HCF has a fund type for every client!
We look forward to working together to discover the type of fund at the Hudson Community Foundation (HCF) that is a good fit for each of your clients’ unique charitable giving needs. Options include donor-advised funds, scholarship funds, field-of-interest funds, endowments, corporate foundation funds, unrestricted funds, funds established by private foundations, memorials, designated funds, and bequests. Nonprofit organizations can establish accounts to hold reserve funds and endowments.
Here is a quick guide on a few of the most popular fund types.
A donor-advised fund enables your client to establish a specific account for charitable giving. Your client makes tax-deductible contributions of cash (or, ideally, stock, or other highly appreciated assets) to the fund, and then recommends grants to favorite charities.
The community foundation has its finger on the pulse of the community’s most pressing issues. An unrestricted fund gives your client the opportunity to support community needs that cannot be identified until the future. One of the biggest benefits of a community foundation is its perpetual structure that allows clients and their families to offer support to nonprofits that evolves over time as priorities in the region shift.
A designated fund allows a client to direct giving to a specific agency or purpose. Over time, the community foundation's staff manages the distributions from the fund according to the terms established by your client.
An agency fund is like a designated fund, except in the case of an agency fund, the source of the initial contribution is the beneficiary nonprofit organization itself, not a donor or donors as is the case with a designated fund. If you represent nonprofit organizations and their board members, it is helpful to keep in mind that organizations frequently establish agency funds at the HCF to set aside endowment reserves or rainy-day funds. The team at HCF is knowledgeable at navigating the specific accounting standards that are unique to this type of arrangement.
Clients can set up funds to support students’ educational pursuits based on the parameters and application requirements they outline with help from the staff at HCF.
Clients who want to target their giving to specific areas of community need (such as education, health, environment, or the arts) can set up a field-of-interest fund to establish parameters for grant making under the ongoing guidance and expertise of HCF’s staff.
Tip: If you represent clients who are age 70 ½ and older, consider recommending a Qualified Charitable Distribution from a client’s IRA to a fund at HCF. All the fund types noted above are eligible recipients, except only the donor-advised fund.
We look forward to talking with you about the type of fund that is best for each of your charitable clients!
Reach out to Hudson Community Foundation for assistance or to discover ideas on anything related to charitable giving. We are here to help you serve your philanthropic clients and support the success and longevity of your client relationships.
We welcome conversations to help donors give to their favorite causes. Hudson Community Foundation enables simple, smart, and meaningful family philanthropy. Although HCF is a public charity, it does not promote one charitable cause. Rather, HCF is committed to expanding the capacity of family philanthropy - no matter where you live.
Read more about Donors Guide to Donor Advised Funds.
With a fund at Hudson Community Foundation (HCF), advisors can manage the charitable assets on their preferred platform at any amount. Assets stay under your management. You can provide your clients with the consistent investment advice they expect. We are your partner in charitable giving!
The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.