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Frequently Asked Questions
Q: What is a Community Foundation?
A: A Community Foundation is a public trust that works with donors to build endowed funds that will perpetually support the needs of the geographical area served by that foundation. This includes supporting non-profit organizations and funding community projects that preserve quality of life in that county.
Q: How does the Community Foundation become a permanent resource in our county?
A: The Foundation expects to build its asset base to $20 million over the next few years. This asset base will serve as the endowment that will be used to make grants for improvements in the county.
Q: Why should I give to the Community Foundation instead of directly to charitable organizations?
A: The Community Foundation will ensure that your gift is permanent and will always offer you the maximum tax benefits allowed by law. While a charitable organization may spend your gift immediately, we invest the principle of your gift. This allows us to distribute the earnings on your gift year after year, providing continuing funds to organizations or causes you would like to support.
Q: How do I know the Community Foundation will be here forever?
A: The Foundation has received significant operating support from the David & Lucile Packard Foundation, The James Irvine Foundation and The California Endowment. In addition, the Board of Directors has invested a great deal of time and money to ensure the long term viability of the Foundation. The response from the community has been very positive and supportive as well.
Q: Who invests the Foundation's Endowment?
A: Through a formal process, the Finance & Investment Committee conducted a search and requested proposals from qualified investment managers. After reviewing over 20 proposals, the Board of Directors selected Prime Asset Management of U.B.S. to serve as investment consultants. They have invested the endowed funds in a balanced portfolio that seeks to maximize return while minimizing risk over time.
Q: How much does it cost to begin a fund?
A: The minimum to begin a fund is $5,000. Donors may give any amount exceeding $5,000 and recommend funds to be distributed right away or invested along with their $5,000 minimum.
Q: Are small contributions important?
A: Absolutely. Contributions of any size are accepted at the Foundation. These donations represent our area's reputation as a caring, sharing community. All contributions are tax deductible to the full extent that the current tax law permits.
Q: Do I have a say in how my contributions are distributed?
A: If donors choose to begin a donor-advised fund, they can recommend grant distributions to the Community Foundation's board of directors at any time. Scholarship, Field of Interest and Agency Endowment funds also involve a great deal of donor involvement. The Community Foundation strives to tailor each fund to its donor's specific needs and interests.
Q: Why should I donate to the Community Foundation rather than beginning my own private foundation?
A: Beginning and running a private foundation requires a lot of time and money with legal fees costing between $4,000 to $6,000 dollars in addition to administrative costs. The alternative is to establish a donor-advised fund at the Community Foundation. In addition to maximum tax advantages, the Community Foundation handles all of the auditing, accounting, insurance and other "back office" support that can be very costly in running a private foundation. Donors also have the option of complete anonymity and confidentiality when establishing a fund at the Community Foundation.
Q: I'd like to help, how do I get started?
A: Call the Foundation office at 805.543.2323 or email barry@sloccf.org and we will arrange for our executive director or one of the board members to meet with you and discuss your interests.
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