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The Benefit of a Community Foundation

A critical responsibility of estate planners is to develop charitable giving strategies for their clients. Estate planners must strive to meet their clients’ goals in the simplest and most cost-effective way. At the same time, estate planners are often leaders of the community they serve. Hence, the community foundation is a perfect fit. Opening a fund in your community foundation is an extremely efficient way to make a charitable gift for several reasons.

First, giving to the foundation provides donors with more flexibility and potentially higher returns then they might realize individually. The foundation can pool funds with common interest in order to implement the donor’s charitable intent. This pooling can provide a critical mass of resources dedicated to achieving particular goals.

Second the fee incurred by a community foundation can often be lower than those incurred by a small private foundation or a charitable trust. Consequently, more income is available to benefit the charities who are the ultimate beneficiaries. In addition, the larger pool of investments allows for portfolio diversification and economics of scale similar to those achieved by mutual funds.

Third, a community foundation can provide expert advice to assist the donor in meeting some of the community’s most pressing charitable needs. The staff of he foundation works closely with wide range of non-profit organizations and stays well-informed about their programs and their impact on the community.

Lastly, the foundation provides a variety of donation options, ensuring that he donor can tailor a gift to meet specific goals. In a Donor Advised Fund, the donor can make recommendations that their gift be directed to any qualifying non-profit organization. Another option is the Donor Designates Fund, which identifies in advance the non-profit organization that will be the direct beneficiary. The foundation also offers a Field of Interest Fund which indicates a certain area of interest for which the funds will be directed at the direction of the foundation’s Board of Directors. The last fund type is the Community Outreach, which provides the greatest flexibility by allowing the foundation to use it’s own discretion to address the changing needs of the community.

LACF


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