Why a Community Foundation
Why Advise Your Client to Give through a Community Foundation?
There are many reasons for your clients to invest in the Community Foundation of Southeastern Mass. Since 1995, we’ve been an invaluable resource for advisors like yourself as you help your clients achieve their philanthropic goals. Through visionary, diverse, and inclusive philanthropy, our Community Foundation has become a catalyst for significant community change. We can help you make a lasting impression with your clients while they make a positive impact on and leave a lasting impact in our community.
For many donors, investing with the Community Foundation is like having their own private foundation-without the expense and the administrative hassles. The Community Foundation offers several advantages to its donors, and offers distinct benefits over private foundations and commercially sponsored gift funds:
Private Foundation vs. Community Foundation
|
Factors
|
CFSEMA
|
Private Foundation
|
Commercially Sponsored
Gift Funds
|
|
Initial Contribution
|
$10,000
|
$5 million to be cost-effective
|
$10,000 plus
|
|
Start-up costs
|
None
|
Legal and accounting fees
|
None
|
|
Annual administrative fees
|
1%
|
On-going legal and accounting fees
|
1%-1.75%
|
|
Max. Tax deduction for cash gifts (% adj. gross income)
|
50%
|
30%
|
50%
|
|
Max. tax deduction for gifts of appreciated securities
|
30%
|
20%
|
30%
|
|
Excise tax on investment income
|
None
|
Yes
|
None
|
|
Pay out requirement
|
None
|
Yes
|
None
|
|
Requires donor time and expense
|
No
|
Yes
|
No
|
|
Grantmaking consultation
|
Yes – no charge
|
Must hire staff or consultant
|
None
|
|
Access to community-wide knowledge base
|
Yes – no charge
|
No
|
No
|
|
Research and evaluation on charitable organizations
|
Yes – no charge
|
Must hire staff
|
No
|
|
Anonymity
|
Yes – full anonymity if desired
|
No
|
No
|
|
Full range of planned giving opportunities
|
Yes – no charge
|
Additional legal fees
|
Limited
|