Types of Foundation Funds
Unrestricted Funds
We live in an age that often witnesses rapidly occurring changes in community needs and charitable services, causes and project priorities from day to day. This has led to the creation of circumstances in which unrestricted charitable and philanthropic gifts are recognized as having the most valuable and enduring alternatives for addressing community philanthropy and charitable support. The structuring of unrestricted funds has evolved in response to these changing needs by providing a vehicle for those donors who have developed broad community and charitable interests over the years but have no specific, set priorities. The establishment and gifting to unrestricted funds for charitable and philanthropic causes, services and projects in the Hiawatha community and surrounding area provide the Hiawatha Community Foundation with the most flexibility in directing resources toward pressing challenges and opportunities and urgent needs in an ever changing community.
Donor Advised Fund
Through the structuring and administration of a donor advised fund, a donor and his or her heirs may choose to recommend grants for a variety of different charitable purposes in each year and from year to year for so long as the fund remains in existence. The donor advised fund provides the advantage of significant flexibility for the donor while at the same time enabling the donor to avoid the significant administrative costs and time demands that would be incurred in creating and administering a private foundation.
Field of Interest Fund
The field of interest fund is designed and structured to accommodate those donors who have no real preference for a particular charitable organization or cause in their communities. These donors may establish a named field of interest fund in a general area which may be of interest to them, such as the arts, youth services, health, particular disciplines in education, community development and improvement or other interests too numerous to name here. The donor who creates and contributes to the field of interest fund may also suggest grant recipients or causes, or may request the Foundations to direct grants to the most appropriate or deserving programs within a specific area or areas of interest. Donors also have the flexibility to donate and pool their gifts together into a common field of interest endowment fund structured to generate perpetual support for a common or shared area of interest. As in the case of other endowments, only the investment income from investment of the assets in the endowment can be distributed to organizations and programs whose causes and services are within the scope of the field of interest described and designated for support in the field of interest agreement.
Designated Fund
Donors who desire to provide ongoing support to a favorite agency or charitable cause can do so through the creation and funding of a designated fund utilizing a designated fund agreement. As with other community foundation funds, the Greater Manhattan Community Foundation and the Hiawatha Community Foundation can provide administrative support, professional management and grant monitoring over the life of the designated fund.
Agency Funds
Agency funds can be established and funded through the Greater Manhattan Community Foundation and the Hiawatha Community Foundation by various types of charitable nonprofit agencies to provide ongoing operating support for the program or programs of the nonprofit agency. Contributions to agency funds may be received from any donor desiring to donate to such agency, including individuals, corporations and other organizations and entities.
Scholarship Funds
Many donors desire to establish annual scholarships for graduating high school seniors who plan on attending college or technical schools. the Greater Manhattan Community Foundation and Hiawatha Community Foundation staff can assist and provide guidance to those who want to support students desiring to pursue further education and training opportunities beyond high school, whether they are high school graduates pursuing a college degree, young athletes seeking assistance with additional training. or nontraditional higher education students preparing to return to the work force. As part of the structuring of a scholarship fund, the staff of these Foundations will work with the donors to establish the scholarship as well as provide assistance and guidance in developing the scholarship selection criteria to be followed in awarding the scholarship.