The foundation's trustees use their discretion to alloacte the fund's income to a broad range of community issues. This lets the foundation respond to changing community needs and opportunities. Many community foundations refer to this as their General Fund or Local Giving Fund.

Highlights

• An unrestricted fund may be created by an individual, family, group, corporation, business, or organisation.
• An unrestricted fund may be named to recognise the donor(s), a family member or a friend, an issue, or the client may select a name that ensures anonymity.
• Community foundations can accept several different assets as gifts to the fund, including cash, securities, property and legacy gifts. Read more ...
• A client has the option to establish a fund as an endowment (ensuring grants are made in perpetuity) or as a flowthrough (which allows your clients to make grants of any size at any time). Typically, endowments require a minimum gift of 25,000; or 10,000 to establish a flowthrough.
• The funds' assets are invested with the community foundation and ring-fenced - or you can discuss the potential for your client's assets remaining under current management (this is only available for larger funds).
• Fees vary within the network. Read more ...
• The foundation's board will make decisions on how the fund is used.
• Grants can be made in the name of the fund or anonymously.
• The foundation handles all administrative responsibilities for the fund. It ensures gifts are tax-efficient.

Establishing an Unrestricted Fund is easy

Community foundations have simple fund agreements that are customised to fit your client's needs. Establishing a fund requires:

• a meeting with the foundation to discuss the clients needs, interests, and how they wish the fund to operate. Professional advisers are welcomed and encouraged to participate in these meetings with the donor's consent;
• completion of a simple fund agreement, and
• a finalised transaction of the gift to the foundation.

For more information about how CFN and its members can partner with you to serve your clients, please contact Clare Brooks, Director of Philanthropy or phone +44 20 7713 9326.