As it has since its inception, The Foundation provides donors with an easy way to establish personalized funds that will achieve their philanthropic goals. TFEC funds can make grants to charitable organizations or provide scholarships. TFEC manages all aspects of a fund – accounting, auditing, reporting, investing, grants administration and evaluation, legal and tax compliance – at a significantly lower cost than if the donor established a private foundation.
Funds can be created by individuals, corporations, financial institutions, charitable organizations, probate courts, and private foundations. Funds are named by their donors and can serve almost any charitable purpose in perpetuity. They often memorialize or honor a family member. Funds are established with the donor’s commitment to reach a minimum $10,000 contribution level within five years ($5,000 for Unrestricted Funds).
Funds for Individuals, Families, Corporations, and Foundations
- Donor Advised Fund – Offers the greatest flexibility and allows donors to recommend grants to charitable projects or organizations. Can be PERMANENT (only income is granted and principal grows in perpetuity), or NONPERMANENT (both principal and income can be granted). Particularly advantageous for donors who may want to make a single contribution and recommend grants to charitable beneficiaries over a longer period.
- Scholarship Fund - Benefits students at any educational level. Donors can select the scholarship awardees themselves according to objective criteria, or appoint a committee to select recipients. The Foundation also can select recipients and manage the entire application and award process.
- Designated/Restricted Fund – Provides ongoing, permanent support to one or more donor-selected agencies or programs. If charitable beneficiaries should cease to function or exist, The Foundation will redirect income in a way that will achieve the donor’s original charitable purpose.
- Area of Interest Fund – Enables donors to support a broad field of concern, such as the environment, arts and culture, or education. The Foundation’s Grantmaking Committee then awards grants to charitable programs within the area of interest, and has the flexibility within that area of interest to respond to changing community needs.
- Unrestricted Fund – Ensures that grants will be available in perpetuity for the most current community needs. The Foundation’s Grantmaking Committees have flexibility to apply income to the most relevant and promising opportunities within their service areas ( Cumberland, Dauphin, Franklin, Lebanon, Perry Counties, as well as the Dillsburg area).
Funds for Nonprofit Organizations
- Organizational/Agency Fund – nonprofit organizations can transfer assets to The Foundation to create an endowment fund. The fund also can accept gifts from other donors. Earnings provide an ongoing source of unrestricted income to the charitable organization. The Foundation offers assistance with marketing and development of the fund.
Please click here to learn more about Agency Funds.