Types of Funds

As a public charity, LBCF helps individuals, families, agencies, nonprofit organizations, and businesses manage their philanthropic giving through various fund types. Contributions may come from cash, securities traded on major exchanges, closely held stock, mutual fund shares, retirement plan assets, real estate, and limited partnerships.

Agency Fund

  • Designed to be used by nonprofit organizations for endowments or other specific purposes
  • Fund may or may not be endowed*

Community Benefit Fund

  • Similar to a Donor-Advised Fund with the exception that a committee of advisors convenes with a pre-determined frequency to decide the recipients of the grants

Donor-Advised Fund

  • A smart, efficient alternative to creating a private foundation
  • Established by donors who wish to claim an immediate, full tax deduction for their contribution and parcel out grants over time
  • Allows contribution of assets at any time
  • LBCF performs due diligence to ensure nonprofit grant recipient is valid and in good standing, issues the checks on your behalf, provides quarterly fund statements, and assists as requested in an advisory capacity on which nonprofits meet your charitable intent.

Field of Interest Fund

  • Established to benefit or support unspecified charities focused on a particular issue, region or population – as broad or narrow as donor wishes
  • Although the donor chooses the field, the community foundation selects the most appropriate organization or program within the field based on the needs of the community.
  • Fund may or may not be endowed*

Restricted Beneficiary Fund

  • Established with a gift or bequest to benefit a specific charity
  • Often set up by nonprofit organizations as part of their fundraising strategy
  • Fund may or may not be endowed*

Scholarship Fund

  • Restricted
    • Created with specific criteria outlined by donor
    • Recipient organization manages the scholarship award process according to donor’s wishes
  • Committee Advised
    • Created with specific criteria outlined by donor
    • LBCF or other advisors convene a committee to manage the award process according to donor’s wishes

Social Impact / Pass-Through Fund

  • Typically a short-term fund set up in partnership with various organizations to accommodate public participation in solutions to our city’s changing needs
  • Examples: Press-Telegram Send-a-Kid-to-Camp Fund, ACE Academy of Long Beach Fund

Giving Circle Fund

  • Pool resources and increase community impact with charitable dollars
  • Established by donors who wish to claim an immediate, full tax deduction for their contribution and parcel out grants over time
  • Allows contribution of assets at any time
  • LBCF performs due diligence to ensure nonprofit grant recipient is valid and in good standing, issues the checks on your behalf, provides quarterly fund statements, and assists as requested in an advisory capacity on which nonprofits meet your charitable intent.

*Endowment = Assets invested for the long term to provide a current source of income from the compounded effect of interest, dividends, and capital appreciation. Endowments are designed to last forever, since the principal investment is never spent.

 

Fund Types for Future Funding

Contributions are planned from a future source such as a will, trust, retirement account or insurance policy.

Charitable Remainder Trust

  • An irrevocable trust in which donors transfer cash or assets to a trust from which they are entitled to receive income payments annually for life or a defined period (not to exceed 20 years)
  • LBCF is named as the beneficiary of any funds remaining upon death of donor

Charitable Gift Annuity

  • A contract between a donor and LBCF, whereby the donor transfers cash or property to LBCF in exchange for a partial tax deduction and a lifetime stream of annual income from LBCF. The amount of the income stream is determined by many factors including donor’s age and LBCF policy.
  • When the donor dies, remaining assets accrue to LBCF.

Legacy Fund

  • Parameters are outlined with a Memorandum of Philanthropic Intent which is referenced in a will, trust or other funding source.
    Fund is officially established when funds are received upon the death of the donor.