What is an agency fund or endowment (permanent)?
It is a long term fund held and managed by The Community Foundation on behalf of a nonprofit organization. The organization receives annual distributions as defined in agreement. The fund is technically owned by The Community Foundation on behalf of your agency.
What is the minimum needed to establish an agency fund?
The Community Foundation will open a long term account for as little as $2500.
The suggested goal is $ 10,000 and the agency is encouraged to make a commitment to achieve that in three to five years.
Who would be managing our fund?
The Board of The Community Foundation working in conjunction with its Investment Committee. This team of prominent community leaders includes a CPA, an attorney, a financial advisor, a securities broker, and a hospital chief of operations who work closely with Dodge and Cox, a prominent national mutual fund company.
What kind of return can we expect?
Our fund performance has varied considerably since our inception. The returns over the past years are available for review. Of course, past performance is no guarantee of future results, and you can stipulate your required pay out amount in your agency agreement. The Community Foundation maintains a balanced portfolio comprised of domestic and international stock, bonds, notes, t-bills, and money market holdings.
What does it cost?
1% annually, based on the market value of the fund, plus $100 annually. We compute and assess this fee quarterly. The fee is deducted from the fund earnings.
What are the advantages of having an agency fund or endowment with The Community Foundation?
Consolidated investment management provides a better return with lower administrative costs through economies of scale. The Community Foundation’s Board of Trustees has fiduciary oversight and handles all administrative reporting.
Speed and convenience for donors. This can be especially important for year-end contributions and situations when stock or real estate is in the process of being sold and time is of the essence.
Agencies receive an exemption from filing a tax return or reporting on this fund since the fund’s financial transactions are consolidated with those of other funds on The Community Foundation’s Form 990. We provide quarterly reporting to your agency and staff of investment fund performance.
Agencies receive access to donors who structure all their gifting through one source at The Community Foundation and who can name your agency as a partial beneficiary of their philanthropy.
The Community Foundation has access to the legal staff of The Council on Foundations and our own community legal experts for assistance when structuring complex gifts such as property, and current updates on new tax implications for charitable gifts.
Donors receive assurance that their money will be managed in perpetuity, which is helpful with new or relatively small agencies without established track records. The Community Foundation’s fiduciary role allows for follow-through of the original intent of a gift or fund.
Who owns the fund?
The Community Foundation Serving Southwest Colorado owns your funds on your behalf as a designated agency fund or endowment. The Community Foundation holds, manages, invests, and reinvests the assets of the fund. Your organization may request that distributions of principal be made from the fund and The Community Foundation will give good faith consideration to those requests. The Community Foundation presently holds agency funds and endowments from a wide range of nonprofit organizations which have fund assets ranging up to six figures.
What is a Community Foundation?
The Community Foundation Serving SW Colorado is one of nearly 650 foundations across the country. They are set up by people, corporations and families that are dedicated to improving the quality of life in a specific area, county or region.
It is a tax-exempt public charity that allows people or organizations to establish permanent endowments funds and gift funds within one large foundation and it offers inexpensive, value-added way to establish a family named foundation. The income from these funds, and the principal if the donor desires, is available to respond to emerging community problems and opportunities.
What does a Community Foundation do?
The Community Foundation Serving SW Colorado was established in 1998 to improve the quality of life in the Four Corners. And also to build a culture of giving to and supporting the many non-profits that serve our area. One of our primary functions is to make grants to the many non-profits and charities providing for our citizens. We have granted almost $100, 000 to quqlified non-profits and scholarship programs since we made our first grants in 2000.
The Foundation also provides non-financial support to the community and community groups by offering technical assistance and information on capacity building and providing philanthropic leadership to the community.
What area do you serve?
The Foundation primarily serves the five counties in SW Colorado. Some donors have interests elsewhere that they fund through the Community Foundation.
Where do you get the money you donate?
