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Frequently Asked Questions |
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WHAT IS THE COMMUNITY FOUNDATION OF GREATER DES MOINES?
The Community Foundation of Greater Des Moines is a donor-driven public foundation whose purpose is to improve the quality of life in Greater Des Moines through philanthropy. We work to foster greater giving in our community and serve as a catalyst for community betterment.
As a community foundation, we are a hybrid between a private foundation (whose main activity is awarding grants) and a typical publicly supported charity (whose main activity is providing a service). Like a private foundation, one of our main activities is making strategic grants. But like other charities, we also provide a valuable service—helping donors make effective gifts to charitable causes. While donors generally choose to give to organizations in their communities, grants may be made to any IRS-qualified public charity.
The Community Foundation was founded in 1969 by local leaders interested in improving the quality of life in Greater Des Moines.
Growth and Relationships (As of April 30, 2010)
Assets Under Management: Over $163 million
Number of Charitable Funds: Over 675
Grants Distributed in 2009: $22 million
WHO GOVERNS THE COMMUNITY FOUNDATION’S OPERATIONS?
We are governed by a public Board of Directors that is representative of and has many strong ties to the community. The Community Foundation, under the leadership of President J. Barry Griswell, employs 12 professional and administrative staff members.
WHO IS GIVING TO THE COMMUNITY FOUNDATION?
Community foundations are among the fastest growing forms of philanthropy in the United States today. Funds are established by individuals, families, groups of individuals, nonprofit organizations and businesses. Giving by community foundations rose nearly 7% in 2007 to an estimated $4.1 billion.
HOW CAN A DONOR GIVE TO THE COMMUNITY FOUNDATION?
Donors can make gifts to a fund housed at the Community Foundation at any time, establish their own fund or give through a simple planned giving vehicle.
WHAT TYPES OF FUNDS ARE AVAILABLE FOR CHARITABLE GIVING?
Because we are a public charity and not a private foundation, federal law does not require donors to distribute any set amount of grants each year. Therefore, when a fund is established, you will determine if it is an endowed or non-endowed fund.
Endowed funds allow grants to be made each year that are limited to an agreed upon fixed percentage of the fund’s assets. This option creates an endowed fund that ensures your contribution will grow and maintain its value for charitable giving during and after your lifetime. If you choose to benefit from Endow Iowa Tax Credits, you must agree to a spending rate of up to 5% of the fund’s value per year.
Non-endowed funds allow you to recommend grants of any amount, including the entire balance of the fund.
Legacy Funds can be established to receive future assets designated for charitable causes through a planned gift. This fund allows you to establish and change funding priorities while you are living.
Fund Types:
Donor Advised Funds are established by individuals, families, civic groups and businesses to make grants to the charities of their choice. The donor identifies the charitable causes that will be supported through the fund.
Designated Funds are established by a donor on behalf of a specific agency. When establishing the fund, the donor earmarks one or more charitable organizations to receive gifts.
Field of Interest Funds benefit a defined area of charitable activity or a certain group of people. For example, Field of Interest funds could benefit the arts, healthcare or disadvantaged youth and families.
Better Together Community Funds benefit the Greater Des Moines community at large. These funds are available to meet the emerging needs of our community and improve our quality of life. The Community Foundation’s Board of Directors awards these funds throughout the year through our structured grantmaking process.
Scholarship Funds can be established by an individual, a corporation or a group of people, such as a civic club or trade association. These funds can benefit students of a particular school, geographic region, educational discipline, gender or other designation.
Legacy Funds are ideal for families and individuals who want to share how their planned gifts should be distributed after their lifetimes. Donors establish Legacy Funds to receive their planned gifts and personally communicate how their charitable contributions will forever benefit their favorite charities.
Acorn Funds allow donors to build a permanent endowment over 10 years with an initial contribution of $1,000 and a minimum annual contribution of $600. Once $10,000 is accumulated, the fund matures into a charitable endowment and donors can start supporting the causes they care about most.
WHY DO PEOPLE CHOOSE TO GIVE THROUGH THE COMMUNITY FOUNDATION?
Most people who give through the Community Foundation note one or more of the following reasons:
Community Foundation donors care deeply about their community and want to see local results. The Community Foundation exists to match donors with charitable community causes that impact the quality of life in our community. We offer extensive knowledge about local charitable organizations and can help you make informed decisions about charitable giving.
Community Foundation donors give to more than one charitable cause. When donors establish a fund at the Community Foundation, they open the door to a broad range of giving options. The Community Foundation offers donors much more flexibility than a direct gift to a charity by allowing donors to direct their charitable dollars to multiple organizations.
