Start a Fund - Community Foundation for Nantucket

Make a lasting impact by starting a fund with the Community Foundation for Nantucket. Whether you want to support a cause close to your heart, honor a loved one’s legacy, or provide long-term funding for a nonprofit, we’re here to help turn your generosity into meaningful change. Our team will guide you in choosing the right type of fund to match your philanthropic goals, making giving simple, flexible, and rewarding. Join us in building a stronger, more vibrant community—one gift at a time.

Donor Advised Fund

A Donor Advised Fund is a tax-advantaged charitable giving account.
DAFs are often compared to a 401(k) for retirement savings or a Health Savings Account (HSA) for healthcare expenses. Any person, couple, family, or company, can open a DAF account. It works like a charitable savings account, where donors can grow their contributions through investments and give when they’re ready.

Two workers making red brick wall at construction site

Donor Advised FAQ’s

What are Donor Advised Funds?

A Donor Advised Fund (DAF) is a flexible charitable giving account that allows donors to support multiple causes over time while receiving an immediate tax deduction for their contributions. Donors make a gift to establish the fund, and the contributions can be invested to grow tax-free. They can then recommend grants to their favorite nonprofits whenever they choose. This fund is ideal for individuals, families, or businesses that want to be actively involved in their philanthropy while benefiting from professional fund management and administrative support.

How do I establish a Donor Advised Fund?

The Community Foundation’s fund management team works with donors and/or their financial advisors to establish the fund. Once the details have been discussed, a fund agreement letter is drafted and signed, and then assets may be transferred to establish the fund.

Is there a required minimum balance?

The Community Foundation requires a $10,000 minimum balance. Amounts in excess of that minimum each year (including earnings from the fund’s investment) are available for recommended distribution.

How are the funds invested?

Community Foundation funds are professionally invested under the supervision of community volunteers with expertise in investment management. Funds are pooled and invested with other assets of the Community Foundation for further diversification, with each fund accruing its own share of the earnings. Each fund is accounted for separately. Donors may choose from a selection of portfolios and will receive quarterly financial statements.

What are the administrative fees?

The fee for Donor Advised Funds is a sliding scale based on the balance of the fund.

First $500,000, 1.5% of assets
Next $500,000, 1.0% of assets
Next $2,000,000, 0.75% of assets
Above $3,000,000, 0.50% of assets

What do the fees cover?

The fees cover all administrative tasks assumed by the Community Foundation. Tasks include record keeping, investment, filing all required reports, monitoring the charitable status of recipients of grants, and the provision of tax receipts for gifts to the fund.

How do I recommend grants?

Fund advisors may recommend grants though our donor portal to public charities in amounts of $100 or more. Grants may be recommended at any time from principal or earnings above the $10,000 fund minimum. Recommendations will be followed as long as they comply with current IRS guidelines.

Scholarship Fund

A Scholarship Fund provides financial assistance to students pursuing education at various levels, from high school to college and beyond. Donors can establish a fund with specific eligibility criteria, such as academic achievement, financial need, or a particular field of study. The foundation handles the application process, selection, and distribution of awards, ensuring scholarships are given to deserving students in alignment with the donor’s wishes. This is a great way to invest in future generations and make education more accessible.

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Scholarship FAQ’s

What is a Scholarship Fund?

A scholarship fund is a charitable fund that provides financial assistance to students for education expenses. Donors contribute to the fund, and scholarships are awarded based on criteria such as academic achievement, financial need, or field of study.

How do I establish a Scholarship Fund?

The Community Foundation’s fund management team works with donors and/or their financial advisors to establish the fund. Once the details have been discussed, a fund agreement letter is drafted and signed, and then assets may be transferred to establish the fund.

What are the required minimums to establish a scholarship fund?

The Community Foundation requires a $20,000 minimum balance.

How are the funds invested?

Community Foundation funds are professionally invested under the supervision of community volunteers with expertise in investment management. Funds are pooled and invested with other assets of the Community Foundation for further diversification, with each fund accruing its own share of the earnings. Each fund is accounted for separately. Donors may choose from a selection of portfolios and will receive quarterly financial statements.

What are the administrative fees?

The fee for Scholarship Funds is a sliding scale based on the balance of the fund.

