Working Together in Partnership to Make a Difference
Types Of Funds • Benefits • Ways To Give • Professionals
Guide for Donors and Professional Advisors
Starting
Your Own Fund
at the Community Foundation
Thanks to community foundations, becoming a philanthropist is easier than ever before. While traditionally reserved for wealthy industrialists, philanthropy is now open to a more diverse field of donors. The Ventura County Community Foundation’s donors, for instance, are as diverse as the region they serve. They are individuals, families, corporations—even groups of friends. Some are well known, others unknown. Some very wealthy, others simply wanting to give back to their community. Yet diverse as they may be, each has found a home for their charitable legacies at the Ventura County Community Foundation.
VCCF is a family of charitable funds created by those who want to strengthen the community, preserve cultural resources and help those in need. While the primary objective of VCCF is to aid and support nonprofit organizations in Ventura County, donors are able to contribute to recognized nonprofit organizations anywhere in the world, through their funds at VCCF.
VCCF works with donors to discover their interests and concerns. Each fund is individualized to suit the donor and their charitable interests. A fund can be named for its purpose, for the donor, as a memorial to a family member, or to honor someone’s service to the community. The size of a fund can be increased at any time by the original donor or by others with a similar interest.
Types of Funds at the Foundation
Whether the fund is made during a donor’s lifetime or through a bequest, carrying out the donor’s interest is VCCF’s ultimate responsibility. Named funds can be established for any of several choices or combinations of choices as to the use of that fund:
- General
Charitable Purpose/Greatest Needs Funds–General
charitable purpose funds provide the flexibility
to respond to issues where the need is the
greatest and provide important resources to meet
the changes that occur in communities over time.
Earnings from these funds are annually directed
to the greatest needs in Ventura County through
VCCF’s Community Needs Response Fund
competitive grants process.
- Field
of Interest/Scholarship Fund – Field of
Interest Funds allow the donor to name an area of
interest, such as environmental issues, needs of
the elderly, youth, education, or arts and
culture to receive grants from their fund. In
Scholarship Funds they may name the schools youth
will attend, the schools they are graduating
from, the area of study and/or other specific
eligibility requirements.
- Donor-Advised
Fund - Many donors to VCCF wish to have their
family remain involved in making grants from
their fund. These donors establish a
donor-advised fund. Federal tax regulations
stipulate that the final legal approval on the
awarding of grants must rest with VCCF's
Committee. However, donor recommendations are
honored as long as the recommended grants meet
VCCF’s charitable grant guidelines.
- Designated
Fund - Donors may choose to designate
specific beneficiaries at the time they establish
their fund. If any of the beneficiaries become
obsolete or cease to provide the charitable
services they valued, VCCF is required by law to
redirect the fund to the nearest closest purpose.
Donors can be assured that their intent will be
followed in perpetuity.
- Specialized
Funds of VCCF – In response to the needs
of Ventura County, VCCF has established 5 unique
field of interest funds:
1. The Community Health Partnership - A fund sponsored by The California Endowment to support programs that improve and sustain integrated, comprehensive systems of community-based health services in Ventura County.
2. The Community Needs Response Fund –A fund for where the need is greatest as determined by a community advisory group’s analysis of needs each year.
3. Destino 2000: The Hispanic Heritage Fund –A fund to provide opportunities for the economic, educational, physical, emotional, social, artistic and personal growth of Latinos in Ventura County. Click here to read more about the Destino 2000 Fund.
4. The Women’s Legacy Fund –A fund to provide opportunities for the economic, educational, physical, emotional, social, artistic and personal growth of women and girls in Ventura County.
5. The Heritage Fund- A fund to recognize and preserve Ventura County’s unique history throughout the years.
Any donor may make a gift of any amount at any time to any VCCF fund.
Benefits
of Establishing a fund at the
Ventura County Community Foundation
Simplicity
Creating and administering a fund is simple and
quick, requiring minimal paperwork. VCCF manages
investments, processes fund distributions and files all
appropriate tax returns. One contribution can address a
number of different needs benefiting many charitable
organizations.
Tax Benefits
Receive an immediate tax deduction the year in which
the gift is made without having to rush into decisions
regarding the ultimate timing or beneficiary of your
gifts. Contributions qualify for maximum deductions for
income, gift and estate tax purposes.
