Open a Fund
Making your philanthropy go as far as possible.
The JCF team can work closely with you to choose the type of fund that best fits your charitable goals. There are five types of funds you can open
Donor Advised Fund
Donor Advised Funds (DAFs) are the most flexible tool, allowing you to change the focus and intent of your giving as you like. You receive a tax deduction when you establish and when you add to your DAF. Then you can make distributions to the organizations you want to support at your own pace. Donor Advised Funds are less costly and easier to administer than other forms of philanthropic giving, such as private foundations. You can establish a non-endowed Donor Advised Fund with a gift of $10,000 or more.
Giving Circles are groups of neighbors, friends, and/or family members who pool their charitable donations and decide together where to commit them. The work of the Giving Circles is not only to write a check but also to help people learn about needs in our community, and about local nonprofits. And about philanthropy. The expected contributions, size of group, structure, and mission are different for each Giving Circle and are decided upon by the participants themselves. Jefferson Community Foundation provides start-up guidance and ongoing support to each Giving Circle.
Field of Interest Fund
A Field of Interest Fund allows you to focus on a favorite cause or issue without having to name a specific charity. You decide the purpose — such as meeting the needs of children, helping the arts to flourish, or protecting the environment — and JCF identifies projects and organizations that will most effectively accomplish your interests over time. Currently, JCF has Field of Interest Funds focused on housing, basic human needs, environment, and women and girls.
With a designated fund you can provide ongoing support to one or more charitable organizations that are close to your heart.
Local nonprofits can open an Agency Fund and have access to an investing mechanism for their reserves or endowments. JCF holds an account through which your Agency Fund is invested into a $160 million pool held at Greater Tacoma Community Foundation. Being part of this larger pool gives your nonprofit the benefit of a diverse investment strategy, strong oversight the benefits of a diverse investment portfolio and low investment fees that typically come only with very large funds. Unlike investing via a major national corporation like Schwab or Fidelity, the fees you pay to JCF work to strengthen local nonprofit support services like workshops, trainings, etc.
Jefferson Community Foundation offers two kinds of Agency Funds to provide nonprofits with a simple and efficient way to invest their assets: Agency Stewardship Funds and Agency Endowment Funds.
To ensure your charitable intent is met when your will is executed upon, you can establish a Fund at JCF that will be activated through a will, trust, designation, or other planned gift. There is no initial donation needed, though you are welcome to make one if you prefer.
THE DETAILS OF OPENING A FUND
You can view a draft of our Universal Fund Agreement by clicking here. We use this template as a starting point for all of our new Funds and we tailor it to reflect your intent and goals. Of greatest importance is a clear statement of your intent for your Fund. This ensures that future staff members of JCF can be excellent stewards of the legacy you are building.
JCF charges the majority of Funds a 1.75% fee for management of all donations and gifts. In occasions where there is extra support — for example, if a Fund runs a large event that needs more JCF staff support our fees can increase to up to 5%. This is all decided in partnership with you, as Fundholder, so there are no surprises. For Funds invested in the stock market via Greater Tacoma Community Foundation, GTCF assesses an additional nominal investment fee of about .002% or less, depending on the size of your fund.
All of the Fund types described can be established as endowments. This ensures that the principal of your Fund remains untouched and grantmaking can continue in perpetuity. Each year, endowed Funds receive a spendable balance of 4.3% of the median value of the Fund over the last 16 quarters. This balance can be used for grantmaking as the Fund holder sees fit. (The spendable balance amount lowers to 3.6% if the current value of the Fund is less than the median value, to ensure your principal is protected.) JCF suggests a minimum initial donation of $100,000 for all endowed funds.
To learn more contact Siobhan Canty at (360) 385-1729 or send a message.