Battle River Community Foundation Funds
Endowment Explained
Most donations to the Foundation are endowed, which means they are permanently invested with income providing ongoing support to charitable activities, forever. Every year, the Foundation reserves a percentage of income equal to the annual increase in Consumer Price Index for Alberta. This ensures that funds, income, and resulting grants are as meaningful in the future as they are today.
Creating an endowment Fund is surprisingly affordable and within the financial reach of most people.
With an investment of $10,000, you can create a fully operational Fund. That means granting can begin almost immediately.
The Foundation can also give you time – up to 10 years – to build your Fund up to $10,000. Your Fund is known as an Emerging Fund until it reaches the $10,000 target. This can be as little as $85/month or $20/week. Until the Fund reaches this target, income is granted out along with the Community Funds (as described below). When the Fund reaches $10,000, granting as described in the Fund agreement can begin.
Fund Agreements
Foundation staff with meet with you to create a Fund agreement that you can discuss with your advisor(s) prior to signing. The agreement will document the type and purpose of the Fund, how disbursements will be made, and any other details relevant to your individual Fund.
Endowed Fund Types
The Foundation holds six types of endowed Funds which have been created to suit donor wishes and to respond to dynamic needs within the communities the Foundation serves.
Community Fund
Community Funds consist of named and endowed Funds that permit the Foundation Board to select grant recipients from applications received annually. These Funds provide the most flexibility to meet changing community needs over time.
Field of Interest Fund
Field of Interest Funds are named and endowed Funds established to benefit an area of interest or a community that is important to the donor. The Foundation Board matches annual grant applicants with the interests the donor wishes to support. Often Field of Interest Fund grants are combined with grants from Community Funds to create a greater impact than either on their own.
Donor Advised Fund
Donor Advised Funds are named and endowed Funds that give the donor the opportunity to recommend grant recipients or projects for consideration by the Foundation Board. Unlike other Funds, a Donor Advised Fund required a contribution of $20,000. The contribution may be made over a number of years.
Designated Fund
Designated Funds are named and endowed Funds that provide grants to a specific, named charity selected by the donor at the time the Fund is established.
Administration Fund
An Administration Fund is a special type of Designated Fund that provides annual grants to support Foundation administrative operations. These Funds allow for a decreased reliance on outside sources of revenue or on administrative fees on other Funds.
Emerging Fund
An Emerging Fund is a named and endowed Fund that has been started but has not yet reached the donated amount required to become a Community, Field of Interest, Donor Advised or Designated Fund. Donors generally have 10 years from the initial donation to reach the required amount of $10,000.
Non-endowed Fund Types
The Foundation holds three types of non-endowed Funds which are not permanently invested.
Diminishing Balance Fund *New in 2022*
Diminishing Balance Funds are an exceptional Fund type approved by the Foundation Board in the Spring of 2022. They are Funds invested by the Foundation with a requirement for a specified annual grant amount and which are intended to be fully depleted in a period of years agreed between the Foundation and the donor. A Diminishing Balance Fund may support a Field of Interest, be Donor Advised, or support the Community Fund.
Flow Through Donations and Grants
A Flow Through donation is one made by a donor who has an intention to benefit a specific charity or charities without endowing the principal. Grants are generally made the year the donation is received. A flow through donation may support any Foundation Fund, charitable project, or outside charity.
Forever Remembered Funds for Memorial Donations
As a trusted intermediary between donors and charities, the Foundation can be designated to receive memorial donations in a Forever Remembered Fund. These temporary Funds allow families additional time to make decisions regarding the ultimate charitable destination(s) for memorial donations. The Foundation will provide donors with tax receipts and notify the family who has made contributions.
General Information
All named Funds have a minimum amount of principal required to award grants as intended but there is no upper limit on the amount that can be donated to a Fund.
Donors may wish to add to an existing Fund rather than starting a new one. A donor may establish or support more than one Fund.