Types of Funds

Types of Funds

You really don’t have to be a millionaire to leave a legacy that lasts a lifetime. For a gift of $10,000 payable over five years, an endowment fund may be named for you or anyone you choose. The original contribution is protected while income is generated, a certain percentage of which is awarded to qualified nonprofit organizations, depending on the type of fund you select.

Unrestricted Funds

Gifts of all size provide current and future income for the needs of the community, and allow for the greatest flexibility. These endowed funds enable The Columbia Foundation to be flexible and responsive in the grantmaking process. Donors entrust us with charitable dollars, confident they will be used to meet the most pressing needs in the community.

Restricted Funds

You may prefer The Columbia Foundation direct the proceeds to particular organizations or to organizations involved in areas of special interest or meaning to you and your loved ones. Restricted funds include the following types:

Field of Interest:
With these funds, you identify a particular area of interest, such as housing, education or the arts that you would like to support. The Foundation Board determines the organization or program that best addresses your concern.
Designated:
This type of fund benefits a scholarship or charitable institution of your choice and has the same requirements as the Field of Interest funds.
Donor-advised:
You can establish our newest fund type, which may go into either the Endowment or the grant account, with only $10,000. This allows you to act as an “advisor” to the Foundation by submitting for Board approval suggestions of organizations or programs you would like your fund to support. (see: Funds vs Foundations)
Agency Endowment:
For charitable organizations in Howard County, the time and cost required to maintain an endowment can be prohibitive. Creating this type of fund with The Columbia Foundation makes it possible for smaller agencies to establish an endowment and strengthen their financial security. The Columbia Foundation is responsible for administration of these fund, including record keeping, accounting, and investment management. Minimums are the same as for designated and field of interest funds.
The Legacy Fund:
This fund is part of The Columbia Foundation’s endowment assets, and is designed especially for families who want to direct memorial contributions to the Foundation in the name of a deceased loved one. Gifts may be designated for needs within the community that were of special interest to the deceased. There is no minimum requirement.
What is Planned Giving?
Planned giving is strategically planning your philanthropy to maximize charitable impact, while effectively minimizing estate taxes and managing your estate.

Planned Giving Step-by-Step:
Step 1: Review your financial plan with your family, attorney or financial advisor
Step 2: Call the Foundation for a consultation to discuss the best giving model for you. We’ll summarize our recommendations in writing.
Step 3: Complete limited paperwork
Step 4: Transfer assets to your new named fund
Step 5: Enjoy…

-Leaving a legacy
-Making a difference
-Immediate tax benefits