Why should I consider creating a fund?
- To provide a permanent source of income for your designated charitable purposes in the community
- To leave a permanent legacy by naming the fund for your family, a loved one, a mentor, a teacher, or a hero
- To provide a source of income for future needs of your chosen beneficiaries long after your own lifetime
- To maximize the tax advantages of making a charitable gift
How do I create a fund?
See “How to Start a Fund” for more details. Creating a fund to benefit your favorite church or charity (or charities) is easier and more affordable than most people realize:
- Minimum “seed” donation of $500.00
- Commitment to achieving balance of $5,000 or more within five years of starting fund
- No charge to establish a fund
- No legal fees to establish a fund
- No IRS filing, administrative, or investment responsibilities by donor
- Immediate tax deduction in the year of your gift to the Foundation
- 1% annual administrative fee (charged ¼% on the fund balance of each preceding quarter).
- Donor can designate beneficiaries or allow the Foundation board to use the income to meet identified community needs.
Are there other estate planning tools I can use to create or contribute to a fund?
Yes. We can work with you and your estate planning professional for maximum tax advantage by making your fund the beneficiary of:
- A Charitable Lead Trust
- A Charitable Remainder Trust
- A Bequest through your will
- An Annuity or other insurance policy
- An IRA
Is setting up a fund the only way I can use the Foundation to help my community?
No, not at all. Consider these additional options:
- You may give any amount of money at any time to an existing fund to help it achieve its charitable purpose.
- You may give an unrestricted gift of any amount at any time to support the work of the Foundation in the community. This may be used for any purpose, including administrative overhead, grant-making, educational events, etc.
- You may give a gift of any amount at any time to our Unrestricted Grants Fund or our Founders Fund. Grants from these funds are used to meet community needs identified by the Foundation Board.
- You may join with others who share your charitable interest and let the Foundation help you create a movement around that interest.
- You can help by informing us of charitable needs in the Shenandoah County area.
- You can volunteer to help in your area of interest or with administrative tasks. We welcome ambassadors for the Foundation and especially need volunteer expertise in the areas of development and marketing/promotion!
BOTTOM LINE: Talk to us about your charitable dreams. You may not feel you have a great deal to give, but we can often help you accomplish those dreams by finding others who share them. We connect people who care with causes that matter, and there are lots of people who care who aren’t necessarily wealthy.
Do I have to let you know if I have included the Shenandoah Community Foundation in my will or as a beneficiary of other giving I have in mind?
No, but there are significant advantages to letting us know:
- It allows us to have a conversation with you about your intent and wishes for your gift in the future. Often, we draw up a Fund Agreement for a Fund that will not be activated or funded until after your death, but you will have the peace of mind of knowing that your wishes will be carried out.
- It provides you, your legal advisor, and the Foundation with the chance to set things up in accordance with all laws and regulations to most effectively ensure that your wishes are carried out.
- It provides further documentation of your wishes in the event anyone should contest your will.
- It helps us with our own planning so we can more quickly and effectively implement your gift when we receive it.
When should I consider establishing a Charitable Remainder Trust?
A charitable remainder trust, with the Foundation as its beneficiary, is ideal when you need your current assets now to live on but you want to use some or all of whatever remains after your death and your estate is settled to benefit the community in whatever way you instruct. By using the Foundation as a vehicle for this, you can be assured that your wishes are carried out without an administrative burden to the executor of your estate or your family.
When should I consider establishing a Charitable Lead Trust?
A charitable lead trust, with the Foundation as its beneficiary, is ideal when you have assets that you don’t need right now but you want them to go to your heirs after your death or after a specified period of time. The income from the trust goes to the Foundation (to be used for charitable purposes as you specify) during the period of the trust, after which time the trust is dissolved and distributed to your heirs as designated when you establish the trust. This is a wonderful and often over-looked way to benefit your community during your lifetime without depriving your heirs of their inheritance. By using the Foundation as a vehicle for this, you can be assured that your wishes are carried out without an administrative burden to you or your family.