By Sharon Closius / September 15, 2026

What Is Discretionary Funding? Why Does it Matter to the Valley?

Communities don’t move forward by accident. They grow because people see what’s needed and step in to help. While some of that work can be planned, some of it just can't. That’s where unrestricted funds, also known as discretionary funds, come in --they are there for the moments we can’t predict.

At the Valley Community Foundation, discretionary funds let us direct resources right where they’re needed most, in real time, across Ansonia, Derby, Oxford, Seymour, and Shelton. Sometimes, they fulfill an unmet need for our critical nonprofits, and other times they are used for an emergency need of the community.

Most of us are used to giving for a specific cause, and that kind of support is so important for stability. But discretionary funding plays a different role. It gives us the flexibility to meet the needs of the community --like a local emergency, a program that needs to grow fast, or a neighborhood initiative that just needs a little boost at the right time to make a big impact. For example, discretionary dollars allowed VCF to respond to COVID response and recovery and help support the community following the 2024’s devastating flooding.

We know people sometimes have questions about how these funds are used. To be clear, this isn't a "slush fund." Every dollar is governed by our mission, guided by our Board, and shaped by our daily work with nonprofit and community leaders throughout the Valley. We ask one simple question before every decision: "Does this truly make our community stronger?"

Strong communities need both structure and flexibility.  Discretionary funding gives us that flexibility without ever losing accountability.

This is how we stay resilient --not just by planning for what we expect, but by being ready for what we don't.

If you’re looking to make a lasting impact here in the Valley, helping to build discretionary funding through our 25 for the Next 25 initiative is one of the most powerful ways to do it. It allows your gift to support the whole community, not just for today’s needs, but for whatever tomorrow brings.

To learn more about how discretionary funds work, or to explore ways to contribute, visit valleyfoundation.org or connect directly with Valley Community Foundation. A conversation is often the best place to start.

In Community,

Sharon Closius
President & CEO