One of the main options we offer donors is our Named Fund. This is a ring-fenced sum of money held by us on behalf of the donor and used to make grants for charitable purposes in Sussex. Setting up a Named Fund is a great way for a donor to get directly involved in community philanthropy, without the cost and administration of setting up a separate charitable trust.
Watch Kevin Richmond, Chief Executive of Sussex Community Foundation, talk about our Named Funds here:
We provide personal support to ensure that giving is effective and to match the donor’s charitable interests with local needs. We handle all administration and correspondence related to the fund. Donors can make decisions on what kind of causes they wish to support and where the funds should be directed. We operate an open and accountable application process and all applications undergo a rigorous and transparent assessment process to ensure there is good governance, financial and project management and to assess the positive impact on the community. The Named Fund provides a rewarding and effective mechanism for donors to meet their charitable aims. Click here to download a pdf of our factsheet Setting Up A Named Fund.
Named Funds can be distributed over a period of time in a ‘flow-through fund’ or invested in an ‘endowment fund’, where the capital remains and the income from the investment is used each year to distribute as grants. Typically, the minimum donation to establish a flow-through fund is £10,000 per annum and, for an endowment fund, the initial donation would be £25,000. However, these amounts are negotiable.
The advantage of an endowment fund is that it remains as a permanent resource year after year. Over a relatively short period, the value of grants awarded becomes greater than the original donation which itself remains as a capital fund. The donor may wish to set up a ‘combination fund’ with some funds being distributed immediately (flow-through) and the remainder added to the endowment.
Click below to hear more from Kevin Richmond, Chief Executive of Sussex Community Foundation about the benefits of investing in an endowment fund: