The Greater Cedar Rapids Community Foundation offers a new type of fund for philanthropists who wish to establish an endowed fund that they grow to further their philanthropic goals and to respond to community needs.
With an initial donation of $2,500 and regular contributions over time (up to five years), donors can create a Prairie Fund which will eventually produce a spendable amount to be awarded as grants to nonprofits. Donors may schedule payments annually, quarterly or monthly.
Once total contributions reach $10,000, the fund name will become a NAMED ENDOWED FUND and no longer be designated as a Prairie Fund. Donors may then make grants to nonprofits of their choosing.
After five years, if the Prairie Fund has accrued contributions of less than $10,000, it will become part of the Unrestricted Fund at the Community Foundation. An annual administrative fee of 1% is applicable for the first $10,000 in contributions. A standard fee, currently 1.5%, is applied once the fund transitions from a Prairie Fund to an endowed fund. Any part of this fund for which the donor has received Endow Iowa tax credits will have annual distributions of no more than 5%, and the recipients of gifts from the fund must be registered nonprofits in Iowa.
For more information or to begin a Prairie Fund, contact Les Garner, President & CEO, at 319.366.2862 or les.garner@gcrcf.org.
