A permanent fund is one in which gifts to the fund are never spent. Rather, they are invested, and a portion of the fund is used for the charitable purposes for which the fund is intended. 

Permanent funds may be an endowment or quasi-endowment fund. Click here to learn the difference between endowment and quasi endowment funds.

In contrast, a pass through fund is one in which gifts to the fund, and the fund's investment return, may be used to make grants for charitable purposes at any time during the life of the fund. 

Permanent funds and pass through funds may be any of the following types of funds:

Unrestricted Fund
For the donor who chooses to give a gift with no restrictions, an unrestricted fund allows the Community Foundation's Board of Trustees to allocate the proceeds from your fund to the most appropriate charities. Because the charitable needs of the community are continually changing, you may feel that a group of living individuals will be better able to assess current situations than can any written document from the past. An unrestricted fund is most suitable, since these all-purpose funds are the most flexible in meeting the emerging needs of the community.

Restricted Fund
For the donor who wants to designate favorite charities, a restricted fund allows you to direct the proceeds from your fund, specifying the amounts or percentages to each charity. If one of the organizations ceases to operate or no longer offers the type of service that interests you, we will find one that does—so that your gift remains vital and meaningful.

Donor-Advised Fund
For the donor who would like to be involved with the fund, a donor-advised fund allows you to maintain an advisory role in how the proceeds from your fund are disbursed. The proposed gift must fit within the charitable purposes of the Community Foundation and within specific Internal Revenue Service requirements. You offer advice during your lifetime and may designate a family member to make advisements once you are no longer living. Otherwise, the fund may become an unrestricted fund or a restricted fund according to your instructions.

Scholarship Fund
For the donor who would like to specify criteria for a scholarship and offer input during the selection process, a scholarship fund is the best option. This is a significant way to impact the next generation through education assistance.

Field of Interest Fund
For the donor who wishes to specify their field of interest, this fund allows you to outline the types of charities to which you want the proceeds from your fund to go. You describe the focus as broadly or as narrowly as you wish. The Board of Trustees will then identify and select the appropriate charities based upon your guidelines.

Agency Fund
By partnering with the Community Foundation, Agency Funds help nonprofit organizations further their mission by ensuring long-term financial support.