Starting a Fund

Most funds managed by Northfield Shares are endowments, meaning that the principal is retained and only the income is spent. Named funds can be created under any of the types noted below, but require investment of $10,000 or more. Smaller contributions can be made to the Operating Fund or Community Builders Fund of the Northfield Shares Fund.

The common fund types are listed below; others can be created to meet more specific needs.

• Undesignated Funds
  After the fund is created by the donor, responsibility for use of the income is given to the Northfield Shares Advisory Board. The fund can be in a name designated by the donor or can become part of the Northfield Shares Community Builders Fund or Operating Fund.
• Field of Interest Funds
  The donor designates the general area in which grants should be made. Northfield Shares handles the payments and reports to the donor after the fact.
• Donor-Designated Funds
  The donor designates the charities to which the income will go, and the relative amounts. Payments are made from the fund on a regular basis. The recipients and relative amounts can be changed by the donor.
• Donor-Advised Funds
  The donor recommends the amount and the recipient for all income, on whatever schedule the donor decides.

Northfield Shares will invest the cash or the proceeds from sale of the other assets as they determine. Regular reports are made to the donor regarding the present value of the fund and any transactions that have occurred.

Funds that are established by bequest become active only on the death of the donor and/or other beneficiaries. Depending on the initial agreement, the Northfield Shares Board or the heirs of the donor then assume responsibility for the use of the income.

Contact us for more information about starting a fund at Northfield Shares.

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