What is the Community Foundation
of Central Wisconsin?
The Community Foundation of Central Wisconsin is your trusted local
resource for charitable giving. It is a nonprofit organization
created to provide a lasting source of charitable giving through endowment
funds. Our job is helping donors share, both now and for generations
to come.
Donors may contribute to a number of funds already established within
the umbrella structure of the Community Foundation, or fulfill their
personal philanthropic vision for the community by choosing to start
their own fund.
The Community Foundation offers permanence, simplicity, tax advantages
and flexibility.
How does Community Foundation
work?
Donors create their charitable funds with tax-deductible gifts of
cash, stocks, real estate or other property. All funds are pooled
and prudently invested by money managers that are approved by the Foundation's
Board of Directors. A percentage of the money in each fund is
available annually for grants that support the work of nonprofit organizations
and programs of 501(c) 3 locally, statewide, nationally
or across the globe. The principal grows right here at home building
gifts that keep on giving.
Why work through Community Foundation
of Central Wisconsin?
Convenience. Local expertise. Permanent giving.
Tax advantages. We work with you to make charitable giving as
easy as possible. We have a strong board of directors consisting
of local community leaders. Our staff knows Central Wisconsin
and our local nonprofit organizations and changing needs.
An endowment can serve to teach philanthropy to your children and continue
your giving in perpetuity. We are dedicated to carrying out your
charitable wishes today and for generations to come.
What is an Endowment?
Think of a savings account where only the interest earnings can be
used. As additional gifts are made and the base of the fund (sometimes
called the corpus of the fund) grows, the interest earnings also grow.
The Community Foundation manages over 100 such funds at this time and
there are more funds being developed regularly. Unlike a
savings account, however, the Community Foundation pools these funds
and oversees the management of all of the combined assets to maximize
the gains and minimize any fees. Then, the earnings are proportionally
returned to the individual funds to be distributed to the various causes
for which they were developed.
In this manner, endowed funds give now, and go on giving back to the
community forever. Donors are able to leave a legacy to those
organizations or programs that they want to make sure are there for
future generations.
How are Grant Recipients Chosen?
Grant recipients are chosen in different ways, depending upon the
type of fund.
Donor Advised Funds allow donors, and successors
they choose, flexibility to recommend how the grant money is spent.
Designated Funds provide donors with a way to recommend
annual grants to one or more charitable organizations. Scholarships
are included in this category.
Donors who want to support the changing needs of a particular cause,
such as the arts, women's issues, the environment, etc., may set up
a Field of Interest Fund. Most grants are awarded
through a competitive application process that is determined by the
board.
Donations to a Non-restricted Fund are distributed
through an annual competitive grants process. The Grants Committee
recommends the projects for approval by the Board of Directors.
Supporting Organization Funds have their own boards
and award their own grants, with the Community Foundation handling
the financial and administrative work. Often smaller family
foundations fall into this category.
How can I afford to Give?
More than 4000 people have contributed to the Community Foundation
in one way or another since it was created. Many would not
be considered wealthy. But today, everyone who has ever given
is a (shared) millionaire!! That's right, we share assets
of millions of dollars that have grown over time and are now giving
back to the community we love.
Donors can make a gift of any size to an existing fund. Just
send your contribution to the Community Foundation and note the
fund in which you would like your gift deposited.
Those wishing to endow a new fund may start the process for as little
as $600. In ten years, an annual $600 gift will have grown
into $10,000, the level where the endowment begins to return grants
to the community in perpetuity.
Contact the foundation at (715) 342-4454 or email us at foundation@cfcwi.org to set up a time to chat
about your philanthropic dreams for our community.
What is the difference between
a Community Foundation and a Private Foundation?
Community Foundations are simpler and often more economical than a private foundation.
A named donor advised fund through a community foundation
is like having a "foundation within a foundation."
While enjoying the fun of recommending grants, the donor avoids excess
regulatory rules, excise taxes, accounting and legal fees, tax
reporting, managing investments, audits or other federal reports.
The above is often a good alternative for those thinking of a
private foundation but do not have several million in assets.
There is a slight loss of control, however, as the community foundation
will reserve variance powers to insure that all processes are
legal, that grants go to charitable organizations/projects and
that the donor is making grants consistent with their purpose
statement.
Private Foundations maintain
total control of their assets. To keep up with and follow
the laws, they will often opt to hire administrative and legal
staff to coordinate the efforts of their foundation. While
there is no magic number, the efficiency of a private foundation
is gained only when very large assets are being managed.
Recently, a new category has been developed that is a bit of a
combination. Private Foundations that want to have their
own boards and do their own granting, but wish to have a community
foundation do much of the administration are doing this through
what are known as Supportive Organizations of community foundations
The Community Foundation of Central Wisconsin values all
efforts to give back to the community and will work with all individuals,
families, foundations or organizations in any way possible to
maximize our ability to collectively make this community the best
place in which to grow, to work, to play and to retire.
Can I involve my financial advisor
or attorney in establishing a fund?
Absolutely. We often work with area professional advisors
to make sure that donors get the greatest tax advantages from
their charitable giving.
In fact, your professional advisor is often in the best position
to determine the right financial vehicle for your family as well
as your charitable interests.
Once you have made your decisions and are comfortable sharing
your ideas, we look forward to sitting down with you and your
advisor to work things out in the most efficient and effective manner
for you to give.
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