Professional Advisors FAQ

 

Q: What is the difference between setting up a charitable fund through an investment firm and establishing a fund at the Community Foundation?

Q: How do I receive a copy of the Scholarship Directory?

Q: What are the advantages of donating to the Community Foundation?

Q: What is the difference between setting up a private foundation and creating a donor-advised fund at the Community Foundation?

Q: What are the tax benefits for my clients if they give through the Community Foundation?

Q: What kind of assets can be used to set up a charitable fund at the Community Foundation?

Q: Who manages and invests the funds that are given to the Foundation?

Q: How can I recommend a nonprofit gift without recommending a specific nonprofit?

 


Q: What is the difference between setting up a charitable fund through an investment firm and establishing a fund at the Community Foundation?

A: At the Community Foundation, we provide much more than the check writing services of a gift fund at a brokerage house. One of the most significant advantages to setting up a fund with us is our community investment team, which provides custom research on a nonprofit organization or issue area at your request. Our staff will also meet with you individually to help develop a strategic approach to grantmaking. 


 

Q: How do I receive a copy of the Scholarship Directory?

A: The directory is available to view and download only. No printed copies are available.  The directory is divided into two versions. One version lists organizations offering scholarships that are only for Martin County students.  The second version lists organizations offering scholarships that are only for Palm Beach County students.  Both versions offer extras such as statewide and nationwide organizations offering scholarships as well as links to other helpful scholarship search websites along with a glossary of financial aid terms.


 

Q: What are the advantages of donating to the Community Foundation?

A: The Community Foundation allows your client to establish a customized charitable fund without being burdened by the tax liabilities and administrative hassles associated with setting up a private foundation. Everyone who creates a fund can personalize their giving. At the same time, funds are pooled for investment management purposes to minimize costs and achieve a greater return, making it possible for a smaller individual fund to enjoy the same economies of scale as a large independent foundation.  We offer flexibility, convenience, tax advantages, long-term stability, expertise in financial management and grantmaking, and credibility. 


 

Q: What is the difference between setting up a private foundation and creating a donor-advised fund at the Community Foundation?

A: The Community Foundation offers the advantages of a private foundation without most of the expense and hassle. We can handle all aspects of grantmaking and reporting, and advise you on smart and effective grantmaking.  Some of our donors also have private foundations. They use a fund here to support causes and nonprofits that are outside the general focus of the private foundation. As a public charity, we offer donors tax deductions that are often superior to those accorded to private foundation donors.


 

Q: What are the tax benefits for my clients if they give through the Community Foundation?

A: The Community Foundation offers the maximum charitable tax advantages available by law.  Because of the Community Foundation’s nature, it is not subject to the taxes and regulations affecting private foundations, and it has greater flexibility on matters such as minimum payout. 


 

Q: What kind of assets can be used to set up a charitable fund at the Community Foundation?

A: The Community Foundation can accept many kinds of assets including: Cash, Publicly traded securities, Closely held stock, Life insurance, Retirement plan assets, Interests in limited partnerships. There are also several convenient financial vehicles for setting up a fund at the community foundation, with different benefits. We offer charitable remainder and lead trusts, gift annuities and several ways to use retirement funds to reduce estate taxes, provide for income to heirs and establish a charitable legacy. 


 

Q: Who manages and invests the funds that are given to the Foundation?

A:  The Community Foundation’s investment strategy is designed to ensure the total return necessary to preserve and enhance the principal of the funds, and provide a dependable source for grants and scholarships. Our Investment Committee is responsible for assuring that the Community Foundation exercises prudent stewardship over the assets with which it has been entrusted. The Foundation’s asset allocation strategy is to provide long-term growth with a broadly diversified mix of asset classes and styles.  We retain an independent investment-consulting firm to monitor the performance of investment managers and to advise on the Community Foundation’s investment asset allocation. 


 

Q: How can I recommend a nonprofit gift without recommending a specific nonprofit?

A: Professional advisors are often faced with a delicate dilemma: you want to discuss the many benefits of charitable giving with your clients, but you want to avoid recommending specific charitable causes or organizations. Fortunately, the Community Foundation is a simple solution.  A community foundation is a single, trusted vehicle your clients can use to address the issues they care about most, while gaining maximum tax benefit.  We offer a variety of giving options – including the ability to set up a charitable fund in your client’s name.  It’s just one way we can help you help your clients achieve their charitable goals.