Three Kinds of Funds -- The Community Foundation Serving Boulder County

Three Kinds of Philanthropy;
Three Kinds of Funds

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At The Community Foundation, we believe in investing in Boulder County's future. That's why, through our Endowed Fund, we support endowment building and the strategy of investing now for future benefits. We also know that some donors prefer to establish a Gift Fund because their favorite groups need money right away. The Impact Fund is for donors who like the flexibility of giving away more than five percent of their fund per year, while still enjoying the advantage of having their fund invested in our investment pool.

	Donor Advised Endowed Fund	Donor Advised Gift Fund	Donor Advised Impact Fund
Minimum to Establish	$25,000	$25,000	$250,000
Annual Grants Payout	Up to 5%	Unlimited	Up to 20%
Fee To Establish	None	2 percent on all contributions to the fund	None
Other Fees	1.25 percent annually for funds with balances up to $2 million, plus investment fees. See fee schedules for details.	None	1.75 percent annually for funds with balances up to $2 million, plus investment fees. See fee schedules for details.
Investment Earnings	yes	no	yes
Minimum Grant Size	$500	$500	$1,000
Turn-Around Time for Grants Paid	One week for grants under $10,000; up yo one month for larger grants	One week for grants under $10,000; up to one month for larger grants	One week for grants under $10,000; up to one month for larger grants
Fund Advisors	Family, friends or advisors named by donors	Family, friends or advisors named by donors	Family, friends or advisors named by donors
Additions to the Fund	Allowed anytime	Allowed anytime	Allowed anytime

The Donor Advised Endowment Fund is a traditional fund offered by most community foundations and is a good alternative in many cases to a private famiy foundation. At The Community Foundation Serving Boulder County, such funds are established by individuals, families and companies with a minimum investment of $25,000. The fund is invested using a long-term growth strategy.

When a donor establishes an Endowed Fund, he or she names it, or it may remain listed as an anonymous fund. The donor also names the fund’s advisors, who may be only the donor, but often also include family members, professional advisors, or groups of employees. The advisors to the fund may recommend grant distributions from the fund at any time. Although we recommend a 5 percent annual grants payout from the fund, there is no required grantmaking. Foundation staff is available to assist with grantmaking, as much or as little as the donor wishes.

The Donor Advised Gift Fund is an offering for those interested in a more active, shorter-term giving strategy. Like an Endowed Fund, the Gift Fund requires a $25,000 minimum to establish. Unlike the Endowed Fund the donor may distribute as much or as little from a Gift Fund as he or she wishes—including spending it down to a zero balance. Donors may request that grant distributions (minimum of $500) be made from their funds throughout the year. Donors may reinvest in their funds at any time.

The Donor Advised Impact Fund offers a unique alternative to the first two funds. Like an Endowed Fund the Impact Fund is invested in The Community Foundation’s investment pool allowing the principal to grow over time. Donors may request that up to 20% of the fund be granted each year—increasing grant amounts to organizations the donors wish to immediately help.