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What is a Community Foundation?
Each community foundation is made up of a collection of charitable funds that are established by various donors, then pooled and invested together, so that the income provides a continuing resource for the community. There are more than 700 community foundations across America, which exist to build, invest and administer permanent charitable endowments while serving the needs of donors in their geographic area.
What’s the difference between a private foundation and a community foundation?
A community foundation qualifies as a public charity. This allows donors the maximum tax deduction for gifts and bequests. A private foundation is usually established by an individual or family. The community foundation is a pool of funds given by any number of different donors for any number of charitable purposes. A community foundation is what you would have if private foundations got together to pool their assets for investment purposes, reduce overhead, share staff, make grants and address community needs.
Why should I use the Coastal Bend Community Foundation rather than establishing my own private foundation?
There are many reasons, not the least of which is that it is much less expensive and complicated. There are no excise taxes, no payout requirements, no federal tax returns and no excessive paperwork. By establishing a fund with the Community Foundation, you have immediate access to a professional, competent staff, which can help you achieve your goals.
Who are the donors to the Coastal Bend Community Foundation?
Donors are people just like you. One need not be wealthy to make a difference. Working with the Coastal Bend Community Foundation, you can have a lasting impact on the quality of life in South Texas—right here, right now and for years to come. Certain types of funds can be started with only $5,000.
What is an endowment fund?
An endowment fund is a permanent fund established within the Foundation for either general or specific purposes. Because the principal will always remain intact (only the earnings are spent for grants), the fund will always be here, supporting community programs year after year.
Who names and establishes the purposes of a fund?
The donor does. The Coastal Bend Community Foundation is here to help donors achieve their own personal charitable objectives.
Can a fund be established in someone’s name? Yes. Funds are named any way the donor wishes, so a family or corporate name can be used. If preferred, funds can be anonymous.
Does the Foundation spend its principal? Not unless a donor requests that we do so. Otherwise, funds are permanently endowed and will be here one hundred years from now, still supporting the types of important community projects and programs stipulated by the donor.
Are contributions tax deductible?
Absolutely. The IRS has classified the Coastal Bend Community Foundation as a public charity, so gifts qualify for the most generous tax (income, capital gains and estate) benefits available.
What types of programs does the Foundation support with its grants?
The Community Foundation is able to make grants from A to Z, arts to the zoo, and most things in between. Grants from unrestricted funds benefit the seven-county Coastal Bend area. Because many of the Foundation’s funds have their own purpose and identity, grants also reflect the charitable intent of the fund donors. Grants from other types of funds can go to national and even international charities, if the donors so desire.
Who decides which organizations receive grants?
The Foundation uses a thorough review process. The Scholarship and Grants committees review the applications and discuss questions with local directors and the President & CEO, before making recommendations to the Board of Directors, which has final responsibility for all grants and scholarships. Donors can provide advice on contributions with restricted and donor advised funds.
When are applications accepted?
Fall grant applications are considered between June 1 and mid November.
How can I get more information about the Coastal Bend Community Foundation?
Ask your attorney, accountant or banker about the Community Foundation. Gowland Strealy Morales & Company PLLC audits our Foundation and the audit and the Annual Report are available for your review. Our booklet "26 Ways to Use the Coastal Bend Community Foundation" is available upon request. The Board of Directors and staff of the Foundation are always available to answer your questions. Please give us a call at 361-882-9745. |
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