How to Start a Fund
The Decatur County Community Foundation could not exist without its donors. It is the goal of the Foundation to make giving as simple as possible. If you are planning on a gift of at least $10,000, the Foundation would like to work with you to make your wishes a reality. The Foundation tries to make giving as easy as possible by keeping the process streamlined and maintaining a relationship with local professionals to provide you the legal and financial answers you need. The Foundation would like to suggest the following steps to establishing a fund.
1. Meet with the Foundation staff
Knowledge is power. Arrange a meeting with the Foundation staff to discuss your charitable wishes. The Foundation staff will explain the services the Foundation can provide you and how the Foundation can meet your needs. The Foundation will take your wishes and work with a professional adviser to create a fund agreement.
2. Review the agreement.
The Foundation will provide you with a custom fund agreement. It will include the name of your fund, the purpose of your fund, the distribution of your fund, any special request of your fund and all the general Foundation information. The Foundation will have the agreement reviewed by legal counsel, but it will be your responsibility as the donor to make sure that your information is correct. When you review the document, make sure that your name is spelled correctly, the name of the fund is correct, the purpose is correct and that any other special arrangements are detailed to your desires. The Decatur County Community Foundation will work in your best interest, but we are not financial advisers We strongly encourage you to take your agreement to an accountant, attorney or other trusted financial advisor for review. They will be looking for your best interest and may suggest something that will enhance your charitable wishes or tax advantages.
3. Make it official.
After you have reviewed and approved the agreement, the Board of Directors will be notified at a meeting of your intent to establish a fund. The Board will vote to approve the fund. Upon approval, you and the Board president will sign the agreement. You will then make your donation and your fund will become part of the permanent endowment. The staff will keep in contact with you when distributions are available from your gift.
Rather than giving $10,000 immediately to establish a named endowment, donors may choose to start an Acorn Fund. After an initial gift of $1,000, fund holders schedule a five year payment of $2,000 per year. When the fund reaches a balance of $10,000 through gifts and investment growth, the Acorn Fund matures to a permanent endowment. At that time, you, as the fund adviser, will work with the DCCF to develop the details of your fund.
• Acorn funds are an ideal vehicle for family philanthropy or a group of friends or neighbors to support charitable causes that are meaningful to them.
• Contributions may be made using a variety of assets
• You can encourage family and friends to make contributions to your Acorn Fund in lieu of traditional gifts on the occasion of a holiday or birthday.