Donors
Types of Funds
“A tree begins with the planting of a single seed. Nourished and supported, the seed unfurls and sends up a fragile stalk. Over many years, the tree grows stronger, reaching high and creating shelter and shade. The London Community Foundation offers the opportunity to plant such a seed, and ensures that it is nourished and grows forever.”
Donors may make a contribution anytime to the Community Foundation without establishing a fund however we do offer a full range of planned gift-giving options. Establishing a fund is simple and often provides significant tax benefits.
Community Fund
These discretionary funds provide donors with the greatest amount of flexibility for their contribution and constitute the most proactive and flexible granting program of the Community Foundation. The Community Foundation's Board of Directors, with recommendations from the Grants Committee through the Small Grants Program, directs the income of all unrestricted community funds to meet emerging opportunities and address issues of importance as they change over time. Donors are not bothered with annual granting decisions and are confident that not only is their endowment growing each year, it is providing overall support to our community in all its diversity. Gifts of any amount are welcome. Often people choose to name the fund with a family name, the name of someone special to them, or for a cause. This named fund will live in perpetuity. The donor, friends and family can continue to grow the fund by making gifts to the fund anytime. As the capital grows, so too does the annual income available to grant. The minimum pledge to name your Community Fund is $5,000.
Donor-Designated Fund
Some donors want to have a direct say in the way their endowment income is used. Perhaps they wish to acknowledge an organization that has made a difference in their lives or a charity that funds specific programs and events they feel strongly contributes to a healthy community. A donor-designated fund allows the donor to select the specific charitable organizations that will be the perpetual beneficiaries of the annual income earned. This can be a charity outside the London and Middlesex border, as long as it is recognized by Canada Revenue Agency as having charitable status. Donor designated funds commence granting once the fund, not including annual investment earnings, reaches a minimum of $25,000.
List of donor-designated funds.
Donor-Advised Fund
Other donors want on-going involvement with the disbursement of their fund. In a donor-advised fund, the donor, with the assistance of research done by LCF donor services staff, decide which charitable organizations are to receive grants each year and in what amounts. This is a popular type of fund and is often used by individuals, families or corporations as an alternative to establishing a private foundation. A donor advised fund commences granting once donations reach a minimum of $50,000.
Field-of-Interest Fund
The Community Foundation has endowment funds that specifically support fields of interest such as the arts, education and environment. These types of funds best serve donors who care about a general philanthropic area but not necessarily any specific charities. This can be particularly advantageous because over time, charitable agencies may come and go or change their focus. In the case of Field of Interest Funds, the donor is assured that foundation trustees will forever be granting only to those agencies with programs that best align with his or her original cause. A Field of Interest Fund commences granting once donations reach a minimum of $100,000.
List of Field of Interest funds.
Funds can be established with an initial donation of 20% of the minimum stated in each fund type. Funds are activated when the fund minimum is received which must be within five years of the initial donation. The fund minimum refers to donations to capital only – not donations and earnings.
Registered Charity Endowment Fund
If you have ever been involved with a charity, you know that reliable and sustainable annual funding is often an issue. Non-profit agencies can set up their own endowment fund as a way to ensure a consistent stream of income that can be used to support their charitable and other goals. The fund commences granting once donations reach a minimum of $100,000.
List of all registered charity endowment funds.
Flow-Through
These non-endowed funds can work separately or with any of the other kinds of endowed funds, allowing a donor to give instructions on disbursements to charitable organizations or causes. London Community Foundation handles the receipting and liaises with all parties to ensure smooth transactions.