Designated Funds

Designated funds allow the donor to support, in perpetuity, charitable organizations that the donor designates. The Foundation distributes income semi-annually to the designated organizations. If a donor designates more than one organization, the donor may specify percentages of income for each organization. If an organization ceases to exist or changes its purpose, the Foundation will exercise its variance power to support an organization with similar interests or purpose to achieve the intent of the donor. The Board of Directors approves distribution of income from the designated funds.

Why Establish a Designated Fund?

  • It can be personal. You can establish a designated fund in honor or in memory of a loved one or name it to recognize your family.
  • It's enduring. You can make a continual impact on the charity of your choice, allowing it to continue its mission and contribute to the community.
  • It's flexible. You can add to the fund at any time. The Fort Dodge Community Foundation can accept donations of almost any asset including cash, stock and real estate.
  • It's efficient. You benefit from the most advantageous tax treatment for a charitable gift, and the Community Foundation handles the administrative details.

Why Establish a Designated Fund?

A designated fund is ideal for families, individuals, and groups who:

  • Are dedicated to supporting a specific charity.
  • Are confident they want to continue their support in perpetuity.
  • Want to make a long-term impact on the charities that are most important to them.

How Does a Designated Fund Work?

  • Donor establishes the fund and selects the organization(s) he or she would like to regularly support.
  • Donor has the opportunity to name the fund after themselves or in honor of a family member, friend, or organization when establishing the fund (e.g., the Jim Watanabe Family Foundation).
  • Donor selects granting schedule — quarterly or annually.
  • The Fort Dodge Community Foundation automatically grants funds to the organization(s) chosen based on the timing the donor has selected. We ensure the donor's philanthropic legacy by redirecting grant dollars if the organization(s) chosen close down or change its mission.
  • The Fort Dodge Community Foundation monitors the organization(s) selected by the donor to help ensure that the grant dollars are used as intended.
  • Grants can be made only to the organizations chosen by donors when the fund was established. Donors may not provide ongoing advice to Fort Dodge Community Foundation with respect to the fund.

What Are the Tax Advantages of a Designated Fund?

  • Receive the maximum tax deduction available in the year the contribution is made.
  • Reduce estate taxes with testamentary gifts.
  • Avoid costly capital gains taxes while realizing the maximum tax deductibility of your donation with a gift of real estate or other complex assets considerations.

Donors who establish or give to Endow Iowa qualified funds are eligible to receive a 25% Endow Iowa Tax Credit in addition to normal federal charitable income tax deductions.

For more information on designated funds, contact Randy Kuhlman, CEO, at 515.573.3171 or rk@fd-foundation.org.