6 STEPS TO ESTABLISH A FUND
Creating a fund in your Community Foundation is economical and easy. Donors receive prudent fund management, generous tax advantages, and access to a committed staff with knowledge of the community and the charities in our area. We handle administrative responsibilities, file necessary tax returns, evaluate charities, and monitor changes in the community to help you achieve your charitable vision. A wide variety of endowed funds can be created with a lump-sum gift of as little as $5,000. Here are the basic steps for creating a fund.
1. Define your charitable and financial objectives. Consider how you want your gift to be used and how much you and other family members would like to be involved in making grant recommendations. You may have a favorite charity you want to support, or be passionate about youth and education programs, or want to provide scholarships to area students.
2. Select the type of fund that matches your charitable interests.
Unrestricted Fund • Agency Fund • Designated Fund • Donor-Advised Fund • Field of Interest Fund • Scholarship Fund
3. Determine which asset you will use in creating your fund. Gifts of cash, securities (publicly traded or closely held), personal property, or real estate can be accepted by the Community Foundation to set up a fund. Assets with a low-cost basis are often wise choices, since they offer maximum tax advantages: You pay no capital gains tax and receive a favorable income tax deduction. You may also wish to review assets inside your retirement plan for possible charitable use. At all times, we work closely with your accountant and attorney to ensure your charitable wishes are clearly understood and applied.
4. Choose a name for your fund. Many donors choose a family name, but you can use any name that is meaningful to you.
5. Make your gift to the Community Foundation. While your gift to establish a fund will be commingled with other Community Foundation assets to maximize investment returns, income and appreciation are tracked and tied to your fund, benefitting your fund for its growth and charitable grantmaking.
6. Plan a gift through your Will. We can help provide appropriate language to make sure a contribution to the Community Foundation from your estate meets legal and tax criteria.
From here on, your charitable vision is nearly worry-free. The Community Foundation takes care of government filings, grant paperwork, auditing and accounting. Most importantly, you will have joined with hundreds of other local donors who have created a personal legacy that is true philanthropy.
To get started, contact the Eastern West Virginia Community Foundation at (304) 264-0353 or via email at info@EWVCF.org or Hampshire County Community Foundation at (304) 822-7200 or via email at info@HampshireCCF.org, or Hardy County Community Foundation at (304) 538-3431 or via email at info@HardyCCF.org