Q & A

What is a fund?

The Community Foundation consists of a collection of separate funds, each with its own donors and charitable purposes. In a sense, the funds act as individual foundations except that administration, investment management, program support and fiduciary oversight expenses are shared by all donors to the Foundation, thus reducing costs.

Is the Community Foundation set up to serve only wealthy people?

No. Anyone can be a philanthropist by making a donation of any amount to an existing fund or by establishing a new fund with an initial gift of $5,000.

Can other people contribute to my fund?

Yes. Some donors suggest that friends and family give to their fund in honor of an event such as a birthday, anniversary or funeral, or in lieu of purchasing a gift.

What organizations may I recommend for grants?

You may recommend qualified nonprofit public charities, schools and government programs, whether they are local or national organizations.

What tax advantages can I receive with a donor-advised fund?

Gifts to the Foundation qualify for the maximum available tax deduction allowed by the federal tax laws for charitable contributions. Using the Community Foundation to fund your charitable contributions with appreciated assets may have significant tax advantages over the writing of checks to your favorite charities. Your contribution to a fund here may qualify for higher deductibility than the same gift to a private foundation. Please consult with your tax advisor for more information regarding the deductibility of charitable gifts.

What is the difference between an endowed and non-endowed fund?

Endowed: A fund whereby the initial gift and subsequent gifts (corpus) are never spent. Instead, the income and interest of the fund support the charitable purpose defined by the fund’s founding donor.

Non-endowed: A fund where all contributions as well as income and earnings may be used for charitable purposes.

What is the minimum amount needed to establish a fund?

$5,000.

Can I give anonymously?

Yes. When establishing your fund or recommending grants from your fund, you may elect to remain anonymous.

Can I recommend a grant to an individual?

No. According to IRS organizations, the Community Foundation may make grants only to qualifying nonprofit public charities. The Community Foundation verifies nonprofit status for all organizations receiving grants.

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