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GROW II
Community Foundation
PO Box 116
219 S. Main
Smith Center, KS 66967
785.476.3236
smithcounty@gscf.org
Information for Donors
Frequently Asked Questions
How You Can Participate
Creating a Fund
Donor-Advised Guidelines
Donor Advised Recommendation Form (PDF)
Donor Advised Recommendation Form (Word.doc)
Frequently Asked Questions
What is the Smith County Community Foundation? The Smith County Community Foundation is a collection of funds designed to link donors with charitable causes. We are a public charity serving the Smith County area.
Who can give? Anyone. Donors to the Foundation are from a variety of backgrounds with a common commitment to the community's well being.
How are the funds managed? A local board of directors guides the foundation, chosen because of their knowledge of and contributions to the community as well as their diverse representation of the community. The board is responsible for all grant distributions from the Foundation.
As an affiliate of the Greater Salina Community Foundation, funds are managed by a Greater Salina Community Foundation board committee that follows solid and responsible investment strategies to assure donors of the security of funds.
Is there someone available to answer questions? The Board of Directors are available to assist donors in creating funds, speak to community groups and answer questions from donors or charitable organizations. Additional staff in the Greater Salina Community Foundation office includes an Executive Director, Finance Officer, Affiliate/Scholarship Coordinator, Administrative Assistant and a Youth Coordinator.
What's the minimum donation? No gift is too small. Gifts of $25, $10, or even $1 can be made to an existing fund such as an organization, field of interest or scholarship fund, or to our unrestricted grant fund as memorials or charitable contributions. That is what makes this truly a community foundation. Minimums do exist for those who wish to establish a fund.
Are gifts to the Foundation tax deductible? Our status as a public charity ensures that contributions to the Foundation are tax deductible to the highest extent allowed by the Internal Revenue Service. The donor receives tax benefits in the year a gift is made. Grants made from a donor’s established advised fund are not tax deductible.
Who manages the Foundation’s funds? The Foundation manages a pooled investment fund under the guidance of the Greater Salina Community Foundation Investment Committee. By pooling funds, the Foundation is able to provide donors the advantage of diversified investments and economies of scale in investments and fees.
Donors who establish funds of $25,000 or more may request an outside fund manager, as long as that manager is approved by the Foundation.
What costs are involved? There is no cost to set up a fund. The Foundation board determines administrative contributions annually. These contributions are never more than 1% of the annualized fair market value of a fund.
Who monitors the Foundation? A 10-member volunteer board of directors governs the Foundation. The Foundation also receives assistance from the Greater Salina Community Foundation. The Foundation is publicly accountable. An annual independent audit, tax returns and public disclosure of grants provide confidence as to the proper use of Foundation funds. A copy of the full audited financial statement and the most recently filed Form 990 are available for review. The Greater Salina Community Foundation has recently received accreditation for National Standards for U.S. Community Foundations from the U.S. Council on Foundations.
Is the Foundation going to be here forever? The Smith County Community Foundation is an affiliate of the Greater Salina Community Foundation which has grown to more than $43 million in assets in just over eight years. The Smith County Community Foundation is quietly establishing itself as a vital organization in the community. Please read the list of our generous Founding Donors.
How You Can Participate in the Foundation
1. Establish a charitable fund bearing your name to provide for your favorite charitable organization or cause, both today and beyond your lifetime.
2. Contribute to the Smith County Community Foundation Fund, allowing the Community Foundation to respond to current, unmet needs in the community.
3. Contribute to the Foundation’s Administrative Fund and support the future needs of the Foundation.
4. Become a sustainer. Donate a minimum of $5,000 over five years, of which $1,000 will go to the Foundation’s Administrative Fund, $2,000 will go to the Foundation's unrestricted grantmaking fund, and $2,000 will go to the Health Needs of Smith County fund.
5. Contribute to any existing fund.
6. Encourage your favorite charity to establish an organization fund to provide ongoing support for their work.
7. Tell your friends about the Community Foundation and the services we provide.
Creating A Fund
1. Decide when to give. You can create a fund now, establish it in your will, or create it through a trust arrangement that benefits your family as well as charity. Tax deductions are eamed at the time of the gift, while grants awarded from your fund will continue into the future.
2. Decide what to give. Almost any kind of asset can be used to start a fund, such as cash, publicly traded securities, closely held stock, real estate, life insurance, tangible personal property and private foundation assets.
3. Choose a fund name. Most funds are named for the donor or the donor's family or as a memorial to someone special. Every grant from the fund will carry this name. Donors who prefer anonymity may choose a name that reflects the donor's charitable interests.
4. Choose a type of fund. We offer a variety of funds that are flexible in order to meet our donors' different charitable interests.
Once your decisions have been made, contact the Smith County Community Foundation to proceed in the creation of your desired fund.
Donor Advised Fund Guidelines
Donor Advised Funds give donors an unparalleled opportunity to:
- play an active, personal role in their charitable giving;
- enhance their understanding of community agencies and needs;
- benefit from the Foundation’s expertise in fund and grant management;
- obtain immediate tax benefits; and
- build an enduring, permanent resource that ensures perpetuation of their charitable presence in the community.
In creating a Donor Advised Fund, donors retain the right during their lifetimes or during the lifetimes of other advisors they name, to recommend grants to specific organizations or program fields. Donors may consult with the Foundation’s staff about community needs, programs and agencies. Grant distributions are handled by the Foundation.
