Funds
Most funds can be established immediately, usually in one brief meeting and can be funded with cash, securities, real estate and/or personal property, closely held stock, insurance or other convertible assets. Or you may wish to create a fund in your will or through special charitable trust arrangements that benefit you and your family by providing them with life income while carrying out your charitable intent. All options provide you with the maximum tax advantages while helping you to invest in the growth of your community.
Types of Funds
Deciding which type of fund to choose depends on your charitable objectives. Generally, funds are invested and the income is used to make grants. Individuals, foundations, corporations and organizations have established the types of funds listed below.
Unrestricted Named Funds give CFNEM both the resources and the flexibility to address the ever-changing needs facing the people and institutions of the area. Donors who wish to leave a legacy to their community can establish an unrestricted fund by bequest and know that their gift will be used to respond to community needs during their lifetime and for generations to come.
Field of Interest Funds serve donors who wish to rely on the expertise of CFNEM to determine the most effective use of their fund to address problems in a particular area of interest, such as the arts, the environment or human services.
Donor Advised Funds are excellent vehicles for those who wish to participate actively in the grant making process. In establishing a donor advised fund, the donor retains the right to serve as an advisor, making grant recommendations for consideration by the Board of Trustees. A donor advised fund provides an opportunity for families to participate together in the tradition of philanthropy.
Designated Funds are established to benefit specific charitable organizations. Grants are made accordingly, and the donor's intent in making the gift will be preserved over the years. Should the named institution go out of existence, or should the purpose of the original gift become obsolete, CFNEM will apply the funds to purposes which closely parallel those designated by the donor. This variance power is a unique feature of community foundations.
Organization (Agency) Endowment Funds may be created by a non-profit organization to gain more visibility for the organization and its endowment, thus encouraging those interested to add to the endowment. Placing an endowment with CFNEM also relieves the organization of internal accounting and external reporting, increases opportunities for maximizing investment returns and ensures long-term growth.
Scholarship Funds help deserving young people pursue an education they might not otherwise receive. Because scholarship programs are time consuming to administer and must comply with specific legal requirements, CFNEM is recognized as a natural repository for and manager of scholarship funds.
Community Foundation Funds
While a prospective donor may wish to establish a new fund at the Community Foundation, the following established funds may be added to by anyone, at any time, in any amount. As you can see, each fund's purpose varies with the charitable intent of the donor, providing a diverse philanthropic tapestry. Funds whose donors desire anonymity have not been included.
The following funds are "new" funds that were established between October 2005 and February 2006. (Please note: Our fiscal year runs from October 1 to September 30.)
NEW Community Foundation for Northeast Michigan Funds:
NEMROC Equipment and Facilities Fund This permanent endowment will be used to help with upgrades or replacement of NEMROC's property, plant, and/or equipment in order to improve the vocational work-training environment for people with severe disabilities.
River Center Fund - This non-endowed fund was created to assist the City of Alpena and its Wildlife Sanctuary Committee to handle local gifts for their new River Center Building Fund. This special project fund will hold gifts for the building itself and will be closed after the building is complete and all the pledges are paid and the money has been spent.
Westminster Presbyterian Church Fund - This permanent endowment fund, established by Beach and Marianne Hall, will be used to produce annual income to be used for unbudgeted missions of the church.
United Way of Northeast Michigan Endowment Fund - This permanent endowment fund is the United Way's second fund with CFNEM. The first fund they established is non-endowed and they wanted to establish a second fund with CFNEM which would be a permanent endowment. This new permanent endowment will be used for the needs of the United Way of Northeast Michigan.
NEW Iosco County Community Foundation Affiliate Funds:
Mary Jane Chevis Endowment Fund - This permanent endowment fund will be used to help support Tawas St. Joseph Hospital.
St. Joseph Health System Endowment Fund - This permanent endowment fund will be used to help support St. Joseph Health System in Tawas City.
NEW North Central Michigan Community Foundation Affiliate Funds:
Dr. Chris & Mary Chrysler West Branch Family Dentistry Scholarship Fund - This permanent endowment fund will provide scholarships to students graduating from Ogemaw Heights Hight School.
Wellspring Fund - This donor advised endowment fund will be used to support specific organizations as the donors request.
NEW Straits Area Community Foundation Affiliate Funds:
Friends of Inland Lakes Schools Fund - This non-endowed fund will be used to pay for the needs of the Inland Lakes Schools that are not covered by other funding.