DESIGNATED ENDOWMENT
Individuals,
families, or companies wishing to make contributions to specific
charities should consider establishing an endowment fund. Many
non-profit organizations can benefit from an endowment fund at the
Communities Foundation of Oklahoma. Endowments provide a base of
financial stability that can carry an organization through tough times.
While an endowment at the Communities Foundation of Oklahoma may be
terminated under certain circumstances (link to policy page), an
endowment is more protected than a typical investment account.
Donors
may establish Funds to endow one or more charitable activities about
which they care deeply. They or their designated successors may request
that beneficiaries change from time to time for various reasons. In an
Endowment Fund, the principal is kept intact and the donor or
organization may request a distribution policy to cover annual giving.
If
the Designated Fund is being established by an organization, the
Foundation will walk the organization through a simple needs assessment
and planning process. In the end, if the organization -- and the
community it serves -- believes that endowment is the right choice, the
Foundation will assist with fund raising planning and development.
FISCAL SPONSORSHIP
Often
a community group will initiate a project for which no specific
qualified 501(c)(3) organization exists. If, for example, a new
playground for the park or library for the school is needed,
Communities Foundation of Oklahoma will accept and hold funds raised
for those purposes until they are distributed as necessary -- saving
the community time and trouble and providing donors with a charitable
deduction.
Download the Fiscal Sponsorship Application and Guidelines.
Find out about fiscal sponsorship funds across the state.
DONOR ADVISED
Donors
may wish to have more input into annual distributions from their Fund.
A Donor Advised Fund may distribute funds at the request of the donor
to any number of varied charitable concerns each year. The principal as
well as the net income may be distributed during the donor's lifetime.
Thereafter, the Fund may be converted into an Endowment Fund.
COMMUNITY FUND
Community
Funds may be established to support a variety of services and charities
within a specific community. They may raise undesignated dollars
themselves or receive funds from individual donors that are designated
for specific charities. Contributors designated for a specific
community but not for a specific purpose will be placed in that
community's Undesignated Fund.
Each
community appoints an advisory board, which will make recommendations
for the distribution of undesignated gifts and help build the Community
Fund. While a Community Fund is a component Fund of the Foundation,
each Community Fund operates as a "mini community foundation" with
support services from Communities Foundation of Oklahoma.
If
an existing Community Foundation wishes to affiliate with Communities
Foundation of Oklahoma, it can operate and be structured differently,
as an Affiliated Fund, with its own legal tax entity, board and
policies.
OKLAHOMA INITIATIVE FUND
Community
foundations refer to gifts for which no pre-determined purpose is
stated as "undesignated funds." At Communities Foundation of Oklahoma,
we refer to such "undesignated funds" as the Oklahoma Initiative Fund.
Donors may choose to add to this Fund as a simple way of addressing
unmet needs across the state.
AFFILIATED
In
some cases, a private foundation may choose to affiliate with
Communities Foundation of Oklahoma. There are a number of reasons why
this makes economic sense. The cost of administering an Affiliated Fund
is considerably less than the cost of managing a private foundation,
the deductibility of your gift is higher, and no tax is assessed on its
earnings. Also, donors can choose how much to distribute each year. An
Affiliated Fund has all the distribution-making latitude of a private
foundation without many of its restrictions. Each Affiliated Fund may
choose its own board and make decisions about investment and
distributions.
An
individual, family or business may also choose to establish an
Affiliated Fund at Communities Foundation of Oklahoma. With help from
the donor's legal counsel, a new Affiliated Fund is incorporated or a
trust is created, outlining the donor's goals and priorities. In the
case of an existing private foundation or public charity, that
organization's articles of incorporation and bylaws are amended to make
it a supporting organization of a public charity.
The
donor's goals may ultimately benefit only one charitable concern in one
community. Or it may be that the donor chooses to benefit a charitable
activity statewide. The structure of an Affiliated Fund's charitable
activities is its own choice. Communities Foundation of Oklahoma
provides staff support to insure that all grants go to viable, IRS
approved charitable organizations.
ESCROW
Occasionally,
a donor may wish to place funds with the Foundation without designating
any specific charity or purpose. In this case, the donor may take a
charitable deduction for the year in which the gift is made. Later, the
donor may make a recommendation to distribute these funds, establish a
permanent Fund or move the funds to another IRS approved charitable
organization. There is no fee assessed for Escrow Funds, but no
interest accrues to the principal until a permanent Fund is established.
For
more information on fund options or to establish a fund, please contact
Susan R. Graves or Amy Klinge at 405/488.1450 or toll free at
877/689.7726.