First $500,000, 1.5% of assets
Next $500,000, 1.0% of assets
Next $2,000,000, 0.75% of assets
Above $3,000,000, 0.50% of assets

How do students receive scholarship funds?

A single application enables students to access the scholarship funds managed by the Community Foundation. Scholarships are awarded to residents of Nantucket for full-time and part-time undergraduate and graduate study at accredited institutions of higher education who fulfill all application requirements. Scholarship awards are paid to the college or university after enrollment has been verified.

Can I choose criteria to define the eligibility for the scholarship?

We strongly encourage donors to limit restrictions on scholarship funds so that they can be awarded annually, and remain relevant and impactful for generations to come. However, donors may recommend 1-2 selection criteria (and 1 preference criteria) based on information already collected on the current application form:

Residency: Nantucket county
High School: Current graduating seniors or graduates of a specific high school
Year of Study: Freshman, sophomore, junior, senior, or graduate student
Specific College or University
Major
Ethnicity
Financial Needs

Field of Interest

A Field of Interest Fund allows donors to support a broad cause or issue they care about, such as the arts, education, healthcare, or environmental conservation. While donors define the focus area, the foundation’s team identifies and distributes grants to the most impactful organizations working in that field. This fund is ideal for those who want to make a long-term difference in a specific area without the responsibility of selecting individual grant recipients.

Senior woman smiling while drawing with the group.

Field of Interest FAQ’s

Field of Interest Funds

A Field of Interest Fund is a charitable fund that supports a specific cause or issue that the donor cares about, such as education, the environment, or the arts. The foundation manages the fund and awards grants to organizations working in that area, ensuring long-term impact aligned with the donor’s intent.

How do I establish a Field of Interest Fund?

The Community Foundation’s fund management team works with donors and/or their financial advisors to establish the fund. Once the details have been discussed, a fund agreement letter is drafted and signed, and then assets may be transferred to establish the fund.

Is there a required minimum balance?

The Community Foundation requires a $10,000 minimum balance. Amounts in excess of that minimum each year (including earnings from the fund’s investment) are available for distribution.

How are the funds invested?

Community Foundation funds are professionally invested under the supervision of community volunteers with expertise in investment management. Funds are pooled and invested with other assets of the Community Foundation for further diversification, with each fund accruing its own share of the earnings. Each fund is accounted for separately. Donors may choose from a selection of portfolios and will receive quarterly financial statements.

What are the administrative fees?

The fee for Field of Interest Funds is a sliding scale based on the balance of the fund.

First $500,000, 1.5% of assets
Next $500,000, 1.0% of assets
Next $2,000,000, 0.75% of assets
Above $3,000,000, 0.50% of assets

What do the fees cover?

The fees cover all administrative tasks assumed by the Community Foundation. Tasks include recordkeeping, investment, filing all required reports, monitoring the charitable status of recipients of grants, and the provision of tax receipts for gifts to the fund.

Designated Fund

A Designated Fund is created to provide ongoing financial support to one or more specific nonprofit organizations chosen by the donor. The foundation manages the fund’s assets and ensures annual grants are distributed to the designated nonprofit(s) in perpetuity or over a set period. This option is perfect for donors who want to ensure stable, continuous funding for their favorite charitable organizations, even beyond their lifetime.

Designated Fund FAQ’s

A Designated Fund is a charitable fund that provides ongoing support to a specific nonprofit organization chosen by the donor. The foundation manages the fund and ensures that grants are distributed to the designated nonprofit, helping sustain its mission over time.

How do I establish a Designated Fund?

The Community Foundation’s fund management team works with donors and/or their financial advisors to establish the fund. Once the details have been discussed, a fund agreement letter is drafted and signed, and then assets may be transferred to establish the fund.

Is there a required minimum balance?

The Community Foundation requires a $10,000 minimum balance. Amounts in excess of that minimum each year (including earnings from the fund’s investment) are available for distribution.

How are the funds invested?

Community Foundation funds are professionally invested under the supervision of community volunteers with expertise in investment management. Funds are pooled and invested with other assets of the Community Foundation for further diversification, with each fund accruing its own share of the earnings. Each fund is accounted for separately. Donors may choose from a selection of portfolios and will receive quarterly financial statements.

