If a fund isÂ “endowed” it means thatÂ it is a permanent fund of the Community Foundation. Currently $10,000 is the minimum required for an endowed fund, but a fund may be opened with as little as $2,000. The donors then pledge to add to the fund to reach the endowed level. Grants are not made from a fund until it reaches the endowed (or fully funded) level.
A fund may also be quasi-endowed, which means the fund is treated as a permanent fund for investment purposes, but the fund is expected to only last for a pre-determined number of years. For example, a scholarship fund may be established but scholarships will only be awarded for 10 years, or until the fund balance is spent. Quasi-endowed funds may also distribute more than 5% which is the limit than an endowed fund can distribute annually.