- Community Funds are open to the public - they welcome contributions from anyone.
- Unlike an individual steering their Donor-Advised Fund, grant recipients for Community Funds are recommended collectively by a community or determined in advance. Some funds have their grant recipients curated by fund managers focusing on a particular cause, while others rely on their community members to propose potential grant recipients.
Community Fund Management & Compliance
Endaoment directly manages all Community Funds to ensure IRS compliance and donor intent protection:Pre-Defined Recipients Required
Community funds must pre-identify grant recipients at fund creation:- Issue Area Funds: Specific cause areas (e.g., “dog-related charities,” “climate action”)
- Specific Organization Funds: Named nonprofits designated when donations are made
- Mixed Approach: Combination of specific organizations and defined cause areas
Grant Alignment Requirement
- Grants must align with the fund’s stated purpose when donations were received
- Fund advisors cannot redirect grants to organizations outside the fund’s scope
- IRS compliance: Prevents prohibited scenarios where donations for one cause are granted elsewhere
- Donor protection: Ensures contributions support the intended charitable purpose
Please be sure to read through the description of the community fund you are donating to so you are aware of exactly how and where your donation will be granted.