Types of Funds
Donor Services is an extension of our commitment to all donors and we know that this partnership is the key to the successful building of "social capital" and positive, long-term change in the community of High Point. We consider it an honor and a privilege to work with each of you to achieve your philanthropic vision and make High Point a healthy and prosperous community today and forever...
Types of Funds
High Point Community Foundation Unrestricted Endowment Fund
Donor Advised Funds
Field of Interest Funds
Special Interest Funds
Scholarships
Organizational Endowments
****HPCF financial statements (audit and 990) available per request from the Foundation office. Form 990-T currently not required by IRS guidelines, but will be available by request in the event guidelines change and it is required.
Endowment Fund
Description - The High Point Community Foundation Unrestricted Endowment Fund is a permanent endowment whose income underwrites discretionary grants made to nonprofit organizations that qualify under section 501(c)(3) and 170(c)(1)-(5) of the IRS Code in the greater High Point area. This fund also supports the foundation's operational expenses. The Foundation's spending policy determines how much is available to grant from this fund each year.
Selling Points - Donors who wish to provide the maximum flexibility for the Foundation in meeting community needs can choose this permanent, unrestricted endowment.
Who Might be Interested
People who wish to respond to the needs and to the growth of their community in perpetuity.
People who wish to help the Foundation fulfill its mission in the most flexible way possible.
People who have no specific areas of interest or whose gift would not be of a large enough size to create a separate fund in their name.
Donor Advised Funds
Description - These are funds that a donor (an individual, family, nonprofit or for-profit organization) contributes to the Foundation to hold and manage with the understanding that they can recommend how and when the funds will be granted. Gift can be made to an organization that is designated by the IRS as a 501(c)(3) nonprofit organization, a municipality, school or church.
The High Point Community Foundation encourages donors of all income levels to get involved by only requiring an initial contribution of $7,500 to establish a DAF. This minimum is lower than the national average, with the median requirement as reported by the Council on Foundations being $10,000.
Most Donor Advised Funds at the High Point Community Foundation are non-endowed, which allows the donors and advisors to recommend grants from both the income and the principal of the fund, provided the minimum balance is maintained.
Selling Points - A spouse and/or children may help advise the fund. If the donor wishes, all transactions can be handled with complete anonymity. Additional contributions may be made at any time.
Requirements to Create a Fund - A fund may be established for as little as $7,500.
Who Might Be Interested
Individuals wishing to take a tax deduction at a time of high or extraordinary income and decide later how he or she wishes to distribute it.
Individuals receiving an inheritance, needing an immediate tax deduction, wanting to distribute once they have thought about it or as needs arise.
Individuals who wish to involve family in a collective charitable giving process where they can all decide together what grants should be advised to the Foundation.
Individuals handling another's affairs (such as an elderly parent) who know what grants they want to recommend at what time each year and wish the Foundation to attend to the details.
Field of Interest Funds
Description - These are funds from which the Foundation's Board, or specific grants committee, awards grants within the defined field of interest. Grants are made from the fund in accordance with the Foundation's spending policy.
Existing Field of Interest Funds include:
The Violet Hutchens Children's Education Fund - General fund for children's education that makes grants in conjuction with the Foundation's Annual Grants Program.
Cory McInnis Compassion in Education Fund - Provides funds to underwrite education projects in the High Point public schools. Grants are made in conjunction with the Foundation's Annual Grants Program.
Heart of High Point Fund - Established to support nonprofit organizations serving basic needs in the community; specifically food, shelter, clothing, medical care and rehabilitation. Grant requests are reviewed by the Heart of High Point Committee and grants are made year-round to eligible organizations.
City of High Point Public Schools' Principals' Discretionary Needs Fund - Established to support needs in High Point public schools that are not covered by the budget. Principals can submit a request for last resort funding to the Foundation for review by the Principals' Fund Committee.
**For the Principals Fund grant request form click here. Save the form to your computer before you fill it out. You will then be able to send it back to us as an attachment. Please send to hppf@hpcommunityfoundation.org.
Selling Points - A donor with a particular interest can be sure that his or her gift will support only that category of interest.
Requirements to Create a Fund - Because this is an endowment from which separate grants will be made, it must generate sufficient income to warrant and sustain such a granting program. Therefore, this type of fund should be established with an individual gift of, or collective intent to raise, at least $250,000.
Who Might Be Interested
An individual, family or group with a specific category of interest.
A group wishing to target a specific issue in the community.
People wishing to establish a memorial to an individual for their interest in or accomplishments in a given area.
Special Interest Funds- A Special Interest Fund is a fund created by a donor who wishes to enable the Community Foundation to make a grant annually to a named organization.
Selling Points - A Special Interest Fund can help ensure that a named organization will continually be supported, even beyond the life of the donor.
Requirements to Create a Fund - A Special Interest Fund may be created with a gift of $7,500 or more.
Who Might Be Interested
Individuals with a keen interest in supporting a specific institution or a specific activity within that organization..
An individual who would like his or her annual gift to be made in his or her name.
Scholarships
Description - Scholarship programs come in many forms with many intents, and can be labor intensive. The Community Foundation currently offers scholarship funds in which the Foundation reviews the propriety of the process used by an outside (usually self perpetuated) group prior to the Foundation awarding the scholarship.
Selling Points - Scholarship funds are major programs at three of the top five community foundations in North Carolina. They are typically major programs in most well established community foundations. A community foundation can bring critical review of applications to bear on a given fund without becoming engaged in the politics of the institution to which that individual may be going.
Requirements to Create a Fund - A minimum of $25,000 is required to establish a separately administered scholarship program at the Foundation.
Organizational Endowments
Description - Organizational Endowment Funds are flexible instruments which provides Foundation management for the endowments of nonprofit and for-profit organizations. One or several endowments may be established by an organization to address different needs.
Selling Points - Having a third party manage an organization's endowment can provide assurances to donors that promises will be kept regarding the use of the income from that endowment over time. Also, the Foundation has professional management which might not be available to organizations with endowments whose principal would either not attract professional management or would not be large enough to be cost effective.
Requirements to Create a Fund - An Organizational Endowment may be established at the Foundation with an initial deposit of $7,500. This low threshold was created to encourage small nonprofit organizations to begin building an endowment and to help them with marketing that effort.
Who Might Be Interested
Nonprofit organizations interested in maximizing the performance of their endowments and interested in building endowments over time.
Businesses that are interested in creating a granting source to support charitable causes and interested in maximizing the performance of the fund.
Note: Organizational Endowment Funds are a service to the community. Therefore, the corresponding fees are lower than other Foundation fees. However, the elements of these agreements are set the same for all nonprofit organizations. Therefore, they are not negotiable.
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