Steps to Establish a FundGive back and make a lasting difference in your community by establishing your own fund to support the things that matter the most to you. The Community Foundation has the resources and expertise to help guide your through the entire process. Getting started is easy!
Our Building a Legacy booklet, available as a pdf, provides even more information on how to establish your own fund. |
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Step 1: Identify Assets
Determine the assets you wish to use to start your fund. Examples of assets typically used include cash, publicly traded or closely held securities, real estate, or personal property. An outright gift accomplishes two important tax objectives: a charitable income tax deduction in the year of the gift and the reduction of the gross estate for future estate planning purposes. In addition, donors eliminate capital gains taxes for gifts of appreciated property.
Consider giving through your will. A bequest is the simplest way for many donors to make significant, lasting gifts to their community and reduce the federal estate tax and the inheritance tax due at the donor’s passing. Consider directing a percentage of your estate to the Foundation in your will.
Or, use your life insurance policy to make a charitable gift. Name the Foundation as a beneficiary or a partial beneficiary of your policy. Or take out another policy to benefit the Community Foundation. Premium payments are tax deductible.
Consider receiving income now to help a charity in the future. Make a tax deductible gift to establish a Charitable Remainder Trust or a Gift Annuity now, and you’ll receive income for a number of years or for life. The Foundation receives the remainder or the trust at your death.
Perhaps you’d like to help a favorite charity now and leave money to your heirs. Make a tax-deductible gift to open a Charitable Lead Trust now, and the Foundation will receive annual payments to support a permanent fund in your name. You heirs receive the trust’s balance at your death.
Or would you like to live in your house now and give it to charity? With a Life Estate Agreement, you can donate your home, farm, or vacation property and keep the right to live there. You’ll benefit from the income tax deduction now. On termination of your interests, the Foundation will sell the property and establish a charitable fund with the proceeds, simplifying your estate for heirs.
If you wish to donate your IRA/retirement plan, simply name the Foundation as the beneficiary of your IRA/retirement plan or as a partial beneficiary.
Consider giving through your will. A bequest is the simplest way for many donors to make significant, lasting gifts to their community and reduce the federal estate tax and the inheritance tax due at the donor’s passing. Consider directing a percentage of your estate to the Foundation in your will.
Or, use your life insurance policy to make a charitable gift. Name the Foundation as a beneficiary or a partial beneficiary of your policy. Or take out another policy to benefit the Community Foundation. Premium payments are tax deductible.
Consider receiving income now to help a charity in the future. Make a tax deductible gift to establish a Charitable Remainder Trust or a Gift Annuity now, and you’ll receive income for a number of years or for life. The Foundation receives the remainder or the trust at your death.
Perhaps you’d like to help a favorite charity now and leave money to your heirs. Make a tax-deductible gift to open a Charitable Lead Trust now, and the Foundation will receive annual payments to support a permanent fund in your name. You heirs receive the trust’s balance at your death.
Or would you like to live in your house now and give it to charity? With a Life Estate Agreement, you can donate your home, farm, or vacation property and keep the right to live there. You’ll benefit from the income tax deduction now. On termination of your interests, the Foundation will sell the property and establish a charitable fund with the proceeds, simplifying your estate for heirs.
If you wish to donate your IRA/retirement plan, simply name the Foundation as the beneficiary of your IRA/retirement plan or as a partial beneficiary.
Step 2: Consider the Tax Benefits
Not only are gifts to the Community Foundation tax deductible, but contributions to endowment funds may also be eligible for the 40% North Dakota Endowment Tax Credit. Learn more at gofoundation.org/tax-credit.
Step 3: Determine the Type of the Fund
Distributions from endowments can support nonprofit organizations; schools, libraries, and other public entities; houses of worship; or scholarships. Consider what causes mean the most to you and your family and the type of fund that best suits your goals. Beneficiaries can be determined at the time the fund is set up through a Designated or Field of Interest Fund or on an annual basis through a Donor-Advised Fund.
Step 4: Select a Name
Many donors choose to name their fund “The (Surname) Fund.” Occasionally, however, donors wish to remain anonymous. If this is the case, contact us for help with naming your fund, so it reflects your interests and intentions while keeping your name private.
Step 5: Grow Your Fund
A one-time gift can create a lasting legacy through an endowment; however, consider the growth in your charitable impact if you make giving to your fund an annual tradition for you and your family.
The above steps are a general guideline to help you determine your philanthropic legacy. After giving your goals consideration, meet with our team to discuss how you can begin your philanthropic journey. Don’t hesitate to contact our office at (701) 746-0668 or [email protected] to learn more or to establish your own fund.
The above steps are a general guideline to help you determine your philanthropic legacy. After giving your goals consideration, meet with our team to discuss how you can begin your philanthropic journey. Don’t hesitate to contact our office at (701) 746-0668 or [email protected] to learn more or to establish your own fund.
