Types of Funds

If you are considering establishing a fund to be administered by the Kent Community Foundation, we have an array of funds to choose from, one of which is likely to help you achieve your philanthropic goals.

Unrestricted Funds
Oftentimes, donors have a passion for helping others but would prefer to leave the grants open-ended and let the foundation use the fund’s resources toward the area of greatest need. This is a good option for donors who wish to create a philanthropic legacy that will grow and change with the community and the foundation.

Field of Interest Funds
Perhaps a donor wishes to benefit a broad area, such as the arts, the environment, homelessness, or at-risk kids. Rather than naming a particular organization as the beneficiary, donors would then establish a Field of Interest Fund to address whatever broad area of need they hope to impact in a positive way. This is a good option for donors who care about specific issues and wish for the foundation to address those issues via the most effective means possible.
 
Designated Funds
Donors who have a passion for a specific program or organization may establish a fund to benefit only that organization or program. Donor Designated Funds are similar to Donor Advised Funds. They differ in that disbursements from the fund are established at the time of the fund’s creation and do not require ongoing action on the part of the original donor:
  • The donor makes one or a series of irrevocable gifts to Kent Community Foundation to establish the fund.
  • The donor identifies one or more public charities to be the beneficiary of distributions of the fund’s income (or principal and income) and the desired terms of those disbursements.
  • Per the terms of the agreement, regular disbursements are made from the fund and in the event that one of the original beneficiary charities ceases to exist, the foundation will redirect that support to a public charity with a similar mission.

Donor Designated Funds are a good option for donors wishing to establish long-term support of the organization(s) or causes they care about, or to establish a legacy giving vehicle that will exist in perpetuity.
 
Donor Advised Funds
A Donor Advised Fund (DAF) allows donors to play an active role in grant-making without incurring the paperwork, taxes and administrative headaches of establishing and maintaining a private foundation. Donor Advised Funds can be established by an individual, a business or any group of people who share charitable interests.
Grants from DAFs can be made only to qualified charitable organizations as defined in Section 501 (C) 3 of the Internal Revenue Code.

Scholarship Funds
Kent Community Foundation is a champion of good education to prepare our young people for the future. Therefore, we offer options for donors who share an interest in providing educational opportunities.
  1. Donors may establish a new scholarship fund which identifies a specific educational organization to which grants will be made.  In this case, the entire scholarship process is managed by the educational institution receiving the grant and not by Kent Community Foundation.
  2. Donors may also establish a scholarship fund from which awards will be made through Kent Community Foundation.  In this case, the donor can stipulate requirements the scholarship applicant must meet, but by law cannot have the deciding vote on who receives the award.  The Foundation has a very active Scholarship Committee that reviews and awards these scholarships. Donors are given the option of joining the committee. 

Agency Funds
Many nonprofits recognize the benefit of partnering with the Kent Community Foundation and choose to pool their funds with ours.  The Foundation provides a number of important benefits:
  • A broader platform from which to promote your cause;
  • Networking opportunities with potential donors and other nonprofits/funds;
  • Pooled investments for your fund;
  • Online credit card processing service to encourage more donations;
  • Back office gift processing services.
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A fund with Kent Community Foundation allows the nonprofit agency board to concentrate on priority needs within their organization and to serve as a bridge from the community foundation to the rest of the community. Agency funds are controlled by the Foundation but can remain the property of the agency and therefore can be carried on their balance sheet and/or returned to the organization at any time.