Designated Funds

A Designated Fund (sometimes called a designated charitable fund or designated beneficiary fund) is a charitable giving vehicle where the donor designates one or more specific charitable organizations (or purposes) to receive the support over time. Key features include:

• The donor names the beneficiary charity(ies) up front.

• The fund is often (but not always) endowed, meaning the principal is invested, and only the income (or some agreed-upon portion) is disbursed.

• If the designated charity ceases to exist or changes mission, provisions are usually included to redirect the funds to similar organizations in line with the original donor’s intent.