Start A Fund at Whidbey Community Foundation
Many philanthropists turn to community foundations to set up a charitable fund to simplify the process of giving, leave a legacy to their community and engage their family and friends in giving. Community foundations provide staff assistance, community expertise and a variety of services that help donors set up funds and award grant dollars to nonprofit organizations. If you’re considering establishing a charitable fund, where should you begin? The Whidbey Community Foundation is always a great choice!
How to Start a Charitable Fund
1. Choose Your Passion
What social impact area do you want to support? Are you interested in helping veterans? Or, maybe you have a passion for early childhood education? Or, possibly you want to throw your support behind age-friendly communities to create a more inclusive environment for older adults? The first step in setting up a charitable fund is identifying who or what you want to support. Community foundations are great resources if you need information on community needs and opportunities.
2. Decide When to Give
Do you want to establish a fund today so you can give during your lifetime and witness the impact? Or, would you prefer to defer your gift through a will or other planned gift? Leave a Legacy. Our staff works with you, your family and your team of professional advisors to determine how you can best achieve your charitable goals and maximize your tax benefits.
3. Choose What to Give
Almost any kind of asset may be used to start your charitable fund at a community foundation, including cash, publicly traded securities, closely held stock, interests in limited partnerships, real estate, life insurance, personal property and private foundation assets. If you open a donor-advised fund, tax deductions are earned at the time of your gift, and you can award grants any time in the future.
4. Pick a Type of Charitable Fund
Community foundations offer several types of charitable funds to help you fulfill your goals, including donor-advised, designated, and field of interest. Each provides their own set of benefits, flexibility and timeline based on your charitable giving needs.
- Donor-Advised Funds: A DAF is a flexible charitable giving account that allows individuals, families, or organizations to recommend grants to nonprofit organizations over time. You can contribute assets—such as cash or securities—and receive an immediate tax deduction. Those assets can then be invested and grow tax-free until you choose to make grants to qualified charities. Learn More.
- Designated Funds: These funds are started by a donor for a specific nonprofit of their choice for whatever purpose the donor chooses. The fund can be named in honor or memory of a loved one. The nonprofit receives a grant once per year from the fund.
- Field of Interest Funds: These funds allow donors to support specific areas of community need, such as education, health, or the environment, without designating a specific organization to receive the funds.
5. Decide to Make Your Fund Endowed, Quasi-Endowed, or Non-Endowed
An endowment is a permanent fund. Endowment funds are pooled for maximum benefit and invested to achieve long-term capital growth. A quasi-endowment is similarly invested as an endowment but may not be permanent based on the annual spendable rate that the donor sets. Non-endowment funds have no permanent principal balance and are immediately available for grant distribution.
6. Name Your Charitable Fund
Charitable funds can be named after your family, to memorialize someone special, to recognize your passions, or on behalf of a business or an organization. Whatever the reason, your fund will carry the name you choose. If you prefer anonymity through a community foundation, you can choose a name that reflects your charitable purpose(s).
Whidbey Community Foundation will walk you through the fund agreement to establish your charitable fund and explain important policies. We can work with you to create a tailored solution that meets your specific interests.
We Look Forward to Connecting!
If you have questions about the Whidbey Community Foundation, charitable funds, or how we can support your giving, please fill out the Start a Fund inquiry form in the link above or reach out to Holly Harlan, Development & Donor Services Manager at (360) 854-4965 or email her at HollyH@whidbeyfoundation.org.