When many people think of donation gifts, images of one-time checks or gift cards to charities may come to mind. But at the Defiance Area Foundation, we believe the more powerful, lasting form of a donation gift is the gift of creating a fund, a structured vehicle that carries your charitable legacy forward for years to come.
In this post, we’ll walk you through our different fund options you can create with the Defiance Area Foundation, how they work and how each can serve as a meaningful donation gift for your community or loved ones.
Why Choose a Fund Instead of a One-Time Gift?
Traditional donation gifts are impactful, especially in the moment. But they often respond to immediate needs rather than supporting long-term community vitality. A fund, whether endowed, project-based, or donor-advised, allows your generosity to stretch into the future, adapting to evolving needs while preserving your intent.
Through a fund, donors can:
Establish a lasting legacy
Retain advisory input or relinquish control intentionally
Give tax-deductible donations today while shaping future impact
Support a charitable purpose in perpetuity or for a defined time
At the Defiance Area Foundation, you can choose from several fund types to match your giving goals.
Navigating Fund Options
Here’s a breakdown of our seven fund types, each offering a different approach to structuring donation gifts:
1. Unrestricted Named / Family Fund
Created By: Individual, family, or business
Control: Trustees of the Foundation direct grants
Use: Long-term
Beneficiaries: The broader Defiance County community
Purpose: Provides flexibility to meet community needs as they evolve
Minimum to establish: $5,000
This is the purest form of giving: you entrust the Foundation to direct resources where they’re most needed. For donors who prefer simplicity and wide reach, it’s an ideal donation gift.
2. Donor Advised Fund (DAF)
Created By: Individual or organization
Control: Donor provides recommendations; Foundation approves
Use: Long-term
Beneficiaries: Charities selected by the donor
Purpose: Allows ongoing involvement in grantmaking
Minimum to establish: $25,000
With a DAF, you get the tax benefits now but can distribute grants over time. It’s especially well suited to donors who like to stay engaged with the evolving needs of nonprofits.
(To learn more about DAF’s, visit our blog: What Is A Donor Advised Fund)
3. Restricted Endowment Fund
Created By: Nonprofit organization
Control: Foundation manages; the agency receives income
Use: Long-term
Beneficiaries: The nonprofit itself (e.g. a YMCA)
Purpose: Ensures operations are sustained over time
Minimum to establish: $10,000
Nonprofits can establish an endowment fund as a donation gift to themselves or future donors, anchoring financial stability into their mission.
4. Designated Charitable Agency Fund
Created By: Donor
Control: Foundation manages; grants go to the field of interested defined
Use: Long-term
Beneficiaries: A single nonprofit (e.g. a church or local agency)
Purpose: Guarantees ongoing support for that organization
Minimum to establish: $10,000
When you have a cause or group you deeply believe in, this fund type ensures your donation gift is devoted to it indefinitely.
5. Field of Interest Fund
Created By: Individual or organization
Control: Foundation manages grants within the field
Use: Long-term
Beneficiaries: Organizations or programs within your chosen area (education, arts, youth, etc.)
Purpose: Focused but flexible giving
Minimum to establish: $10,000
This option gives you the freedom to support an area of interest while letting the Foundation select specific grantees.
6. Project Fund
Created By: Foundation with partner organization
Control: Joint oversight
Use: Short-term (until the project is complete)
Beneficiaries: A specified project or initiative
Purpose: Time-limited missions such as capital improvements or campaigns
Minimum to establish: Determined per project
Project funds are perfect if you want to fund something specific, like a playground, event, or renovation, as a donation gift that’s visible and purposeful.
7. Scholarship Fund
Created By: Individual, family, or business
Control: Foundation plus a scholarship selection committee
Use: Long-term
Beneficiaries: Students meeting criteria
Purpose: Supports educational goals
Minimum to establish: $25,000
A scholarship fund is a powerful donation gift that changes lives by investing in the future. (Learn more via our Scholarships page.)
How to Turn Your Donation Gift into a Fund
1. Match your vision with the right fund type
Decide whether your goal is broad community support, targeted giving, a project, or a legacy gift.
2. Create the fund
Stop into our office and finalize the fund creation details with our executive director. This is when your fund agreement will be established.
3. Make your gift
Donate via cash, stock, bonds, or bequest, in many cases you receive favorable tax treatment. Learn more about our different ways to give.
4. Steward and monitor
You can stay actively involved (via DAFs or via input on scholarship or designated funds) or let the Foundation manage per your intent.
5. Celebrate the impact
Your donation gift becomes part of an ongoing story. We report back with grant summaries, outcomes, and community stories. We will also share your grant impact within our Defiance County community!
Donation Gifts Beyond Money
“While fund-based giving provides structure and longevity, donation gifts also include in-kind giving, that is, donating goods, services, time, or expertise instead of cash. These gifts can reduce costs for nonprofits and free up financial resources for other critical needs.” – Common Bond
By combining in-kind gifts with fund-based strategies, donors can maximize their impact: donate supplies today, and endow support for tomorrow.
Why Choose the Defiance Area Foundation?
Local focus, local strength. Every fund here benefits Defiance County directly through grants. Learn more about our Foundation managed grant process today!
Guided support. Our team helps you choose the right fund type, manage disbursements, and meet reporting needs.
Flexibility. We support funds of various sizes an scale.
Legacy that lasts. Whether you give now or plan a gift in your will, your fund can carry forward your values and vision.
When we shift our mindset from “donation gifts” as one-time transactions to gifts that build enduring impact, we unlock a new way to give. Funds create a bridge from your generosity today to the communities you care about tomorrow.
Ready to turn your giving into lasting impact?
Visit our Create a Fund page to review more details or if you’re ready to get started, contact us to set up an appointment with our Executive Director!
Together, your donation gifts will not just help, they will transform.
