TYPES OF FUNDS
There are several types of funds that the Emporia Community Foundation (ECF) oversees. The first of these is the DESIGNATED FUNDS. The donors of benefactors for a specific charity direct these funds.
Next is the DONOR ADVISED FUND. These funds are established by individuals thereby allowing these individuals to advise how these funds may be used. Their ultimate distribution may be for any legally defined charity.
Another type of fund is the FIELD OF INTEREST FUNDS. These funds are established for a specific field of interest, such as the arts, scholarships, or children's care.
The LEGACY FUND can be named in a will or trust as a charitable beneficiary or as the beneficiary of retirement assets or life insurance. They can also be named as the ultimate purpose of a donor advised fund once there are no longer active advisors.
The AFFILIATE FUND is a collection of assets (endowed and non-endowed) whose principal and income are designated by a community foundation to fulfill charitable needs in a specified community. In operation, an Affiliated Fund will piggyback on the ECF's infrastructure — "back office" financial, legal and administrative systems, investment services and other related services. In ECF’s operating model, affiliates are counties. ECF currently has two affiliates: Chase County and Greenwood County.
The last type of fund is called our FUND FOR THE FUTURE. This fund not only pays for the general expenses of the Foundation but also allows the foundation to make grants for innovative and creative projects and programs of various agencies. As time marches on, the needs of a community change and this fund allows for the changing times by keeping topical with the needs of the community.
An individual or corporation can BECOME A DONOR quite easily.
Designated funds are those funds, which are directed by the donors or benefactors for a specific charity. Examples of these funds are the Arts II Endowment Fund for the Emporia Arts Council, Food for Students and Camp Wood. These funds allow these organizations to get a higher profile in their fund raising efforts.
DONOR ADVISED FUNDS
Donor advised funds are a popular vehicle with contributors to the ECF. Since 1996, our beginning, we have set up nearly 20 of these accounts. Distributions from these funds are made after an advisement form is received from the donor. Consultation is advisory only; the board must retain legal authority over all distributions.
These funds have benefited many charitable causes of their donors. These funds allow the donors to provide for their favorite charities without any hassles. Not only can ECF do the paperwork for the donors but they can also assist donors with what the community needs may be at that time. If the donor is aware of exactly what they want, then ECF supports the donor in any way possible.
Donor Advised Funds are a wonderful vehicle for tax deductions as well as being extremely efficient for a donor's philanthropy. For example, if a donor contributes $20,000 and establishes a donor advised fund, then that fund is available to the donor from that moment forward. The donor can then make grant recommendations to their favorite charities. The $20,000 is tax deductible immediately and the gifts from the fund may be spread out over any period of time. This allows for the maximum benefits to the donor.
Donor Advised Funds require a minimum of $10,000 or the intent to reach $10,000 within three years. Once the initial contribution has been made, a family, business, or individual may begin a Donor Advised Fund. Examples of these types of funds include Clint Bowyer’s 79 Fund, Kaltenbacher, and the Fred and Paula Neuer Endowment Fund.
FIELD OF INTEREST FUNDS
Field of interest funds are those from which distributions are made for a specified charitable purpose or area of concern (e.g. the arts or youth services) or for charitable purposes within a particular geographic area. For example, ECF has a fund which provides for the general improvement of the East 9th Avenue Park and a culture awareness initiative through the Hispanics of Today and Tomorrow (HOTT) Fund.
Legacy Funds make it easy to contribute to the causes that individuals care about most through a donation or planned gift. The funds are endowed to create a permanent source of support.
Legacy funds are managed by the ECF to ensure the donors’ charitable gifts will grow over time and be distributed to make the greatest impact. These gifts are pooled and invested for the long-term, with annual grant distributions to effective, established organizations working within the specific interest areas.
Affiliate Funds are endowments that are housed by the ECF, but serve communities outside Lyon County. Each Affiliate represents one community (county) and is represented by an advisory committee of residents from that community. Advisory committee members raise resources for the endowment and recommend distributions from the endowment for charitable causes within that community. Affiliates partner with ECF to maximize earnings, secure principal and minimize administrative costs.
FUND FOR THE FUTURE
The Fund for the Future is the operating endowment for the Emporia Community Foundation. Not only does it serve as supplemental funding for the General Fund of the Foundation but also it serves to make possible the real beauty of a community foundation. No one can foresee what the needs of our community will be fifty years from now. Therefore, this fund, with direction from local community people, will be able to determine the needs of the community at that time and be able to donate resources to such needy projects.