Restricted funds may be established at the Jewish Community Foundation with a minimum of $10,000. There are two primary types of restrictions, spending and use.
Choosing which type of fund is right for you will depend on your philanthropic goals and the professional team at the Foundation is here to help ensure that your goals are met. Here is an overview:
The most common spending restrictions are endowments. Endowments are charitable funds that create an income stream for long-term use. They are funds intended to last “in perpetuity” and provide ongoing support that may be relied upon year after year. Generally, a percentage of the fund’s market value (usually around 5%) is distributed annually.
Virtually all other funds are expendable funds. Expendable funds are not limited by the amount that can be distributed from them. Therefore, the assets of an expendable fund usually diminish and are spent down over time.
Regardless of spending restrictions, funds may also be restricted as to use or purpose.
Funds can be established for support of a specific program, organization or particular field of interest. Distributions from these funds are usually made upon request by the designated disbursing authority (typically an agency, congregation, or program director) or committee and are restricted to those purposes described in the fund agreement.
Funds established with no restrictions on use are generally distributed through the Foundation’s Grants Committee or other committee as recommended by the donor. The Foundation’s Community Legacy Fund is an example of an unrestricted fund that many people choose to support.
For more information contact Josh Stein at (913) 327-8121.