Why create a fund at Charlotte Community Foundation?
A community foundation is a tax-exempt public charity created by and for the people in a local area that enables you to easily and effectively support the causes that matter to you. At Charlotte Community Foundation, we closely monitor community issues, opportunities and resources and have in-depth knowledge that helps you make your giving as effective as possible.
Establishing a fund at the Charlotte Community Foundation allows you to:
• Create a permanent legacy that will enrich the community in perpetuity;
• Provide annual support for your favorite cause in perpetuity;
• Receive lifetime income now that will revert to the charity of your choice upon your death;
• Allow you to meet your philanthropic goals without the administrative hassle of creating your own private foundation.
What are the costs associated with establishing a fund?
There are no costs involved in establishing a fund.
Once a fund has been created, fees help cover the cost of all investment services, auditing, grant-making research, transmittals to nonprofit organizations and the like. The average total fee is approximately 2 percent of the market value of the fund — though it can be lower or higher based on the type of the fund created.
What should I consider before establishing a fund?
The Charlotte Community Foundation staff are here to help you with the details and will help you through the process of creating a fund. There are several things that you’ll want to think about before we help you create your fund:
- What do you want your fund to accomplish in the community? Is there a particular focus, specific charity or a variety of groups and types of projects you want to support?
- What will you want to name your fund? Will you want to name it in memory of a loved one, or create a legacy in your family name?
- How will you create your fund? Will you use appreciated securities, cash, cash equivalents or will you give another way?
Will I be involved in the grant-making process?
You may create a charitable fund and recommend grants that support the causes you care about. If you are passionate about the arts, education, the environment, healthcare or animals, you can support them by creating a fund at the Charlotte Community Foundation.
You can be involved in the grant-making process, including recommending grant recipients. However, if you prefer not to be that involved, you also can rely on the Foundation to make grants that reflect your wishes.
How do I handle IRS reporting?
Creating a fund at the Charlotte Community Foundation means that we take care of all that for you — we handle all record keeping, reporting to the IRS, accounting and investment management. You can just sit back and watch your investment in the community grow, all while knowing you are truly making a difference in the lives of those in need.
Are there tax benefits to creating a fund with the Charlotte Community Foundation?
Establishing a fund at the Charlotte Community Foundation allows you to benefit from the highest available tax deductions for charitable contributions.
Once I establish a fund, can I continue to contribute to it?
You may add to your fund at any time and there is no minimum requirement for additional contributions. Additional gifts may also provide additional tax benefits.
Can other people donate to my fund? Or can I donate to a Charlotte Community Foundation fund that is already supporting a cause I am passionate about?
Others may make contributions to your fund. Or you may contribute to an already-existing named fund at the Foundation.
What if I wish to remain anonymous?
Charlotte Community Foundation takes the utmost care of donor information and maintains the highest level of confidentiality.
We never share, loan or rent donor names, addresses or fund-related financial information with any individual or organization outside the Charlotte Community Foundation. We can also help you name your fund appropriately to maintain your anonymity.
Is there a minimum amount needed to create my fund?
An initial $10,000 investment is needed to create a named fund at the Charlotte Community Foundation. To create a named scholarship fund, an investment of $25,000 or more is needed.
Donors can contribute any amount to our Community Fund, which addresses the most urgent needs in our community.