How to Create a Fund
Our goal is to be a resource for you and your clients. The North East Community Foundation is an effective tool to help donors accomplish their personal philanthropic and estate planning objectives in a cost-effective fashion.
Because the overall goal of The North East Community Foundation is to build a permanent source of philanthropic support for our community for generations to come, the vast majority of our named funds are permanently endowed. The following describes the type of funds available.
Named funds are typically established with a minimum gift of $10,000 or more. Funds may be established during a donor's lifetime, or via bequest.
It's simple to create a fund, please call 454-0843.
Unrestricted
Typically created by individuals with broad charitable interests, these funds offer The North East Community Foundation maximum flexibility to respond to the changing needs in the community.
Field of Interest
Perfect for donors wishing to support a particular broad charitable cause, such as education, the arts, health, youth or the disabled, to name a few.
Donor Designated
These are created to perpetually benefit one or more specific charities. Grants will be made in the name of the fund so long as the organization remains in operation and is consistent with its original charitable purpose.
Donor Advised
An attractive alternative to the creation of a private foundation, a donor-advised fund receives a 100 percent tax deduction for the original and any future gifts. In future years, they may suggest deserving charities to benefit from fund income or, if desired, principal. Grants are then made, in the name of the fund, to favored charities.
Geographic
Donors whose charitable interests are limited to a particular geographic area within Erie County can establish geographically restricted funds.
Scholarships
If you value education and want to give others an opportunity to pursue their dreams. You may want to establish a legacy to honor a loved one. Scholarships within The North East Community Foundation are often a perfect option for these donors.
The North East Community Foundation administers named scholarships which support students who are graduating from North East High School. Each scholarship is unique and each is accomplishing the wishes of the original donor.
Annuities and Trusts
An active Charitable Gift Annuity program is available, at no cost, to organizations with Agency Endowments. We also have significant experience with charitable remainder and lead trusts. These planned giving alternatives often create beneficial situations for both donors and local charities.
Pass-Through Funds
Named funds can be established that allows a gift to NECF to "pass through" to their favored charity. This may be appropriate when anonymity is important, unique property is used to make a gift, many gifts are planned for a single asset or in other unusual circumstances.
Agency Endowments
When a nonprofit organization transfers all, or part, of its endowment to a designated fund within NECF, they establish agency endowments. Individual donors can also establish agency endowments. NECF provides basic planned giving services to the agency to help attract additional gifts. Agency endowments are the property of NECF and are managed in accordance with FASB guidelines This type of fund is not appropriate for operating reserves; it is for true endowments. These partnerships bring investment economies of scale, expertise and reduced fund management costs to other nonprofit organizations.