Applying for a Freeman Challenge
Once you have determined that applying for a Freeman Challenge is right for your organization, the next step is to begin the application process, which opens in September and closes in October for the Freeman Endowment Challenge and the Freeman Board-restricted Reserve Challenge. Site visits will be conducted in November and the grants committee will convene in December to make their decision.
The Endowment Challenge
The Endowment Challenge will match one dollar for every two dollars raised by nonprofits. Nonprofits will have the opportunity to select a preference for one of the three matching categories:
- The nonprofit raises $50,000. The Challenge matches $25,000.
- The nonprofit raises $100,000. The Challenge matches $50,000.
- The nonprofit raises $150,000. The Challenge matches $75,000.
An endowment is a fund that is made up of donations to a nonprofit organization that are subject to a requirement that the principal be maintained intact in perpetuity and invested to create a permanent source of income for the organization. Organizations cannot access the principal, but can access the accrued income from the endowment dividends for its charitable purpose.
Board-restricted Reserve Challenge
The Board-restricted Reserve Challenge will match one dollar for every two dollars raised by nonprofits. The board-restricted reserve is a one-time only grant opportunity. Nonprofits will have the opportunity to select a preference for one of the three matching categories:
- The nonprofit raises $10,000. The Challenge matches $5,000.
- The nonprofit raises $20,000. The Challenge matches $10,000.
- The nonprofit raises $30,000. The Challenge matches $15,000.
The Board of Directors is responsible for approving a policy on the purpose and process for accessing and replenishing the reserve. This policy is required with the proposal. Click here for a policy template for a Board-restricted Reserve.
Board-restricted Reserve Definition
A fund balance set aside for use under the guidance and approval of the organization’s Board of Directors to stabilize a nonprofit’s finances and provides a cushion against unexpected events including large un-budgeted expenses, losses of income or working capital for an unplanned opportunity.