Community Foundation donors are interested in creating a personal or family legacy. With an endowed fund, you can name successor advisors who will recommend grants after your death. This is a wonderful way to connect generations in giving. And, if you or your successor relinquish the role of fund advisor, your gift continues as a named fund at the Community Foundation, providing a lasting legacy. In addition, by establishing a permanent endowment, you become a member of our LifeTown Legacy® Society.
Community Foundation donors like to stay personally involved in the use of their gift. A fund at the Community Foundation is a personal expression of philanthropy in a public charity setting. You can work with our giving experts to target the issues you care about most.
Community Foundation donors place a priority on the sound financial management of their contributions. The Board of Directors sets investment objectives to provide a real rate-of-return over inflation sufficient to support the mission of the fund in perpetuity. The ability to combine funds into a professionally managed portfolio allows the Community Foundation to access diverse investment opportunities.
Community Foundation donors appreciate receiving the maximum tax advantage under state and federal law. As a Community Foundation donor, you are not subject to complex tax restrictions and reporting requirements. The fair market value of your appreciated assets qualifies for a charitable deduction, eliminating capital gains tax on the appreciation. Plus, by establishing or making a charitable gift to a permanent endowment fund, you can qualify for a 25% Endow Iowa Tax Credit in addition to normal federal charitable income tax deductions.
WHY SHOULD I CHOOSE THE COMMUNITY FOUNDATION OVER NATIONAL COMPANIES OFFERING CHARITABLE GIFT ACCOUNTS?
The Community Foundation offers you a much more personal, local and flexible approach to giving. We match donors with community causes they care deeply about, and we offer extensive knowledge about local charitable organizations and emerging community needs. We help donors make informed and impactful decisions about grantmaking.
Donors who establish or give to Endow Iowa qualified funds are eligible to receive a 25% Endow Iowa Tax Credit in addition to normal federal charitable income tax deductions. This tax credit is only offered through Iowa community foundations. Approximately $4 million in Endow Iowa Tax Credits will be awarded in 2010.
The Community Foundation makes it easy for you to establish a fund. By establishing an endowment, your fund continues to grow, creating resources for giving both during and after your lifetime. The Community Foundation allows you and your family to create a permanent and lasting local legacy.
WHY IS THE COMMUNITY FOUNDATION MORE ADVANTAGEOUS THAN A PRIVATE FOUNDATION?
Convenience. Establishing a fund is quick and easy and can be accomplished in a matter of days. Establishing a private foundation takes months and requires significant expenses in legal costs and filing fees.
Deductibility. We offer donors the most favorable tax treatment; private foundations are far less advantageous.
Payout. As a publicly supported charity, the Community Foundation is not subject to the 5% minimum distribution rule that applies to private foundations.
Administration. The Community Foundation has community investment and finance staff, auditors and lawyers available to provide services. The Community Foundation includes all funds in its audit and tax return while a private foundation must secure these services and file its own return.
Anonymity. Some donors prefer to make all or some of their gifts anonymously, which can be accomplished easily through the Community Foundation. Since the Community Foundation is a public charity, we are entitled to shield our donor list in our tax return from public view.
Research. We can review a charity on the donor’s behalf to help secure the needed information to make a responsible gift.
WHAT ASSETS CAN THE COMMUNITY FOUNDATION RECEIVE?
Typical gifts are cash and publicly traded stock. Unlike private foundations and some national charitable gift funds, the Community Foundation also accepts real estate, family limited partnerships and privately held stock, subject to our gift acceptance policies. The Community Foundation can also receive planned gifts designated in your will or estate plan, gifts through your life insurance policy, IRA or 401(k) plan, real estate, charitable gift annuities, charitable remainder trusts, or gifts of cash or appreciated assets made during your lifetime.
HOW DO I MAKE A CHARITABLE GIFT?
We will discuss your goals and then prepare a simple fund agreement. You then recommend grants from the fund to support the charitable organizations of your choice. Or, you may set up a Better Together Community Fund, allowing the Community Foundation the flexibility to meet emerging needs. Checks are issued within one week of your request and include the Community Foundation’s name and the name of your fund, unless you request anonymity.
WHAT COSTS ARE ASSOCIATED WITH STARTING A FUND AT THE COMMUNITY FOUNDATION?
Through economies of scale, the Community Foundation is able to charge minimal fees compared to the costs of establishing and maintaining a private foundation or administering and investing funds as an individual. Administrative fees are based on the services offered for each type of fund. Investment management fees are netted out of the pooled investment portfolio’s rate-of-return.
CAN I ACCESS MY FUND ACCOUNT INFORMATION ONLINE?
The Community Foundation offers tools for you to manage your fund online. By using DonorCentral, you can view your fund balances, gifts to the fund, grants made and historic fund statements. You can also make grant recommendations from your fund, download fund statements and research nonprofit organizations. |
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