 |
 |
|
|
Frequently Asked Questions The Community Foundation was created by the community for the long-term benefit of the community. It is not a charity supporting its own programs, but rather a vehicle supporting a variety of charitable initiatives as diverse as the interests and needs of those who live in the tri-county area of Ingham, Eaton, and Clinton Counties. The Community Foundation accepts and receives gifts for the community's endowment. It is the income from this endowment that is returned to the community each year in the form of grants. In essence, each contribution is a legacy to future generations because income is distributed year-after-year for generations to come. • What is the Capital Region Community Foundation? The Community Foundation is a granting organization that funds other non-profits' programs and services through an application process. The Community Foundation is a "collection" of permanent endowments designed to meet all a donor's individualized charitable goals through one simple vehicle. • What is a permanent endowment? In general, contributions made to the Community Foundation are not spent -- they are invested for growth. Five percent of a fund's assets, averaged over 12 rolling quarters, are available for spending. As the corpus grows, so too does the amount available to spend or grant. • What is a non-permanent fund? By agreement, both principal and income may be expended (also called a "principal and income fund"). A non-permanent fund, however, does not appreciate at the same rate as a permanent fund and the tax benefits are not as great. • What are the Community Foundation's Assets? The Community Foundation's assets are worth approximately 52 million dollars. • Where/How is the Money Invested? Through the trust departments of LaSalle Bank, Munder Capital Wealth, National City Bank/Allegiant Wealth, and Merrill Lynch. Investments are pooled with income spread to each fund proportionately. Performance is reviewed quarterly. • What is the percent return on investment? 2006 --> 11.60% 2005 --> 4.47% 2004 --> 8.65% 2003 --> 20.68% 2002 -->(13.58%) 2001 --> (5.8%) 2000 --> (1.2%) 1999 --> 13.8% 1998 --> 13.8% 1997 --> 16.8% 1996 --> 14.5% 1995 --> 20.0% • How do I obtain financial information? An independent audit is conducted yearly, and the 2004 audit has been completed. Currently, the auditing firm is Maner, Costerisan & Ellis, PC. The IRS Form 990, audited financial statements, and specific investment management details are available upon request. Excluding specific donor information, the financial records of the Capital Region Community Foundation are public. • Who may the Community Foundation grant money to? 501(c)(3) Non-Profits. Tax exempt schools, churches, and governmental entities. • How much does the Community Foundation give away each year? This number grows as the value and number of endowments grow, but current annual granting is nearly two million dollars. • How does the Community Foundation secure operating funds? From fees charged to funds. The fees range from 1% to 2% of a fund's assets computed annually, but no less than $100 per year, per fund. The remaining 98% - 99% is for charitable purposes only. • How many funds does the Community Foundation currently have? There are over 250 funds, with new funds established on a regular basis. • Is the Community Foundation in competition with other non-profits? No, we are a resource for them. We hold many of their endowment funds, work to develop their assets, and make grants to their institutions. • How does the Community Foundation differ from a private foundation? We derive our assets from many donors rather than one, have broad charitable purposes and a demographically diverse, non-compensated Board of Trustees. Because we are a public charity, we receive more favorable tax treatment, do not pay excise taxes on income, and have more flexibility in our operating ability. • Who establishes funds in a community foundation? Individuals Corporations Municipalities Schools Other Foundations Other Non-Profits Michigan Associations Groups with a Common Purpose • What kind of funds may be established? Undesignated Funds Donor Advised Funds Donor Designated Funds Agency (non-profit organization) Funds Field-of-Interest Funds (with or without an advisory committee) • To whom do the fund assets belong and under whose control is the distribution of funds? Fund contributions become assets of the Community Foundation and, as such, are under the control of the Board of Trustees. The Community Foundation is organized for charitable purposes and should not be confused with a bank or an investment service. Fund distributions receive Board approval and, except in extraordinary circumstances, the principal of a permanently endowed fund is not invaded. • What services does the Community Foundation provide to donors/funds? Management and Investment of Dollars Annual Financial Reports to Donors - semi-annually or quarterly upon request Staffing of Advisory Committees Handling all Governmental Reporting Requirements Facilitating the Grants Program and Ensuring Accountability Acknowledging and Receipting Contributions Fund Stewardship and Audit Services Providing Planned Giving Expertise Public Relations and Marketing Initiatives • How long has the Community Foundation been in existence? The Community Foundation was established in 1987. • What is the YAC? In addition to the hallmark functions of grantmaking, donor services and community leadership, the Community Foundation is committed to building a stronger community through youth development. We take particular pride in our YAC (Youth Action Committee) -- a youth advisory committee to the Board of Trustees. These young people, ranging in age from 11 to 18, represent approximately eight school districts and are committed to community service, philanthropy, and volunteerism. They are fast becoming the voice of area youth in community planning. ©2002 Community Foundation All Rights Reserved. Disclaimer Privacy Statement |
Board of Trustees & Staff Roster
Frequently
Asked
Questions About the
Community Foundation
Contact Us
Site Search
Site Map