the many types of contributions available to make an initial gift. You can contribute of cash, marketable securities, or other property. Charitable IRAs are an especially tax effective type of gift.
Services to Donors
When you establish a fund, the Richland County Foundation can assist you by:
- Managing the fund and overseeing its investment.
- Providing the services of our experienced grantmaking staff
- Assuring that grants follow the fund directions and are always awarded in the name of your fund, to ensure a lasting symbol of your caring.
- Providing regular financial reports regarding the activity of the fund and regular information about foundation activities.
Why establish a Fund at Richland County Foundation?
- Permanence: Gifts can live forever because the Foundation invests the charitable capital to make certain there are resources for the future. The donor may direct the fund to be granted out over a specified number of years.
- Flexibility: The Richland County Foundation offers unique flexibility, making it possible for donors to benefit a variety of philanthropic purposes.
- Tax Benefits: As a public charity, the Foundation offers maximum tax benefits.
- Financial Management: Maximizing returns while minimizing expenses, the Foundation has a diversified investment portfolio.
- Security: A volunteer Governing Committee of experienced community leaders oversees Foundation management and use of funds.
- Anonymity: If desired, the identity of the donor can be protected.
- A minimum Contribution or Fund Balance of $10,000 is required to carry a separate named fund. (For Scholarship Funds, $20,000 or more) Additional contributions can be made to the fund at any time.
- The donor and a representative of the Foundation shall both sign a Richland County Foundation Agreement of Transfer, which indicates initial contribution, the name of the fund, type of fund, and the direction/purpose for the fund. The Agreement of Transfer shall also indicate the responsibilities of the Foundation for investment and disbursement of grants from the fund.
- The Foundation will maintain the confidentiality of donor contributions unless the donor requests otherwise.
- The donor may give direction for the fund or designate the fund as unrestricted, giving the responsibility to the Board to Trustees to determine the greatest need in the community. The Board of Trustees is ultimately responsible for grant disbursements from all funds in accordance with the Richland County Foundation Agreement of Transfer.
- The Foundation encourages the establishment of permanently endowed funds, where grants are made only from a portion of net investment earnings, as defined by the spending policy.
- The Board of Trustees is responsible for investing the assets of the fund, looking at a diversified balance of investments which will provide a current stream of earnings for grantmaking, as well as providing growth in the fund to provide future grant making In addition, all funds pay a proportionate amount of the investment management fees.
- An annual Foundation operating support fee is charged allocated to all funds. The fee varies from 1.20% to 0.1% of the market value of the fund assets, depending on the type and size of the fund and the amount of staff administration required. The fee is calculated and charged quarterly.
- Grants are made from each component fund to 501(c) (3) public charities in accordance with Foundation policies.
- When a grant is made, the name of the fund will be identified to the receiving nonprofit organization unless otherwise directed by the donor. Foundation newsletters, the annual report and news releases will also identify the fund name in association with grants unless the donor requests anonymity.
To explore your fund options please contact Maura Teynor at 419.525.3020 firstname.lastname@example.org