Types of Funds

The Texas Valley Communities Foundation welcomes gifts of all sizes from a wide range of individuals who share its values of serving the RGV communities. Funds can be created as endowments, where gifts are held as a permanent body of assets that generate investment income for grants. Or, funds can be created as non-endowments and all the assets, including investment income, are made available for grants.

Separate named funds may be created by an individual or family through a gift or pledge of $1,000.00 or more. Small gifts from many donors may also be accumulated to establish such a separate named fund. In either case, no distributions will be made from a fund until its assets total $5,000.00.

The following types of named funds may be created:

• Unrestricted Funds: Recognizing that no one can foresee the future needs of the Rio Grande Valley communities, charitable gifts, in any amount, can be made without restrictions for the use in competitive grant making each year. Income from these funds will be used entirely at the discretion of the TVCOF Board of Directors. Endowment where the donor does not provide any advice or direction will be treated as unrestricted funds.



• Field of Interest Funds: These funds support specific areas of interest named by the donor at the time the gift is given. Areas of funding may benefit scholarships, arts, elderly and youth programs, specific geographic areas and other varied groups. The TVCOF Board of Directors may establish such funds to encourage donors to support specific activities in the Rio Grande Valley.



• Designated Funds: Designated funds are created to support a specific organization, named by the donor at the time the fund is created. The TVCOF Board has the responsibility to change the designated beneficiary of this type of fund should the original organization go out of business or change its purpose.



• Donor Advised Funds: A donor or a family may create a donor advised fund; this type of fund permits the donor to recommend distributions of income and principal from his/her fund. Upon request, the TVCOF will provide information to the donor on organizations or projects within the donor’s area of interest. "Giving circles," where a group of individuals each pledge annual gifts to support activities of their choosing, may also utilize this type of fund.