The Civic Foundation has 45 years of experience in assisting donors with charitable giving interests.  From working with bequests, to establishing donor-advised funds, the Civic Foundation is committed to helping you help your client achieve their charitable wishes.

The Civic Foundation vs. A Private Foundation

There are many differences between public and private foundations. Some of the most important are reporting requirements and tax benefits to donors. 

1. Community Foundations provide greater tax deduction benefits to donors (50% of the donor’s AGI for a cash donation, vs. 30% for private foundations; 30% of the donor’s AGI for gifts of appreciated property vs. 20% for private foundations). 

2. While community foundations pay no income taxes, private foundations must pay a 1-2% federal excise tax on their net investment income and realized gain. 

3. Federal law requires private foundations to give away at least 5% market value each year. Community foundations face no such requirement.

4. Establishing and maintaining a private foundation is both time consuming and costly.   Community foundations have the mechanisms and expertise in place to handle an almost unlimited number of funds. 

5. Community foundations have a legal obligation to continue to meet the donor’s charitable objectives, according to the original agreement. 

All in all, the average donor who wishes to make a lasting impact in local charitable giving is best served by establishing a named fund with their local community foundation.                                                            

Why should you encourage Philanthropy?

Here are some key benefits for the professional advisor who advocates for philanthropy:
 
* It’s good for society, your client and your business!
* You’d be surprised by how many of your clients are searching for a way to give back to society, or simply to do good
* Discussing philanthropy can be done unobtrusively, in a way that respects their privacy, values and autonomy
* It expands the menu of services available to your client, thereby increasing their level of satisfaction with you and your services
* It adds to your level of expertise
* It increases the potential for new referrals
* It marries your chosen profession with your desire to do something good for your community
* It helps address important social needs and helps make your community a healthier place to live – a real legacy for future generations
* It puts you in touch with a supportive network of new colleagues who are willing to share their time and expertise.

Reasons to Give through the Civic Foundation

As discussed earlier, starting a private foundation can be complicated and expensive.  Giving through the Civic Foundation has the following key benefits for your clients:

Flexibility – Whether donors’ charitable interests are broad or narrow, donors can accomplish virtually any charitable purpose through a fund with the foundation.

Permanence – Gifts to the foundation usually build named endowment funds, benefiting the community forever.  An endowment at the foundation can be a lasting tribute to a loved one or a favorite charity.

Donor Services – The foundation is in a unique position to assist donors with their charitable interests, providing information about community needs/local non-profits.

Simplicity – Donors decide what, when, and how to give, and for what purpose.  The foundation takes care of the ongoing administrative and reporting details.

Local Benefit – Grants focus on needs close to home, in our local communities.

Relevance – If a gift’s purpose becomes obsolete, the Foundation Board has the legal authority to redirect the fund to the most closely related use without costly court proceedings.  This ‘variance power’ is a distinguishing feature of community foundations, and gives donors added assurance that their gift will continue to serve similar needs despite changing circumstances.

Tax Advantages – A community foundation offers the maximum tax benefits for charitable giving.

Security – Careful stewardship by the foundation assures prudent management and accountability to donor’s intentions.  The volunteer board sets policy and approves all grants, scholarships and student loans.

Cost effectiveness – The Civic Foundation manages approximately 70 component funds, and has maintained lower than average management and administrative costs for a foundation of its size.  This allows more money to go to charitable causes.

Recognition – Donors can choose the level of recognition they wish.  Some donors enjoy having a named fund within the foundation, with public announcements about grants from their fund.  Other donors prefer to remain completely anonymous.