Types of Funds

The AEF provides potential donors several options to contribute to the general fund or establish separate family endowment funds or special purpose funds in a manner that best suits their individual preferences, objectives, financial situation, etc.

To establish an Endowment Funds, donors may donate cash, securities, or any type of asset or interest in an asset.

The following is a brief description and the tax implications of establishing endowment funds and trust funds. 

1) Outright donation: (less than $1000.00)

 The donor will receive a tax deductible receipt and the donated sum shall be dispersed to a qualified donee of the AEF at the discretion of the Board.

2) Endowments: (donations of $1000.00 or more)

The donation may be included in any of the existing endowment funds of the Foundation at the request of the donor. The donor will receive a tax deductible receipt, the principle of the donation is preserved and the investment income of the donation is used toward the specified beneficiary.

The donation will appear in all AEF reports, with the name of the donor under the list of donors of the specified endowment fund.

3) Family funds ($25,000.00 or more):

The fund is designated as a “family” fund and may be included in any of the existing endowment funds of the Foundation at the request of the donor. The donor will receive a tax deductible receipt. The principle of the endowment fund is preserved and the investment income of the fund is used toward the objective of the specified endowment fund.

Alternatively the donor, through a written agreement with the AEF, may direct the proceeds of the fund toward a charitable objective consistent with the objectives of the AEF.

The donation will appear in the AEF reports as a “Family Fund” with the family name of the donor.

4) Independently administered Endowment funds ($50,000.00 or more).

The fund is designated as a “family” fund similar to (3) above, except that the donor may stipulate the independent administration of the fund including restrictions and instructions on the investment strategy for the fund. The instructions and the restrictions shall be expressly agreed to by the Board of Trustees.

5) Special Purpose Funds ($50,000.00 minimum)

An Special Purpose fund may be established by an individual or an organization. The contributor transfers a sum or an asset to AEF to be invested and administered per a trust agreement. The contributor will not receive a tax deductible receipt. The annual income generated from the fund is used for the charitable purposes specified. The principle of the special purpose fund may be returned to the donor at their request with restrictions agreed upon by the donor and AEF.

The fund may be managed independently and the proceeds of the fund are used toward a charitable objective desired by the contributor consistent with the charter and aims of the AEF.

The Fund will appear in the annual AEF reports as a family or an organization Special Fund.