What is a community foundation?
“Community foundations are grantmaking public charities that are dedicated to improving the lives of people in a defined local geographic area. They bring together the financial resources of individuals, families, and businesses to support effective nonprofits in their communities.” — Council on Foundations
How do I donate?
To make a one-time donation, visit our “Make a Donation” page by clicking here.
Are my contributions tax-deductible?
Yes!
Donor-Advised Funds
Getting Started
What is a donor-advised fund?
A donor-advised fund (DAF) is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities, or other assets to a donor-advised fund at a public charity, you are generally eligible to take an immediate tax deduction.
Why open a donor-advised fund?
Donor-advised funds enable donors to qualify for a current year tax deduction and recommend grants at a later time at their convenience or when the charitable assets have had the chance to grow. DAFs also make it easier to donate appreciated investments or assets that may be more difficult for charities to accept directly.
Who can open a donor-advised fund?
Individuals, families, companies, foundations, and other entities may open a donor-advised fund.
What amount do I need to start a fund?
Donor-advised funds can be established with an initial contribution of $5,000 or more. If a donor wants to set up a fund but doesn’t have a $5,000 lump sum gift, CFWG will accept smaller gifts into an “Acorn Fund” as long as there is a commitment to contribute at least $1,000 a year annually to the fund until it reaches $5,000. As soon as the donor’s Acorn Fund balance reaches $5,000, a donor-advised fund will be established.
How do I start a fund?
Contact us today at (770) 832-1462 or by visiting our office at 807 South Park Street, and we will walk you through the process!
Gifts
Can I make additional contributions to the fund? Is there a minimum amount?
You are encouraged to make additional contributions to the fund! You will be entitled to take a tax deduction each time you make an additional gift of any size. Other people (or corporations) can also make gifts to your fund. There is no minimum contribution amount.
Can I move funds from another donor-advised fund I have with another organization to CFWG?
Yes, you can typically transfer funds from one donor-advised fund to another. Simply contact your current donor-advised fund provider and recommend a grant to the Community Foundation of West Georgia.
Can I give stock?
Absolutely! Many donors find that appreciated stock is the most beneficial contribution possible because they receive a tax deduction based on the full market value of the share, but they realize no capital gains when the stock is sold by CFWG.
Can I contribute assets from my IRA to my donor-advised fund?
You may name your donor-advised fund as the charitable beneficiary of all or part of an IRA. You should consult with your tax advisor or attorney to determine how this affects your tax liability and filing needs. Under current law, a distribution to a donor-advised fund does not qualify as a QCD. You can, however, donate the cash you receive as your RMD from your IRA (or from another retirement plan) to your donor-advised fund and the charitable contribution deduction may reduce your taxes if you itemize by reducing your adjusted gross income.
Investments
How will my DAF be invested?
At the time you establish your fund, you may invest it in CFWG’s investment pool of funds. We are happy to provide a copy of our investment policy and current portfolio mixture.
Can I choose my own investment manager?
CFWG encourages donors to utilize the foundation’s investment pool that is professionally managed. For funds with balances of $1,000,000 or more, the donor can use their advisor pending Board approval. The fund balance must stay above $1,000,000 to continue using the advisor.
Can the income accrued in my DAF be deducted as an additional charitable donation?
No. Only contributions made to CFWG are tax deductible. Growth inside your DAF account is not eligible for an additional deduction.
Grants
How do I suggest a grant?
You may submit your request online or in writing using our Donor Grant Recommendation Form.
What are the restrictions on grant-making?
By law, community foundations can only make grants for public charitable purposes. CFWG will generally only make grants to qualified tax-exempt 501(c)(3) charities. CFWG cannot make a grant if the donor receives any benefit from the grant (e.g. raffle tickets, tickets to a benefit dinner or event, memberships, payment of a relative’s tuition to an educational institution, etc.).
Can I make grants to churches and schools?
Yes, churches and schools are charitable organizations that qualify to receive grants from your donor-advised fund.
Can CFWG provide information about worthwhile projects and organizations to support?
Yes. Our staff can work with you to identify nonprofit organizations and/or charitable projects that meet your charitable goals.
Can I make grants to organizations outside the region?
Yes. While CFWG’s mission is to improve the quality of life in Carroll, Haralson, and Heard Counties, we understand that many people have charitable interests outside the region. Therefore, any qualified public charity in the U.S. may receive grants from a CFWG donor-advised fund.
How quickly will a check be issued once I submit my grant suggestion?
Grant checks are processed on the 1st and 15th of each month.
Will my grant check be printed with the name of my fund on it?
Yes. Your fund name will be identified on the check, as well as your name and address on the accompanying letter. If you choose to make the gift anonymously, your fund name, name, and address will not be shown.
Can my company match a grant that I recommend from my donor-advised fund?
Certainly. Please check the policies of your company.
Fees
What are the fees? Do I have to pay any fees out of pocket?
Charitable administration fees cover grant making, asset management, recordkeeping, annual audits, tax filing, quarterly statements, insurance, and various other operating expenses. CFWG’s administrative fees are typically 1.25%, with the total fee amount determined by the market value of the fund. The fee is calculated and assessed on a quarterly basis and is similar to fees charged by community foundations throughout the nation. A fee schedule will be provided to you when you open your fund. All fees are collected from the investments, so you need not pay any amount out of pocket.
Succession
What happens to my fund after I die?
If you have named one or more successor advisors, they will have the right to make grant suggestions until their death(s). If you have not named a successor advisor or after the lifetime(s) of your successor advisor(s), the fund will generally convert to an unrestricted fund at CFWG, and the distributable income will be used to benefit worthy nonprofit organizations in Carroll, Haralson, and Heard Counties. Alternatively, you may specify the fund to convert to an endowment that benefits certain charities or areas of interest you choose. In this case, you must advise CFWG of the charities you have selected.
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