Page 4

Cambridgeshire Community Foundation (CCF) Setting up a charitable fund with CCF CCF WORKS WITH over 50 individuals, companies and charitable foundations, enabling them to offer support effectively and efficiently to local good causes. Many of CCF’s donors choose to set up a charitable fund at CCF. Here, CCF’s chief executive, Jane Darlington, explains how a charitable fund at CCF is a simple, low-cost, tax-efficient and practical alternative to registering a stand-alone charitable trust independently with the Charity Commission.

What is a charitable fund and what are they for? A charitable fund is a sum of money held by CCF. Each fund has a name and its own charitable purpose. The purpose can be based around a theme, such as protecting the local environment, or around a particular geography – supporting charitable projects only in a particular area. The purpose of a fund can also be linked to a specific group of beneficiaries, such as to help people who are homeless, or to support young carers. Importantly, the fund is ring-fenced and can be used only to support the agreed charitable purpose of the fund.

How are funds named? Donors can choose the name of their charitable fund (“The Greene Family Charitable Fund” or “The October Fund”), which gives the option for the donors to be public or anonymous in their charitable giving. Each charitable fund held by CCF is listed in the A-Z of Funds section of our website.

Who controls the charitable fund?

Legal responsibility lies with CCF trustees, and they ensure that the overall purpose of the fund is charitable. However, the donor defines the particular purpose of the fund (the theme, area and beneficiaries) and selects the good causes that the fund will support.

How are good causes selected? A member of the CCF Donor Support team will work closely with the donor to distribute grants and make donations from the fund. Donors can ask CCF to make regular payments from the fund to favourite causes. CCF can also recommend charities that match a donor’s interests and offer a fully tailored grant-making service.

Can a fund be set up with shares? A charitable fund can be set up by donating cash, shares or other qualifying assets, and can be increased with further ad hoc or regular donations. If shares are transferred, these can be held as investments or sold. CCF can also work with appointed stockbrokers or fund managers who can continue to

4 / Apr-Jun 2017 / THE FORUM

manage the investments, albeit now with different ownership and with the investment income or interest paid to CCF to be added to the charitable fund for distribution.

Are charitable funds used only to support current issues? A fund can be ‘flow through’, which means that the sums donated into the fund are then available for distribution to local good causes in the short term. Alternatively, a fund can be ‘invested’, with a capital sum invested and the annual return being used to support local good cases. A fund can also be ‘hybrid’, with part of the sum donated into the fund being used for immediate distribution and part of the sum being invested to create a long-term source of money for distribution in the future.

Can I transfer an existing charitable trust? CCF can help transfer an existing independent charitable trust to a CCF charitable fund. The name and purpose of the existing independent charitable trust can be preserved or varied if required and if agreed with the Charity Commission. CCF offers advice on the process and can liaise directly with the Charity Commission, preparing and submitting the paperwork on behalf of the original trustees.

How are the costs of a charitable fund covered? With the agreement of the donor, CCF retains a percentage of the money donated into a charitable fund to contribute towards the costs of managing and distributing funds. The level of annual contribution depends on the size and activity of the fund and, since CCF is a not-for-profit charity wishing to support as many good causes as possible, the costs of managing and distributing funds are tightly controlled.

Profile for Marion Carey

THE FORUM Apr-Jun 2017  

The magazine of Cambridgeshire Community Foundation.

THE FORUM Apr-Jun 2017  

The magazine of Cambridgeshire Community Foundation.