TYPES OF FUNDS
RCF has a variety of fund options to meet your charitable goals. All funds have a minimum gift level of $10,000 or more. Administrative fees are based on the size and type of fund you create (please refer to the Administrative Fee Schedule.)
Donor-advised funds allow donors to play an active role in grant-making without incurring the paperwork, taxes and administrative headaches of establishing and maintaining a private foundation. Donor-advised funds can be established by an individual, a business or any group of people who share charitable interests and can benefit whatever charitable cause(s) the donor specifies.
Considerations for donor-advised funds
Funds can be named for the donor, family, company or someone the donor wishes to honor.
Funds can benefit any qualified charitable cause or causes.
The donor receives a tax deduction for the gift(s) because the Foundation controls the assets.
The donor can name a second generation of donor-advisors to continue a legacy of grant-making.
The fund can be established as an endowment so that the principal is preserved in perpetuity and only earnings are spent.
Grants from donor-advised funds can be made only to qualified charitable organizations as defined in Section 501 (C) 3 of the Internal Revenue Code. No grants may be made directly to individuals or to benefit specific individuals. This includes reimbursement of any expenses incurred to maintain or increase the fund or scholarship awards to individuals or educational institutions.
FIELD OF INTEREST FUNDS
Rather than naming a particular organization as the beneficiary, donors may establish a field of interest fund to address broad areas of needs within the community, such as the arts, healthcare, aging, or at-risk-youth, or for a specific area such as diabetes, teen suicide, or even a geographic region.
Consideration of Field of Interest Funds
The RCF Board controls all aspects of these funds once they are established and awards grants based on the purpose established by the donor.
RCF encourages donors to remain involved with Field of Interest Funds by adding to the fund at any time, helping to promote the fund and encouraging others to make contributions.
The Renton Community Foundation is a champion of good education as a means to prepare our young people for the future and helping those changing careers or going back to work after a long hiatus. Therefore, we offer several options for donors who share an interest in providing educational opportunities.
Consideration of Scholarship Funds
Donors can make a contribution to one of our existing scholarship funds.
Donors may establish a new scholarship fund which identifies a specific educational organization to which grants will be made. In this case, the entire scholarship process is managed by the educational institution receiving the grant. While the donor may specify what type of students are eligible to receive the scholarship, neither the donor nor anyone from the Renton Community Foundation participates in the selection process.
Donors may also establish a scholarship fund here at RCF and then participate in the selection process by sitting on our "selection committee." In this case, the donor can stipulate all the requirement the scholarship applicant must meet, but by law, cannot have the deciding vote on who receives the award. The majority of the selection committee must also be selected by the Foundation and cannot include relatives or employees of the donor.
Donors who have a passion for a specific program or organization may establish a fund to receive grants for a variety of needs within that organization, including operations, programs, or capital needs.
Consideration of Designated Funds
The RCF Board controls all aspects of these funds once they are have been established.
RCF encourages donors to remain involved with Designated Funds by adding to the fund at any time, helping to promote the fund and encouraging others to make contributions.
Donors may establish general community funds which are unrestricted in nature and depend on the Foundation to award grants to appropriate organizations, programs or projects to help meet priority needs. As with all of the Foundation funds, distributions are made in the name of the fund, or anonymously, as the donor wishes.
Consideration of Unrestricted Funds
The RCF board controls all aspects of these funds but encourages donors to remain involved with Unrestricted Funds by adding to the fund at any time, helping to promote the fund and encouraging others to make contributions.
Many nonprofits recognize the benefit of partnering with the Renton Community Foundation and choose to pool their funds with ours. Therefore, RCF offers other nonprofit organizations the option of establishing their own fund within the Foundation. In return, the Foundation provides networking opportunities; education on board development, fundraising, budgeting, and donor cultivation; promotional opportunities; pooled investment funds and gift processing services. This allows the agency board to concentrate on priority needs within their organization and to serve as a bridge from the community foundation to the rest of the community.
Considerations for Agency Funds
Agency funds are controlled by the Foundation but remain the property of the agency.
Disbursements can be requested from the Fund with a thirty-day notice to the Foundation Board.
FISCAL SPONSORSHIP FUNDS
The Renton Community Foundation approves a limited number of fiscal sponsorship funds that allow us to extend our tax-exempt umbrella over an organization or project that is actively fundraising, but has not sought tax exemption under the IRS. These groups must fill out a Fiscal Sponsorship Application and be approved by the Board and the group must follow specific guidelines in all fundraising efforts. Once approved, a restricted fund will be established ($10,000 minimum) within the Foundation specifically to support the group’s efforts. In most cases, the Foundation extends this benefit for a limited time, encouraging the group to eventually obtain their own tax-exempt status.
Considerations for Fiscal Sponsorship Funds
Please contact the Foundation office if you wish more information on Fiscal Sponsorships.