RMCF designated funds direct donor giving to specific organizations. Through a designated fund that you can be sure that your charitable contributions will be directed toward a particular non-profit organization(s) that meet IRS requirements for qualified charities.
Designated Fund Guidelines
The Rocky Mountain Community Foundation, a Colorado nonprofit corporation recognized by the Internal Revenue Service as exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code (the “Foundation”), has authorized the establishment of Designated Funds by resolution of the Board of Directors adopted on October 17, 2007. These guidelines may be amended from time to time, when deemed necessary or desirable by the Board of Directors.
Characteristics of Designated Funds
Designated Funds may be established by the donation or transfer by any person to, and acceptance by, the Foundation of money or property, whether by contribution, gift, bequest or devise, or by transfer from a charitable or other organization, to further or carry out the charitable purposes of the Foundation, as set forth in its articles of incorporation and bylaws. Contributions to Designated Funds represent irrevocable gifts subject to the legal and fiduciary ownership and control of the Foundation’s Board of Directors. A Donor may not impose any material restriction or condition that prevents the Foundation from freely and effectively employing the contributed assets, or the income derived there from, in furtherance of a charitable purpose of the Foundation.
Nature and Terms of Designated Funds
Each Designated Fund shall be the property of the Foundation, owned by it in its normal corporate capacity; it shall not be deemed a trust fund held by the Foundation in a trust capacity. In such capacity, the Foundation shall have the ultimate authority and control of all property in the Fund, and the income derived there from, for the charitable purposes of the Foundation. Each Fund may be recorded on the books and records of the Foundation as an identifiable and separate fund and may be given a name or other appropriate designation as requested by the Donor. Anything herein or in the deed of gift or other instrument of transfer creating a Designated Fund to the contrary notwithstanding, each Fund shall be a component part of the Foundation and not a separate trust, and shall be subject to the governing instruments of the Foundation, including the articles of incorporation and bylaws, as amended from time to time.
Value
The minimum amount to establish a Designated Fund is $5,000, but the Foundation encourages Donors to build their funds up to a minimum of $50,000 over three years. The Foundation will not advise Donors on the value of contributed property.
Investment of Assets
The Foundation has the responsibility and authority for the investment of the assets of each Designated Fund. In addition to all of the powers granted by the Uniform Management of Institutional Funds Act or other provisions of applicable law, the Foundation shall have all powers necessary, in its sole discretion, to carry out the purposes of the Fund, including, but not limited to, the power to retain, invest and reinvest the Fund in accordance with its investment policies as adopted by the Foundation and as may be amended from time to time. The assets of any Fund may be separately invested or may be commingled with those of other funds of the Foundation, or may be invested in units of a common investment fund which may be established or utilized by the Foundation. However, the Foundation shall have no obligation either to invest separately or to commingle the assets for investment purposes. In making Fund investments, the Foundation shall exercise ordinary care and prudence under the facts and circumstances prevailing at the time of the action or decision. The Foundation may, in its sole discretion, delegate to its committees, to its officers or employees, or to agents (including investment counsel) the authority to act in place of the Board of Directors in investment and reinvestment of the Fund; contract with independent investment advisors, investment counsel or managers, banks, or trust companies so to act; and authorize the payment of compensation for advisory or management services.
Variance Power
Designated Funds will be subject to the provisions of the articles of incorporation and bylaws of the Foundation, including the power vested in the Board of Directors to modify any condition or restriction on the distribution of funds if in its sole judgment (without the approval of any trustee, custodian or agent), such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable purposes and functions of the Foundation.
Distributions
Non-Endowed Funds. Distributions of income or principal or both shall be made to or for the benefit of, or to carry out the purposes of, the Donor’s designated organization, at such times, in such amounts and in such ways as the Foundation shall determine.
Endowed Funds. It is intended that the principal of the Fund shall be preserved in perpetuity. In any given year, an amount not to exceed a certain percentage of the market value of the Fund (determined in accordance with the Foundation’s valuation policies and procedures in effect from time to time), less administrative fees and expenses, shall be distributed to or for the benefit of, or to carry out the purposes of, the Donor’s designated organization, at such times, in such amounts and in such ways as the Foundation shall determine.
All Funds. If, at any time and for any reason, the Donor’s designated organization shall cease to operate or to exist, or shall cease to be qualified as a tax-exempt organization described in section 501(c)(3) of the Code, contributions to which are deductible under section 170(c) of the Code, then the Foundation shall select one or more organizations that are carrying out appropriate purposes reasonably similar to those that had been pursued by the Donor’s designated organization, and shall substitute those organizations for the Donor’s designated organization for all purposes of this Agreement.
Restrictions
No income or principal distributable from the Fund may be assigned or encumbered by the Donor’s designated organization, or be attached by or subject to the interference or control of any creditor of the Donor’s designated organization, or reached by any legal or equitable process in satisfaction of any debt or liability of the Donor’s designated organization, prior to its actual receipt by the Donor’s designated organization.
Conflict of Terms
In the event of an inconsistency between these guidelines and any guidelines, terms, or conditions appearing elsewhere in connection with any fund, these procedures, as interpreted by the Foundation, shall govern, and the Foundation reserves the right to take any actions at any time which, in its discretion, it deems reasonably necessary or desirable for the proper administration of any fund or the Foundation.
Fees
Designated Funds are subject to administrative and investment fees, and the Foundation reserves the right to change its fee structure at any time.
Reports
The Foundation will provide to the Donor at least annually a report showing the assets then held as the principal of the Fund and all receipts, disbursements and distributions during the period covered by the report, as well as such other information relating to the Fund as the Donor may reasonably request. The Foundation shall not be obligated to obtain a separate audited financial report for the Fund.