Options for Districts to Establish Funds at the Foundation
About the GBU Foundation
The GBU Foundation, established by GBU Life in 1962 and incorporated in 1963, supports charitable and educational programs. Initially focused on scholarships to help members further their education, the foundation expanded to include a community grant program in 2023.
Vision
To grow the foundation through diversified fundraising and expand impact to member’s communities through the awarding of grants and scholarships.
Mission
To help our donors achieve their philanthropic goals and potential.
Existing Programs
Scholarships
Community Grants
Additional Funding Options
Unrestricted Funds: Allocated at Board’s Discretion.
Foundation Operations: Support for the operational costs of the foundation.
GBU Foundation
Options for Districts to Establish Funds at the Foundation
GBU District Philanthropic Goals:
Scholarships: Define the education level, target student types, and whether recipients should be members or non-members, local or nationwide.
Charitable Grants: Decide if they should be local or nationwide, awarded case-by- case, support specific organizations, or support organizations within GBU’s four Community Pillars, or a cause group such as cultural heritage, animal welfare, arts, community improvement, conservation, education, wellness, human needs, or faith.
Award Frequency (One-time or perpetual): Determine whether the district wants to fund on a perpetual basis or on a one-time basis.
Naming Options: Name the grant or scholarship after the district, in honor of someone or just have a generic GBU Foundation name.
Other Opportunities: Unrestricted Funds to support scholarships, community organizations, or other programs as directed by the GBU Foundation Board or Operating Funds support to sustain the Foundation’s Operations and Growth.
Donation Options:
Donate Without Establishing a Fund: Choose to make a restricted (Scholarship, Community Grants, or Foundation Operations) or unrestricted (use determined by the foundation board) donation without creating a name fund.
Recognition according to the foundation’s established policies, with options for additional recognition.
Types of Funds
Scholarships: Establish a fund with an initial contribution and work with the foundation to define the fund’s purpose, including selection criteria.
• New Scholarships:
o The foundation scholarship committee selects recipients.
• Existing Scholarships:
o The foundation administers portions of the scholarship program.
o The district may choose to have the foundation manage more of the process including scholarship recipient selection.
GBU Foundation Options for Districts to Establish Funds at the Foundation
GBU Foundation Community Grant (Award Program): Establish an unrestricted community grant fund to support organizations in the areas of GBU’s Community Pillars ( Wellness, Education, Charitable Giving, and Hometown Hero Support) through our annual Community Grant Awards Program.
• The GBU Foundation identifies recipient organizations through its annual Give, Nominate, Vote Campaign.
“Donor Advised Fund”: Establish to support chosen charities through grant recommendations.
• The district establishes the fund with an initial contribution and names the fund.
• The district evaluates and recommends grants with the assistance of the GBU Foundation.
• The GBU Foundation distributes grants from the fund to eligible nonprofits.
Designated Fund:
Establish a fund to support specific organizations:
• The district establishes the fund with an initial contribution, names the fund, and designates one or more nonprofits.
• Each year, the GBU Foundation distributes grants to the named organization(s).
Field of Interest Fund:
Establish a fund to support a specific area of interest, which is then managed by the Foundation.
• The district establishes the fund with an initial contribution, names the fund and selects the field of interest they would like to support.
• The foundation identifies organizations in the donor’s selected field of interest or geography where grant funds will have the greatest impact.
GBU Foundation Options for Districts to Establish Funds at the Foundation
Funding Options
Permanent (or Endowed) Fund
• Only the annual interest earnings will fund scholarships or grants.
• The principal will not be touched and will continue to accrue interest earnings.
• Funds perpetual scholarships or grants.
Non-Permanent (or Spend-Down) Fund
• A portion of the principal and any annual interest earnings will fund scholarships or grants.
• All monies will eventually be expended unless additional monies are added, or the fund is restructured to be a permanent (endowed) fund.
Other details
• A Gift Agreement will be executed to clarify and define the purpose, terms and conditions of the fund.
• Currently, the minimum amount to contribute for a Permanent (or Endowed) Fund is $25,000 to distribute a maximum total of $1,000 in scholarships or grants annually.
• You may make additional contributions to your fund.
• The targeted growth rate is 5.5%.
• Each District’s Funds are separate from other funds for purposes of reporting.
• Currently, there are no administrative fees for funds. There may be nominal fees in the future.
It all begins with a conversation about your philanthropic goals and how the GBU Foundation can help you achieve them through the full potential of your contribution.
Please contact Ken Elliott, Charitable Giving and PR Specialist, at 412-336-3246 or Kenneth.elliott@gbu.org to start that conversation.