Field of Interest Fund - Woodbury Foundation

Field of Interest

Fund

Focused on

Philanthropy

A Field of Interest Fund (FIF) allows interested donors the opportunity to create a philanthropic fund for a specific purpose. Donors that have a specific passion or area in which they have a deep concern (human services, arts, humanities, youth, food insecurity, public safety, homelessness, senior adult services, mental health, health and wellness, etc.) can focus their philanthropy by creating a FIF.
These funds are simple to establish with a Fund Agreement that is executed between the WCF and the donor. Field of Interest funds may be named funds. Field of Interest Funds may be either endowed or non-endowed.

How can I establish and contribute to a Field of Interest Fund?

Initial Contribution: $2,500 or more

Initial and subsequent contributions to a FIF may be made by check, credit card, appreciated stock or publicly traded securities as well as other forms of real property, subject to the Foundation’s Gift Acceptance Policy. Contributions made to a FIF are generally tax deductible at the time the contribution is made. However, it is suggested that all donors consult with their professional advisor regarding their individual situation, prior to establishing a fund.

Others who share your passion for this field of interest can also donate to the fund, adding to the resources available to advance this effort. Once you originate the fund, the Woodbury Community Foundation team identifies charitable organizations addressing your area of interest who receive donations from the fund.

What is a Field of Interest Fund going to cost me?

Fees are always kept to a minimum in order to maximize the impact in the community created by distributions from funds held by the Foundation. The fee is assessed based on the average daily balance for the quarter or a minimum of $37.50 ($150 annually) whichever is greater, as follows:

up to $250.000, 0.375% (1.5% annually)
$250.001 to $500,000, 0.3125% (1.25% annually)
above $500,000, 0.25% (1.0% annually)

The fund is assessed any applicable investment management fees (which are netted out of investment returns reported by the Foundation). Current investment fees are available by contacting the Foundation office.

How are Funds invested?

When the WCF and the donor are developing the Fund Agreement, the donor will be asked to examine a standard description of types of investment portfolios (for example, conservative, balanced, growth or aggressive growth with an Investment Firm) which the donor feels best matches their risk tolerance and this will then be documented in the Agreement.

The assets in your fund are pooled with assets of other donors who have the same risk tolerance, and perhaps, other funds that the WCF holds for investment purposes. Fund advisors will receive a quarterly and a total calendar year statement of the fund’s activity and performance as part of the pooled fund’s activity and performance. You can also access the fund through the Foundation’s donor portal at any time to view the fund status and request donations from the fund.

How are grants determined?

The Foundation Board of Directors will periodically issue grants consistent with the defined purpose of the Fund. You can specify timing for grant issuance at the time the fund is created. If you have a specific organization you’d like to see supported, a request can be made and the Foundation will make every effort to respect your request.

How can I plan for the continued use of proceeds from the fund?

As mentioned above, donors may have great flexibility in designating successor advisors who have the authority to make recommendations on designations from the fund at a time when the donor decides they can’t or don’t want to continue making recommendations. In the absence of a succession plan in the Fund Agreement, the fund may become an unrestricted fund of the WCF and the proceeds used to meet community needs as determined by the Board of Directors.

Can I make a distribution at any time?

Distributions from FIF funds will be made in accordance with the schedule agreed upon at the time the Fund is opened and/or changed in discussions with the Foundation. Additionally, the Fund must have a balance of $5,000 plus the amount of the grant at the time the grant is made from the account. While requests can be made at any time, it is recommended that donors choose quarterly, semi-annually, or annually in order to allow charitable organizations the opportunity to plan for distributions. Recommendations made to the Foundation will be considered in a timely fashion and distributions sent out within 15 business days. Distributions may take longer to process depending on the process of completing due diligence on the recommendation.

I opened my fund and want to make a distribution immediately; can I do that?

It all depends on which type of FIF was opened. Endowed funds are generally able to make distributions within one to two years following inception based upon the performance of the fund. Please remember that endowed funds may only use the income and appreciation generated from the fund’s investment, in most cases. Non-endowed funds may make distributions immediately upon inception assuming that the distribution is being made to a qualified public charity or government unit and does not exceed the value of the Fund at the time of the distribution.

4 Benefits to

Having An Agency Fund

Gift Planning

Gift Planning allows organizations to receive contributions anytime, and the WCF can accept direct gifts from donors, including non-cash assets like stock or real estate. This assistance helps nonprofits explore various charitable giving options to maximize contributions.

Investment Management

Investment Management helps organizations manage limited resources by providing oversight. This allows staff and board members to focus on their core mission and responsibilities, alleviating the burden of being overworked.

UPMIFA Compliance

For permanently endowed funds placed at the WCF, we work together to ensure compliance with the law that governs nonprofit endowments adopted by the state of Minnesota.

Enhance Visibility

The WCF enhances visibility and reputation within the Woodbury community, focusing on residents’ well-being. Partnering with the WCF helps organizations build trust and awareness among potential donors.

Thank you for considering establishing a fun with the Woodbury Community Foundation!