Charitable giving made easy through various funds.

Texas Forest Country Community Foundation’s flexibility offers several fund options. It’s your choice as to which of type of fund works best for you and your charitable goals.

TYPES OF FUNDS

The Texas Forest Country Community Foundation (TFCCF) maintains different types of funds to help achieve your charitable goals.

Donor-Advised Funds (DAF)

Allow you to simplify and streamline your charitable giving. By establishing a tax- deductible Donor-Advised Fund with TFCCF, you can centralize your charitable donations, making giving easy, flexible and fun.

A Donor-Advised Fund can take one of three forms: one is endowed for long-term growth; and two provide the option to grant without percentage limitations:

• Endowment Fund is a permanent fund. Endowment funds are invested to achieve long-term capital growth as charitable assets. Contributions are irrevocable. The minimum opening balance is $25,000. The amount available for yearly grant-making is 5% with the emphasis on growing the principal for long-term use. This is our most popular option and the best choice for those whose philanthropic vision extends far into the future – in perpetuity.
  • Key things to know:
    • Principal Balance – The principal balance is not spent, so the endowment earning power is protected against inflation. Excess income or appreciation is added to the principal to protect its value over time.
    • Distributable – The distributable balance consists of net income and appreciation (realized and unrealized) of the principal. This is the portion of the fund from which grants may be made.
    • Advantages – The principal amount of money gifted is not depleted. In this way, the fund will continue to give for perpetuity.
    • Limitations – As the amount of money available for distribution is based on the principal amount in the fund, each year’s grants will be directly affected by the fund’s overall success in the market. The principal balance invested is not liquidated, allowing for a continuous, perpetual gift.

• Non-Endowment Funds have no permanent principal balance and are immediately available for grant distribution. The minimum opening balance is $25,000. An Advised Non-Endowment Fund can become an Endowment Fund at any time upon request.
  • Key things to know:
    • Advantages – You have the opportunity to make an immediate impact on the Community.
    • Time – Funds are available for distribution the moment they are received.
    • Limitations – The money you provide has a finite existence. Unless additional fund is provided, the monies available for granting will run out over time.
    • Liquidity – All non-endowment funds are 100% liquid. Any amount may be granted from the pool at any time.

Some donors maintain both an endowment fund and a non-endowment fund, allowing them to regularly transfer monies from the non-endowment fund to the endowment fund to help build a balance upon which gifts can be provided in perpetuity.

• Invested gift fund: The fund enjoys the option of investment growth and the flexibility of grantmaking with no percentage limitations. Minimum opening balance: $100,000 (Must also retain $100,000 in the account). Administrative fee: 1%. This fund type is ideal for donors who have a long-term distribution plan with the option of investment growth and the flexibility to grant without percentage limitations.

Unrestricted Fund

These funds are unrestricted as to purpose for a charitable organization, and the Texas Forest Country Community Foundation (TFCCF) Board of Directors can set the priorities. These funds allow TFCCF to move quickly to react to changing community needs and provide resources for long-term commitments to particular issues.

Designated Fund

These funds are designated by the donor to be given regularly to a specifically named charitable organization with a permanent restriction as to what the donation may be used for at that charitable organization. Through a designated fund, donors can be assured that their permanent endowment will provide funds to that charitable organization and for designated purpose they select for years to come.

Field of Interest Funds

These funds support areas of special concern to the donor. The Donor can request that TFCCF award grants within defined spheres of interest such as the arts, education, the environment, historic preservation or health.