Funds may be established for different purposes as long as they are consistent with the Foundation’s objectives. Gifts of any size may be made to existing funds. The Board will require a minimum contribution to establish new funds.
Board Directed Fund
Income from this type of fund are not restricted to any one field or individual charity. Rather they are used to meet the most pressing community needs and to seize the most promising community opportunities. This is the more dynamic type of Fund. It provides great flexibility for the Board of Directors to respond to changing public needs, and to accommodate changes in the quality of service provided by various organizations. It is the primary focus of the Foundation’s mission and assures an adaptive and effective use of funds in perpetuity.
Field of Interest Funds
Funds of this type are established by donors who wish to support particular areas of special interest such as health, education, historic preservation, culture, religion or recreation. The Foundation Board invites proposals from agencies offering services in the designated field(s), and selects projects that seem well-conceived.
The donor who establishes this type of fund requests that income from the Fund benefit one or more named non-profit organizations, such as a church, hospital, museum, or college. This is an excellent way to permanently endow annual gifts to a particular agency such as the Pella Historical Society. In the event a designated Charity disbands or fails to provide the intended services, the Foundation’s Board may redirect the charitable proceeds to a similar non-profit agency in the community.
Donor Advised Funds
This fund allows donors to make a charitable contribution, receive an immediate tax benefit and then recommend grants from the fund over time. An easy way to think about a donor-advised fund is like a charitable savings account: a donor contributes to the fund as frequently as they like and then recommends grants to their favorite charities when they are ready.
Gifts to the fund are irrevocable.
The assets of the donor advised fund are owned and controlled by the Foundation.
Contributions to the fund may be made using cash, publicly traded securities or other property.
Up to three advisors and three successor advisors to the fund may be named when establishing the fund.
Grants from the fund must be for charitable purposes.
Advisors may recommend grants to any 501(c)(3) organization other than private foundations,and to most units of government (e.g. public schools, colleges and universities, town and municipal governments, police departments, etc.)
Pella Community Foundation requires that at least 50% of the total grant amounts in any year be made to organizations or units of government which fulfill the Foundaiton's mission to preserve the heritage and enhance the quality of life for the people of Pella.
In some situations organizations may want to earn income on excess funds but wish to reserve the right to withdraw them in whole or in part under unusual circumstances. The Foundation may accommodate this desire with an Agency Fund.