Types of Funds at the Defiance Area Foundation
There are many ways to start a fund which allows donors the freedom and flexibility to identify how they want their charitable dollars to be used now and in the future. The choice is yours. Do you want to a support a special field of interest, or a specific organization? Do you want to launch a scholarship in memory or honor of a loved one? By identifying your philanthropic goals and supporting your passion, a fund can be created to meet your needs. The Foundation has a number of options for you, your family business, or your non-profit organization to help you carry out your wishes.
What is an endowment?
An endowment is a pool of money that provides income for the continuing maintenance or on-going support of an organization or program. An endowment is designed so that the original gift of the donor is preserved, only the income the original gift generates is spent. An endowment should be thought of as permanent.
UNRESTRICTED NAMED/FAMILY FUNDS: These funds are used to support community needs, whether they be through brick-and-mortar, or innovative programs that support our mission: “To “Enhance, Enrich, Encourage and Support the Defiance County Community.” The donor places no restrictions on how income from these funds is to be used, leaving those decisions to the Trustees of The Foundation.
The suggested minimum amount to establish this type of fund: $5,000.
DONOR ADVISED FUNDS: This type of fund is established by a donor, (either an individual or organization), and the donor recommends eligible charitable grant distributions from the fund. The recommendations are advisory and the Executive Committee/Trustees must approve grant distributions. This type of fund allows the donor to support their favorite charities while receiving a tax deduction in the year contributed. Grant distributions can then be made over a longer period of time.
The suggested minimum amount to establish this type of fund: $25,000.
RESTRICTED ENDOWMENT FUNDS: This type of fund is created by a not-for-profit agency or organization contributing funds to provide current income and long-term security for its operation (example: The YMCA sets up a fund to benefit its organization and used the income for operations).
The suggested minimum amount to establish this type of fund: $10,000.
DESIGNATED CHARITABLE AGENCY FUNDS: A donor may establish this type of fund for a specific charitable organization to assure support will be provided to that organization named by the donor, such as a church or non-profit organization (example: John and Jane Smith set up a fund to benefit the Fort Defiance Humane Society).
The suggested minimum amount to establish this type of fund: $10,000.
FIELD OF INTEREST FUNDS: Either an individual donor or an organization may establish this type of fund to support a specific area of the donor’s choice. such as education, the arts, youth services, senior activities, etc. Income is used to benefit programs or organizations within the field of interest specified by the donor.
The suggested minimum amount to establish this type of fund: $10,000.
PROJECT FUNDS: This type of fund is established as a partnership between the foundation and an organization for a short-term charitable project. Under normal circumstances, project funds will be depleted as the designated project is finished. An endowment fund is also encouraged through the Foundation. The suggested minimum amount to establish this type of fund would depend on the proposed project.
SCHOLARSHIP FUNDS: These funds are to be used to support the knowledge and future learning of a student for educational purposes.
The suggested minimum amount to establish this type of fund: $25,000.
GENERAL UNRESTRICTED COMMUNITY FUND: The Defiance Area Foundation welcomes gifts of any denomination into the general unrestricted community fund. The Community Fund helps us meet the evolving needs of Defiance County by providing essential grants to local non-profits. Our grants committee directs funds where they will have the greatest impact, ensuring your donation makes a real difference in areas that matter most. Together, we can strengthen our community and address its changing needs.