Create a Fund
The Community Foundation frequently partners with professional advisors to help clients fulfill their charitable wishes. Establishing a fund at the Community Foundation is a simple process and includes the steps below.
By answering a few simple questions, we can create a fund that is right for each individual and that supports their charitable goals. When discussing how the Community Foundation might be able to help your clients, we suggest asking the following questions:
- 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 account, 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 can determine how we can best help. The timeline for moving forward is dictated by the client and we are flexible for meeting and making arrangements.
How to Establish a Fund
- The client, with the help of their advisor(s), develops an agreement with the Community Foundation that outlines their wishes for the fund.
- The client makes a gift to the Foundation. The gift can be cash, appreciated stocks, real estate, or other assets.
- We set up a fund in the client's name, in the name of the client's family or business, or in honor of any person or organization the client chooses.
- The client receives tax benefits in the year the gift is made.
- We handle the administrative details (check writing, investments, IRS filing).
- The client chooses whether the fund is endowed or non-endowed:
- Clients with endowed funds at the Community Foundation have their fund invested with our combined assets of nearly $400 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 $400 million in charitable assets.
- Non-endowed funds can provide up to the full balance for grantmaking.
To establish a fund or for more information, contact Betsy Constantine at (716) 852-2857.