5. EDSR 08-14-2006 - Laserfiche WebLink

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WHAT IS A COMMUNITY FUND? A community fund is a designated endowment fund of the Initiative Foundation, which is established in partnership with local residents who have a commitment to strengthening their local community through building a philanthropic resource. The Community Fund serves as a grassroots yhilanthropic resource for the community, and acts as a catalyst in linking resources to people and needs in the community. The money raised is invested with other resources of the Initiative Foundation, with a portion of the income generated distributed through grants and occasionally loans to nonprofit local agencies, schools, and organizations in that community. As a designated fund of the Initiative Foundation, contributions raised through the Community Fund Program become assets of the Initiative Foundation. The Initiative Foundation is legally and morally bound to distribute the endowment income within the Community Fund service area, and bases those distribution decisions on recommendations provided by the Community Fund's Governing Board. BENEFITS OF ESTABLISHING A COMMUNITY FUND WITH THE INITIATIVE FOUNDATION 1. Partnership. Establishes a true working relationship between the Initiative Foundation and the Community Fund, uniting the strengths and resources of both entities to mutually benefit the local community. 2. Flexibility. Allows donors, agencies, or communities to define the purpose and name of the Community Fund as well as to help designate the charitable recipient(s). 3. Permanence. The local fund is held as permanent endowment, where only the earnings from the investment are distributed as grants or loans. Donors know that their gift will truly live - and give -forever. 4. Cost Effective. No start-up costs, no incorporation filings, no separate tax returns, no excise taxes, and no separate audits/IRS filings. 5. Support. The Foundation's staff provides technical services including fundraising training, asset management, distribution of grants, public relations, and donor record keeping. 6. No red tape. The Foundation provides for annual reports, certified audits, and handles required State and Federal requirements. 7. Leadership Training. The participating community has access to the Foundation's Healthy Communities Partnership Program, atwo-year leadership and comprehensive planning program. 8. Local Leadership. The Community Fund promotes leadership through governing boards, local volunteers, and possibly participation in Healthy Communities Partnership program. LEADERSHIPlADMINISTRATIVE STRUCTURE 1. The Community Fund is established through a declaration which outlines the structure of the Community Fund and how it will operate. 2. A Community Fund Governing Board is established with at least seven (7) members to oversee the Community Fund, and make recommendations to the Initiative Foundation. 3. The Initiative Foundation Staff and Board will work with the Community Fund Governing Board regarding investments of contributions, records, research, fundraising strategy, and processes for distribution of income through grants. 4. The Initiative Foundation provides a modest annual grant to support administrative costs. S. The Initiative Foundation assesses a modest administration service fee for handling of Community Funds assets. 3/21/2006