The non-profit community in Chautauqua County works to address many different causes and needs to improve the region. However, many of these non-profits need help of their own to operate daily and to sustain over long periods of time. A tool at the Community Foundation that can help area non-profits acquire long-term sustainability is the designated/agency fund.

 

With much of the current buzz talk focused on new planned gifts, this simple fund is often overlooked. The following is a basic definition of a designated/agency fund: A fund established by a donor or non-profit organization for the benefit of a specific non-profit organization…it’s that simple. The only difference between a designated fund and an agency fund is that a designated fund is established by a donor for benefit of a non-profit organization and an agency fund is established by a non-profit for the benefit of itself. 

 

A practical example of a designated fund could be as follows: Jane Doe has been volunteering at non-profit organization ABC, Inc. for over 10 years. ABC, Inc. exists to provide assistance to downtrodden families in the local community. Due to Jane Doe’s relationship with the organization and her belief in what the organization stands for, she establishes a designated fund at the Community Foundation to benefit ABC, Inc. Because ABC, Inc. is always in need of budget support each fiscal year, Jane Doe’s new fund will be used to provide funding to ABC, Inc.’s annual operational budget. Now ABC, Inc. will receive a yearly grant, forever, from the Community Foundation for operational support because of the designated fund established by Jane Doe.

 

Designated/Agency funds boil down to one basic concept: They provide an ongoing and lasting support for the organizations they are established to benefit. Designated funds can be established to benefit any aspect of a non-profit from technology upgrades, to program support, to supporting overall operational expenses, as demonstrated in the previous example. No matter what aspect of the organization the fund is established for, it helps create long-term sustainability, and, as the fund grows over time, that support and sustainability continues to grow as well. 

 

With many organizations operating on a day-to-day basis with day-to-day budgets, it is understandable that this type of long-term funding might get overlooked. But true growth of these organizations and the community they operate to serve will take place over the long term, which is why the designated/agency fund can be a critical tool to create lasting success for area non-profit organizations. If you or your organization has any questions about designated/agency funds and how they can be used for your benefit, please contact the Community Foundation staff at 661-3390. 

 

The designated/agency fund is one of many tools at the Community Foundation that can serve to strengthen area non-profits and the community as a whole. Whether starting a designated or any other type of fund, making a simple gift, or naming the Foundation as a beneficiary, all are leveraged for the future of Chautauqua County. As with all Community Foundation funds, a small gift today can make a world of difference down the road.