Types of Funds
The Community Foundation offers many ways to fulfill your charitable intentions.
The Community Foundation of Frederick County holds two categories of funds:
- Pass through
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 to learn how these differ.
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:
For the donor who chooses to give a gift with no restrictions, a designated 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.
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.
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 Community Foundation's Executive Committee and/or the Board of Trustees must approve all grants awarded from any fund. 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.
For the donor who would like to provide financial assistance to students pursuing a post-secondary education, a scholarship fund is an excellent option. Donors indicate the scholarship criteria and may serve in the minority on the scholarship selection committee.
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.
An Agency Fund allows a nonprofit to partner with the Community Foundation by taking advantage of its expertise in managing charitable funds. The result helps the nonprofit further their mission by ensuring long-term financial support.
Fiscal Agency Fund
A Fiscal Agency Fund allows start-up organizations and groups addressing an emerging or short-term need to work with the Community Foundation.
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- Frederick, MD 21701
- phone: 301-695-7660
- fax: 301-695-7775
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