By establishing Donor Advised Funds, donors have the satisfaction of shaping philanthropic programs that reflect their special interests and concerns. Their giving patterns will guide the Foundation in managing their endowment funds through the years.
The following policies and guidelines have been established to govern the handling of Donor Advised Funds in a manner consistent with the purposes of the Foundation and in keeping with applicable tax regulations.
1. Minimum Amount
The minimum amount required to establish a Donor Advised Fund is $10,000, designated as endowment. Donors who intend to establish a fund may take up to 5 years to reach the fund minimum. If, at the end of five years, the fund has not reached the minimum, the fund will become an unrestricted grant fund within the Foundation. If the fund has at least $5,000 at the end of five years, the donor will receive permanent recognition in Foundation materials.
2. Investment of Funds
Donor Advised Funds belong to the Foundation and are subject to the terms and conditions of its governing instruments. Donor Advised funds are commingled with other Foundation funds to encourage maximum investment performance. The Foundation’s portfolio is managed with a view toward maximization of total return considering inflation risk, interest rate risk, and business or economic risk, while at all times being prudently diversified. A copy of the Foundation’s investment policy is available on request.
3. Outside Investment Managers
Donors may request to use an outside investment manager if the fund maintains a minimum balance of $25,000. If the request is granted, the fund remains a component fund of the Foundation, but is managed and invested by a bank, trust company or other entity of the donor’s choice. In order to manage component funds for the Foundation, outside fund managers are required to sign an investment management agreement with the Foundation, and maintain an investment performance level that is acceptable to the Foundation’s Investment Committee.
4. Grant Recommendations
Donors or other advisors named by the donor when a fund is established are invited to submit recommendations for grants to be made from the fund. A grant recommendation form is available at the top of this page by clicking on the Donor Advised Recommendation form. Such recommendations will be given careful attention. They must be advisory, however, and may not bind the Foundation, which, by law, must have the final authority to determine the use and distributions of all of its funds.
Grant recommendations made by donors will be evaluated to determine that they are consistent with the broad purpose of the Foundation and that recommended agencies are eligible to receive charitable distributions. Donor recommendations are then acted upon by the Foundation’s Grant Committee. Grants are ordinarily processed within a week. Each grant recommended from a Donor Advised Fund must be for a minimum of $250. Grants from a Donor Advised Fund may invade principal of the fund provided the fund balance remains at $10,000.
5. Special Projects
Donors may allocate a portion of the fund’s distributions to the support of special projects identified by the Foundation’s Board as critical to our community. Such allocations help the Foundation respond to new opportunities and emerging needs. From time to time the Foundation may call advisors’ attention to special community needs and programs. Foundation staff is available to consult with fund advisors.
6. Satisfaction of Pledges
In accordance with Treasury Department regulations, grants awarded from Donor Advised Funds may not be used to pay for memberships, dues or anything that might be perceived as giving material benefit to their donors. In addition, grants may not be used to satisfy a previously committed personal pledge made to a charity by a donor.
7. Permissible Recipients
Grants from Donor Advised Funds are made primarily to nonprofit organizations exempt from Federal taxation under section 501(c) 3 of the internal Revenue Code. Grants to other organizations may be considered, if the Foundation determines the grant is being used for a charitable purpose. Grants from Donor Advised Funds may not be made to individuals.
8. Anonymity
Unless the donor wishes to remain anonymous, the Foundation identifies for grant recipients the named funds from which grants are paid, and the grant recipients are encouraged to acknowledge the donor whose generosity made the grant possible.
9. Successor Advisors
Donors may recommend other living persons – children, friends, or business associates – as successor advisors to recommend grants from the fund. However, advisors selected by the donor may not name others to serve as their successors. Exceptions to this policy may be made when, for example, the special expertise or knowledge of advisors is felt to be critical in managing a fund such as a medical research fund.
10. Restricted vs. Unrestricted Funds
At the time the Fund is established, donors may identify areas of charitable interest for which the fund always will be used. However, the Foundation encourages donors to leave funds as unrestricted as possible upon the termination of the role of the last advisor. Funds that become unrestricted will continue to be recognized in Foundation materials.
11. Subject to Governing Instruments
All funds are subject to the terms and conditions of the Foundation’s governing instruments, as amended. Among other things, the governing instruments provide that the Foundation has the power to modify and vary any donor direction or restriction in the event it becomes unnecessary, incapable of fulfillment, or inconsistent with the charitable purposes of the Foundation.
12. Administrative Contributions and Special Fees
(a) All component funds are required to share in the administrative costs of operating the Foundation. Although the Foundation has a separate and permanently endowed administrative fund that supports the Foundation's work, the Foundation reserves the right to annually assess from each fund a contribution in an amount not to exceed 1% of its average daily fund balance as of June 30. The administrative contribution supports the charitable work of the Foundation by assisting in covering administrative costs so the Foundation can achieve its goal of increasing philanthropic giving and improving the quality of life in our community.
(b) Each specific component fund will be charged a fee for any extraordinary expenses incurred on behalf of that fund, such as commissions for the sale of contributed securities. Additional fees may be charged for extraordinary services, such as special grant processing, large numbers of transactions, or other non-standard services.
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