Guidelines for Essex County Community Foundation  Funds

1. A fund is defined as one of a number of different types of fund that the donor wishes to establish as a source of income for the benefit of agencies in the community. Such funds are designed to encourage the participation and involvement of a wide range of donors and their families in the philanthropic interests and activities of the Community.
   
   
2. See Types of Funds for the different types of available funds.
   
   
3. All assets conveyed by a donor for the purpose of creating or adding to a fund are, normally, wholly owned by the Community Foundation and constitute an irrevocable gift.
   
   
4. The Community Foundation has the responsibility and authority for the investment of the assets of each fund.  Investment decisions are made by an Investment Committee and based on the Fund's charitable objectives and distribution needs.
   
   
5. The minimum amount for establishing a fund will normally be $10,000.  This may be donated in a single lump sum or pledged over several years.
   
   
6. Distributions will normally be made from income only, although a donor may also, depending on the type of fund, recommend distributions from principal. It is the goal of the Community Foundation to preserve at least a portion of the contributed assets of each fund as part of the permanent endowment of the foundation following the expiration of the advisory term of the relevant fund (life of the donor or designated advisors). A minimum of $10,000 will be required at that time to maintain the fund as an individually named/memorial fund.
   
   
7. The Community Foundation Board of Trustees meets regularly to approve grant requests.
   
   
8. When a grant is mailed, it is accompanied by a letter notifying the grantee that the grant is made from a donor’s named fund, unless a donor specifies it should be sent anonymously.  Copies of grant transaction letters will be sent to donors.
   
   
9. Since the final control for all grant decisions rests with the Community Foundation’s governing board, the Community Foundation is unable to make grants though a fund that represents the payment of a pledge or other legal financial obligation of a donor.
   
   
10. It is anticipated that at least a portion of the income from each fund will be distributed annually either at the recommendation of the donor or of the Community Foundation unless income from a fund is being accumulated for a specific purpose agreeable to the Community Foundation.
    
    
11. Because of the administrative oversight required on all grants made from the Community Foundation, donors are encouraged to recommend grants of a substantial nature ($250+) from a fund and to use other vehicles for small contributions.
    
    
12. The Community Foundation’s normal administrative fees shall apply to funds. If, however, the donor asks the Community Foundation to assist in the administration of a major project or grant program that is beyond the normal scope for advised fund activities, additional fees may be charged.
    
    
13. Donors may recommend a portion of their annual distributions to out-of-state charities if provided for in the fund (normally only a donor advised fund) agreement.  However, in keeping with the general purposes of the Community Foundation, the primary focus of giving should be eligible recipients of Essex County within the Commonwealth of Massachusetts or organizations which serve Essex County residents.
    
    
14. Donors shall be furnished with statements of their fund balances, normally, quarterly.