Creating a Fund
Creating a fund with the Community Foundation is a simple process. A fund is created with a minimum donation of $1,000 in cash or property, with a pledge growing the fund balance to $5,000 in contributions within 5 years, and the completion of a simple donor agreement. No distributions are made from funds with a value of less than $5,000.
Funds can be established by individuals, families, corporations, institutions, courts, bequests, private foundations and charitable organizations. Each fund becomes a permanent part of the Community Foundation of Washington County MD, Inc.
Define- Your charitable and financial objectives. How to you want your gift to be used?
Select- The type of fund that matches your charitable interests.
Decide- How much you want to contribute to the charity now, and in the future.
Choose- A name for the fund you establish.
Determine- The assets you will use in creating the fund, i.e., cash, stock, real estate, etc.
With the help of the Community Foundation, you can join others who have perpetuated their giving. Community Foundations are designed to offer the highest level of flexibility in charitable giving, while at the same time providing the greatest tax advantages for donors. Our staff would be happy to work with you and your financial advisors to find the best approach to your personal philanthropy.
PDF of 10 Ways to Create a Fund
Creating a Scholarship Fund
Scholarship funds are created for a variety of reasons: as a memorial to a loved one; in recognition of an important event; to support your alma mater; as a commitment to education; or to further a specific career field. At the Community Foundation of Washington County MD, Inc. our goal is to assist donors in meeting their goals in the scholarship arena, and to ensure the lasting benefit of an endowed scholarship.
Steps to Create a Scholarship Fund
- Determine your goals for the scholarship.
- Establish the criteria for the scholarship award.
- Deposit a minimum of $5,000 with the Community Foundation.
- Enjoy the thought of assisting eligible students reach their educational goals.
Scholarship funds at the Foundation are created with a minimum deposit of $5,000. This amount will provide a minimum scholarship of $250 per year. Additional deposits may be made at any time to the fund, and all deposits are eligible for a tax deduction. Gifts of stock, real property, estate or testamentary gifts, and employer matching funds are also accepted. Scholarship funds can also be established through a charitable gift annuity. Each scholarship fund is subject to a 1.5 % administrative fee.
Each scholarship fund can be tailored to fit specific criteria determined by the founding donor(s). For example: high school or college designation, course of study, GPA or financial guidelines, extra-curricular activities, religious denomination, club membership, race or heritage and gender of potential recipients can be designated in the fund agreement. The Pension Protection Act of 2006 prohibits a donor’s advisory capacity in recommending the selection of students for scholarship awards.
Scholarship funds are paid directly to the educational institution at which the recipient is enrolled. The funds can be used for books, tuition, and other fees related to education. Exceptions include meal plans and transportation costs. Scholarship funds not claimed or returned to the Foundation for any reason will be reinvested in the scholarship fund for future use. At no time will funds be paid directly to the recipient.
Creation of a scholarship fund often takes less than one hour of your time, and the completion of two documents: 1) Scholarship Fund Agreement and 2) Scholarship Award Guidelines. Scholarships created prior to June 30th in the calendar year may be eligible for a distribution award the following year.
