Gifts to Communities Foundation of Texas are deposited into funds that are invested and managed by CFT for making charitable grants. Several different types of funds are available at CFT to help donors achieve their specific charitable goals and to meet community needs. Funds can be created as endowments, where gifts are held as a permanent body of assets that generate investment income for grants. Or, funds can be created as non-endowments and all the assets, including investment income, are made available for grants.

Among the options are:

Donor-Advised Funds
This is the most popular type of fund. A donor makes gifts to the fund, but retains the ability to advise CFT with specific recommendations about how charitable grants are made from it. The grants are made in the name of the donor-advised fund (or anonymously, if you wish) to any eligible charity. A donor-advised fund offers a great alternative to a private foundation, with fewer administrative burdens for the donor and generally greater flexibility and tax benefits than a private foundation can offer. $10,000 minimum.

Designated Funds
Instead of being available for wide-ranging charitable grants, a designated fund benefits a particular charitable organization or charities in a geographic area. Often, these funds are established as endowments to hold permanent assets for a named charity. Either the assets of the funds, or the investment income from endowments, are distributed based on the schedule and criteria established for the fund. $10,000 minimum.

Scholarship Funds
These funds enable qualified students to pursue their academic dreams. CFT will publicize the availability of the scholarship and manage the application process. Donors can establish an advisory committee for a named scholarship to follow their own guidelines for evaluating candidate applications and awarding scholarships. $30,000 minimum.

Unrestricted and Field of Interest Funds
Charitable gifts can be made without restrictions in any amount to CFT for its use in competitive grant making each year. These gifts also can be earmarked for field of interest funds, which aggregate gifts in funds that are used in particular areas of charity. These types of discretionary gifts allow CFT to invite nonprofit organizations in the community during the spring and fall to submit proposals seeking funding for projects that are central to their missions. CFT evaluates these proposals and applies the discretionary funds to their fullest extent.

Field of interest funds managed by CFT include:

  • Fund for Animals
  • Fund for the Arts and Culture
  • Fund for Basic Human Needs (supports agencies and projects that respond to housing, food, clothing and healthcare needs of disadvantaged residents)
  • Fund for Children & Youth (supports the physical and mental health of the community's children)
  • Fund for Community Beautification
  • Fund for Community Development (improves the quality of life and self-sufficiency in the community)
  • Fund for Conservation (supports conservation of the natural environment)
  • Disaster Relief Fund
  • Fund for Education
  • Fund for the Elderly (dedicated to the physical, educational and spiritual well being of the elderly)
  • Fund for Historical Preservation (provides support for maintaining and preserving buildings, parks and art collections of historic value)
  • Fund for Medical Research
  • Fund for Mental Health (supports research projects and education about mental health issues)

Supporting Organizations
A supporting organization is similar in many ways to a donor-advised fund, but it is legally a separate tax-exempt entity from the community foundation. The supporting organization has its own board of directors. However, it is recognized as a public charity (with public charity tax benefits) because its purpose is to support a public charity, such as CFT. There are expenses and administrative requirements for creating a supporting organization that make this option viable mostly for a large pool of charitable assets. But, a supporting organization may be the most attractive alternative for donors who are considering operating a private foundation because it allows for a higher level of involvement and for the establishment of grant criteria and investment policies that are independent from CFT. Several supporting organizations are linked with CFT, such as the W.W. Caruth, Jr. Foundation.

Our goal at Communities Foundation of Texas is to make it easy and effective for you to give. Talk with us about what type of fund may be right for you. If you want to discuss this option further, call Jackie Franey, director of gift planning and donor relations; Debra Phares, director, donor relations; or Dwight Clasby, vice president, external affairs, at (214) 750-4222, or e-mail them at jfraney@cftexas.org, dphares@cftexas or dclasby@cftexas.org.