5 Things Philanthropy Can Do in Fayette County

As a financial advisor, there are many ways you could help your clients when it comes to philanthropy. You could encourage them to donate directly to an organization or fund a much-needed community project. The thing that sets the Fayette Community Foundation apart is that we specialize in charitable investment. Like any other investment, your clients’ funds are added to an account and slowly grow over time.   

The difference between charitable and regular investing is that charitable investment is a form of philanthropy. A donor’s funds can continue supporting Fayette County for generations. While the community or organization receives less money at one time from a charitable investment than if they had directly received a gift, as the money continues to grow over time, they benefit more in the long term.   

Charitable philanthropy is for your clients who are forward thinkers; those who want to have a positive impact on Fayette County long after they have passed on. Keep reading to learn more about the 5 things philanthropy can do in Fayette County and how you can connect your client to a cause. 

Endowment Funds Endure Changing Times 

Is your client passionate about making a long-term difference beyond their generation? That is the beautiful thing about endowment funds. They stand the test of time, and your client’s generosity will be remembered for decades to come.   

The word endowment is the umbrella term under which each of the 5 things philanthropy can do in Fayette County falls. There are six different types that you and your client can explore.   

  • Community Impact – Allows for flexible grant-making and provides support for some of the community’s greatest needs.    
  • Field of Interest – Funds are distributed to the most appropriate program or project within the field designated by the donors.   
  • Designated – Provides grants to a specific charitable organization named by the donor.   
  • Donor-Advised – The fund donors are actively involved in an advisory capacity for distribution from this fund.   
  • Scholarship – Helps eager individuals reach their academic goals at accredited institutions of higher ed.   
  • Operational – Provides vital support for the operation of the foundation.  

As you know, philanthropy can do way more than 5 things in Fayette County, but we wanted to give more information about each endowment fund type. If you want to learn more about determining the best endowment type for your client, check out our endowment flowchart.   

  1. Educational Funding for High School Graduates 

Is your client passionate about education? Did they pursue a college degree or trade and want to make it more accessible to ambitious students? If your client is passionate about education, starting a scholarship endowment fund would allow them to impact many students’ lives.  

The great thing about scholarship endowments is that they are customizable. We can ensure that the scholarship endowment reflects your clients’ interests. It should be noted that there are some federal and state regulations that the Foundation must follow.   

Examples of customization include adding a client’s name or one of a loved one and adding additional criteria. For inspiration, check out our current scholarships. For more information about scholarships, check out our blog, where we discuss scholarships in depth. Scholarships may be the first thing that comes to mind when you think about charitable investment, but we have more options for your client to consider.   

   2. Support An Organization Long-Term 

Is your client part of a group that they are very passionate about? Or do they have an organization they admire? A designated endowment could be their best choice if your client is passionate about supporting an organization in perpetuity.   

Endowment funds allow your client to support their favorite charitable organization for the long term. Instead of donating a one-time lump sum, your client can have the chance to provide funding for years to come. Please make sure to inform your client that there are regulations the Fayette Community Foundation must follow regarding organizations that are eligible for designated endowments. Get in contact with us to get more details. 

    3. Advise on Distribution of Funds 

Does your client have their thumb on everything happening in Fayette County? They might be the perfect person to start a donor-advised endowment. The donor gets to be an advisory arm of the distribution process. The foundation board has the final say on approving the distribution and ensuring the recommendation follows applicable policies and laws, but the donor can bring their expertise to the community.   

This unique type of endowment gives the donor an advisory role. Other endowments would better fit their situation if your client is not active in the community or with local nonprofits. 

    4. Passion Meets a Program or Project 

Is your client passionate about a specific thing such as: youth services, education or healthcare? A field of interest fund might just be the perfect endowment fund option. This type of fund allows them to make a difference by focusing on their passions. Learn more about the current field of interest funds for inspiration.

    5. Community IMPACT Fund 

Does your client want to make a difference but isn’t sure how? The Community IMPACT Fund is the perfect endowment. It allows clients to combine their funds with funds from like-minded individuals.   

Fayette County is constantly changing, and the community has different needs every year. The Community IMPACT Fund allows the Fayette Community Foundation to make flexible grants that meet the community’s most pressing needs. We wrote an entire blog about this endowment fund. Learn more here. The Community IMPACT Fund is one of our favorite things philanthropy can do in Fayette County.   

Help Us Keep Doing Great Work 

While it’s often not top-of—mind, one major thing philanthropy can do in Fayette County is help us keep our lights on! That’s right; the Fayette Community Foundation has an endowment fund that helps us hire and retain awesome people, take care of our adorable building, and so much more. With the support of your clients, we can continue our work in the community.   

Small Donations Make a Big Impact 

Did you know you can get started on an endowment without a huge sum of money? Many people want to make charitable investments but don’t have large sums of money to invest at one time. Similar to regular investments, it is possible to work up to a more considerable sum of money.   

For instance, the Foundation can store your client’s funds until they hit the minimum of $5,000 for investment (or $10,000 for scholarships). Your client can start small by giving a smaller lump sum at first and then $100 a month for a couple of years. Once the account has hit the minimum investment, the funds will continue to be invested and eventually begin paying out grants and scholarships to the community. If you think one or more of your clients may be interested in this charitable investment method, contact us! 

Get More Information 

Did you know establishing an endowment is only one of the things philanthropy can do in Fayette County? Consider making a one-time or recurring donation toward an existing fund by clicking here. We are dedicated to investing in and supporting our residents from cradle to career by connecting donors and nonprofit agencies. We help strengthen nonprofit agencies to better respond to community needs with financial support and capacity-building programs by providing grants from our unrestricted endowment and discretionary funds as well as from donor-advised funds.     

If you are looking for more information about the Fayette Community Foundation, check out our blog. We have dedicated this entire year to highlighting things found here in Fayette County. If you want to stay updated on everything found in Fayette County, sign up for our nonprofit newsletter.