Who decides on the grants from restricted funds?
The Community Foundation of Greater Chattanooga (CFGC) is very flexible.
You may designate specific institutions that the fund will benefit, or
you may establish an advised fund where you, or others you name, recommend
grants for charitable purposes. You may choose to restrict the fund's
use to your own community or to a particular field of interest, such as
the arts or education. In these cases, the CFGC Board of Directors makes
grants subject to your restrictions. Finally, you may decide to make your
fund even more flexible by establishing an unrestricted fund. Each year
the CFGC's professional program staff will consider vital and innovative
projects that respond to current needs. Your fund thus remains relevant
and a powerful resource for future generations.
[Back to Top]
What assets can be contributed to a fund?
- Outright gifts of cash, real estate, securities and/or personal property.
- Bequests by will of cash or property.
- Memorial or honorarium assets in tribute to a friend or loved one.
- Life insurance or retirement plan assets naming CFGC as beneficiary.
- Private foundation
transfers in which the private foundation transfers its assets to CFGC
while retaining its name and purpose.
[Back to Top]
Is there a fee?
There is no charge for establishing a fund and no out-of-pocket costs
to the donor once the fund is established. There is an annual administrative
fee. CFGC fees are extremely low because of the cost efficiencies of pooling
funds under one management system.
[Back to Top]
How
do I know I can trust CFGC to protect the fund and to endure over time?
A primary purpose of a community foundation is to preserve and protect
its donors' investments and charitable intentions. CFGC is organized to
provide permanent investment and grantmaking protection for each fund.
In addition, very stringent internal controls guide CFGC's handling of
funds. An independent audit is conducted each year by a reputable accounting
firm. The CFGC has a diverse Board of Directors that oversees all aspects of the Foundation's work.
[Back to Top]
What is the Community Foundation?
One of over 500 such public foundations nationwide through which donors provide dollars
for grantmaking now and in the future from permanent endowment. The Foundation's work is focused
mainly on Hamilton County and is a collection of large and small funds,
all dedicated to the improvement of our community.
[Back to Top]
Is CFGC a "charity" itself?
Yes. The Foundation is a tax-exempt 501(c)(3) charitable organization. Our
primary role is to encourage and administer endowed capital to benefit
charitable programs and projects throughout the county. People give through
CFGC to the community.
[Back to Top]
What is an endowment?
Endowment defines irrevocable charitable gifts permanently invested for
growth and income. The net income is distributed periodically to donor-specified
charitable purposes. Principal is preserved, growing through appreciation
each year.
[Back to Top]
What
is the difference between the Foundation and United Way?
A board member once described it this way: United Way is the annual "checking
account" for specific organizations; the Foundation is the permanent
"savings account" for all charitable organizations.
[Back to Top]
Why
establish an endowment with the Foundation instead of giving directly
to a favorite charity?
Donors value the growth of endowment, involvement in grantmaking, assigning
repeated annual gifts to more than one charity, the professional management,
and permanence, all offered through the Foundation.
[Back to Top]
Does "endowment"
mean large amounts of money?
No. Anyone can begin as a philanthropist by making a gift of $25 or more
to any of the Foundation's existing endowments. A separate, named endowment
can be initiated and built over time.
[Back to Top]
How
does the Foundation decide whom to give to and when?
The Program Committee of the Board recommends to the full Board of Directors grants made from the Foundations primary unrestricted fund-The Fund for Chattanooga.
All types of charitable organizations apply during the grant
cycles. Grants are made, in accordance with the Foundation's grantmaking guidelines,
to projects addressing the needs in our community.
[Back to Top]
How are Foundation
assets managed?
The CFGC hires a professional investment consultant to advise the Investment
Committee of the Board. The consultants report quarterly to the Investment
Committee which is guided by a formal Investment Policy, recognized performance
benchmarks, and the Foundation's mission statement.
[Back to Top]
How do I start
a fund?
It is as simple as sending a letter stating your wishes. We will then
draft for your approval an agreement establishing your fund. Once you
and the Foundation President sign the agreement, your fund is ready to receive assets.
You may also go directly to your attorney or other advisors. Community
Foundation of Greater Chattanooga staff will work with these advisors
to expedite your wishes.
[Back to Top]
How long does
it take to establish a fund?
A fund can be established quickly. The length of time it takes depends
upon the complexity of your wishes. Two to four weeks is normal, although
funds have been established in as few as two hours.
[Back to Top]
Are my gifts tax
deductible?
CFGC qualifies for the maximum tax deductions provided by the Internal
Revenue Service. It is classified as "tax exempt" under Section
501(c)(3) of the Internal Revenue Code; as a "publicly-supported
organization" under Section 170(b)(I)(A)(vi); and as "not a
private foundation" under Section 509(A).
[Back to Top]
Is
there a minimum amount I must give to establish a fund?
The minimum to establish a new fund is $5,000. There is no minimum for gifts to already established funds or pass through funds.
[Back to Top]
Can
the Community Foundation of Greater Chattanooga accept a private foundation?
Yes. Each year throughout the United States private foundations are transferred
to community foundations to save management costs, excise taxes and administrative
burdens.
[Back to Top]
Can other people
add to the fund I establish?
Certainly, you and other people can add to the fund at will. Many people
make contributions in honor of anniversaries, birthdays, and the like.
There is no minimum for a contribution to an existing fund.
[Back to Top]
What do I receive
in return?
CFGC turns tax dollars into charitable dollars. (AND, you receive the
satisfaction of knowing that your gift is helping to improve your community.)
There are tax advantages for charitable giving through a community foundation,
which can be explored on an individual basis with the donor and his or
her financial advisors. From the CFGC, each donor or fund representative
receives a quarterly financial statement, professional investment of permanent
funds in pooled funds and grantmaking. Foundation staff act promptly
upon your grant requests and can provide philanthropic advice and grantmaking
research when needed.
[Back to Top]
