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Endowment and Legacy FundsThe types of funds that you can establish at the Jewish Community Foundation fall into two broad categories, endowed and expendable.
ENDOWMENTS (ENDOWED FUNDS) are charitable structures that distribute only the income generated by their principal, or a percentage (usually around 5%) of the market value. An endowment is perpetual and provides ongoing permanent support that may be relied upon year after year. It is with these permanent endowments that the community’s future is secured.
EXPENDABLE FUNDS are charitable structures that are not limited to distributing only income. An expendable fund may also distribute principal in support of its purpose. Therefore, the assets of an expendable fund may diminish.
Within these broad categories, fall a wide range of fund types. Choosing which type is right for you will depend on your philanthropic goals. Here is an overview:
Unrestricted (including Community Legacy)* -- Funds established with no restrictions, generally distributed though the Foundation’s Grants Committee or other committee which includes Foundation representatives. Donor Advised Funds and Supporting Foundations usually fall into this category.
Restricted/Field of Interest* -- Funds established for support of a specific program or organization or particular area of interest. Distributions from these funds are limited to those purposes described in the fund agreement upon request by the designated disbursing authority, typically an agency, congregation or program director.
Designated Funds -- These funds are created to ensure that support will be provided to one or more specific charitable organizations named by you. Designated Funds often are endowed in perpetuity with the income used to support the organization on an on-going basis. The Jewish Community Foundation ensures that disbursements are made to appropriate charitable agencies as specified in the establishing fund document.
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