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Benefits

Giving through the Community Foundation offers donors:

  • Flexibility: Donors may create funds in any name & for any charitable purpose.
  • Immediate Tax Deductions : As a 501(c) (3), the Foundation helps save on income and estate taxes and helps reduce/eliminate capital gains tax.
  • Connectivity: Donors stay connected to their gift, their family and their favorite charities.
  • Personalized Service: Knowledgeable, professional staff provide prompt attention to donor needs.
  • Community Information: The Foundation is a resource for donors about local nonprofit organizations and community needs.
  • Investment Expertise: Experienced board and committee members, and financial advisors oversee investments and relieve donors of that burden.
  • Low Cost: Combining individual funds, keeps administrative and investment costs low.
  • Reliability: The Foundation has a record of reliability and dependability.
  • Simplicity: A fund is established with one governing document that takes less than one hour to prepare.
  • Recognition: Donors can honor or memorialize a loved one in perpetuity.
  • Privacy: Donors can give anonymously through the Foundation.
  • Legacy: Donors can build lasting testaments to their names, their families and causes they care about.

Community vs. Private Foundation

  Community Foundation Private Foundation
Ease of Creation Execution of simple Fund Agreement is all that is required. Involves creation of a new organization, application for tax-exempt status, and expenditure of time and money.
Tax Benefits Taxpayer can deduct up to 50% of adjusted gross income for cash gifts.

Full fair-market value of gifts of appreciated property is deductible up to 30% of adjusted gross income.

Cash gift deduction is limited to 30% of adjusted gross income.Only the cost basis of certain types of appreciated property is deductible, and deduction is limited to 20% of adjusted gross income.
Excise Tax No excise tax is paid. 1-2% excise tax must be paid on net annual income.
Accounting, Investment, Audit and Tax Returns Community Foundation handles all investments and accounting, files annual tax returns, and provides annual audit. Trustees must handle all investments and accounting as well as comply with detailed reporting requirements.
Investments No federal investment requirements and no equity concentration restrictions. Certain types of investments prohibited, and the foundation may not own more than 20% equity interest in a business.
Distributions No minimum payout requirement. Approximately 5% of net asset value must be paid out for charitable purposes annually.
Anonymity Donors' names may remain anonymous to the public. Names and addresses of contributors must be made available to the public.
Costs Administrative and investment costs are shared and kept at a minimum. Administrative costs can be costly.

Fees

Administrative Fee

Effective January 1, 2012, the CFNF Annual Administrative Fee shall be as follows:

  • 1.5% on the first $3 million (except that funds with a balance of less than $50,000 incur an administrative fee of the greater of $350 or 1.75 %.)
  • 1.0% on the next $3 million
  • 0.80% on the next $3 million
  • 0.60% on the next $3 million
  • 0.40% on the balance in the fund

Processing Fee on Non-Endowed Gifts

Non-endowed gifts to donor advised funds are charged a 2% processing fee.

Investment Fee

Earnings of endowed funds are reduced by each fund's pro-rata share of investment costs (approximately 85 basis points annually). Generally, non-endowed funds do not earn interest and are not charged an investment fee. NOTE: All investment returns are reported net of investment costs.