A community foundation is a collection of charitable funds established by people from all walks of life who have one thing in common – the desire to make a difference in their community. Donations to endowment funds are pooled together and invested. The income from these investments is then used to make grants to support local registered charities, while the capital remains untouched. This means the original gift will have impact in the community today, tomorrow, and forever.
how to start a fund
The first thing to consider when establishing a fund with us is whether to start a fund now or later.
Starting a Fund Now
By creating a fund now, your clients can make a difference by consciously choosing how much to give, when to give, and for what purpose. Or they may choose to donate to our Guelph Community Foundation (GCF) Community Fund and pool their donation with others to address community needs.
Funds can be established through gifts of cash, life insurance and publicly traded securities. By donating stock, your clients can receive preferential tax treatment and avoid the capital gains that would otherwise arise from the sale of the stock.
Starting a Fund Later
The Guelph Community Foundation offers opportunities to make a future gift. We can work with you and your clients to ensure the permanent endowment (created at the time of passing) reflects their wishes for giving in the community. Whether it is selecting The Guelph Community Foundation to be a beneficiary in the Will, life insurance policy, RRSPs or RRIFs, we can provide a way for you to give back to the community you care about.
We offer many different types of funds, each designed to present something different to our donors, that will suit their philanthropic objectives.
Whether their income is fixed, average or above the norm, your clients can give back to the community, leave a legacy, direct the funds to specific interests and still meet their family obligations. The information below will show you how.
The flexibility of an unrestricted gift enables The Guelph Community Foundation to respond to the community’s most pressing needs, today and in the future. These gifts (of any amount) are designated to The Foundation’s GCF Community Fund. This unrestricted gift is then used to make a difference where it is needed most.
'Named' unrestricted funds can be established with a gift of $10,000, or emerging funds can be created with pledge commitments. The Foundation evaluates all aspects of community well-being—arts and culture, education, environment, health, social services and more when granting.
Field of Interest Funds
Your client can target their gift to address needs in an important area of community life. The arts. Aging. Youth at-risk. The environment. They can identify their personal interest area when making the gift and The Foundation awards grants to community agencies and programs that are making a difference in the area selected. The gift stays flexible enough to meet community needs in your clients interest area - even as they change over time.
A designated fund provides a wonderful way to give back to one or more specific organizations that have touched your clients life. It is an effective way to provide ongoing funding for a museum, seniors centre, trail development, or virtually any non-profit charitable organization. Your client's identify the charitable organization they wish to benefit from their gift, and The Foundation manages the annual distribution of funds (through grants) to the organization(s).
Donor Advised Funds
A donor advised fund offers much of the flexibility of a private foundation, with less cost and administrative work for the donor. For families, it allows them to establish a charitable legacy in the family’s name, fulfill multiple charitable interests, and teach giving values to the next generation. For corporations, it provides a mechanism for strategic giving and opportunities for employees to be involved in community philanthropy. Working with our staff the client will identify ways to use income from their fund to address the issues and needs they care about most. These recommendations are submitted to The Foundation’s Board of Directors for approval, and we then manage the distribution of the grant.
Charitable Agency Endowment Funds
This is an attractive option for local charities that currently manage, or are interested in establishing their own endowment fund. Creating an agency fund allows the organization freedom from investment responsibility and provides a source of income to carry out their work. It also gives donors the confidence of knowing that a permanent foundation is in place to professionally administer the charity’s endowment. Once established, the charity can encourage their supporters to contribute to their endowment fund through living or planned gifts.
Your client can create a scholarship fund to support the continuing education or training of deserving students. They can create a scholarship by selecting eligibility criteria to express their educational values — or those of their family or business.