The Fredericton Community Foundation gives individual donors, family foundations, businesses and charitable organizations a number of ways to support our community’s well being. We believe that by strengthening the gifts, assets and capacity of individuals and groups, we strengthen our community. The Foundation specializes in building endowment funds and uses the funds’ earnings to support the ever-changing needs and opportunities of Fredericton and the surrounding area. We have a number of types of funds available for our donors to consider. Many of them are open funds where gifts may be made by any interested contributor thereby allowing even modest contributions to be joined with others’ gifts for maximum charitable benefit.
For investment purposes, all Foundation funds are co-mingled and part of a single fund.
1. The Community Fund is comprised of donations, large and small, from a variety of sources – individuals, corporations and foundations. A donation to this unrestricted fund gives the Foundation the greatest flexibility as the income is used at the discretion of the Board. The earnings on this fund enable the Board of Directors to respond to current community needs through the provision of grants to charities throughout the greater Fredericton Area. Donors may establish a Named Fund within the Community Fund with a minimum donation of $10,000.
2. A Field of Interest Fund works much like the Community Fund, except that donors identify an area of interest to which they would like to target their support. Examples include the arts, heritage, environment, health, seniors, children, recreation, relief of poverty, or education. With these funds the donor identifies the area of interest but empowers the Foundation’s Board of Directors to select worthwhile projects to support. Donors may establish a Field of Interest Fund with a minimum donation of $10,000.
3. A Donor-Advised Fund enables donors to have ongoing participation in the selection of charities that will benefit from their gift. Donors may choose this type of fund instead of creating a family trust or private foundation. The Income Tax Act (Canada) imposes limits on a donor’s capacity to impose restrictions on charitable gifts. A donor may, however, at the time the gift is made and even subsequently, by agreement with the Foundation, place limits on the uses to which a gift may be put. The donor or the donor’s designated representatives may advise the Board of the Foundation on the application of the earnings of his or her gift and the Board shall generally consider and respect such advice. Beyond that, a donor cannot legally restrict the Foundation.
Existing foundations may transfer their assets to the Fredericton Community Foundation to achieve higher returns and reduce administration while still remaining involved in allocating grants. Donors may establish a Donor-Advised Fund with a minimum donation of $25,000.
4. A Designated Fund gives donors the opportunity to specify, at the time the fund is established, which particular charities they would like to support in perpetuity. If unexpectedly, an organization ceases to exist, the Foundation can redirect the funds to a similar cause. Donors may wish to identify an alternate recipient for support. Donors may establish a Designated Fund with a minimum donation of $10,000 per beneficiary.
5. A donation to the Operating Endowment Fund helps to cover the every day operational costs of the Foundation, thus ensuring that the maximum benefit of income from the Community Fund will go directly to grant recipients in the community. This fund is critical to the on-going stability of the Foundation. Donors may establish a named fund within the Operating Endowment Fund with a minimum donation of $5,000.
6. A Charitable Organization Endowment Fund (Managed or Designated Fund) can be created and administered by the Foundation on behalf of registered charities. This allows the charity freedom from investment responsibility and gives donors the confidence of knowing that a permanent foundation is in place to professionally administer the charity’s endowment. Once established, the charity can encourage their donors to contribute to their endowment fund. Charities may establish an Endowment Fund with a minimum donation of $10,000.
7. A Flow-Through Fund. The principal mission of the Foundation is to raise, administer and distribute earnings from funds that are held on a permanent or endowed basis. As a service to donors, the Foundation is prepared to accept from time to time the receipt and disbursement of gifts that are not intended to be held as endowment funds. The Foundation exercises broad discretion as to whether or not to accept such gifts and may charge an administrative fee.
8. An Emerging Fund enables donors to establish a fund in any of the above categories with an initial donation and a pledge to meet one of the minimum donation levels as described above within five years of the initial gift. Until such time as the pledge is fulfilled and the named fund is created, the Emerging Fund will be part of our Community Fund.