A community foundation’s endowment is made up of smaller endowments called “funds,” each of which is established by a separate agreement and is accounted for separately. These funds are designed to carry out the philanthropic intentions of the founding contributors.
The corpus of a fund is pooled with other funds for investment purposes. Disbursements from the fund in the form of grants, scholarships, or payments to designated agencies are made from investment earnings only; the fund principal generally remains intact.
Funds are administered according to the donor’s wishes and community needs. Donors may choose among several ways to use their charitable gifts: