How to Create a Fund  

   Decide when to give – You can create your fund now, establish it in your will, or create it through a trust arrangement that benefits your family as well as charity.  You may give in honor of an anniversary, to celebrate a special event or to support a cause.  Tax deductions are earned at the time of your gift, while grants awarded from your fund will continue into the future.

   Decide what to give – Almost any kind of asset can be used to start your fund, such as cash, publicly traded securities, closely held stock, interests in limited partnerships, real estate, life insurance, tangible personal property, and private foundation assets.  We can also discuss other options with you such as bequests, charitable remainder annuity trusts, charitable lead trusts, charitable gift annuities, life income, and deferred charitable gift annuities.

   Choose the name for your fund – Most of our funds are named for the donor or the donor’s family or as a memorial to someone special.  Every grant from the fund will carry this name.  If you prefer anonymity, you may choose a name that reflects your fund’s charitable purpose.

   Choose a type of fund – We offer a variety of funds that are flexible to meet our donors’ different charitable interests.

Types of Funds

   Endowments – The simplest explanation of an endowment is that it is a way to financially provide in perpetuity for the people, places and organizations of Morgan County that are dear to you.

   How an endowment works:  When an endowment is established through a charitable contribution to the Community Foundation of Morgan County, we don’t spend the donation. Ever. Instead, we save the contribution and invest it wisely to grow and produce earnings. Through an endowment agreement that is executed at the time the fund is started, the Community Foundation is obligated to distribute the earnings to the charitable entity you designate. Distributions of endowment earnings are called grants. Typically, only a portion of the total earnings are distributed. This allows the endowment to grow over time. As the years go by, grants from your endowment will far exceed your original gift.

View an endowment calculator here, and
see how your endowment will grow throughout the years.

   There are four basic types of endowments.  You can create a fund that allows you to have as little or as much involvement with the grant making process as you like.

  1. Donor Advised – You, as the donor, regularly make recommendations of various charitable projects to receive grants.  As the donor, you or your designees advise the community foundation as to where grants from your endowment should be made.  You can also organize an advisory group to make the decisions.
  2. Designated – The grants are always directed to the same charitable project or agency.  These are most effective if there is a particular organization, such as a school, church or non-profit agency you wish to support.
  3. Field of Interest – The grants must go to a particular area such as the arts, or recreation, but the projects may vary within the field.
  4. Unrestricted – The grants can be used wherever the need is greatest in Morgan County.

   All of these types of endowments can include scholarship funds.

   Non-Permanent Funds – With the goal of assisting charitable projects or causes in the community with professional bookkeeping, the Community Foundation of Morgan County, Inc. holds several non-permanent funds under its umbrella.  Unlike gifts to endowments that can never be spent, gifts to non-permanent funds can be spent in their entirety.  Gifts to these funds are tax-deductible as long as no goods or services were received in exchange for the contribution.