A charitable fund that is usually held by an organization, such as a community foundation, where a donor may direct previously donated assets (usually only income) to be donated to and used by certain qualified charities. The donor generally has significant latitude in directing these funds, but the foundation must by law retain the ability to ultimately direct the funds.
An umbrella term used to designate an account held at a community foundation or charitable gift trust, such as those held by mutual fund companies. Community foundations and gift trusts are independent nonprofit organizations; while the donor who established the fund is given the right to designate the beneficiaries of the fund, the governing body of the umbrella organization has the duty to ultimately approve each grant.
A fund that provides for ongoing consultation between the donor(s) and the Board of Directors or Board of Trustees on the specific uses of fund assets and income.