Establishing a Fund

It is easy to establish your own named charitable fund and it can be done in less than a day. Working with a member of our staff, and your financial advisor if you choose, you will take these simple steps:

Receive a tax deduction at the time the fund is established and when additional contributions are made to the fund.         

If you have questions about establishing a fund that have not been answered in this section, please click here to contact us for more information.

 

 

Charitable remainder trusts
A community foundation like ours can administer charitable remainder unitrusts and annuity trusts, both of which pay lifetime income to you or other named beneficiaries.

Establishing a trust is simple. Cash or property is transferred to the trust. The income beneficiaries receive annually an amount equal to a fixed percentage of the trust's fair market value (unitrust) or a fixed dollar amount (annuity trust). Upon termination of the trust, the assets are transferred to your named charitable fund to support your individual or personal charitable giving goals.

Charitable gift annuities
A charitable gift annuity from our community foundation is a way for you to receive a guaranteed income for life and an immediate income tax deduction, while at the same time, leaving a legacy to the charitable cause of your choice.

Through a charitable gift annuity, you receive a fixed stream of income for life. After paying the lifetime annuity to you and your spouse, the remaining principal is transferred to your named charitable fund to accomplish your specific charitable goals. Our payments to you are based on your age; the older you are, the higher the rate. If the annuity is for you and your spouse, the calculation is based on your joint ages. If you need the income now, you can use our deferred plan and receive the income tax deduction now, but begin receiving payments when you reach a specific age. This is an excellent complement to your existing retirement plan.

The tax advantages of both a current and deferred annuity are two-fold. First, you receive an immediate income tax charitable deduction when you create your annuity. This is based on your age and annuity payout rate. Second, a portion of the payments you receive may be treated either as tax-free return of principal or long-term capital gains. These tax advantages increase the net income you receive.

Our development staff is pleased to provide a free, personalized analysis regarding your charitable gift annuity rate and tax deduction information. As these giving vehicles are complex and related to other estate planning, we encourage you to work with your lawyer or financial advisor. If you have questions about life income plans that have not been answered in this section, please click here to contact us for more information.
           

 

 

Outright Gifts

Outright gifts can include cash, securities, real estate, and life insurance.

Gifts of cash
A cash gift is the simplest way to establish a named fund or to add to an existing fund. Cash gifts are fully deductible up to 50 percent of the donor's adjusted gross income in any one year. Deduction amounts exceeding this limit may be carried forward for up to five additional years.

Securities
Gifts of appreciated securities (bonds and stock, including stock in closely held companies) also may be used to establish a fund or add to an existing fund. Such gifts often provide important tax advantages. Their full fair market value is deductible as a charitable contribution up to 30 percent of your adjusted gross income. As with gifts of cash, deduction amounts exceeding this limit may be carried forward for up to five additional years. The added benefit of giving appreciated securities is the avoidance of the capital gains tax on the appreciated portion of the gift. Gifts of closely held stock enjoy the same tax benefits as with publicly traded stock.

 
Life insurance
Life insurance policies also can be used as charitable gifts. If you name our community foundation as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All premium payments made by you thereafter will be deductible as a charitable contribution.

If you have questions about outright gifts that have not been answered in this section, please click here to contact us for more information.

 

 

 

Remainder Gifts
Many donors choose to leave charitable assets upon their deaths. After assuring that their loved ones have been cared for, donors can use a variety of assets, such as pension plans, life insurance or the proceeds from the sale of a house, for charitable purposes.

Bequests
You can establish or add to your named fund in your will or trust through a bequest. Your gift can be used to accomplish almost any charitable goal:

Pension plan beneficiaries
A retirement plan is one of the best types of assets to transfer to a charity because it produces taxable income. Most assets an heir inherits are free from income tax. However, an heir will pay income tax on disbursements from a decedent's retirement plan such as a profit sharing plan, Section 401(k) plan or IRA. If you are going to make a charitable bequest, it is usually better to transfer the taxable assets subject to income tax to a tax-exempt charity — such as a community foundation — and to transfer the assets not subject to income tax to heirs.

