TYPES OF FUNDS
The Community Foundation is able to customize funds to meet each donor's unique set of goals and expectations. The following is a list of commonly established funds:
Donor Advised Funds
A donor advised fund operates much like a private foundation but without the expense, administrative burdens and restrictions of a private foundation. The Community Foundation completely manages the fund performing all investment, administrative, reporting and accounting functions. The donor participates in the grant process by recommending distributions to the donor's favorite charity or charities.
Donor Designated Funds
When establishing a designated fund, the donor names one or more charitable organizations to receive distributions from the fund in perpetuity.
When establishing a scholarship fund, the donor can identify the criteria to be used for selection of recipients and can participate in the selection process.
A memorial fund can be established with grants from the fund memorializing the departed loved one in perpetuity.
Field of Interest Funds
Donors may prefer to direct their support to a particular area or concern such as environment, children, or the arts. The Community Foundation carries out the donor's wishes for generations.
Agency Endowment Funds
An endowment fund can be established to provide added operating income and security for a non-profit organization's future. The Community Foundation completely manages the fund performing all investment, administrative, reporting and accounting functions. The non-profit organization receives an annual distribution.
This type of fund helps the Foundation and the community by supporting effective charitable work throughout the area we serve.
The Community Foundation will work with donors to design a fund that meets their personal charitable goals.
TYPES OF GIFTS
Cash is the simplest and most convenient way to establish a fund (although appreciated assets may provide greater tax advantages). Checks payable to the Community Foundation qualify for maximum deductibility for federal income tax purposes.
Securities or Real Estate
Gifts of appreciated securities or real estate can provide considerable tax advantages to the donor. Such gifts are deductible at full market value, and no capital gains taxes have to be paid on the appreciation. The gifts also eliminate any estate tax on the property.
A donor can establish a fund at the Community Foundation with a bequest under a will.
A donor can fund an endowment by gifting a life insurance policy to the Community Foundation naming the foundation as the owner and beneficiary. The donor receives an immediate tax deduction approximately equal to the cash surrender value of the policy. Any premiums paid thereafter by the donor are deductible for income tax purposes.
A fund can be established by designating the Community Foundation as the beneficiary (or partial beneficiary) of a life insurance policy, IRA or retirement plan.
Charitable Lead Trust, Charitable Remainder Trust and Deed of Residence Retaining a Life Estate
Each of these mechanisms allows the donor to provide for charity, yet retain some interest in the property to be given away. Each provides the donor with income tax as well as estate tax savings. A Charitable Lead Trusts provides the donor's favorite charity or charities with a stream of income for a set period of time with the remaining interest being reserved for a non-charitable beneficiary. A Charitable Remainder Trusts allows a donor to convert a low-basis asset into an income producing relationship with the trust without paying any capital gains on the transaction.