|
|
What is a community foundation?
Community foundations are independent, tax-exempt
public charities created by and for the people in a local area.
They enable people with philanthropic interests to support the
issues they care about, easily and effectively. The create long-term
assets for communities to sustain the people who live there.
Working within a specific geographic area, community foundations
build permanent funds, through a gift of assets contributed
by many donors. From those funds, community foundations make
grants and engage in community leadership activities to address
a wide variety of current and long-term needs. An exciting aspect
of community foundations is their ability to respond to changing
conditions, quickly enough to be effective, but always reflecting
the objectives of the donor. As a neutral, nonpartisan entity,
the Foundation can often serve as a catalyst to spearhead new
projects and programs that meet important community needs.
What is the difference between
a Community Foundation and a Private Foundation?
Community Foundations are simpler and often
more economical than a private foundation. A named donor advised
fund through a community foundation is like having a "foundation
within a foundation."
While enjoying the fun of recommending grants
(subject to Board approval), the donor
avoids excess regulatory rules, excise taxes, accounting and
legal fees, tax reporting, managing investments, audits or other
federal reports. The above is often a good alternative for those
thinking of a private foundation but do not have several million
in assets. There is a loss of control, however, as the community
foundation will reserve variance powers to insure that all processes
are legal, that grants go to charitable organizations/projects
and that the donor is making grants consistent with their purpose
statement.
Private Foundations maintain total control
of their assets. To keep up with and follow the laws, they will
often opt to hire administrative and legal staff to coordinate
the efforts of their foundation. While there is no magic number,
the efficiency of a private foundation is gained only when very
large assets are being managed.
How was the RCCF formed?
The RCCF was formed after a life long resident
of Rusk County made provisions to start a community foundation
in Rusk County. This initial donor wished to create a permanent
organization that would bring together those individuals who
wanted to give back to their local community, with the causes
that they cared most about. Because of the initial donor's very
generous start up gift, all donors now have a means for leaving
a meaningful gift that will last in perpetuity, and local non-profit
organizations have a source to fund their very important and
worthwhile causes.
Is the RCCF a fundraising
organization?
The Foundation is not like other charitable
organizations in the Rusk County area. The Foundation seeks
substantial gifts from a limited number of individuals. The
Foundation does not compete with other non-profits for operating
expenses and does not engage in the traditional fundraising
conducted by most local charities. Unlike other local charitable
organizations, the Rusk County Community Foundation will provide
grants to many of the local non-profits to help them to carry
out their work in the community. The Foundation applies its
funds to as many community needs as possible, unlike most charitable
organizations that exist to support the needs of a single cause.
Is the RCCF affiliated with
the County?
No. Although a public organization, we are
completely independent and have no connection with any government
entity. However, on occasion the foundation will be involved
with projects that government bodies are a part of.
Why work through the RCCF?
Convenience. Local expertise. Permanent giving.
Tax advantages. We work with you to make charitable giving as
easy as possible. We have a strong board of directors consisting
of local community leaders. We know the communities and our
local nonprofit organizations and changing needs.
An endowment can serve to teach philanthropy
to your children and continue your giving in perpetuity. We
are dedicated to carrying out your charitable wishes today and
for generations to come.
How is the RCCF governed?
The Foundation is governed by a volunteer
board of directors who are chosen because of their demonstrated
commitment to and knowledge of the needs of the community. The
Board elects its officers, and each board member is appointed
to serve a three year term.
Where is the RCCF office?
The Rusk County Community Foundation office
is located at 100 W. 2nd St. N. in Ladysmith, at the ReMax Real
Estate office in the Old Pioneer Bank building. The Foundation
has a mailing address of P.O. Box 54, Ladysmith, WI 54848.
How can I contact the RCCF?
The RCCF can be contacted by email at info@ruskfoundation.org
or by phone at (715) 532-0772. In addition any board member
can be contacted for more information.
Where does the RCCF get
its funds?
The Rusk County Community Foundation receives
its contributions from individuals, businesses, and private
foundations. Current gifts and bequests make up the permanent
endowment of the Foundation. income from these gifts is used
to make grants.
Is this only for rich people
- How can I afford to give?
No, the Rusk County Community Foundation accepts
contributions of all sizes. Your contributions can be combined
with those of others who share your charitable interests to
provide maximum impact to the community at a minimum administrative
cost. Many people choose to make small gifts to the Foundation
in honor of, or in memory of a family member, friend, or loved
one. The Foundation will send acknowledgments to the person
being honored or to the family of the person being remembered
and will also send thank you notes and appropriate tax receipts
to the donors.
What are the ways of giving
and what are the types of funds?
Cash Direct gifts of cash (or checks) are
a convenient way to establish a fund.
Securities Stock can be donated to and sold
in the Foundation's name. The donor is allowed the full value
as a charitable income tax deduction, but pays no capital gains
taxes on the sale of the stock.
Personal Property or Real Estate Personal
property or real-estate can be donated in the same manner and
tax advantages as securities.
Will Bequests When making a will, and after
providing for loved ones, you may also make a gift to the Rusk
County Community Foundation. Your gift may be a specified amount,
a percentage of your estate or specific assets.
Life Insurance You may designate the Rusk
County Community Foundation as the owner and beneficiary of
a new or existing life insurance policy. Insurance premiums
paid by the donor are deductible as a charitable contribution.
Charitable Remainder Trusts You may transfer
assets to a Charitable Remainder Trust. This trust provides
for payment of a fixed income to you, a spouse, a disabled person
or other loved ones. This trust enables the donor to provide
a lifetime personal income and income for beneficiaries for
a specified period or death of the last heir. The assets are
then transferred to your fund in the Rusk County Community Foundation.
When is the best time to
give?
