Steps to setting up a Named Fund
The first step is for Forever Notts to meet with you and discuss what you would like to achieve with your giving. Forever Notts will guide you through the different ways of giving. You may wish to set up a fund and this is a very straightforward process with Forever Notts, as described below.
Name Fund (if applicable)
Choose a name for the ‘named’ fund e.g. the John Smith Fund.
Purpose of Fund
Agree the aims of the fund e.g. support of projects that benefit young people in the City.
Size of Fund
Forever Notts would recommend a minimum fund size of £25,000 for a ‘named’ Endowment Fund or £10,000 for a ‘named’ Revenue Fund. There is no upper limit to a fund and the larger the fund, the greater the annual grant-making power. Funds may be built up over a period of up to 25 years with regular payments into an Acorn Fund.
Fund Agreement
Once Forever Notts has listened to and understood your wishes, we will provide you with a draft Fund Agreement. This is a simple document that sets out our responsibilities for managing your fund. When you are happy with the details and arrangements about how the fund is to be set up and managed, you and the Chief Executive of Forever Notts will sign the Fund Agreement.
Investment
The funds are invested within Forever Notts general endowment fund in order to maximise the annual revenue available for grant making. Whilst donations are pooled for investment purposes, grants made from ‘named’ funds will be clearly identified.
Tax Recovery
Charitable donations may be offset against tax and Gift Aid will be drawn down to add to your fund where applicable.
Fees and Charges
Donors can be reassured 100% of their donation is supporting local charities.
Forever Notts requires a contribution to the general charitable activities of the foundation and to cover the following services:
- Drafting and ratifying the donor agreement
- Receiving payments into the Fund.
- Hold and distribute the fund according to charity commission regulations.
- Ensure donations are kept anonymous where requested, within the rules of charity giving.
- Claim Gift Aid on donations wherever possible
- Making grants in line with the terms of this Agreement
- Financial management, accounting and ensuring independent auditing
- Provision of support and advice staff to handle all enquiries, administration, monitoring and evaluation
- Assessing and processing grant applications according to the quality standards as Providing the Custodians with statements of the overall Fund activity and performance on an annual basis
- Arrange appropriate publicity, from time to time, of the Fund performance and in particular, the projects it supports if required
- approved by the Charity commission
- Annual returns to the Charity Commission
The services above are covered by the following contributions:
- Contributions will to be taken from gift aid claims wherever possible to maximise the grant giving capability of the fund.
- A contribution of between 3% and 5% of the value of the assets upon receipt of the initial donation and subsequent donations to the fund.
- All donor funds held in the form of Endowment will incur a charge of 2% of the market value of the Fund as at 31 March each year.
- The management and administration of donor funds held in deposit or current accounts will incur a fee of 10% on all income to the Fund available for grant making.
Fee levels are subject to any review by Forever Notts of its fee structure.
Fund Progress
Forever Notts will meet with you annually to discuss the progress of your fund and to confirm or amend your charitable wishes. A statement of your fund balance and the grants made will be sent you annually if you have an Endowment Fund or bi-annually if you have a Revenue Fund.
Forever Notts aim is to set up your fund with the minimum of bureaucracy and cost. Once your fund is up and running, it is up to you how much involvement you have.
For further information on setting up a fund with Forever Notts please contact us.