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1. What is the minimum amount needed to establish a fund?
2. What is the minimum balance I must maintain in a fund?
3. How do I recommend a grant from a fund?
4. How often can I recommend a grant from the fund?
5. What agencies are eligible to receive grants from a fund?
6. What if I need assistance with my grantmaking?
7. May I recommend a grant to pay a pledge I have made to an organization?
8. What fee is charged for each grant I recommend?
9. How often can I add to a fund?
10. Can I give assets other than cash to a fund?
11. Can I remain anonymous when establishing a fund or recommending grants?
12. How many advisors can I name for the fund?
13. What are the administrative expenses for a fund?
14. What are the investment fees for a donor-advised fund?
15. How often will I receive a statement?
16. What happens to the fund after my death?
17. What are the tax advantages of establishing a fund at the Community Foundation of Dutchess County?
18. What are the advantages of establishing a fund at the Community Foundation compared to establishing a private foundation?
1. What is the minimum amount needed to establish a fund?
Depending on the type of fund established, you may open a fund with a gift of $5,000 or up to $25,000. Generally, you have five years to reach the minimum.
2. What is the minimum balance I must maintain in a fund?
Generally funds are endowed and the minimum that should be maintained is the minimum amount needed to establish a fund. This may be adjusted based on market performance and grant distributions.
3. How do I recommend a grant from a fund?
The Foundation uses a spending policy or payout policy of 5% of a twelve quarter rolling average. At the quarter ended March 31 the staff will calculate the payout rate and advise you of the amount available to grant out of the fund.
4. How often can I recommend a grant from the fund?
You may recommend a grant at any time, either in writing (we have forms) or online.
5. What agencies are eligible to receive grants from a fund?
Any United States-based agency that is a recognized 501(c)(3) of the Internal Revenue Code can receive a grant from a fund at the Community Foundation. Grants cannot be awarded to individuals. Donors also may not receive tangible benefits from a grant. These include items such as meals, concert tickets or museum membership benefits.
6. What if I need assistance with my grantmaking?
The Foundation’s staff is knowledgeable about local programs, agencies and needs. We are available to consult with you to help you find the right cause for you. From time-to-time The Foundation will share with you grant opportunities you may not know about. You may choose to support these projects in full or partially. You may also choose to make a grant to the Foundation’s Community Response Fund which awards grants to help meet current needs in our community.
7. May I recommend a grant to pay a pledge I have made to an organization?
No. When you make a contribution to a fund at the Community Foundation you are entitled to take the full amount as a tax deduction. This is because you have received nothing (in excess of purely incidental benefits) in return for your contribution. If the Community Foundation satisfies your pledge, you will be receiving something in return for your contribution – release of an obligation. Therefore, a donor may not use grants from a fund to satisfy a previously committed personal pledge made to a charity. However, you may choose to advise the charity of your intent to request a grant for a specific amount from your named fund.
8. What fee is charged for each grant I recommend?
The Community Foundation encourages donors to support the charities they care about most. No fees are charged for recommending grants.
9. How often can I add to a fund?
You may add to the fund at any time with a gift of any amount.
10. Can I give assets other than cash to a fund?
Yes. You may give stock, mutual fund shares, retirement fund assets, real estate or other tangible property. Gifts of stock, both publicly traded and closely held, have become more popular in recent years as donors have used their market gains to benefit the community.
11. Can I remain anonymous when establishing a fund or recommending grants?
Yes. Advisors may request that grants be awarded anonymously. Some donors prefer to use a pseudonym when naming funds.
12. How many advisors can I name for the fund?
You are not limited on the number of advisors to a fund. However, we strongly encourage that you designate one advisor who is authorized to complete grant recommendation forms.
13. What are the administrative expenses for a fund?
Administrative fees vary with the type of fund chosen. Generally, a fee is charged quarterly at an annual rate of 1 percent with an annual minimum administrative fee of $100.
14. What are the investment fees for a donor-advised fund?
The fees vary with the type of investment. Fees for investment managers are deducted before earnings are allocated to individuall funds. Fees for the Community Foundation's funds are approximately 31 basis points.
15. How often will I receive a statement?
Statements are mailed quarterly, usually between 4 to 6 weeks after the end of a calendar quarter. You may view your fund balance online, if you choose this option.
16. What happens to the fund after my death?
Donors have several options for the posthumous management of a fund.
- Some donors name successor advisors (often children or grandchildren) to recommend grants from the fund. If a donor dies before a successor advisor reaches 18 years of age, the Community Foundation will suspend grant activity from the fund until a successor advisor is 18 years old.
- Others choose to use their funds to provide a permanent source of annual gifts for recommended charities.
- Another option is to name the Community Foundation Board of Trustees as advisors or grant all or part of the fund to the Foundation’s endowment.
17. What are the tax advantages of establishing a fund at the Community Foundation of Dutchess County?
Donors who contribute stock and other appreciated assets are eligible for tax deductions, and they avoid capital gains tax. Also, there are many ways a charitable fund may help a donor reduce estate taxes, preserve retirement assets for family members and provide gifts for charity. The Community Foundation's professional staff works closely with attorneys, accountants and other advisors to help donors make the best choices for their families.
18. What are the advantages of establishing a fund at the Community Foundation compared to establishing a private foundation?
Because the Community Foundation is a public charity, there are fewer Internal Revenue restrictions for gifts and grants than for a private foundation. Generally, donors receive a higher tax deduction for contributions. Additionally, funds are not subject to excise taxes, and they have no payout requirement. Please see Private Foundation Options under Resources for Advisors
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