Top 5 Myths About Starting a Fund with Solomon Valley Community Foundation

At Solomon Valley Community Foundation, we often meet people who want to make a difference but feel uncertain about how to start. Misconceptions about charitable funds can make the process seem intimidating, but the truth is, starting a fund is more accessible, flexible, and impactful than most people realize. 

Here are the top 5 myths we hear most often, and the realities that show why a fund with SVCF could be the right step for you. 

Myth 1: You have to be wealthy to start a fund

Truth: You don’t need millions to make an impact- you just need vision and commitment. 

At SVCF, most funds have a $10,000 minimum, but donors have five years to reach this goal. Plus, thanks to the Dane G. Hansen Foundation, we’re currently offering a $2,000 match on new funds. That means if you contribute $2,000 to start a fund, SVCF matches it immediately, doubling your impact from day one. 

And you don’t have to give cash to get started. SVCF accepts a wide variety of assets, including grains, livestock, and real estate, as well as stocks, bonds, retirement assets, and life insurance. In other words, your gift can reflect the resources you already have. 

“We see every day how small, consistent investments grow into something powerful. You don’t need to be wealthy to start a fund, you just need the heart to invest in what matters most to you" - Julia Rabe, Executive Director, SVCF

Myth 2: Starting a fund is complicated

Truth: It’s easier than you think!

One of the biggest advantages of partnering with a community foundation is that we handle the administration, compliance, and investment management so you don’t have to. Our role is to make giving simple and sustainable, while ensuring your intentions are honored for years to come. 

Think of SVCF as your back office- we take care of the details, so you can focus on what matters most: your goals, your values, and your community. 

Myth 3: Funds are only for scholarships

Truth: While scholarships are a common starting point, SVCF actually encourages donors to think more broadly. Scholarships can make a significant difference, but they can also be challenging to sustain over the long term and may not always address the most pressing needs in our community. 

That’s why we offer a variety of fund types, each with unique benefits: 

• Donor Advised Funds work like a charitable savings account. You recommend grants to nonprofits of your choice, whenever you’re ready.

• Designated Funds provide permanent support for a specific nonprofit you love, even long after you’re gone. 

• Field of Interest Funds allow you to invest in a cause or area you care about (such as youth, health, or the arts) without tying it to one specific organization. 

• Organization Funds help nonprofits themselves build sustainability and long-term capacity. 

In fact, some of the fastest-growing funds at SVCF are organization funds. For example, the Solomon Valley Cinema Fund started with just $2,000 and has now grown nearly 800% in the last 18 months. Other nonprofits, like the Waconda Cultural Association and Breast Friends Foundation, have seen similar growth thanks to SVCF initiatives such as Give to Grow. 

Myth 4: I'll lose control of my money

Truth: At SVCF, you call the shots

When you establish a fund, you set the purpose, parameters, and direction. Our job is to steward your intent forever. We invest funds wisely, manage the paperwork, and ensure your original vision is carried out, whether that’s next year or 50 years from now. 

As Debra Houghton, SVCF Founding Board Member and longtime donor, shared, “We chose to partner with SVCF because we know that our funds will be handled correctly, safely, and invested wisely. Keeping your dollars at home with people that care about Mitchell County is invaluable and comforting.” Read more about the Houghtons and their story of giving here 

Myth 5: Funds are only for large organizations or major donors

Truth: Some of the most inspiring funds at SVCF have been started by small, grassroots efforts from organizations and families who wanted to make a difference. 

In a rural community like Mitchell County, lasting impact often begins with families pooling resources, churches setting aside gifts, or community groups coming together around a shared vision. Whether you’re honoring a loved one, supporting a cause close to your heart, or helping your local nonprofit thrive, starting a fund doesn’t require being “big.” It just requires a belief in the future of your community.  

“Local giving is incredibly important for rural communities. It has a profound impact on the local economy, strengthens community bonds, allows donors to see their impact firsthand, and increases the sustainability of our communities’ future.” - SVCF Vice Chair, Barb Wise. 

The Bottom Line

Starting a fund isn’t about how much you have; it’s about the legacy you want to create. At Solomon Valley Community Foundation, we make it simple, accessible, and deeply local. From helping families honor loved ones to supporting nonprofit sustainability, we’re here to be your partner in impact. 

Ready to start something that lasts? With the $2,000 match for new funds, there’s never been a better time. Contact Us to explore your options today!