WHAT YOU NEED TO KNOW
What is a community foundation?
No two community foundations are alike, and yet they share common characteristics. Community foundations are a collection of individual funds invested together to benefit a broad range of community needs. They are shaped by local traditions, history and culture and are designed to meet the needs in a defined geographical area. Community foundations do not champion one cause over another, but rather work on behalf of the entire community. Their ability to meet the need(s) in their communities is limited only by available resources and the richness of their donors’ imagination.
What are the benefits of a community foundation?
Sometimes donors dream big and yet are confused as to the proper mechanism or process that will allow them to achieve their philanthropic goals. The primary benefit of a community foundation is the expertise, flexibility and ease it provides a donor to meet his/her goals. A donor can select, 1) when to give, 2) what asset is most appropriate to give, and 3) who or what their money will benefit. There is very little paperwork and no need to set up a separate board of directors or go through the lengthy and expensive process of setting up a private foundation.
What types of funds does a community foundation manage?
Why should someone invest with the Renton Regional Community Foundation?
When a donor contributes to the Renton Regional Community Foundation they can watch their dollars grow, not just in dollars and cents, but in helping to grow a stronger community. Our donors invest with a purpose. They are our partners and together we strive to achieve high-impact philanthropy. As such, RRCF remains current on the issues facing our community and serves as a hub of philanthropic information where ideas are shared, needs are identified, and common agendas for the future are developed.
What is RRCF’s Investment Strategy?
The goal at the Renton Regional Community Foundation is to invest an ever-increasing pool of assets in a way that will maximize return while moderating risk. An investment committee made up of Foundation board members, business owners and community leaders guides the Foundation’s investment strategies, making recommendations to the board on policy, strategy and management. For more information, visit our Financials page.
What are the investment fees?
RRCF keeps expenses low by spreading costs over its growing collection of funds, careful management and the use of volunteers. Small funds particularly benefit from pooling with our size and diversified portfolio. Each RRCF fund pays a proportionate share of the investment management fee. Administrative fees are in addition to this and are based on the size and type of fund. Currently administrative fees run between 1-3%, depending on the size of the fund and how much activity (number of contributions, grants, special projects) the fund generates. For more information, see our Fee Schedule or visit our Financials page.
How is the Foundation’s Operating Account used?
The Operating Fund supports all operations of the Foundation, as well as all grant and scholarship programs. Largely a volunteer organization, currently RRCF retains an Executive Director and two part-time staff.
Having professional staff allows RRCF to maintain an active presence in the community, increase efficiencies, provide prompt response to inquiries, provide individualized attention to donors, maintain a consistent approach to policies and procedures, activate education and promotion plans, build a network of partnerships, help provide a consistent message to the community and liaison with other community foundations in the area.
What is the process to set up a fund?
Most donors don’t want to be burdened with complicated, legal proceedings to do something good for their community. The process of setting up a fund with a community foundation is simple. Donors can contact the Foundation by calling (425) 282-5199 or by emailing the Executive Director at email@example.com to get a sample fund agreement and/or schedule a meeting. For more information, visit our How To Give page.
What types of gifts can RRCF accept?
RRCF can accept most types of gifts, including cash, securities, life insurance policies, real estate and personal property (subject to Gift Acceptance policies of the Foundation). The Foundation also can accept remainder trusts, lead trusts, life estates and bequests.
What portion of the gift is used for charitable purposes?
In general, community foundations are very cost-effective, but determining what portion of a gift goes directly to charitable purposes depends on the gift itself. For instance:
Why does it make sense to invest with RRCF?
For donors, the Renton Regional Community Foundation:
For local non-profit agencies, the Renton Regional Community Foundation:
How does RRCF differ from the United Way or other charitable organizations?
RRCF is not in competition with other local not-for-profit organizations. Instead, we work to support and enhance our local partners. How do we do this? While most non-profit organizations have a very specific mission, community foundations have broad missions and are thus free to make grants to address any charitable purpose.
Additionally, most non-profits conduct annual fundraising programs to support their operations. Although community foundations must also fund operations, they typically do so through management fees, interest income, operational endowments, small special events and individual donors.
What are the tax benefits of investing with RRCF?
RRCF is a tax exempt, 501(C) 3 organization. All contributions to RRCF are tax deductible to the extent permitted by law. In addition, RRCF can accept specialized forms of giving such as gifts of stock, bonds, mutual funds and real estate. RRCF can also work with donors to set up planned gifts, which allow the donor to achieve a tax deduction and a stream of income.
If you have additional questions, please contact us.