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The Trust Fund is specifically designed to manage donations and contributions received by a municipality. These funds are usually established to ensure that the contributions are used according to the donor's intentions and can be managed over time, often for specific purposes such as community projects, scholarships, or maintenance of public resources. Trust Funds allow for a level of oversight and legal compliance that protects the intentions of the donors while providing the community with the resources intended to be funded by those donations.

In contrast, the other funds mentioned typically serve different purposes. The Capital Fund is generally used for large-scale infrastructure projects or capital investments, not for managing donations specifically. The Utility Fund is associated with the delivery and management of utility services, such as water or electricity, and does not take on the role of handling donation funds. The Grant Fund is focused on financing projects through external grants rather than managing contributions directly from donors.