Which type of fund is best for you?

An Unrestricted Fund is a good option for donors who want to be assured that their gift will always be used to meet vital needs and improve the quality of life in the Northern Illinois region. The Community Foundation staff, trustees, and community advisors can help identify community needs and the most strategic way to address them.

A Donor-Advised Fund is by legal definition an unrestricted fund. The Foundation welcomes donor’s recommendations as to which organizations they would like to receive grants from the fund. Although the Foundation cannot, by law, be bound by these recommendations, we work to approve all grants to nonprofits that are governed by high charitable standards.

A Field-of-Interest Fund is focused on issues of concern to the donor, such as child and family welfare, youth, education, human justice, environment or preservation. The Foundation awards grants the meet current needs within the chosen category of interest.

A Designated Fund is for those who wish to support a specific organization, but recognize that needs might change. Donors can establish a designated fund at the Community Foundation instead of giving directly to the charity. This ensures that the gift remains intact over time and will continue to benefit a similar cause, should the needs or purpose of the charity change.

A Scholarship Fund is a good way to remember a loved one, honor someone special, and to ensure that resources are available for high educational achievement. Scholarship funds are permanent funds administered according to the the Community Foundation’s adherence to the National Standards established for all U.S. community foundations.

 

Setting Up a Fund

Any donor, large or small, may establish a fund at the Community Foundation. Donors first identify their philanthropic objectives, then the Foundation’s staff helps clarify those goals and identify the means to achieve them. The fund is then named by the donor, using their own name, the name of someone to be honored or memorialized, or the fund may remain anonymous.

 

You Can Give to a Fund in Many Ways

Give Now – You can set up a fund to achieve your charitable goals now and endow it to continue your philanthropy into the future. Many donors regularly add to their fund over their lifetime.

Deferred Gifts - Donors can set up funds through deferred giving arrangements. The commitment to charitable giving through estate planning ensures many immediate tax benefits to the donor. Charitable Remainder Trusts, gifts of life insurance, or IRAs can be used.

Wills – After providing for personal bequests, a donor may include provisions for setting up a new fund at the Community Foundation or they can add to an existing fund. Estate taxes are reduced, and a donor’s legacy of charitable giving lives on.