This policy outlines the foundation’s approach towards restricted funds and establish controls for such funds.
Restricted Funds are monies designated by the donor or the foundation for a specific purpose.
The foundation may establish Restricted Funds, at its discretion for a facility, program or initiative/project.
Restricted fund types that may be established include:
A) Donor Designated Fund – restricted funds that have been designated by the donor for a non-established fund of the foundation. Donors may establish a Donor Designated Fund with a minimum gift of $25,000 payable over a maximum of two years.
B) Endowment Fund – a principal sum, permanently set aside and invested by the foundation, with only the income used for charitable services.
Endowment funds include:
i) Specified Endowment Fund – specified endowments are those directed by the donor for a special purpose. The fund may be established only by Covenant Foundation in accordance with Covenant family priorities. Specified endowments require a minimum of $250,000 to establish.
ii) Named Endowment Fund – named endowments are those named after an individual, couple, family, group, corporation or business. Named endowments may require a minimum of $500,000, payable over a maximum of three years to establish. The fund may or may not be restricted.
Any exception to the above policy must be approved in writing by:
- the Board delegates authority to the Committee for exceptions pertaining to Endowment Funds, and
- the CEO for exceptions pertaining to Donor Designated Funds.