Types of Funds
There are a variety of vehicles for an individual or organization to use to accomplish charitable goals. Talk to our Finance Committee and select the type of fund that fits your needs:
- Acorn Fund: Somone who is not in a position to write a substantial check to start a fund may want to establish an Acorn Fund with as little as $1,000 and a plan to make additional contributions over time. At least one tax-deductible contribution is required annually. When the fund's assets reach the level required by the Foundation's Investment Committee, it will "graduate" to become one of the funds described below. Then grants can be made to charitable causes.
- Designated Fund: Donor designates the current and future charitable recipients. For example, the Lakehills Library has been designated as the recipient of a donation by a former BCF board member.The donor may designate the size of future grants by dollar amount or a fixed percentage and may change charitable recipients during their lifetime and designate changes that would apply after they die. This type of fund also gives the donor the right to give variance power to the Foundation, allowing the Foundation to direct the funds to another organization doing similar work.
- Donor Advised Fund: Allows a donor to be involved in recommending distributions from the fund to address the issues and needs the donor most cares about. A donor may wish to set up a fund in which various charitable projects or organizations are recipients. It is the most flexible charitable vehicle for those who do not want to take the time or expense of setting up a private or family foundation. While the donor may choose to be the sole advisor, this role may be designated to others. For example, a grandchild may be given the right to specify the direction of the fund or the selection of recipients during the donor's lifetime and after the donor's death.
- Field of Interest Fund: A donor may have a specific area of interest, program, initiative or geographic area for which his or her funds would be applied. A donor may focus on one or more favorite causes, such as the arts, seniors, environmental protection, animal welfare, etc., rather than specific charitable organizations. Although restricted in purpose, these funds must have the flexibility to meet changing needs and situations. A Field of Interest Fund can keep pace with changing community needs and issues over time. The legacy of this fund ensures that funds iwll be available to address those needs now and in the future.
- Discretionary Fund: The donations to this fund are used by the Bandera Community Foundation board at their discretion for a charitable purpose, usually through an application process. This is sometimes called a Community Nest Egg Fund, whereby donors allow the Foundation discretion to use their gifts to address the ever-changing and most presssing community needs. As with the other Foundation funds, the Discretionary Fund will carry the donor's name and grants will be made in the name of the person, group or business that made the grant possible, unless the Foundation is otherwise instructed.
Other types of funds might be set up to meet charitable needs in keeping with the wishes of a donor. To discuss the options, contact the foundation's president: Dave Demers at 830-535-6982.
