Types of Funds Planned for the Future in
our Foundation
A fund is the term used to describe a donor’s contribution. That
contribution will, in the majority of cases, be held in
perpetuity in a permanent endowment fund. This means that the
capital will not be touched but will be held permanently and
only the income made available for distribution. The
procedure for establishing a fund within the Foundation is
discussed in the FAQ section of our website.
Funds can be earmarked in a number of ways:
Undesignated, Unrestricted or General Endowment Funds
Community General Endowment Funds
Community Unnamed
Fund
The Community Unnamed Fund is the
easiest and simplest way to give to the Foundation. In general, grants from this
fund have no designation for their use. The Foundation will designate the grant
distribution from this fund. The fund will support a range of charitable
projects in the community. This fund is best able to address the changing needs
of our community. There are three contribution membership categories; Friends
of Lac du Bonnet up to $99, Century Club $100 to $499 and Builder Club $500 to
$999.
Community Named Fund
The Community Named Fund is similar to the unnamed fund but
it can be named. The income from this fund will respond to grant applications
received by the Foundation from community organizations in an ongoing basis. The fund
will support a range of charitable projects and is best able to address the
changing needs of our community. An example is a fund named in memory of some
individual. There is a minimum contribution of $1,000.
Designated or Targeted Endowment Funds
The Lac du Bonnet & District Charitable Foundation currently has most of its
invested funds with the Winnipeg Foundation for investment management. The
Winnipeg Foundation will set up a sub-fund within our main investment fund but a
minimum of $5,000 is required to set up such a sub-fund. Some examples of
some sub-funds are described below.
ADMINISTRATIVE Endowment FUND
This is a fund established to address the Administrative costs of the
Foundation. This will usually be set up by the Foundation for its own use
to defray administrative costs. The minimum contribution is $5,000.
Field of Interest Fund
The Field of Interest Fund will focus on a particular subject or
area of interest, such as medical education for someone in the
community. With your gift, you define the charitable
field, such as arts, youth, seniors and culture or health.
Funding is not limited to one organization. You, as
a donor, will entrust the Foundation to select specific projects
that your fund will support. The minimum
contribution is $5,000.
Designated Fund
The Designated Fund will make grants to specific qualified donees, you name the
specific agencies or favourite charities to benefit from your fund. Your fund
will benefit charitable organizations personally meaningful to you indefinitely. If the organizations unexpectedly cease operation or significantly
changes its focus, the Foundation will redirect the grants from your fund to a
similar charitable organization. The minimum contribution is $5,000.
Scholarship Fund
A Scholarship Fund provides awards
to support deserving individuals pursuing advanced education or training. An
example may be someone wanting to become a medical doctor. You can set the
criteria to determine how students will be selected for the award. The
Foundation will not review or select the applicants to receive the awards.
Usually this is for the educational institution to do. The minimum
contribution is $5,000.
Donor Advised Fund
A Donor Advised Fund will allow you
to be actively involved as an advisor to the Foundation. You will work with
the Foundation staff and Board in assisting and identifying the charitable
organizations that benefit from your fund. This type of fund can be considered
as having your own private foundation. It is the most effective alternative to
creating your own foundation. The minimum contribution is $5,000.
Agency Endowment Fund
Charitable organizations that are
recognised by the Canada Revenue Agency may establish an endowment fund within
The Lac du Bonnet & District Charitable Foundation. In this case, the Foundation accepts
the administration and investment responsibilities while the organization
receives the distributable income on an annual basis - in perpetuity. The
purchasing powers of the monies are maintained for the future. An example of
such an endowment fund would be a fund created by the Lac du Bonnet Historical
Society within the Foundation. The investment proceeds would then be used by the
Society for its own purposes. For more information, see a Board member
regarding Agency Endowment Funds. The minimum contribution would be $5,000.
Flow-Through Funds
A
flow through fund may be established depending on the size of
the donation (this will be decided on a case by case basis) and
both the capital and income will be available for distribution.
In most cases for either an endowment or a flow through fund the
donor will have selected a name for the fund.
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