You can start fund, at no cost to you other than your donation, by
contributing $5,000 or more all at once or by starting with a seed
donation of as low as $500 and a commitment to get the fund balance to
at least $5,000 within five years. The sooner you get the balance up to
$5,000 or more, the sooner it can be generating enough income to start
benefiting your chosen cause.
exactly how it
works once you have called us to express an interest in setting up a
- We’ll meet with you to make sure we understand your
intentions. We’ll ask you lots of questions such as:
- What kind of fund do you envision?
- Will it be restricted
(you specify the recipient organization or purpose) or unrestricted (the
Foundation selects the recipient organization or purpose based on needs
identified in the community)?
you want your name – or someone else’s name – as part of the Fund name
as part of the grants or scholarships given from the fund? Giving money
in memory or in honor of someone can be very meaningful.
you want this to be a “forever” fund (an endowment), or do you prefer
that your gift be disseminated over a certain period of time? This is
sometimes chosen when a donor would rather make a bigger impact over a
short period of time than a possibly smaller impact over a longer
period of time.
- How much do you wish to contribute
1) now, 2) later, 3) after your death (through your will/estate plan)?
Do you wish to contribute cash, stocks, or other assets or property? Do
you wish to use a charitable lead trust or a charitable remainder trust
to accomplish your goals? (Your attorney or tax professional will need
to be involved in these two options.)
- How often—and how much—do you want grants or
scholarships to be made from your fund?
much do you want to be involved (or have your family involved) in the
selection of grants or scholarships made from your fund? This will
affect the type and terms of the fund you establish.
on our discussion, if you decide you want to establish a fund, the
Foundation will draw up a Memorandum of Understanding (MOU) to be
signed by the donor and Foundation representatives after the wording is
approved by everyone concerned.
- If your intention
is to activate the Fund right away (as opposed to later or after your
death), the signed Memorandum of Understanding would be
accompanied by an initial gift/donation
to the Foundation. This gift activates the Fund. The donor is eligible
for a tax deduction in the year the gift is given.
Foundation will set up the Fund in its books and invest the money in
the portfolio with its other investment assets so it will start
accruing investment gains/losses. There will be a quarterly
administrative fee deduction (1/4% per quarter based on the balance at
the end of the previous quarter), and the Treasurer will record
quarterly gains/losses as well as any new contributions made to the
Fund or grants/scholarships taken from the Fund. The Foundation will
handle all investment decisions, bookkeeping, and annual tax filings.
- The Foundation will send the donor an annual report of the
fund by early spring of the following year.
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