TYPES OF FUNDS
When you become a Community Foundation donor, you have the flexibility to create and shape our own charitable-giving fund to reflect your personal goals and desires. Review our fund categories and consider your various options. We offer a number of different types of fund opportunities, each customized to assist you to make the most of your charitable giving.
Donor Advised Funds: Established by an individual, family or business, this fund allows you to make a donation to your fund, receive a tax deduction in the year of the donation and then remain actively involved in the fund’s charitable grant-making. A donor-advised fund can make grants to any qualified public charity (501 (c)(3)) in the United States. It is a simple, powerful effective and highly personalized approach to giving.
Discretionary Funds: These funds are used to make grants to support the charitable needs of the community at the discretion of the Foundation’s Governing Board through a competitive grants process supported by the Foundation’s professional grant-making committee. A discretionary fund is an effective way to leave a permanent named legacy that can adjust over time as the needs of the community change.
Field of Interest Funds: These funds are established to support nonprofit programs or organizations in a general field of interest important to the donor, such as arts & culture, education, historic preservation, children, the elderly, etc.
Donor Designated Funds: Established by the donor to benefit one or more nonprofit perpetually. If the original named charity ceases to exist, becomes obsolete or is unable to perform its charitable purpose, then the Foundation can relocate the funds in accordance with the donor’s original charitable intent.
Agency Endowment Funds: Created by other nonprofit organizations as a means of protecting their charitable dollars for the future and to ensure a source of annual support for their programs, services and operations.
Scholarship Funds: These funds allow donors to invest in the future by assisting deserving students to pursue higher education. The Lima Community Foundation will work to involve donors in establishing the selection criteria, scholarship guidelines, application process and procedures for awarding the scholarship(s) and appoint selection committee members. The Foundation provides all scholarship administration.
Supporting Organizations: In the course of establishing supporting organizations, the Foundation meets the unique needs of organizations looking for cost-effective operational assistance while maintaining independence. A supporting organization is a subsidiary of the Community Foundation that has its own charitable status, board of directors, articles of incorporation, investment policies and granting priorities. Through its close connection to the Community Foundation, a supporting organization is given public charity status and receives all of the associated tax benefits.
Pass Through Funds, Facilitator, Project Funds, Celebration/Memorial and Legacy Funds
Pass Through Project Fund: Our primary mission is to establish permanent funds, but we recognize that at times we can better serve the donor and the community through creating a temporary fund. Any type of fund can be a temporary fund: special project, memorial and donor advised funds are the most common.
Lima Community Foundation Celebration/Memorial Fund: Contributions to this fund give you, your family, friends or an organization an avenue to preserve the memory of a dear one and the good that flowed from his or her life. Contributions may also be made to the fund to honor or celebrate special occasions such as birthdays, anniversaries or retirements.
Legacy Funds: Other planned gifts, such as life insurance, charitable gift annuities and/or bequests by will are also methods by which to create a fund to benefit the charity or charities of your choice.