Donor Designated Fund

A designated fund provides a consistent stream of income for a specific nonprofit or program you care about—forever. The funds are used for general operations or a program of your choice to ensure a healthy and sustainable future for your charity of choice.

The Dorothy Day Hospitality House benefits from the Charles Nelsen Memorial Fund. The family of Charles Nelsen, co-owner of Quality Plumbing and Heating, created this fund in his memory to benefit those individuals with basic needs within the community.

Designated funds are an important tool for charities to broaden their financial base and attract donors who wish to support their work long-term. If the charity changes its mission or type of service, or if it dissolves, RAF directs fund distributions to a comparable organization to ensure that your charitable giving continues to do the work you intended. You can start a designated fund with a minimum of $25,000.

Endowed Donor Designated Fund

Endowed Donor Designated Funds are pooled and invested with all of RAF’s assets for long-term growth. Annual spending is calculated using a spending policy (4-5% of the fund value) determined each year by the Board of Trustees to help preserve intergenerational equity.

Non-Endowed Donor Designated Fund

Non-endowed donor designated funds offer a short-term fundraising vehicle for a charitable organization or project, which can be granted out over time or in one lump sum. The principle of a Non-endowed Donor Designated Fund can be granted, allowing you to make a lump sum contribution to Rochester Area Foundation, receive the tax benefit today, and recommend distributions to the charity or project of your choice when you’re ready. Non-endowed Donor Designated Funds can be started with $25,000 and the full balance can be granted out at your discretion.

Key Benefits of a Donor Designated Fund:

• The organization you specify can benefit from your fund—forever.
• Rochester Area Foundation can redirect the distributions should the specified organization change its mission or cease to exist.
• The organization that you designate will be monitored by RAF to ensure that the fund distributions are being used properly.
• Anyone can make a contribution to a designated fund. The funds grow over time with contributions and investment returns.
• Designated funds can accept donations of many types of assets, including stock and real estate.