What are the administrative fees?

The fee for Designated Funds is a sliding scale based on the balance of the fund.

First $500,000, 1.5% of assets
Next $500,000, 1.0% of assets
Next $2,000,000, 0.75% of assets
Above $3,000,000, 0.50% of assets

What do the fees cover?

The fees cover all administrative tasks assumed by the Community Foundation. Tasks include recordkeeping, investment, filing all required reports, monitoring the charitable status of recipients of grants, and the provision of tax receipts for gifts to the fund.

Nonprofit Agency Fund

A Nonprofit Agency Fund is established by a nonprofit organization to build and manage its charitable assets, offering both endowed and non-endowed options. An endowed fund is designed to grow over time, with only the earnings being used for the organization’s programs, ensuring long-term sustainability. A non-endowed fund, on the other hand, allows the organization to access both the principal and earnings, providing more immediate financial flexibility. Both types of funds offer professional investment management, ensuring that nonprofits can strengthen their financial stability and focus on advancing their mission for years to come. Donors can contribute to either type of fund, helping secure the nonprofit’s future.

Nonprofit Agency Fund FAQ’s

Nonprofit Agency Funds

A Nonprofit Agency Endowment Fund is a permanent fund established by a nonprofit organization to provide long-term financial stability. The fund is invested, and the nonprofit receives annual distributions, creating a steady source of income to support its mission for the future.

How do I establish a Nonprofit Agency Fund?

The Community Foundation assists agencies and their financial advisors with the fund-establishment process. Once the details have been discussed, a fund agreement letter is drafted and signed, and then assets may be transferred to establish the fund.

Is there a required minimum balance?

The Community Foundation requires a $10,000 minimum balance. Amounts in excess of that minimum each year (including earnings from the fund’s investment) are available for recommended distribution.

How are the funds invested?

Community Foundation funds are professionally invested under the supervision of community volunteers with expertise in investment management. Funds are pooled and invested with other assets of the Community Foundation for further diversification, with each fund accruing its own share of the earnings. Each fund is accounted for separately. Donors may choose from a selection of portfolios and will receive quarterly financial statements.

What are the administrative fees?

The fee for Nonprofit Agency Funds is a sliding scale based on the balance of the fund.

First $500,000, 1.5% of assets
Next $500,000, 1.0% of assets
Next $2,000,000, 0.75% of assets
Above $3,000,000, 0.50% of assets

What do the fees cover?

The fees cover all administrative tasks assumed by the Community Foundation. Tasks include recordkeeping, investment, filing all required reports, monitoring the charitable status of recipients of grants, and the provision of tax receipts for gifts to the fund.

Who owns the fund’s assets?

According to both income tax and securities laws, establishing a fund requires that charity to transfer title to the assets to the Community Foundation. Although the Community Foundation owns the assets the Agency may maintain a beneficial interest, which under Financial Accounting Standards Board Statement #136, would allow the agency to record an asset on its financial statements. We suggest the agency discuss this with their accountants and the Community Foundation.

Do you accept unusual assets?

Yes. The Community Foundation can accept stock, real estate, personal property, planned gifts, and private foundation assets.

What’s the difference between an Endowed and an Agency Advised Fund?

Endowed funds allow for regular distributions to the agency in accordance with the Community Foundation’s policy, which attempts to provide long-term protection of the principal (currently 4.5% of principal annually). Agency Advised Funds allow the agency to recommend distributions of both income and principal whenever desired. Please know that the Community Foundation is permitted to return the entire balance in this fund to the agency. However, title to the monies in this fund is in the Community Foundation for Nantucket.

Do you offer fundraising assistance?

The Community Foundation is not able to serve as the fundraising arm of those charities with Agency Funds.

What are some other benefits to working with the Community Foundation?

Charities with Agency Funds at the Community Foundation may enjoy the increased visibility as part of our larger giving community. Agency Funds are listed in our Annual Report, which receives widespread circulation. An Agency Fund may enhance a charity’s fundraising prospects because some donors wish to support charities, but prefer the relative long-term security of the Community Foundation, particularly if they want to ensure their gifts are endowed forever. Of course, agencies also benefit from our high quality, cost-efficient administration and stewardship services.