How a Starter Fund Works
1. A Starter Fund can be established with a minimum annual contribution of $600.
2. You, as the fund adviser, and the Foundation select whether to form an endowment fund that is:
• Restricted – will make on-going gifts to a designated organization(s) or promote a specific cause.
• Unrestricted – allows the Foundation to select the organizations that receive grants.
3. Donors continue making annual contributions of at least $600 a year (until the account reaches $10,000).
4. While Starter Funds account grows, no fees are charged for its administration or investment – all accumulated income is added to the fund to further its growth.
5. When the fund reaches a balance of $10,000 (through gifts and investment growth), the Starter Fund matures to a permanent named endowment fund. From this point, the Foundation will begin grant-making.
Each year about 4% of the average market value of the fund will be distributed in accordance with the terms of the endowment. Because the principle remains intact, contributions to areas of interest continue forever.
With Starter Funds, donors can choose a charitable fund option that reflects your philanthropic goals, designating a specific purpose or a particular non-profit organization to support, or a scholarship program.
Naming a new fund for your family is a great way to be involved with, and remembered for, your community investment. It may encourage others to be philanthropic, too. All grants are awarded in the name of the fund, so grantees will know whom to thank.
Stay informed and experience the joys of giving. We’ll report to you on fund growth and investment performance and once the fund starts generating income, we’ll let you know about grants awarded. You can remain actively involved and even recommend annual grant awardees.
How to build a legacy of giving for as little as $600 a year
Click on the link for a PDF of the brochure on Starter Funds