DONOR FAQ

When a loved one passes away, many families and friends wish to create a lasting legacy to honor their life. A Memorial Fund gives you time to consider how to best represent your loved one's passion and interest, while giving you an immediate place to direct gifts. When the endowment fund reaches a balance of $10,000, the investment earnings can be used to make grant to community causes or tax-exempt nonprofits selected by you and/or your family. The Benefits: A memorial endowment fund gives you time to make specific charitable decisions later, allowing you to focus on more time-sensitive matters. Establishes a permanent fund to accept gifts made in your loved one's memory. These gifts are invested to create future grants from the fund that will support the nonprofit(s) or cause(s) of your choice forever. The Community Foundation’s online platform provides you access to the names and addresses of those who have made a gift to the fund. CFES acknowledges all gifts made to the fund by sending a thank you to the donor on your behalf. You may choose to also send a separate personal thank you for the gifts. All gifts are tax-deductible to the fullest extent allowed by the law. Learn more or create a memorial fund here.

Think of a donor advised fund as a charitable checking account to support the nonprofit organizations you care about. You can support causes you care about when and where it is convenient for you. The Benefits: Your contributions to the fund are generally tax deductible right away, while you have the ability to decide when to support your favorite charities. Donor advised funds are our most flexible fund type. Great for donors who want a hands-on approach to giving. You receive the diligence and charitable guidance of CFES. We offer both endowed and non-endowed options. We Offer Two Options: Endowed Funds: The initial gift (or some portion of the initial gift) and subsequent gifts are invested and never spent, ensuring that the gift(s) provide a permanent source of funding for the charities you recommend. A portion of the fund’s investment earnings are available to support charities at your request. The CFES grantmaking rate is 5% annually, which means any earnings above 5%, net of fees, are reinvested in the fund. Endowed funds are invested in the CFES portfolio. Non-Endowed Funds: All contributions, as well as income and earnings net of fees, are available to support charities at your request. The minimum to establish a non-endowed fund is $5,000 and all but $1,000 of the fund balance may be granted out. Non-endowed funds have the option to be invested in the CFES portfolio if a $50,000 balance is maintained; otherwise, in lieu of a fee, CFES sweeps any interest earned. Minimum to Establish: Non-endowed - $5,000. Endowed - $10,000 Learn More

These funds are established by a donor(s) or organizations for the purpose of supporting broad charitable goals in the community. Community Needs funds can support any charitable goal, which make them the most flexible fund option. The Process: The donor(s) works with CFES to draft a fund agreement that will outline the purpose of the fund. The donor(s) transfers assets to CFES to establish the fund. The fund is invested in the CFES portfolio and begins to receive gains or losses based on market performance. CN Funds are endowed which means the initial gift and subsequent gifts are invested and never spent, ensuring that the gift(s) provide a permanent source of funding for current and future needs in our region. A portion of the investment earnings of the fund are available to be turned into grants. Grant applications are submitted by nonprofit, community, and faith-based organizations. Volunteer committees evaluate the grant applications to create grants. The CFES grantmaking rate is 5% annually, which means any earnings above 5%, net of fees, are reinvested in the fund. The Benefits: Community Needs Funds allow CFES to respond to urgent needs today and prepare for changing priorities in the years to come. These funds are eligible for the Endow Maryland Tax Credit Program, which provides a 25% state tax credit for gifts of $500 or more. Donors benefit from the Community Foundation’s expertise in long-term management of assets, the knowledge that their charitable goals will be carried out in perpetuity, and the flexibility to customize their giving options to help achieve their charitable vision. Minimum to Establish: $10,000 Learn More

These funds are established by a donor(s) or organizations for the purpose of supporting broad charitable goals in the community. Field of Interest funds are targeted support for a specific area of focus, for example, youth or the environment, or a specific geographic area, such as a county or a city. The Process: The donor(s) works with CFES to draft a fund agreement that will outline the purpose of the fund. The donor(s) transfers assets to CFES to establish the fund. The fund is invested in the CFES portfolio and begins to receive gains or losses based on market performance. FOI Funds are endowed which means the initial gift and subsequent gifts are invested and never spent, ensuring that the gift(s) provide a permanent source of funding for current and future needs in our region. A portion of the investment earnings of the fund are available to be turned into grants. Grant applications are submitted by nonprofit, community, and faith-based organizations. Volunteer committees evaluate the grant applications to create grants. The CFES grantmaking rate is 5% annually, which means any earnings above 5%, net of fees, are reinvested in the fund. The Benefits: Field of Interest Funds allow CFES to respond to urgent needs today and prepare for changing priorities in the years to come. These funds are eligible for the Endow Maryland Tax Credit Program, which provides a 25% state tax credit for gifts of $500 or more. Donors benefit from the Community Foundation’s expertise in long-term management of assets, the knowledge that their charitable goals will be carried out in perpetuity, and the flexibility to customize their giving options to help achieve their charitable vision. Minimum to Establish: $10,000 Learn More

