Create a Fund
Clients come to us to make arrangements for their long-term goals for supporting the community and the issues they care about. Establishing a fund at the Community Foundation is a simple process and it starts with a conversation. We meet with each client or their professional advisor individually and discuss what their generosity strategy is; that is, what do they want to accomplish with their giving?
By answering a few simple questions, we can tailor a fund that is right for each individual and that supports their charitable goals:
- Do you want to support a specific organization or issue area? (e.g., the environment, education, the changing needs of the community, etc.)
- Do you want your fund to grant in your name after you are gone?
- Are you interested in spending down your fund, or, would you like your fund to be endowed so that it provides for grantmaking forever?
- What assets will you use to establish your fund?
From here, we work through questions that a client might have about the ins and outs of establishing a fund. The timeline for moving forward is dictated by the client and we are flexible for meeting and making arrangements.
How to Establish a Fund
If you are interested in partnering with the Community Foundation on your charitable giving, below are the simple steps for establishing a fund:
- You and the Community Foundation develop an agreement that outlines your wishes for your fund.
- You make a gift to the Community Foundation. You can give cash, appreciated stocks, real estate, or other assets.
- We set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
- You receive tax benefits in the year your gift is made.
- We handle the administrative details (check writing, investments, IRS filing).
- You choose whether you want your fund to be endowed or non-endowed:
- Clients with endowed funds at the Community Foundation have their fund invested with our combined assets of nearly $350 million, giving them access to a diverse portfolio managed by more than 40 carefully selected investment managers.
- Endowed funds allow for maximum growth over time by providing between four and five percent of the balance of the fund for grantmaking each year, and investing the remainder.
- Clients with non-endowed funds with an initial balance of $100,000 or more have the option to be invested with our nearly $350 million endowment.
- Non-endowed funds can provide up to the full balance for grantmaking.
For more information contact Betsy Constantine at (716) 852-2857.