The Initiative Foundation is proud to offer an array of fund types to help facilitate charitable giving and allow local leaders to champion local causes throughout Central Minnesota
Donor Advised Fund
A private fund administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family, or individual. They offer the donor ease of administration, while still allowing him or her to maintain significant control over the placement and distribution of charitable gifts.
Donor Designated Funds
Donor Designated Funds - sometimes referred to as a restricted fund -allow donors to make a gift to support a specific charity of issue area they wish to sustain. Grants will automatically be sent to support their interests, year after year. Donors identify one or more charitable organizations to receive a percentage of the fund’s earnings. The foundation handles all the administrative details, including issuing grant checks to the designated charities.
Field of Interest Funds
Field of Interest funds are funds whereby a donor designates a special area of interest (i.e. education, arts, health, etc.) in which grants may be made from the fund. These funds may benefit a particular charity ororganization or they may be used to support a more broad charitable cause, such as education, the arts, health, youth or the disabled, etc. Grants may be decided by the foundation board or a separate advisory board.
Funds established by charitable organizations as permanent funds to ensure an ongoing source of support for their programs and operations. The fund is established under agreement by the foundation and the charity and the annual income is distributed to the charitable organization in perpetuity. These funds offer area charities a safe and efficient way to establish their own endowment fund while benefiting from our investment and administrative expertise.
Project funds are received from donors for a short-term charitable project (normally less than 24 months). Funds for this purpose are not endowment funds. Unless otherwise specified, project funds will be depleted as the designated project is finished.
Each fund is designed to meet the goals and needs unique to that community in its efforts to improve thequality of life for its residents. The foundation provides matching dollars, training, staff assistance and co-funding on projects. A local advisory board raises funds, develops funding priorities and makes funding recommendations to the foundation for distributions.
Revolving Loan Fund
A revolving loan fund (RLF) is a gap financing measure primarily used for development and expansion of small businesses. It is a self-replenishing pool of money, utilizing interest and principal payments on old loans to issue new ones. While the majority of RLFs support local businesses, some target specific areas such as healthcare, minority business development, and environmental cleanup.
Establishing a revolving loan fund provides access to a flexible source of capital that can be used in
combination with more conventional sources. Often the RLF is a bridge between the amount the borrower can obtain on the private market and the amount needed to start or sustain a business. For example, a borrower may obtain 60 to 80 percent of project financing from other sources.
Education & Scholarship Funds
Education and scholarship funds are typically created by the people who care the most about quality education for children and youth in their community; both during their K-12 years and beyond. These funds can be established as endowed or non-endowed project funds and support high quality programs and activities that cannot generally be carried out through traditional classroom settings.
For more information or to start a fund of your own, contact Kate Bjorge, community philanthropy manager, (320) 631-2062.