Posts Tagged ‘component funds with community foundations’

21.  Mr?Man, what are component funds?

Mr?Man can not believe his eyes.  Component funds is the very topic he wanted to write about.  Component funds are individual memorial funds that together form a larger field-of-interest or restricted fund.  The combined funds are usually referred to as a trust or an endowment.  One fund contract sets the purpose, fund committee, and rules for all the present components as well as new ones added in the future.

22.  Don’t multiple names of the component funds and the overall trust name cause confusion?

No, not at all.  The name of the trust becomes the brand name used to build public awareness and loyalty from one year to the next.  The fund contract sets rules on low and when the memorial component names are used so that any news announcement or program for an event will list all the current memorial component names.  When new components are added, the list grows.

23.  What are the advantages of a trust with memorial component funds?

Mr?Man has already mentioned a trust name works best as a brand name for community loyalty.  The brand name should be one that is not easily forgotten. 

Another advantage is the combined effort avoids the minimum administrative fee that would adversely affect new or small memorial funds.  Only one administrative fee would be charged for the trust.

Each memorial fund is honored equally.

A small fund does not carry the full cost of a project, but shares with other funds, contributing as each is able.

Starting and growing a new memorial fund is easy and allows family and friends to build the fund gradually.

Because the memorial funds are always listed in a uniform fashion, a family or nonprofit can create a new memorial without feeling they have abandoned their earlier memorial.  Multiple memorials are encouraged.

24.  Can you outline a good example?

Yes.  Suppose a group of friends wanted to create a memorial for a woman who believed strongly in the role of women in public affairs and in public speaking, but they were concerned they could not on their own raise enough money to make an endowed fund effective.

The solution is a field-of-interest fund supporting important women speakers in their community.  The endowment is branded Women Speak Trust.  With this brand name there is an energy flow from the first word to the last word, from the last to the first, and a flow in both directions from the middle word.  It is an easy name to remember.

Component funds may go by a name only, as for example, Lillian Gish Memorial Fund, or Michelle Obama Fund; or by a name, banner, and photograph.  For example:

                                            Lillian Gish  –Actress, Blacklisted Activist

                   Michelle Obama  —Wife, Mother, Advocate for Health Children

The list is never completed.  Nor is there a rule against honoring a living woman.  Such a trust would be open to all groups and families.  Charles Marlin

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