Community Foundations

Description

A nonprofit organization, supported by many donors, that typically focuses on benefiting a specific community. Offers multiple types of funds, frequently including donor advised funds, often with the ability to remain anonymous.

Key characteristics

  • Potential immediate tax deduction, up to 50% of adjusted gross income for cash, 30% for appreciated assets
  • May avoid capital gains tax for gifts of long-term appreciated securities
  • May offer you grantmaking direction, education, and guidance
  • Accepts many types of assets
  • May have to administer own tax reporting and recordkeeping

Details

A community foundation is a permanent charitable public benefit organization supported by local donors and governed by a board of private citizens who speak for the needs and well being of the community. The Internal Revenue Service designates community foundations as public charities because they raise a significant portion of their resources from a broad cross section of the public each year.

These foundations are organized to channel gifts from donors to a variety of charitable organizations in a local community. Individuals, families, businesses and organizations create permanent charitable funds that help their region meet the challenges of changing times. The community foundation generally invests and administers these funds.

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