Endowed Funds – Definition & Guidelines

Endowment funds are defined as those funds created where the capital is held in perpetuity and the annual distributable earnings are allocated to charities, as per the type of fund created below. With Dufferin Community Foundation Board approval, donors can set up endowment funds where a portion or all of the capital is disbursed on a regular basis.

All funds are open funds, meaning that once the fund is created, any donor can make a gift at any time.

Donors creating named funds will be provided with an annual fund statement, reflecting additions to the funds, administrative and investment fees charged against the funds, grants from the fund, and the determination of annual distributable earnings for the subsequent year.

Annual distributions from the fund will be identified as having come from the fund, unless the donor wishes the distribution to remain anonymous. A deed of gift or fund agreement will be required to establish all funds. The board will approve templates for the deeds for each type of fund. The board must approve any changes to the clauses of these templates. The Board will pass a resolution confirming the terms of each deed of gift. Deed of Gift agreements can be amended during the lifetime of the donor. 

The Foundation encourages donors to seek independent advice if the proposed gift is a Planned Gift and/or the Foundation has any reason to believe the proposed gift might significantly affect the donor’s financial position, taxable income, or relationship with other family members.