Types of Endowment Funds

Many gifts are given free of restrictions and are used to address current needs as they arise.

Other gifts are ‘restricted-use’ and allocated to specific needs, programs or purposes as the donor chooses to direct.

General Community Fund - Unrestricted

These types of funds offer the greatest amount of flexibility to the Foundation in responding to immediate and changing needs in Lennox and Addington.

Donors place no restrictions on the use of this type of fund and trust the Foundation’s Board of Directors to make grantmaking decisions as it deems appropriate and in the best interests of the community.

The Napanee District Community Foundation Community Fund was established at the Foundation’s creation, in 1987. Earned income from this fund is available annually to charitable organizations serving children, seniors, health, arts and culture, education, recreation and the environment.

Organizations throughout Lennox and Addington that possess a Charitable Registration Number issued by the Canada Revenue Agency are invited annually to apply for grants from this fund.

 Standard Application Guidelines
1. Applicants must be registered charities, or be sponsored by a registered charity.
2. Projects must have a well-defined purpose and cover a specific time period.
3. Some funds may be given for the start-up phase of a long-term project that fills a recognized need in a unique way. Proposals must include a realistic plan for viability beyond the pilot stage, and provision for evaluation.
4. An applicant organization’s Board of Directors must be based in or perform substantial service in Lennox and Addington County.
The Foundation does not provide grants;
• To eliminate deficits or retire debt.
• To provide funds with which to establish an endowment fund.
• To meet operating expenses of established organizations or programs for sectarian, religious or political purposes.

• To assist fundraising for capital construction or major renovations.

• To organizations that are wholly or mainly government-directed or funded – except occasionally where a significant difference from, and non-dependent on, the parent organization can be demonstrated.
• To individuals – except where sponsored by a registered charitable organization and the request aligns with the objects and purposes of the Foundation.

Donor Advised Fund

These types of funds allow a donor, or other persons designated by the donor, to make recommendations to the Foundation’s Board of Directors regarding proposed charitable distributions from their fund.

Donor Directed Fund

These funds are established to benefit specific charitable organizations or fields of interest named by the donor. The investment earnings from these funds are distributed as specifically designated by the donor.

Agency Endowment Fund

Through these types of funds, charitable organizations may provide themselves with an annual source of revenue to support their operations and programs.

Emerging Fund (NEW)

This type of fund – introduced in 2018 – permits individuals, groups or organizations that lack the ability to provide the $5,000 minimum lump sum required to establish one of the foregoing funds to build toward a fund with a minimum affordable donation and a pledge to achieve the $5,000 minimum over a pledged period of time. Couple reviewing financials.

A pledge period may run as long as five years, with an optional 3-year extension if needed.
Emerging Fund holders are expected to achieve an agreed minimum % of the total pledge each year.
The original and all subsequent donations are placed in a “fund account”, invested, and the investment earnings are added to the donations so as to help the total grow toward the target amount.

Donating to an Endowment Fund

Donations to establish a new or to grow an existing Fund can be made in the form of a gift of cash, appreciated securities, life insurance, a bequest by will, or with other assets (e.g. real estate, automobiles, collections, etc.).