August 18, 2017

ESTABLISHING A FUND

WHY ESTABLISH A FUND?

As the Donor, you may give cash, appreciated stocks, real estate, or other assets to establish your Fund. Most charitable gifts qualify for the maximum tax advantage under federal law. To view information explaining the purpose and content of an SCF Fund Agreement, click here.

  • You are able to stay directly involved in the good work your gift makes possible. You can recommend an area or organization you’d like your gift to support, or rely on the community foundation’s experienced staff to determine and address the areas of greatest need in our community.
  • Our board issues all grants made from the Fund, in the name of the Fund, acknowledging your philanthropic purpose. Or, if you prefer, grants can be made anonymously.
  • We handle all the administrative details and make the required reports.
  • Your initial gift, future gifts, and all earnings from your gift (if a permanent fund) is source of community capital, helping do good work forever.
  • You receive the tax benefits in the year your charitable gift is made. 

Information about our spending policy, the method by which funds are pooled, reporting procedures and requirements, donor services, community development fees, waiting periods, minimum establishing gifts, and eligible grantees can be found at the document links in the column to the right.

TWO BASIC DECISIONS

As a potential Donor/Fundholder, there are two basic decisions required of you before we can establish a component Fund for you at Solano Community Foundation.  We will set up the Fund in your name, in the name of your family or business, in the name of your nonprofit organization, or in honor of any person or other organization you choose. To view information regarding fund class, fund type, and minimum fees, click here.

#1.  Endowed or Non-Endowed?  Your first decision is to determine the length of time you desire to have a Fund at the Foundation.  All Funds established with SCF are classified as either Endowed (permanent) or Non-Endowed (unrestricted) assets held.
    • Endowed funds are permanent and classified as restricted. An endowed fund will remain under the management of the Solano Community Foundation in perpetuity, continuing to benefit the organizations and causes you select forever. Endowed Funds earn dividends and gains and are assessed annual administrative fees. Grants are made from the earnings and the permanent balance (principal) cannot be spent.
    • Non-Endowed Funds are not permanent and classified as unrestricted. Non-endowed funds do not earn dividends and gains and are assessed higher annual administrative fees. The fund balance may be granted at any time, as one or more disbursements, following the policies and procedures in place.

#2.  Scholarship Fund or Non-Scholarship Fund?  The second decision regards the overall giving (grantmaking) intent.  All Funds are subject to the federal and state laws and regulations governing component funds.  To learn about Rules for All Funds, click here.  Scholarship awards (grant disbursements) are made to the institution the student is enrolled at, or plans to attend, not to the student directly. Scholarship Funds and can be either endowed or non-endowed.

    • Scholarship Funds are subject to specific rules in addition to the rules for all funds.  Disbursements from Scholarship Funds are intended to provide financial support for students at qualified educational institutions.  They have specific eligibility and application criteria, a structured scoring system, and a selection committee to advise the Fundholder.
    • Non-Scholarship Funds are established for the benefit of local nonprofit organizations, to support the programs an services offered within a community.  These funds can be further defined as "Designated Funds” or “Field of Interest" to better target organizations working in specific areas (the arts, environment, education, youth, seniors, veterans, etc.).