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Types of Funds

The Middlesex County Community Foundation holds four types of Endowed Funds (where the principal is invested and only the income used) and two types of Unendowed Funds (where principal may be used). Donors may choose one or a combination of funds to meet their charitable interests. The principal of Endowed Funds is invested by the Community Foundation and held in perpetuity, with income used for grantmaking. The principal of Unendowed Funds may be used for grantmaking as the donor advises. Once a Fund is established, administrative and investment decisions are made by the Foundation's Board of Directors.

ENDOWED UNRESTRICTED FUNDS
Unrestricted Funds provide maximum flexibility to the Community Foundation's Board of Directors in meeting the ever-changing needs of the communities of Middlesex County.

• A Named Unrestricted Fund can be created with a donation of $5,000 or more.
• The Middlesex Enhancement Fund is the Community Foundation's Unrestricted Fund to which you may make contributions of any amount at any time.

In both cases, income from your gift will produce grantmaking income for generations into the future.

ENDOWED RESTRICTED FUNDS
Field of Interest Funds
A Field of Interest Fund may meet your objectives if you wish to support a specific purpose, geographic area or charitable goal. Gifts to these funds may specify broad areas such as the arts, education, the environment, health care or services to a specific town or region. For a donation of $20,000 or more, you may name a Field of Interest Fund. Gifts to a specific area or field of interest give the Board of Directors discretion to select organizations that can most effectively achieve your charitable interests.

Designated
You may specify that one or more 501(c)(3) charitable organizations receive the income from your Designated Fund. The Board of Directors will carry out your wishes, as long as the named organization is using the income to fulfill your interest and/or its purpose remains consistent with its mission and the mission of Community Foundation. If these conditions change, the Board of Directors will use its variance power to distribute the income for purposes similar to the purposes you intended. A minimum donation of $20,000 is required to establish a Designated Fund.

Designated Scholarship
A scholarship fund can be structured to benefit students at any education level, or for a specific institution. A scholarship fund can also be created to honor a loved one. This type of fund requires a $20,000 minimum donation to be established and may be built over time. The Board of Directors will carry out your wishes, as long as the named organization is using the income to fulfill your interest and/or its purpose remains consistent with its mission and the mission of Community Foundation. If these conditions change, the Board of Directors will use its variance power to distribute the income for purposes similar to the purposes you intended. A minimum donation of $20,000 is required to establish a Designated Scholarship Fund.

Donor Advised
You may remain actively involved with your philanthropy by creating a Donor Advised Fund. You (and/or advisors of your choice) may recommend potential grantees to benefit from your Advised Fund. While the Board will pay close attention to your advice, because of IRS regulations, these recommendations can not be binding. A minimum donation of $20,000 will establish your Fund. You may elect to have your spouse and/or children carry on your advisory role. When you or your advisors no longer wish, or are unable, to make grant recommendations, the fund continues in perpetuity as an Unrestricted or Field of Interest Fund.

Agency Fund
A nonprofit organization, wishing to take advantage of the Foundation's investment expertise, may establish a Designated Fund by transferring part or all of its endowment to be held and managed by the Community Foundation. The income from Agency Funds may help increase the endowment or be paid annually as a grant to the organization.

UNENDOWED DONOR ADVISED
An Unendowed Donor Advised Fund allows you to make large tax deductible donations in one or more years, while you decide where your contribution can best meet your charitable objectives in subsequent years. They also allow distribution of the principal while endowed funds do not. Foundation staff can provide information to help your distribution decision-making if you wish. Donor Advised Fund distribution recommendations are approved by the Board of Directors to maintain IRS compliance for the tax advantages received when making gifts. A small annual fee is charged when the Fund average annual balance falls below $5,000. Income earned by these Funds helps support Foundation operations.

Unendowed Grantmaking Gifts. Individuals and organizations can provide monies for the Foundation's Grants Committee to use specifically for Grantmaking or to provide anonymous charitable gifts/grants to other nonprofit organizations.

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