For a taxable estate over $3 million, the combination of estate and income taxes will frequently exceed 75 percent of the total amount — even more if the generation skipping transfer taxes are triggered. At a cost to your heirs of only 25 percent of the fair market value of these type of assets, you could apply 100 percent of the assets to a named charitable fund to accomplish your specific charitable objectives.

Life insurance beneficiaries
Perhaps you would like to contribute the proceeds of a life insurance policy to help the community, but you are not yet ready to give up ownership of the policy. By naming a community foundation only as beneficiary, you retain ownership of the policy and have access to the cash value as well as the right to change the beneficiary.

If you don’t have liquid assets right now but want to support a favorite charity, a gift of life insurance may be a good option. While you retain ownership of the policy, there is no charitable deduction for the value of the policy when you designate a community foundation as the beneficiary or for subsequent insurance premiums. However, proceeds payable to the community foundation at your death will not be subject to federal estate taxes.

We encourage you to work with your lawyer or financial advisor as you consider these options. Our staff is experienced in the use of these giving vehicles and is eager to work with you and your advisor in this process. If you have questions about remainder gifts that have not been answered in this section, please click here to contact us for more information.

Memorial Gifts

Special funds can be created to handle tributes and memorials. Contributions may also be made to existing funds in order to:

Donors can use this giving option to:

If you have questions about memorial or commemorative gifts, please click here to contact us for more information..

 

 

Types of Funds
There are several types of charitable funds available to support your giving. Choose the one that matches your personal approach to giving and your charitable intent. Our staff is eager to discuss these options with you and to help you select one that matches your giving needs.

Donor Advised Funds
Donor advised funds are established by donors who wish to actively participate in the grant-making process. Individuals who establish a donor advised fund recommend charitable projects or organizations they want to support. It is easy to give to multiple nonprofits through a donor advised fund. Our Board of Directors is legally responsible for approving all grants.

Designated Funds
Donors who wish to support a specific agency or cause can establish a designated fund. If the original charity ceases to exist, becomes obsolete or is unable to perform their charitable purposes, our Board of Directors is able to redirect the funds to an organization providing similar services without the cost of expensive legal action.

Many nonprofit organizations establish an endowment fund with us in order to grow assets to meet both current and future needs. They look to our Board of Directors for strong investment oversight services and ask our staff to manage all of the administrative details of the endowment. This can provide a relatively constant source of annual income and help maintain their mission in perpetuity. It also frees the nonprofit to focus on what they do best in the community.

Donors can create a new designated fund, or contribute to an existing one.

Field of Interest Funds
Field of interest funds are often established to support particular interest areas, specific program initiatives, causes or geographic areas. At the donor's request, use of the funds is restricted to a specified area of interest, but flexibility remains to meet changing situations.

Scholarship Funds
The creation of a scholarship fund is attractive to many donors and can be structured to benefit students at any education level, or for a specific institution. A scholarship fund can also be established to honor a loved one.

Some donors choose to stay involved through advisory relationships, while others name advisory committees to assist in the selection of recipients. Either way, our staff will handle the necessary paperwork and will ensure that scholarships are distributed in an equitable manner.

Unrestricted Funds
Unrestricted funds are not specifically designated for use by a particular agency, cause or area of interest. Our Board of Directors oversees the use of these funds, setting priorities for their use and determining how grants will be distributed to support the charitable needs of our community. Unrestricted funds give us the ability to respond to pressing and often changing needs in the community.

Let us help you select the fund that works best for your particular giving situation. Please click here to contact us for more information.

 

 

Reasons to Give

Becoming a member of our donor family offers an easy way for you to accomplish your charitable dreams. As our partner in giving, you receive the simplicity and tax advantages of a public charity combined with the personal recognition, involvement and flexibility of a private foundation. You also gain access to the highest level of strategic thinking on ways to meet community challenges to help make your contributions as effective as possible. And because we plan to be here, serving this community for a long time, you can be assured that there will be a permanent source of funds available for issues you care about.
           

