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Income-Only Funds

With the downturn in the economy, now is a great time to check the policy in your fund agreement with The Community Foundation. If your agreement is one that protects the principal, you may not be able to grant out as much from the fund as you have in recent years.

This is especially important for scholarship fund advisors. Scholarship season is just around the corner, with most applications in students’ hands in late January. It is the responsibility of foundation staff to adhere to the policies set forth in all fund agreements. Therefore, if your scholarship fund usually grants out several scholarships each year for a specific amount, now is a good time to contact the office to be sure that the fund agreement allows for that amount. If it is an income-only fund agreement, there may be less income to distribute this year.

Such income-only funds were established with the intent to protect the principal of the fund, to ensure long-term giving through any market climate. Unfortunately, the market may dictate smaller distributions for awhile.

Contact the foundation director, Susie Nelson, to schedule a meeting to go over the terms of your fund agreement and to calculate the amount available to distribute. If a meeting is not feasible for you, this issue can easily be addressed over the phone or via email.