How does a fund at The Community Foundation differ from a charitable fund created at a commercial institution?
What kind of assets will The Foundation accept to create a fund?
What are the tax advantages?
What is the advantage of a community foundation over a private foundation?
How does a professional advisor help their client get started?
Can families be involved in the charitable giving through The Foundation?
In This Section
Professional Advisors FAQ
We offer a variety of charitable funds and will help you find the right one to meet the unique giving needs of your client. In addition, personalized service, philanthropic expertise, and local knowledge set us apart. We are experts on local philanthropy and can assist you and your clients in making strategic decisions about how to make the most impact for good.
We can accept the full range of assets including cash, publicly-traded securities, as well as real estate. A fund at The Foundation can also be the beneficiary of bequests, charitable remainder and charitable lead trusts, retirement accounts, and insurance policies.
While tax consequences vary according to assets, generally your clients may deduct up to 50 percent of their adjusted gross income (AGI) for cash contributions, and up to 30 percent of their AGI for gifts of appreciated securities and real property. Your client’s tax situation should be viewed on an individual basis to determine the deductibility allowed for them. A fund at The Foundation is often a better alternative than a private foundation.
Establishing a charitable fund at the Community Foundation is much easier and less expensive than forming a private foundation and ensures far greater privacy. In addition, the ongoing administration of a private foundation can be quite costly. At the Community Foundation, we handle all of the administrative work for a low community support fee. Private foundations are also subject to certain rules regarding the percentage of assets they must grant each year, as well as extensive disclosure of information on the IRS Form 990. With a charitable fund at the Community Foundation, your client will have more options for flexibility in their giving, as all funds at the Community Foundation, including grantmaking activities and fund balances, are reported in the aggregate on a consolidated IRS Form 990. This ensures that your client’s giving information is kept private. A side by side comparison is available here.
Contact our office.We will help you determine which charitable fund type is right for your client. We can also discuss options for planned giving, enabling your client to have a positive impact now and in the future.
At The Community Foundation, we encourage leaving a legacy of philanthropy for the next generation. We will help your client engage their families in their charitable giving. We are proud to have many families of philanthropists who continue to have a positive impact on the community year after year through their charitable funds at The Community Foundation.