Easy
A fund can be established with a simple governing document that requires less than an hour to prepare. And we'll guide you carefully through the process. Giving should warm your heart, not burden you with tax complications and ongoing administrative details. You can establish a charitable fund without having to cope with the complexities of setting up a special-purpose nonprofit corporation. Accomplishing your objectives is made simple by our expert and professional management of your fund.

We take pride in our ability to customize services to meet your charitable objectives. You may establish a fund that supports charitable organizations or programs you care about, the community's greatest areas of need, or a broad field of interest. You may also contribute to an existing fund or make an unrestricted gift that our Board of Directors will put to good use in the community on your behalf.

Effective
We are dedicated to ensuring that your charitable giving is as effective as possible. If your fund operated independently and had to recreate our services on its own, the price tag would be prohibitive. But your fund will share the costs of a knowledgeable staff, enjoy excellent financial management and benefit from a closely monitored investment strategy. Each donor has committed staff working on his or her behalf.

Permanent
An important part of our work is building a permanent collection of funds for our community. Our Board of Directors ensures that these funds will grow in perpetuity and will continue to carry out the charitable objectives of the donors who established them. If these objectives ever become impossible to carry out, the Board will redirect the funds to support a closely related purpose.

We are available to help you with all aspects of your giving experience. If you have questions about becoming a donor that have not been answered in this section, please click here to contact us for more information.

 

 

Tips on Giving Wisely
Our staff is available at any time to assist with your giving. We have many ideas to share with you.

Budget for Giving
Plan your philanthropic activities right into your budget just as you would other financial obligations.

Be an informed giver
Don’t be afraid to ask questions when you’re asked to give, including the specific name of the solicitor and his or her relationship to the organization, how much of your gift will be used for overhead, the specific projects the money will go toward, and other important information. Give only when you feel comfortable that your dollars will be going to support an organization you know and believe in.

Keep the right records
For gifts you make to your charitable fund at the community foundation you will receive from us a properly worded receipt as a confirmation of these tax-deductible contributions. Gifts made from your fund will not be recognized with a receipt, as you have already received the deduction and thank you for the original gift.

Ask about matching gifts
Many employers match gifts made by their employees or make grants to organizations recommended by employees. Be sure to ask your company if it can help your gift to stretch even further.

Remember, your gift can be confidential
If you prefer to have gifts from your charitable fund remain confidential, please let us know.

Consider alternative forms of giving
Don’t overlook the benefits you and your cause can receive from bequests, charitable gift annuities, gifts in kind, endowments and many other creative forms of giving. Ask your tax advisor or attorney to help create the best plan for you and your family.

Volunteer!
In addition to financial support, consider giving your time and skills. Not only will you help the organization, but you’ll also make contacts, hone your skills, and learn more about the charitable cause to which you’re committing your time and money.

 

Don’t forget you have the right to say no
Give generously when you can, but if you’re unsure or feel uncomfortable—or if an organization simply falls outside your plan for giving—don’t be afraid to say no. Or, ask for more information and take more time to think before making your decision.
Be a proactive giver!
You don’t have to wait to be asked. Plan a giving strategy in advance. Consult with our staff about how your gifts can be most effectively used and where you can make a real difference in the community.

We are here to help you with all aspects of your giving. If you have questions about charitable giving that have not been answered in this section, please click here to contact us for more information.

 

 

Ways to Give

We offer a wide range of gifting options and vehicles that you can use to establish or add to a named charitable fund. Since we are recognized by the Internal Revenue Service as a public charity, donors are provided with the maximum tax benefits allowed by law. Once your fund is established you can add to it at any time and in any dollar amount.

 

Read more about some of the flexible giving options you can select for your charitable giving. Our staff is eager to talk with you and your financial advisor about these opportunities in person. If you have questions about becoming a donor that have not been answered in this section, please click here to contact us for more information.