Some community trust funds are earmarked for programs that benefit local children and adolescents.
A community trust fund is a non-profit entity created with the aim of improving and enriching a particular community or municipality. It receives money from donors who want to support the fund’s efforts. A board of trustees is responsible for evaluating and approving potential uses of funds.
A community trust fund can be structured like a traditional trust fund, where the assets are managed by a bank. It can also be structured as a non-profit corporation and hire an investment manager who will oversee the application of the funds. The purpose of any structure is to maximize the fund’s earnings in order to provide a long-term cash flow for its charitable projects. After the fund is established, the trust documents specify how many board members there will be, how they will be elected or appointed, and how long they will serve.
A community trust fund may fund programs that provide home medical services to community residents.
Wealthy donors may choose to contribute to a community trust fund because they have an attachment to the community. A person who has spent a lifetime in a particular area and watched it grow and develop may want to help the future growth and health of the area. The community trust fund can help a donor establish an endowment so that a portion of the donor’s assets go into the fund, but also be directed to projects that are of particular interest to that donor.
A couple who have spent their entire lives in a particular area and have seen it grow may want to help in the future development of the area.
A community trust fund will often issue grants to those seeking funds for specific projects. The fund will establish a procedure for individuals or organizations to apply for grants. Required information may include the mission or purpose of the project, the amount of money requested, and the expected time frame to complete or organize the project. The trustees of the fund will assess the potential benefit to be derived from the project and decide whether to approve the grant.
Projects sponsored by a community trust fund can include a wide variety of objectives. The focus can be on topics such as family and children, education, health, environment or culture. Projects may include grants for disadvantaged students or the purchase of equipment for schools or sports programs. Programs can provide educational opportunities for displaced or social security workers, for example, or they can provide training and activity programs for young people to keep them in school and out of the criminal justice system. Community projects can do things like promote recycling or other environmental programs, help expand parks and gardens, or sponsor the conservation of historic buildings.
A local government can partner with a community trust fund to achieve specific goals. When government budgets do not stretch far enough to support special programs, the community trust fund can help fill the gap. This cooperation of public and private interests can benefit all citizens of a community.