Community Foundation of NCW
The following is a list of frequently asked questions relating to the Community Foundation of North Central Washington. Please click on any of the relative questions and an underlying answer will appear. If you can not find the answer you're looking for, do not hesitate to call.
- Is There A Minimum Or Maximum Size Of A Fund?
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A donor named fund should reach a minimum of $5,000 in 2 or 3 years. Scholarship funds reach a fund balance of $10,000 so scholarship awards will be meaningful. There is no maximum; we have funds that range from the minimum to over $1 million.
- What Kind Of Assets Can I Contribute To?
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Almost any asset can be used to start a fund. Cash, securities traded on major exchanges, mutual fund shares, closely held stock, real estate, life estates, interest in limited partnerships, life insurance, collections, art, and variations and combinations of these.
- What Types Of Charities Can I Contribute To?
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In most cases charities must be 501(c)(3) organizations as classified by the Internal Revenue Service.
- What Are The Costs Involved?
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There is no charge to establish a fund. Each fund is usually assessed an annual fee of 1% of the market value of the fund. If a fund is established directly with us it will be charged an investment management fee, with fees ranging between 50 and 60 basis points.
- Is There A Minimum Size For A Grant From My Fund?
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Yes, it is $100.
- Is The Fund I Establish Permanent?
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Yes, unless the governing instrument of the fund allows for principal invasion. The Foundation’s purpose is to help individuals with their philanthropy and build a permanent endowment for North Central Washington.
- If I Establish A Donor-Advised Fund, What Happens After My Death?
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After a donor’s death, the fund can continue to be advised by individuals named by the fund’s founder (the person(s) who signed the fund agreement). If no adviser(s) is named, or after the advisor’s death, our Grants Committee will use it to meet contemporary and changing needs in our communities keeping in mind, where possible, the charitable interests of the donor.
- Are There Any Restrictions On The Grant Suggestion I Can Make?
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Grants suggestions must conform to the broad charitable guidelines of the Foundation. We can accommodate most grant suggestions. By law, you cannot suggest a grant to fulfill a charitable pledge, pay for a membership, buy a ticket to a charitable event, or anything for which you receive a personal benefit. Please see Do’s and Don’ts.
- How Else Can I Continue Charity After Death?
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After providing for family, you can leave a bequest to the fund you now advise, or you can set up another fund by will.
- Can You Send Me The Grant Check To Give To The Charity?
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Generally no. The check is sent or given to the nonprofit organization you named. In unusual circumstances we would try to comply with your wish to make the presentation yourself.
- Can Other People Contribute To A Fund I Establish?
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Yes. But we are not set up to help donors with fundraising, including charity events and mail solicitations. We will provide a report of the gifts but will not include the name.
- Can I Suggest Grants To Organizations Out Side Of This Area?
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Yes. The Foundation has made grants to organizations in many states. We have access to nearly 600 other community foundations that we may contact to answer questions about a nonprofit organization in their area.
- Can I Pay For A Needy Person’s Tuition?
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No, you cannot support a particular needy person with a charitable contribution. You may, however, set up a scholarship fund for a group of people (the Senior class, for example) which has met specific criteria (high grade point average or financial needs). Scholarship grants almost always are directed at the educational institution for tuition payments.
- Can You Help Me Find Effective Charities To Support?
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Yes. Our professional staff is knowledgeable about many nonprofits and is happy to help.
- Can I Choose How The Funds I Contribute Are Invested?
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No. When you give us money, in tax parlance you make a “completed gift” over which you can no longer exert control. That way you receive the maximum tax deduction allowable. If you establish a donor-advised fund, we are very interested in what your grant program will be so that we can tailor our investment to best suit that program.
- Can I Have My Money Manager Handle The Fund I Establish?
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No. For the same reason that you cannot choose where to invest the funds you contribute to us. Sometimes potential donors are so enthusiastic about their own money managers or so concerned that they cannot dictate where to invest funds after they’ve contributed them, that they may be better served by establishing their own private foundation. While establishing a private foundation is more expensive, and the reporting requirements are fairly strict, donors exert greater control over assets contributed to a private foundation than to a community foundation.
- Do You Always Sell Contributions Of Stock?
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Yes, if it’s publicly traded stock. Obviously, stocks that have restrictions (rule 144, for example) or privately held securities require different treatments. Our staff would be happy to speak to you about specific needs you may have.
- May I Set Up A Fund Anonymously?
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