Community Foundation of New Jersey

Community Foundation Variance Power

Through fund agreements, community foundations carry out donors’ intentions. Over the course of time conditions change. Changes in law or other circumstances may make it impossible to carry out the fund’s original purpose. In other cases, the needs that gave rise to the fund’s creation may no longer exist. As a consequence, every community foundation is required by the IRS to have a variance provision in its bylaws. This provision permits the board of trustees to vary, when needed, from the donor’s original stated purpose to a similar new purpose. This new purpose is as closely aligned to the donor’s original intent as possible. A copy of the variance provision language is available upon request.