Administrative Endowments are the engine that drives our mission of inspiring community philanthropy. These funds allows Foundation staff to provide invaluable philanthropic expertise and knowledge of local needs to donors and nonprofits who are working to make a difference on the Lower Eastern Shore. As a nonprofit, we operate with a staff of dedicated professionals and like many local businesses, we must invest in our people and our organization, as well as our community. Contributions to the Foundation’s Annual Appeal, and income generated by our administrative endowment funds allow us to provide valuable programs and services to our nonprofit partners and donors. The Benefits: Helps create long-term sustainability for our mission and work. Administrative Endowments are permanently invested and generate an enduring, consistent revenue stream. Thus, gifts today provide an infinite amount of support for the Community Foundation’s vital mission. The endowment represents the Foundation's permanent capital and allows our staff to grow philanthropy on the Lower Shore. Admin. Endowment revenues allow us to provide fiscal advice and support, conduct nonprofit research and evaluation, improve philanthropic education, and grow local nonprofits. Provides ongoing support for the CFES operating budget. Administrative Endowment Funds enables the Foundation to keep our administrative fees low, thus benefiting all CFES funds and the charitable purposes they support. How does it work? The donor(s) works with CFES to draft a fund agreement that indicates it is to support the Community Foundation and selects the name for the fund. Assets are transferred to CFES and invested in the CFES portfolio. The fund begins to receive gains or losses based on market performance. A portion of the investment earnings of the fund are available to support the foundation. The CFES grantmaking rate is 5% annually, which means any earnings above 5%, net of fees, are reinvested in the fund. The minimum to establish: $10,000. Learn More

A nonprofit partner fund is established by a charity at a community foundation for the charity’s own benefit. Grants are made from the fund to the charity for general use or for specific activities determined by the charity. We Offer Two Options: Nonendowed Funds: Your organization revocably authorizes the Community Foundation to manage the money within its selected portfolio. The organization can request and receive up to 100% of its assets as requested. Nonprofit Endowment Fund: Your organization establishes an endowment fund with the Community Foundation in perpetuity. An annual payout based on the Community Foundation’s spending policy is designated to your nonprofit. This option is best for organizations that want to assure donors that the endowment’s principal will remain intact or honor a donor’s bequest to the endowment fund. Process: Your organization’s leadership works with CFES to draft a fund agreement that will outline the purpose of the fund and the grant distribution schedule (upon request, annually, quarterly, etc.). Your organization transfers assets to CFES to establish the fund. The fund is invested in the CFES portfolio and begins to receive gains or losses based on market performance. The organization receives a quarterly communication on fund performance. A fund representative is identified by the organization to receive these communications and to submit grant requests. Benefits: Receive the expertise of the Community Foundation in long-term management of assets. Flexibility in accepting types of non-cash gifts not accepted by the agency (stocks, real estate, etc.), and the protection that the transfer will provide by establishing a fund at a separate organization. Organizations can opt to receive regularly scheduled distributions as a source of income for operations and programs, or less frequent distributions to help build the fund. Organizations can access real-time fund information and make grant requests using our online platform. Minimum to Establish: Non-endowed - $5,000, Endowed - $10,000 Learn More

A designated fund is established by donors to support one or more specific charitable organizations. Grants are made from the fund to the specified charitable organization(s) for either general use or for specific activities selected by the donor(s). The Benefits: Creates a permanent source of funding for your favorite organizations. Simplified charitable giving. You set your charitable vision and we ensure your charitable legacy is fulfilled for generations to come. Your contributions to the fund are generally tax deductible right away. You receive the diligence and charitable guidance of CFES. Minimum to Establish: $10,000 Learn More

Our scholarship funds are created by individuals, families, and organizations who wish to memorialize a loved one, encourage a certain field of study, or want to extend a helping hand for college-bound students. The Benefits: Criteria for scholarship recipients is established by the donor with guidance from the Foundation to ensure IRS compliance. All scholarship funds are endowed which means the initial gift and subsequent gifts are invested and never spent, ensuring a permanent source of funding for the specified scholarship award. A portion of the investment earnings of the fund are available to support the scholarship. The CFES grantmaking rate is 5% annually, which means any earnings above 5%, net of fees, are reinvested in the fund. CFES issues the scholarship check directly to the institution of higher learning, minimizing your administrative tasks. The minimum to establish: $10,000* * Varies depending on criteria - See below. Scholarship Fund A | Min. to Establish: $10,000 ​Merit or need based selection. Donor can select a high school or college/university. Recipient selected by school selection committee. Scholarship Fund B | Min. to Establish: $25,000 ​Merit or need based selection. Can be managed by an outside committee (donor may not select recipient per IRS guidance.) May include applicants from multiple schools. Scholarship Fund C | Min. to Establish: $500,000 ​Merit or need based selection. Can be managed by an outside committee (donor may not select recipient per IRS guidance.) May include applicants from multiple schools. May be a renewable scholarship. Administrative fee base rate is 1.25%. Additional fees may apply for specific circumstances per fee schedule. Learn More

Corporate Giving Funds provide an alternative to managing your company’s charitable giving. We offer custom services to help your company plan, govern and operate your community philanthropy. These funds can be tailored to support the causes and initiatives that align with your business's values. A Corporate Giving Fund provides your company the opportunity to support charities of choice on a timeframe that makes sense for you. Learn more about Corporate Giving here.