Establish a Fund

Endowed funds help ensure that the philanthropic needs of the Albion community are met in the future. There are several types of endowed funds that each serve a specific purpose. Each type of fund has a specific minimum principal to begin distributing grants and has three years from the fund’s inception date to meet the minimum principal requirement. The Foundation allocates an administrative distribution annually based on the total assets of the fund, that covers the Foundation’s cost of administering the fund. The minimum principal and administrative allocations for each type are determined by the complexity of administering the fund.

Named Undesignated Funds

Similar to the Fund for Greater Albion, Named Undesignated Funds provide the greatest flexibility to meet the changing needs of greater Albion. Grants are distributed annually directly through the Foundation’s grants committee, which also oversees the Fund for Greater Albion. Grant applications are not accepted for specific undesignated funds, rather the undesignated pool in general. Then, the grants committee distributes from the Named Undesignated Fund as a part of the undesignated grants.

Minimum principal: $5,000
Administrative distribution: 1%

Field of Interest Funds

Field of Interest Funds address needs in an important area of community life. The board awards grants to community organizations and programs that are making a difference in the selected area, through a competitive grant application process. The fund stays flexible enough to meet community needs in the interest area—even as they change over time.

Minimum principal: $25,000
Administrative distribution: 1%

Agency Endowments (Designated & Charitable Organization Funds)

Designated and Charitable Organization Funds ensure that specific charities can continue to fulfill their charitable mission by naming a specific qualified charity as the beneficiary. Beneficiaries of Designated Funds must be qualified nonprofit organizations (i.e., 501(c)(3) organizations and many public entities). Charitable Organization Funds are similar to Designated Funds, but they are established directly by 501(c)(3) charitable organizations with assets received directly from the organization. Because the two funds are so similar, there is typically a Designated Fund paired with every Charitable Organization Funds, which are together referred to as an Agency Endowment.

The charitable beneficiary directly receives the annual spendable allocations from the fund. If the designated charity ceases to exist or changes its mission, the Trustees can redirect the fund to continue the fund’s charitable purpose.

Minimum principal: $10,000
Administrative distribution: .5% to 1% based on fund balance

Donor Advised Funds

Donor Advised Funds allow the donor to advise the Trustees when making grants from the fund, either by recommending a qualified charity directly or based on applications periodically received from organizations. Grants made from advised funds may only be distributed to charitable entities that meet the qualifications set forth by sections 501(c)(3) and 170(b)(1)(A) of the Internal Revenue Service Code. A grant from an advised fund cannot be used to satisfy an irrevocable personal or corporate pledge or obligation of the donor, or to provide a benefit to the donor such as paying some membership dues. Donor Advised Funds utilizing a grant application process have a higher minimum principal.

Minimum principal: $10,000 (direct recommendation) or $25,000 (grant application process)
Administrative distribution: 1%

Scholarship Funds

Scholarship Funds provided educational assistance for students. Donors select Scholarship eligibility criteria that exemplify their goals and values. Depending on preference, the Scholarship can support any area of academic need, including tuition, room and board, and books. However, donors are encouraged to specifically target criteria that will help retain the recipients’ talent within the greater Albion area following their studies. The donor may also serve as a member of the review committee for scholarship applications. In compliance with the Pension Protection Act of 2006, the committee must be made up of a majority of persons not affiliated with donors establishing the fund.

Minimum principal: $50,000
Administrative distribution: 2%