Why should my client consider
creating a fund?
permanent source of income for their designated charitable purposes in
leave a permanent legacy by naming the fund for your client’s family, a
loved one, a mentor, a teacher, or a hero.
provide a source of income for future needs of your client’s chosen
beneficiaries long after their own lifetime.
maximize tax deductibility and other estate planning tools in
accomplishing their charitable wishes.
should my client consider using the Shenandoah Community Foundation
instead of establishing a private foundation?
Shenandoah Community Foundation can help your client achieve all their
charitable intentions and wishes with minimal paperwork, no legal or
administrative set-up fees, no filing fees, and only a 1% annual
ongoing fee. Unlike the requirements of a private foundation, the
Shenandoah Community Foundation handles all IRS tax filings
and all accounting and investment decisions. Unlike the requirements of
a private foundation, there are no minimum or maximum annual
disbursements. In other words, it’s easier and much less expensive to
accomplish charitable wishes through a community foundation than
through a private foundation. See Comparison
(or my client’s family) already has a private foundation. Can they move
that over to your community foundation?
are some legal and administrative requirements for doing this, but it
is done all the time throughout the country. This can be an especially
attractive choice for a private foundation that has existed for two
generations or more and the current generation is no longer as
interested in administering the private foundation.
(34 KB) or Word
(51 KB) to download our
document “Considerations in Terminating a Virginia Private Foundation”.
my client create a fund?
” for more details. Creating a
permanent, named endowment fund to benefit a favorite church or charity
(or charities) is easier and more affordable than most people realize:
gift of $5000.00 (with a gift of at least $500, your client can have up
to five years to achieve this minimum)
administrative charge to establish a fund
legal fees to establish a fund
IRS filing, administrative, or investment responsibilities by donor
tax deduction in the year of their gift to the Foundation
annual administrative fee (charged ¼% on the fund balance of each
can designate beneficiaries or allow the Foundation board to use the
income to meet identified community needs.
other estate planning tools my client can use to create or contribute
to a fund?
• Yes. We can
work with you and your client for maximum tax advantage by making their
fund the beneficiary of:
Charitable Lead Trust
Charitable Remainder Trust
Bequest through their will
Annuity or other life insurance policy
setting up a fund the only way my client can use the Foundation to help
the Shenandoah County community?
• No, not at
all. Consider these additional options:
client may give any amount of money at any time to an existing
fund to help it achieve its charitable purpose. Click HERE
to see a
description of our existing funds.
client may give an unrestricted gift of any amount at any time to the
Foundation’s Operating Fund to support the work of the Foundation in
the community. This may be used for any purpose, including
administrative overhead, grant-making, educational events, etc.
client may give a gift of any amount at any time to our Unrestricted
Grants Fund, our General Endowment Fund or our Founders Fund. Grants
from these funds are used to meet community needs identified by the
client may join with others who share their charitable interest and let
the Foundation help them create a movement around that interest.
LINE: Talk to us about your client’s charitable dreams. They may not
feel they have a great deal to give, but we can often help them
accomplish those dreams by finding others who share them. We connect
people who care with causes that matter, and there are lots of people
who care who aren’t wealthy.
my client have to let you know if they have included the Shenandoah
Community Foundation in their will or as a beneficiary of other giving
they have in mind?
• No, but there
are significant advantages to letting us know:
allows us to have a conversation with them and you about their
intent and wishes for their gift in the future. Often, we draw up a
Memorandum of Understanding for a Fund that will not be activated or
funded until after a donor’s death, but your client will have the peace
of mind of knowing that their wishes will be carried out.
provides you, your client, and the Foundation with the chance to set
things up in accordance with all laws and regulations to most
effectively ensure that their wishes are carried out. We work regularly
with the legal department of the national Council on Foundations to
ensure that we are in compliance.
provides further documentation of their wishes in the event anyone
should contest their will.
helps us with our own planning so we can more quickly and effectively
implement their gift when we receive it.
should my client consider establishing a Charitable Remainder Trust?
A charitable remainder trust, with the Foundation as its beneficiary,
is ideal when your client needs their current assets now to live on but
wants to use some or all of whatever remains after their death and
their estate is settled to benefit the community in whatever way they
instruct. By using the Foundation as a vehicle for this, you and your
client can be assured that their wishes are carried out without an
administrative burden to the executor of their estate or their family.
should my client consider establishing a Charitable Lead Trust?
A charitable lead trust, with the Foundation as its beneficiary, is
ideal when your client has assets that they don’t need right now but
wants the assets to go to their heirs after their death or after a
specified period of time. The income from the trust goes to the
Foundation (to be used for charitable purposes as your client
specifies) during the period of the trust, after which time the trust
is dissolved and distributed to their heirs as designated when they
establish the trust. This is a wonderful and often over-looked way for
a client to benefit their community or favorite church or charity
during their lifetime or for a specified period of time without
depriving their heirs of inheritance. By using the Foundation as a
vehicle for this, they can be assured that their wishes are carried out
without an administrative burden to them or their family.