Named Funds

our fund purse 

Your own Named Fund at Norfolk Community Foundation works just like your own charitable trust but is a lot easier for you to manage. We handle the investment, correspondence, compliance and governance. This leaves you free to focus on building your fund, perhaps over a number of years, and helping us decide which applications should receive a grant from your fund.

There are two types of fund:

  • Endowed Funds are permanently invested with the annual income distributed as grants. Funds are invested with regard to growing the value of your fund over time to create an expanding and sustainable source of funds for grant making in perpetuity. We normally suggest a minimum target of £25,000, which can be achieved by a one off gift, regular monthly or lump sum contributions when appropriate to your business or tax situation.

  • Revenue Funds are distributed as grants within a defined period of time, often by making an annual donation which is distributed within that year to make an immediate impact. We normally suggest a minimum of £5,000 for revenue funds.

Named funds can be:

  • Your way of supporting for ever, the causes you care about.
  • Built up over future generations of your family, continuing the tradition you establish
  • In memory of someone important to you and perhaps initially funded from their estate
  • Linked to your organisation to provide a lasting focus for staff and corporate charitable giving

To cover the cost of managing and administering your fund, as well of course as managing the grant making process, we normally ask for a contribution towards establishing the Fund and a contribution to the Foundation’s administration costs of 1% of the market value of your fund every year for endowed funds and typically 10% for donations made into a revenue fund.  You will find this is far less than the charges usually associated with independently managed funds.  See our Comparative Table to compare the difference.

Frequently asked questions

What does it cost to set up a fund at the Community Foundation?

We normally suggest a minimum of £25,000 for an endowment fund which can be paid over a period of years. These donations will usually qualify for tax relief.

How much do you charge? What are the costs?

We try and keep our costs to a minimum.  We take a contribution towards administration costs for the management of your fund which includes all administration, grant assessment and investment management. The annual contribution currently stands at 1% of endowment funds and typically 10% of revenue funds.

Aren't the latest tax concessions on gifts of shares too good to be true?

We think so. You can now avoid capital gains tax and claim income tax relief on gifts of shares to charity.

Who can use Gift Aid?

Anyone who has paid enough income tax or capital gains tax in the current financial year to cover the amount reclaimed by us. A donor giving £100 needs to have paid at least £25 income tax or capital gains tax.

Can I decide where the money from my fund goes?

Yes, you can either nominate certain charity or community groups you wish to support every year, or set criteria for your fund such as older people projects, or education projects and we will recommend projects for you to support. You then choose which projects and how much to award them. However, all grants are subject to ratification by the Norfolk Community Foundation Board, to ensure all grants meet with the Community Foundation’s charitable objectives.

Can my staff be involved in grant making?

Yes, we welcome staff committees to be involved in the grant making process.

Does my fund need a separate set of trustees?

No, all the grants from funds at Norfolk Community Foundation are ratified by our Board so there is no need for a separate set of trustees.

Can I change the criteria of my fund?

Yes, as long as the projects supported are for charitable purposes the fund criteria can be changed from time to time.

If you would like to explore the possibility of setting up your own named fund, we would be pleased to advise you, in confidence and without you feeling committed.

We never forget that each fund is different.

Please contact us on 01603 623958 to discuss how to set up your fund.