How a Fund Works

Make giving simple and meaningful

How It Works

You make a donation of cash, appreciated stock, real estate, or other assets to the Community Foundation.
We set up a Donor Advised Fund that can be named as you choose.
You receive tax benefits, to the full extent allowed by law, in the year your donation is made to create your Donor Advised Fund or to add additional amounts subsequently. Donating appreciated assets (e.g. stock) allows you to avoid capital gains taxes thus maximizing the value of your charitable gift.
Your Donor Advised Fund is invested to preserve the initial capital while providing growth of the fund over time, and these gains are also available for your distribution.
For accounts of $50,000 or more, you may recommend the investment manager for your fund.
At any time, you may “advise” the Community Foundation to make gifts from your fund to support the causes and organizations you care about most. These gifts may be made in your name, in the name of your Donor Advised Fund, or anonymously.
We handle all of the administrative details, while you enjoy the impact of your philanthropy.

Administrative Fees

Administrative Fees, or Community Investment Fees, are used by the Community Foundation to support mission-based operations. These fees are your investment in a local 501(c)(3) public charity dedicated to improving the quality of life in our community. Fees vary depending on the type of fund and fund balance, and are deducted directly from the fund each month.

Investment Management Fees

In addition to Administrative Fees, Investment Management Fees are deducted from your fund monthly to cover the costs of managing the investments in your account. These fees will vary depending on the options you select for investment management when you open your fund, and the size of the fund. The Community Foundation does not receive any portion of the Investment Management Fees.

Incidental or Extraordinary Fees

Funds may be charged for direct expenses incurred by the Community Foundation on behalf of a specific fund, such as commissions for the sale of contributed stock or legal fees. The Community Foundation may request additional fees for extraordinary services such as special grant processing and review (which may apply pursuant to a contract with the Community Foundation or after the death of the founder(s) of the Fund if no advisors are serving) or other non-standard services.

Private Foundation Alternative

Private foundations can be costly and time-consuming. If you are considering starting a foundation, talk with us about how a donor advised fund can save you time and money and provide the same functionality as a private foundation. If you are already operativing a private foundation, the Community Foundation can help you convert your foundation to a donor advised fund for improved tax deductions and grant flexibility.

Click the button below to download a flyer that shows the benefits of a DAF as an alternative to a private foundation.

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