Types of Funds
The Grays Harbor Community Foundation desires to provide the support that is needed by a donor to accomplish their goals and wishes. We have the following types of funds that are developed individually with a donor and are documented to capture the specifics of the donors’ intent.
A donor may make a direct gift or estate gift to the Grays Harbor Community Foundation that provides for the Board of Directors to determine how the funds should be used to support our community. Unrestricted funding typically provides support for the Discretionary Grants program. Some suggestions may be made (I.e. for Aberdeen, or for historical projects, or for education, etc.), but specific use and timing is determined by the Community Foundation BOD.
Donor Advised Fund
A donor advised fund is where the donor is involved in determining the distributions of the funds at some level. The donor may suggest distributions to a nonprofit at any time, for any purpose.
These recommendations are reviewed by staff and Board for approval, and then a check is delivered. Or, a donor may have an interest in a particular activity and when the BOD learns of a fitting project, the donor will be contacted to inform them. (For example: if a donor is interested in support for animals, and a grant application is received for PAWS to provide a Spay and Neuter clinic, the donor would be informed and asked if they wish to provide support for this project)
A designated fund is often the result of an estate where the donor has specified a nonprofit, or several nonprofits, to receive the benefit of the gift. A Designated Fund may be set up to provide for an established nonprofit to receive specific distributions, specific timing, for specific purposes, or an unrestricted gift to the nonprofit. (For example: if a donor can provide for the Missions Program or Building Maintenance of their church, or for operations for a particular nonprofit, or for a staff position of a nonprofit, etc. )
An agency fund is for a nonprofit to set up or set aside funds for the future. If the nonprofit has funds that are specified for a capital improvement project, for example, and that project is to begin three years in the future, they may set aside and protect funds to grow and be added to as fundraising develops the resources. They may also set aside funds for future operations.
Once established, anyone may donate to the fund (for example: a long time Board member or volunteer at a museum may set aside a portion of their estate for the long term benefit of the nonprofit)….See Example
A scholarship fund may be established by virtually anyone; individual, nonprofit, or business, to commemorate an individual, to support a particular schools graduate, a particular field of study, or for students to attend a particular school.
The donor determines the criteria for the student to qualify for the scholarship, and may even be involved in the selection process. The Community Foundation then administers the scholarship to minimize the effort required by the donors.