Professional Management
Enjoy the advantages of having your fund be part of
an actively managed, diversified investment portfolio and
have VCCF’s professional staff available to answer
questions, identify community needs and screen grant
requests.
Perpetuity
Endowed funds will serve the community now and in the
future because only the earnings are spent. Additions can
be made to the funds at any time.
Security
All assets are held in trust. VCCF’s Board
provides careful stewardship of all gifts.
Recognition or Anonymity
Donors may receive public recognition or remain
anonymous, as they wish.
Flexibility
Funds can be tailor-made to fit your particular
charitable vision, or the various interests of family
member. You can make grants to a variety of organizations
and add to any fund at any time.
Public Accountability
Yearly auditing, public disclosure of all grant
activities and careful selection of board members assure
continued use of funds in the public interest.
VCCF
is authorized to accept gifts of all kinds of property.
You are encouraged to use the full "menu" of
giving vehicles to realize your philanthropic goals. You
may establish and make additions to your fund using both
current and deferred gifts.
Current
Gifts
Cash
Appreciated Property (publicly traded stock, closely held
stock, real estate)
Private Foundation Assets-Your existing private
foundation may also be converted into your donor advised
fund or supporting organization within VCCF. This enables
you to retain the name and purpose of the private
foundation while alleviating the administrative and
compliance functions.
Deferred Gifts (Planned Gifts)
Bequest
A bequest to VCCF is as simple as adding a codicil to
your will. This is the most common planned gift and it
may provide you with valuable estate tax savings.
The
following language would be appropriate for a bequest:
"I give and bequeath__________(percentage or stated
dollar amount) of my estate (as that term is defined in
the federal estate tax laws) to (your fund’s name)
of The Ventura County Community Foundation subject to its
governing instruments, policies and procedures, as
amended from time to time. The Ventura County Community
Foundation may use so much of the eligible earnings of
the property as the Foundation determines for
__________________(Greatest needs, field of interest
i.e., educational, medical, youth, art, scholarships
etc.; or for specified charitable organizations.)"
Life
Insurance
One of the simplest ways to make a significant
contribution is to give a life insurance policy to the
Ventura County Community Foundation. You may do this in a
number of ways. You may give a policy no longer needed,
take out a new policy or name VCCF as a beneficiary of an
existing policy. A gift of life insurance may produce
valuable income and estate tax savings.
Charitable
Remainder Trust
A Charitable Remainder Trust (CRT) allows you to
establish a trust for the ultimate benefit of your fund
at VCCF while retaining the income generated by the
assets given. A CRT may help you eliminate capital gains
taxes, reduce or eliminate estate taxes, improve lifetime
cash flow, and when coupled with an asset replacement
trust, will provide for heirs as well.
Pooled Income
VCCF’s Pooled income fund works much like a
mutual fund. You receive a variable amount of income each
year for life, and the assets ultimately go to The
Community Foundation to benefit your most important
charitable interests.
Retirement Accounts
Qualified retirement plan accounts are subjected to
layers of taxation (i.e., estate tax, federal income tax
and state income tax). For some accounts, the combination
of these taxes can be as high as 75-85 percent! A
charitable gift of these funds, however, may provide your
fund with the full 100 cents on the dollar.
Charitable Lead Trust
This trust allows you to provide income to your fund
at the Foundation for a fixed number of years. The
remainder is then returned to you or to your named
beneficiary, your heirs for example.
Life Estate
If you own valuable property that you would like to
use during your lifetime, but make arrangements to give
it to The Ventura County community Foundation upon death,
you may receive a current income tax deduction and future
estate tax deduction.
If you are like many professional advisors, you have hesitated to raise the subject of philanthropy with your client. But research shows that people are eager to learn more about charitable giving from their professional advisors. According to a recent article in the Chronicle of Philanthropy, most would like their advisors to be more knowledgeable about planned giving, and more forthcoming with opinions about what type of gift to make. In other words, if you make an effort to become better informed about the pivotal role philanthropy can play in estate planning, your clients will thank you. VCCF collaborates with professional advisors in order to provide clients and donors with creative strategies for philanthropy.
As a service to professional advisors check our GiftLaw page to receive up to date changes in accounting and laws effecting charitable giving or to use the new Gift Calculator.
Fees
The annual fee for funds is 1.5% of the permanent fund's total market value. This fee includes investment management and all other services provided by VCCF.