Types of Funds offered by BCF
Many donors establish “named funds” during their lifetimes, and list their named fund as a beneficiary in their estate planning documents. A “named fund” is a fund that is named for the donors or in honor or memory of specific individual(s) as specified by the donor(s). Named funds are listed separately in BCF’s financial records and marketing materials. Except for Scholarship Funds, a minimum contribution of $15,000 is required to establish a named fund; The minimum contribution to establish a Scholarship fund is $25,000. Donors may elect to contribute in annual installments over five years to build the fund. Named funds are charged an administrative fee pursuant to BCF’s Fee Policy. BCF has many types of named funds:
Designated Funds allow the donor to name specific charities to which grants will be made. These funds are often endowed to support a specific charitable entity or entities with annual grants from the income of the funds’ endowment.
Community Funds (also known as Field of Interest Funds) support work in a chosen area of concern, such as education or the environment. These funds are often endowed and address pressing community needs in the area of greatest priority to the donor. BCF’s board of directors determine the grant recipients from the Community Funds based on applications submitted during BCF's grant cycle.
Scholarship Funds support those who want to pursue education, including but not limited to high school graduates pursuing a college degree, young musicians seeking assistance with additional training, or students who need vocational training to enter or return to the work force. A subset of our scholarship fund group is the ROTC Scholarships. These named scholarship funds support ROTC students in completing their programs and pursuing their commission in military service. The ROTC Scholarship funds are often named in honor or memory of those who have served in the military. Our scholarship funds are often endowed funds.
BCF Sustainability Funds
Sustainability Funds support the foundation itself to ensure that BCF continues to meet the changing needs of the community in perpetuity. These funds are used for operations, staff development, and to build our capacity, both in infrastructure (such as capital assets) and professional resources to timely meet the needs of our donors. Our sustainability funds are endowed funds.
Donor Advised Funds
Donor Advised Funds enable donors to be actively involved in promoting their personal philanthropic vision. Donor advised funds are especially useful for donors who want to take a charitable deduction one year and spread charitable giving into the community over future years. Many donors choose to set up a donor advised fund rather than commit valuable grant dollars to the administration and taxation of a private foundation. Since the donor retains an advisory capacity in making grants from the fund, specific tax code provisions must be followed.
Agency Funds are endowed funds established by local charities to support their future operations. BCF holds and invests the assets, providing responsible and professional fund management. Distributions from the fund are granted back to the agency to be used at the discretion of its governing board.
Due to the high cost of housing, education, family obligations and the need to save for retirement, you may not be able to establish a fund with BCF during your lifetime. However, you may wish to leave an enduring legacy for our community through your estate plan. Our Legacy Fund Agreement is designed to help you and your financial planner define and plan your testamentary giving. The Legacy Fund Agreement is not a contract to make a will, but merely outlines how you would like your charitable fund administered in the event that you do make a gift to BCF upon your death.
Other types of gifts
Supporting Organizations offer the tax benefits and flexibility associated with BCF’s public charity status while providing much of the autonomy of a private or family foundation. BCF will accept only "type I supporting organizations." BCF provides professional grantmaking support, administration, and files all fiscal and legal reports for the supporting organization. Because the cost to set up a supporting organization is several thousand dollars for legal fees, BCF requires a minimum donation of $1,000,000.00 to establish a supporting organization.
Donors who do not wish to establish a named fund, may make an unrestricted gift to BCF of any amount. Unrestricted gifts afford BCF the greatest flexibility to support the frequently changing needs in the community and to build the capacity of BCF to meet such needs. There is no administrative fee for unrestricted gifts to BCF.
Donors may also make “pass-through” gifts of any amount. Such gifts are made to the foundation for payment to a specific charity or for a specific charitable purpose. Donors who wish to make a gift to a specific charity but desire to remain anonymous often elect to make a pass-through gift. BCF has a three percent (3%) administrative charge for pass-through gifts.
Special Project Funds
BCF establishes a Special Project Fund when it undertakes fiscal sponsorship to provide a charitable service in the community. As a fiscal sponsor, BCF provides administrative services and oversight; assumes legal and financial responsibility; and, facilitates the development and growth of charitable, mission-driven activities. Generally, BCF serves as fiscal sponsor for community groups that provide charitable services but have not been granted public charity status by the Internal Revenue Service. Many organizations in our community, such as Rotary, Kiwanis, Masons, and others, have been granted nonprofit status, but are not public charities and, therefore, cannot solicit tax deductible donations for their charitable grants and services. In undertaking a fiscal sponsorship for one or more of these organizations, BCF can solicit tax deductible donations for the specific charitable grants and/or services specified.