Whenever you are ready. . . You can establish
a fund now and add to it whenever you like. You may choose to
give as a bequest from your will. You may want to make contributions
to any of our funds in honor of or in memory of someone. Hopefully,
you will also respond to our annual solicitation for contributions
demonstrating public support of the Foundation.
How are funds created and
managed?
The board of directors assists Donors in creating,
or contributing to charitable funds of causes the donor wishes
to support. Donors may contribute tax-deductible gifts of cash,
stocks, real estate or other property. All funds are pooled
and prudently invested by money managers that are approved by
the Foundation's Board of Directors. A percentage of the money
in each permanent fund is available annually for grants that
support the work of nonprofit organizations serving Rusk County.
The principal grows right here at home building gifts that keep
on giving.
Can I give a gift on behalf
of someone else?
Anyone can contribute any amount to any fund
at the Rusk County Community Foundation. Many people choose
to make small gifts to the Foundation in honor of, or in memory
of a family member, friend, or loved one. The Foundation will
send acknowledgments to the person being honored or to the family
of the person being remembered and will also send thank you
notes and appropriate tax receipts to the donors.
Can I involve my financial
advisor or attorney?
Absolutely. We often work with area professional
advisors to make sure that donors get the greatest tax advantages
from their charitable giving.
In fact, your professional advisor is often
in the best position to determine the right financial vehicle
for your family as well as your charitable interests.
Once you have made your decisions and are
comfortable sharing your ideas, we look forward to sitting down
with you and your advisor to work things out in the most efficient
and effective manner for you to give.
Are their tax advantages
to giving?
All gifts to the Rusk County Community Foundation
are tax deductible to the full-extent of the law. Gifts of cash
and ordinary income property to a Community Foundation are deductible
up to 50% of adjusted gross income. Gifts of appreciated property
can be credited for up to 30% of adjusted gross income. Remember,
too, that gifts of appreciated property (stock, real estate,
etc.) are deducted at the full appreciated market value, not
the low basis price and no capital gains taxes are due.
What is an endowment?
An endowment is a fund that is kept in perpetuity.
The original contribution is invested and only the investment
income and gains from the investment are used to support the
charitable grants. The original contribution stays, intact,
and continues to grow and generate charitable dollars.
What are the types of funds?
When deciding to establish a fund, you must
decide what your charitable dream is. Once you know what organization
or charitable purpose you might want to support, you may choose
from the following four choices:
Undesignated Fund: Undesignated funds
are granted at the discretion of the Rusk County Community Foundation's
Board of Directors who determine where the most needs are in
the community. Undesignated funds offer great flexibility in
meeting existing and future community needs.
Designated Fund: The donor names the
charity or charities to receive the income from the fund.
Field of Interest Fund: The donor specifies
that income from the fund be used to support a particular area
of community life, such as the arts, social services, education,
the environment, the elderly, youth. Donor Advised Fund: Within
certain guidelines the donor may make suggestions on grant distributions
from the fund. A donor advised fund allows the donor(s) to continue
on as an active participant in the fund's grantmaking. With
a donor advised fund, a donor may support varying causes from
year to year as donor's choices or community needs change. Donors
may also use their donor advised endowment fund with "pass-through"
privileges to make larger contributions than the income generated
by the fund's endowment investments.
Scholarships: Scholarship funds allow donors
to invest in the community's future. These funds provide support
for individuals pursuing training or educational opportunity.
As part of the fund, donors can specify certain elegibility
criteria, such as the school(s) student must graduate from or
be admitted to. Special project/pass through funds: These funds
are generally established for limited purposes and are not permanent.
How do I establish a fund?
Establishing a fund is easy. Because the legal
apparatus is already in place, community foundations have appropriate
forms available so that a fund can be established and the tax
advantages obtained quickly and easily. Foundation personnel
can meet with you to learn about your charitable intentions.
Your fund can be named to honor your family or the charitable
intention you wish your fund to support. Foundation personnel
will explain the kinds of funds that can be established and
the variety of ways to give.
A simple fund agreement is crafted by the
Rusk County Community Foundation staff for each new fund.
How much money is required
to start a fund?
A $5,000 gift will establish a named fund
or endowment.
An Acorn Fund is also possible. Acorn Funds
allow donors to build meaningful permanent funds over time with
an initial contribution of $1,000. All contributions are accumulated
until the donor's goal for the fund is realized. Once a fund
is established, any amount may be added as a gift, memorial
or bequest.
How are grant recipients
chosen?
Grant recipients are chosen in different ways,
depending upon the type of fund.
Donor Advised Funds allow donors, and
successors they choose, flexibility to recommend how the grant
money is spent. Pursuant to IRS regulations, the board of directors
has the final approval for all grants. While every attempt will
be made to follow a donor's wishes, however, the board cannot
approve a donor recommendation that would place the Foundation
in jeopardy of losing its status as a 501C3 organization.
Designated Funds provide donors with
a way to recommend annual grants to one or more charitable organizations.
Scholarships are included in this category.
Donors who want to support the changing needs
of a particular cause, such as the arts, women's issues, the
environment, etc., may set up a Field of Interest Fund. Most
grants are awarded through a competitive application process
that is determined by the board.
Donations to a Non-restricted Fund are distributed
through an annual competitive grants process. The Grants Committee
recommends the projects for approval by the Board of Directors.
Supporting Organization Funds have their own
boards and award their own grants, with the Community Foundation
handling the financial and administrative work. Often smaller
family foundations fall into this category.
When are grants distributed?
Grant distribution shall be determined by
the board of directors. Grant application procedures will be
publicized locally. The Rusk County Community Foundation values
all efforts to give back to the community and will work with
all individuals, families, foundations or organizations in any
way possible to maximize our ability to collectively make this
community the best place in which to grow, to work, to play
and to retire.
|
|
