Types of Funds

The funds we manage at IVCF fall under two broad classifications:

An endowment is a permanent fund. Contributions to an endowment are irrevocable, and become assets of the Imperial Valley Community Foundation.  Endowment funds have two balances:

  • Principal: Endowment Principal can never be invaded, or transferred out of the Foundation. All earnings are posted to Endowment Principal to preserve the endowment's earning power against inflation.
  • Distributable: An annual percent of earnings from the Endowment Principal are allocated to the Endowment Distributable monthly.

All contributions to non-endowment funds are available for grant distributions. They do not have a permanent principal. Contributions to non-endowments are also irrevocable.

After a fund is determined to be endowed or non-endowed, there are several different types:

Donor-Advised Funds: Endowed or non-endowed funds where the donor retains the right to “advise” or “recommend” to the Board of Directors grant distributions to qualified nonprofit organizations.

Designated Funds: Endowed funds where distributable earnings are designated to a specific nonprofit organization.

Community Endowment: Endowed funds where distributable earnings are granted for charitable purposes at the discretion of the Board of Directors in response to identified local needs.

Scholarships: Endowed or non-endowed funds to provide scholarships for local students.  The donor may retain the right to advise, create an external committee or utilize the Foundation’s Scholarship Selection Committee.

Field of Interest: Endowment funds wherein distributable earnings are granted in specified areas of philanthropic interest (i.e.: health & human services, medical or scientific research, education, arts and culture, etc.).