VALUE-ADDED PHILANTHROPY

HOW TO OPEN A FUND

REQUEST A PERSONALIZED FUND DESCRIPTION

WHY GIVE

FREQUENTLY ASKED QUESTIONS

Learn more:
Investment management
Charitable funds
Available granting dollars
Considering a private
  foundation?
Glossary
 

1. How does giving through the Community Foundation work?
2. How do I start a fund?
3. Is my fund permanent?
4. What are the available dollars from our permanently endowed fund?
5. How often will we receive statements for the fund?
6. What fees are charged?
7. Should I establish a private foundation instead of a Donor Advised Fund?
8. Why should I choose a Donor Advised Fund at the Community Foundation over a Commercial Gift Fund?

1. How does giving through the Community Foundation work?
   You start a fund by making an irrevocable gift (minimum value of $10,000). The Community Foundation invests your gift along with those of other donors. Investment returns are added to the principal of your fund and a percentage is set aside for granting. You can establish a fund during your lifetime or afterwards through your estate plan.
   
   To make a grant, you simply complete a Grant Distribution Recommendation Form The Community Foundation does the rest – ensures you are granting to a qualified nonprofit in sound standing; prepares grant award letters and checks; provides you with written confirmation of your grant awards. You can give anonymously through your fund or name your fund for yourself, family, or friends. (back to top)
    
   
2. How do I start a fund?
   Contact us. We will review your objectives and prepare a Fund Agreement confirming the intent and investment of your fund. Once your assets are transferred to the Community Foundation, your fund is established. (back to top)
    
3. Is my fund permanent?
   We manage both endowed and non-endowed funds. Create a permanent endowment where the principal is never touched or use your gift immediately for the good of the community. (back to top)
    
4. What are the available dollars from our permanently endowed fund?
   An endowment fund is an investment for the future. Our goal is to increase dollars available to the organizations you care about while ensuring that your fund’s balance grows over time. Currently, you may annually grant up to five percent of your fund, based on a three-year rolling average of your fund’s year-end balance. You are not required to make annual distributions from your fund and may choose, instead, to reinvest the earnings. A five-percent spending policy is common among foundations and nonprofit endowments. (back to top)
    
5. How often will we receive statements for the fund?
   You will receive quarterly Fund Statements detailing your fund’s activities including investment performance, service and investment fees, and grants made to other organizations. (back to top)
    
6. What fees are charged?
   The Community Foundation assesses a sliding-scale service fee on all Donor Advised, Designated, and Field of Interest Funds (Scholarship Funds are assessed a flat 1 or 2 percent fee depending on the complexity of the scholarship selection process). These fees help defray the administrative costs associated with managing your fund and providing top quality donor services. In addition, we assess a 60-basis-point investment fee. This fee covers the cost of our investment program. The Foundation’s Board is committed to complete transparency. We disclose all fees – there are no “hidden” costs. Learn more about Service and Investment Fees. (back to top)
    
7. Should I establish a private foundation instead of a Donor Advised Fund?
   Administering a private foundation can be time consuming and expensive, with considerable administrative and organizational duties – and related costs. A Donor Advised Fund contains many of the features of a private foundation with fewer complications. In addition, Donor Advised Funds have no rigid distribution requirement (private foundations must give away 5 percent of the assets every year). (back to top)
    
8. Why should I choose a Donor Advised Fund at the Community Foundation over a Commercial Gift Fund?
   We are community based, and we know both the issues facing southwest Washington and the organizations addressing them. You are completing more than a transaction by working through the Community Foundation. You – and the community - are benefiting from our abundant knowledge and resources.(back to top)