When the five Trustees of the Rackham estate were considering the projects they should support in carrying out the provisions and intent of Mr. Rackham's will, the establishment of a community center in a small community seemed to them appropriate and desirable, and as four of them knew the Fenton Community well, its interests and needs, Fenton was chosen for the undertaking.
Of the five Trustees, the three members of the Horton family, Mrs. Rackham, Mrs. Bussey, and Mr. Horton, had been born in Fenton; and another, Mr. Rolland, had grown up there. Mr. Rackham had known and loved the town. In the account of their various grants and endowments, the Horace H. Rackham and Mary A. Rackham Fund, published by the Trustees in 1940, Fenton was described as "a decorous, tree-shaped, typically American village in the heart of an agricultural district...without a central gathering place" and with "no community facilities for the promotion of leadership, educational advancement, social enjoyment, or civic improvement." The population numbered around four thousand.
Because most of the original $200,000 trust fund had been used for the land, building, and landscaping, the Trustees added $100,000 as an endowment for upkeep, and again, on December 2, 1938, they added $35,000 to the endowment, along with a gift of $4,425 for intitial expenses. On January 26,1940, there was a final gift of $10,000 for capital improvements. The total endowment, then amounted to $135,000, and outright gifts for land, building, and expenses totaled $219,425.
On July 19, 1938, an agreement was signed between the Horace H. Rackham and Mary A. Rackham fund, as donor, the regents of the University of Michigan, as donee, and the Village of Fenton, as beneficiary, vesting in the Regents control over the management and investment of the endowment fund of the Fenton Community Center, which was to be commingled with the principal Endowment Fund of the Horace H. Rackham School of the Board of Governors of the Fenton Community Center. The University receives no income from the Fund for its own use.
The composition and function of the Board of Governors of the Center was defined by the agreement between the three interested parties and remains unchanged. It is composed of seven members, serving without compensation, and includes the Presidents of the Village of Fenton and the Superintendent of Schools. It manages and directs the income and appoints the Director of the Center, but the Board of Governors of the Horace H Rackham School of Graduate Studies must approve this appointment. The Director arranges and supervises the program of activities, which are planned, as stated in the agreement, to secure "The enthusiastic co-operation of local groups, and have as their objectives the development of leadership and the benefiting of the people of the community in the fields of health, recreation, morals, cultural development and civic improvement. It is the expectation and desire...that the Community Center Board of Governors and the Director will endeavor to co-operate with the Horace H. Rackham School of Graduate Studies of the University of Michigan to the end that the Community Center shall at all times have the benefit of the expert counsel of those members of the faculty of the University of Michigan especially trained in community-center activities."