Donors to community foundations range from people with modest means to some with large financial resources. By establishing a fund or donating to an existing fund or to the Foundation's Community Fund, donors can contribute their gifts of cash, securities or appreciated property. Many donors are interested in planned giving and have the Community Foundation in their estate plans or other planned gifts. The Foundation also receives sponsorship monies from the annual Durango Double; a trail and marathon event held each year in October. Funds are given in the form of water stop sponsorships of $1000. These monies go to the Foundation's Community Fund for grants and other contributions to the area non-profits and community projects.
Why be a donor?
Foundation donors are people with a strong sense of community and personal commitment to making a contribution to the communities in which they live. Some donors want to support worthwhile causes in their communities and the Community Foundation can help them find the best way to commit their funds.
The Foundation is able to assist with efficiency, flexibility, and is easy to use for many donors. Because the Foundation has already created the apparati to open funds quickly donors can take advantage of all applicable tax advantages with little delay.
Who governs the Community Foundation?
A governing Board of trustees comprised of local citizens who live in the five county area. See Board of Directors.
How do people apply for grants?
The Community Foundation provides a mini-grant process to almost any charitable entity in the five county area. An organization can be a Colorado charity and does not have to be a 501 © 3. See grants application.
How is the Community Foundation different from the United Way?
Both are important resources to the community and each compliments the other. Some have described the differences by suggesting that the United Way is more like the community's checkbook, raising and distributing money annually, while a Community Foundation is more like a savings account, making grants from long-term funds in perpetuity. Also the Foundation's scope of grant making and funding is broader than the United Way's focus on health and human services.
What are the financial benefits and tax advantages of gifting through the Community Foundation?
The Foundation, because of the many funds, has lower fees thus enabling you to gift more of your earnings. The Federal tax code provides significant incentives for contributions to a community foundation.
The Foundation also has a variety of funds that can be recipients of donations as well as the Foundation can set up a fund for the donor with a variety of investment strategies and the ability to gift to a variety of organizations. A Community Foundation is more efficient, has more flexibility and gives the donor the opportunity to be a community partner in philanthropy.
How do I set up a fund?
First step is to decide on a donor advised endowment or gift fund. The endowment fund is invested using a long term strategy. Donors then can make distributions from a percentage of the earnings. An endowment is for those who want to leave as permanent legacy to the community.
A gift fund has all of the support an endowment has but the gift fund can be spent to zero and then rebuilt. This option appeals to donors who like making more frequent grants.
The Foundation has sample agreements on this site or you may contact the Foundation. Donors may also name the fund that they create for themselves, a family member, or a valued friend.
How can I give to the Community Foundation?
While some prefer to give cash, other prefer to donate appreciated real estate or securities. Were the donor to sell the property a capital gains tax may be levied whereas a gift to the Foundation not only incurs no such tax, but may be entitled to a charitable income tax deduction for the full value.
Donors may also contribute online. To cover the transaction costs, 3% of your total donation will be deducted before your contribution is distributed to the Community Foundation.
There are a variety of other gift strategies available through the Foundation which you may want to discuss with your accountant or lawyer.
How are the Foundation funds invested and managed?
The Foundation has an investment committee of respected individuals that serve pro bono to wisely guide the Board of Directors in maximizing sort and long term investments. The Foundation utilizes a diversified investment portfolio; long term, medium term and short term. Discuss options with Foundation staff.
What services do I receive as a donor and is there a fee for this?
The Community Foundation provides all IRS reporting, and accounting.
The Foundation assures that all grant and scholarship recipients meet the IRS tests to assure tax-deductible status. When appropriate, the Community Foundation can help donors solicit proposals to fund certain categories of interest to the donor.
Donors are kept appraised of special community needs on a regular basis. We can also help donors publicize their funds, or, conversely, act as a community liaison to provide anonymity for donors.
Can I give anonymously?
Yes.
How do I contact you?
Please fill out our contact form or call the Foundation office at 970-375-5807, fax 970-375-5806
Our mailing address is P.O. Box 1673, Durango, CO 81302.