Charitable Fund Types

ASK US WHAT IT TAKES TO CREATE A FUND

The Morton Community Foundation is made up of a large number of funds, each started by donors with a particular passion for a cause, charity, or agency..  There are different TYPES OF FUNDS as described below, and each fund has a purpose statement, describing the types of charitable needs, or fields of interest that will be supported by its investment proceeds. A fund may be started with a commitment of a minimum of $10,000 (can be funded over up to 10 years). Once the fund reaches $10,000 by June 30 of any given year, it will start generating annual grants every year beginning the following Spring.

All funds within the MCF enjoy an important advantage. If a change of circumstances makes literal compliance with the terms of a gift unnecessary, undesirable, impractical, or impossible, the Board of Trustees is able to vary the terms of the gift of bequest. This "Variance Power" eliminates the need for an expensive and time-consuming court proceeding to reform the gift or bequest and assures donors that their contributions will always be useful for the charitable purposes they want to support.

OPERATING FUNDS

You can make donations to these funds to support the current and ongoing costs of operating the Morton Community Foundation and to support the growth of its activities.

UNRESTRICTED FUNDS

Your gift can address ever-changing community needs - including future needs that often cannot be anticipated at the time your gift is made.  We evaluate all aspects of community well-being - arts and culture, economic development, education, environment, health and human services, and more.  The flexibility of your unrestricted gift enables the Morton Community Foundation to respond to the community's most pressing needs, today and tomorrow.  Grants from unrestricted funds can be made to any 501(c) organization for their charitable purposes in the Morton area.

AGENCY FUNDS

An Agency Fund is established by a Not For Profit that transfers certain assets to the Community Foundation and designates itself as the beneficiary of the fund. This type of fund is governed by Accounting Standards Codification 958-605-25 (Not-for-Profit Entities, Revenue Recognition). * Please note that an Agency Fund agreement includes standard language which distinguishes a community foundation from a financial institution.

FIELD OF INTEREST FUNDS

You can target your gifts to address needs in an important area of community life... Arts, Aging, At-risk youth, etc. You identify your personal interest area(s) when making your gifts; our board awards grants to community organizations and programs that are making a difference in the area the donors select.

DESIGNATED FUNDS

You can direct your gifts to a specific nonprofit organization or purpose. Help provide ongoing funding for virtually any nonprofit charitable organization.  Organizations can use a Designated Fund through the Morton Community Foundation to build their endowment and enhance their ability to accept large and complex gifts.

SCHOLARSHIP FUNDS

You can invest your gifts in our community's future and show students you care, all with the guidance and personal services of the community foundation. You determine the criteria students must meet to receive the Scholarship you establish. With the your assistance, students achieve their academic and career-oriented goals from preschool to postgraduate work.

PASS-THROUGH PROJECT FUNDS

Qualified charitable organizations and governmental entities (schools, park district, public library, village, etc.) can set up a non-endowed Pass-Through Project Fund at the MCF so donors can give gifts toward capital campaigns and specific projects. The entire gift, minus a minimal administrative fee, will be used for the project or campaign for which it was established. Click the button below to learn how these funds work.

DONOR ADVISED FUNDS (Endowed)

You can have ongoing involvement in the use of your gifts. You work with our staff, identifying ways to use dollars from the Donor Advised Fund you establish to address the issues and needs you care about most. Your recommendations are submitted to our local board for approval; we then distribute grant dollars.

DONOR CHOICE FUNDS (Non-endowed Donor Advised Fund)

You can establish a charitable fund into which you contribute cash or other assets, receive a tax deduction and continue to have the opportunity to be involved in its charitable use. A Donor Choice Fund is a non-endowed Donor Advised Fund offers active participation in the grant process by allowing you to recommend the grant recipients. It affords all the advantages of a private foundation with greater tax benefits and none of the administrative tasks. A Donor Choice Fund can be created at the Morton Community Foundation in a variety of ways – cash donations or appreciated securities, for example. It’s a perfect vehicle for those who wish to participate actively in grantmaking and retain philanthropic flexibility.