Setting up Funds
Establishing an endowment fund with Community Foundation for Calderdale is a way of guaranteeing a permanent source of grant revenue for worthwhile causes in Calderdale. Every pound donated is carefully invested to generate earnings that are used to fund a variety of community programmes and services each year. Over time, a contribution used in this way will generate revenue many times the value of the original gift. An endowment fund allows a supporter's gift to last forever.
Many contributions received by the Foundation are pooled into a general or "unrestricted" fund from which grants are made to a wide range of causes. This fund is very much the life blood of the Foundation since it allows our highly experienced grants staff to respond not only to current needs within the local community, but also to be adaptable as needs change over time.
It is not unusual, however, for a major benefactor to want to specify a particular area of interest which they are keen to support. This may be a specific project or group, a general theme such as helping children, a geographical area within Calderdale or a combination of all three.
Equally, the benefactor may choose to become involved in the grant making process, either by sitting on a grants committee or by asking us to research suitable projects and report back with funding suggestions.
To establish a permanent, named endowment fund we would recommend a minimum contribution of £25,000. This can be paid over a number of years and may well attract tax benefits. We can arrange for such a fund to be "named" in order to carry forward the name of the benefactor or that of a relative or friend.
To establish a named 'flow-through' fund within the Community Foundation for Calderdale requires a donation of £5,000 or over.
In all cases, the Community Foundation for Calderdale offers supports a simple, cost effective and efficient way of putting something back into their community, whilst at the same time removing the burden of administration that is usually associated with establishing a charitable fund.
The following steps are involved:
- For a named fund, the benefactor elects a name for the fund
- The general criteria for the fund are agreed, for example, to support projects that benefit young people in Calderdale.
- The funds are invested within Community Foundation for Calderdale general endowment fund in order to maximise the annual returns available for grant making. Whilst donations are pooled for investment purposes, grants made from "named" funds will be clearly identified. Many endowment contributions received by the Community Foundation are pooled into a general or "unrestricted" fund from which grants are made to a wide range of causes.
- Donors will be contacted by Community Foundation for Calderdale staff before grants panels, held every two months, to arrange with the donor the most convenient way for them to select the groups & projects they wish to fund.
- Each year, donors receive a Donor Profile of their fund, illustrating how their gift has helped their community in that year.
Tax recovery
Charitable donations may be offset against tax, which can reduce the "real" cost of giving by 40% if you are a higher rate tax payer. Individuals that pay tax can complete the Gift Aid form in the tax benefits section of the website and send it to us in order for us to re-claim the tax paid (currently 22%). Companies send in their donations gross and declare the support in their annual tax return.
Charges
The Community Foundation for Calderdale makes a 2% endowment fund management charge and 10% fee for flow-through funds.
The grant has helped us to improve our community facilities.St Hilda's Church of England