Nonprofit Agency Endowment Funds at The Community Foundation An Essential Tool for Nonprofits The Community Foundation provides an easy, secure alternative to the often cumbersome and costly process of creating and maintaining a private or independent endowment fund, or investing and managing a large gift. Local nonprofit agencies establish charitable funds with The Community Foundation to achieve a variety of benefits, including: • The Community Foundation’s own nonprofit status entitles an agency’s donors to tax deductions superior to those accorded by private foundations. The Community Foundation is a publically supported tax-exempt organization under provisions of Sections 501(c)(3) and 509(a)(1) of the Tax Code—not a private foundation. • The Community Foundation makes it easy. The foundation handles all administrative needs including the development and management of any grants, financial transactions, tax filings and audit requirements.
• The Community Foundation provides full-time professional management of all held funds. • Nonprofit agency funds have less exposure to investment expenses due to the aggregation of other endowed funds in The Community Foundation’s investment pool. • A nonprofit agency’s personnel and volunteers can focus their efforts on fund-raising when The Community Foundation relieves their fund management burden. • An agency’s donors can accomplish multiple charitable objectives within the structure of The Community Foundation. Many donors find this flexibility attractive when considering major planned gifts. • The Community Foundation serves as a 3rd party fiduciary, giving donors more security in making gifts and bequests to an endowment. • The Community Foundation staff and professional advisors have expertise in planned giving, endowment administration and charitable trust administration.
• The Community Foundation offers a separate board and staff dedicated to the fiduciary responsibility of maintaining the endowment. • Statements and disbursements (if needed) are made on a quarterly basis. • The nonprofit agency’s named fund is included in foundation marketing materials – The Community Foundation offers increased exposure for each fund to a wider pool of potential philanthropists. • The Community Foundation is available to assist its partner agencies with planned giving presentations to their potential and existing donors. • There is no need for the agency to create a separate 501(c)(3) organization, reducing potential accounting and legal fees, as well as the requirement to file annual IRS 990 returns. • The Foundation’s annual administrative costs are nominal: typically 1% of the fund value.
Knowledge is Power Continued from cover
be sustained and that will flourish. Using MATCH Model Community Goals and Benchmarks, the report makes it possible to measure our own community’s progress towards achievable 21st century health expectations. The Women and Girls Fund’s new report goes on to encourage and support regional collaboration. It stresses that new and improved health care intervention and prevention efforts won’t be sufficient to
protect the health of women and girls. It urges the adoption of policies that increase health options and outcomes by empowering women and girls to advocate for their own health in all settings. The report also outlines what individuals can do now to help create a model community where women and girls live, learn, work and grow older in optimal health. Just one of these opportunities is the Women and Girls Fund itself – through
the fund, area women engage the power of philanthropy. They bring their collective time, treasure and talents to bear on the issues that most affect us. “Become a philanthropist who invests in programs that improve and protect the health of women and girls by joining the Women and Girls Fund,” said Mona Albertine, Past President of the Community Foundation. To become a member visit www.cfrrr.org or call 540.373.9292
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