Benefits to Donors Permanence
When you set up an endowed fund with the Community Foundation of the Verdugos, you have done it for life. Because the principal of your original gift is retained in your fund while earnings are used for grant making year after year, you are assured your gift(s) will continue to benefit agencies and residents of the community forever. What is an "endowed" fund? Endowed Funds or, more commonly, Endowment Funds, are like blocks of granite. They last. And they last. One way you can extend your influence into the future is by "carving" your name through a Community Foundation of the Verdugos endowment fund that will provide community benefit thanks to your foresight and generosity. Also nice to consider is that, beyond the monetary giving, donor intent is preserved even if an organization receiving grants ceases to exist, ensuring that your passions are supported for years to come in the areas that are needed the most. Funds can be set up by individuals, businesses or corporations, or community and nonprofit groups (called Agency Funds). A private family foundation can always be transferred to a fund set up under the Community Foundation, easing the cost and burden of yearly administration. Flexibility
The Community Foundation offers donors a number of ways in which to create an endowment fund, a donor pass-through fund (including scholarship funds), or in making general gifts to one of the many funds already established, including the seven Field of Interest funds. While creating an endowed fund with the Foundation is encouraged, other giving options for recognition include establishing a pass-through fund in your own name or in the name of someone special to recognize their life and achievement, or just by making a donation to one of our seven Field of Interest funds in memory or in honor of someone special. Memorial gifts to your own fund, or any of our other funds, including the Field of Interest funds, will be recognized in our Book of Memory. Gifts can always be made in memory or in honor of someone special; names of those who are remembered through a memorial gift are listed in our Book of Memory. How does it work? Once an endowed fund is set up with an initial gift, you can always add to the fund whenever you wish. A disbursement of a grant or scholarship can be made when the amount available through earnings to spend is appropriate. A donor-advised, pass-through fund can also be added to at any time. With an established pass through fund, disbursements (grants/scholarships) can be made at any time, as long as the balance in the fund is enough to cover the disbursement. Funds can be named after you, a special loved one (living or deceased), or even for a particular cause or need. Any fund can be established now, during life, and need not wait until the donor is deceased. Assets used toward the establishment of funds range from cash, appreciated stocks and bonds to real estate - in fact, almost anything of value. Of course, an endowed fund may also be a part of your will to be established at the time of death. Some people do both. They establish an endowed fund now so they can watch it grow and enjoy the satisfaction of seeing their fund benefit others. They may add to it periodically and possibly encourage family members and friends to get involved. Then, through their wills, they make provision for a final, and often larger, contribution. Once donors establish funds with the Foundation, we offer ways for them to stay involved in identifying uses for their charitable gifts through visits to area non-profits, newsletters, and special events. We provide personalized donor service to support each donor's unique charitable interests and financial circumstances and work with donors in generating news or information for others about their generosity. On the other hand, anonymity is adhered to when the donor requests it. Simplicity
As a local organization, we offer the advantage of being in your "neighborhood," and can guide you with more personal attention and information about local needs than larger foundations or an investment firm through which one would set up a charitable gift fund can. Setting up a fund with the Foundation is easy and administrative costs are low. If you don't have a fund with us, it's still easy to make donations to any one of the seven Field of Interest funds or any number of donor-advised funds. By donating to your own fund, someone else's donor-advised fund, or one of our Field of Interest funds, you have created a simple way in which to fulfill multiple charitable interests for the Verdugo area because we make grants to the community from monies generated through funds under our advisement. A gift to the Community Foundation of the Verdugos can easily benefit several worthwhile endeavors. Security
Since the Community Foundation's beginnings in 1956, we have retained and honed our skill in managing and safe-guarding donor contributions. The Board of Directors feel a prudent balance between safety and total return on endowments is paramount. Investment policies are balanced between current laws guiding the Foundation's fiduciary responsibilities with the expert guidance and decisions of financial professionals serving on the Board and Investment Committee. The Foundation practices prudent stewardship and carefully manages each fund to ensure the highest growth possible as well as ensuring that each fund's use will be in keeping with the donor's original intent as long as it is realistically sensible and possible. A distinguishing characteristic of community foundations is the "variance power" that permits the Board to redirect resources if it is determined that a fund's original intent is incapable of fulfillment or inconsistent with the charitable needs of the community or area served. So if the needs of a community change several decades in the future, you can be assured that your fund will continue to benefit the community as closely to your original intent as possible, but in line with new needs that may have evolved. Public Accountability
The Community Foundation of the Verdugos is recognized by the IRS as a public charity and must comply with regulations stipulating that the Foundation is responsive to the general public rather than a limited number of persons. How the Foundation does this is through grant-making. All grants given by the Foundation are used to benefit the public interest and are publicly disclosed as required by law. We are also committed to improving the quality of life for all citizens of our region and our grants and services to our community must reflect this. In addition, the Foundation publishes an annual report to stay connected with donors, grantees, and the community at large, creating a transparency that enables all those we serve to better understand our accomplishments and mission. Finally, an independent audit of our financials is performed annually. Although all financial information is publicly disclosed, your role as a donor may remain anonymous if you wish. As an advisor to your fund, you also receive financial reports on your fund from the Foundation on a quarterly basis. Philanthropic Recognition
We help donors establish a personal legacy by creating permanent, endowed funds in their names since many donors appreciate the opportunity to assist the community while being recognized for their philanthropy. One reason for establishing an endowment now is to have in place a means whereby friends and loved ones can tangibly express their thoughtfulness during bereavement. Being able to give to something permanent that represents your ongoing influence can mean a lot to them. Tax Benefits
As a community foundation, we differ from a private foundation because we offer maximum tax advantages under federal law to our donors. These advantages are of a greater nature than can be found through a private foundation (please check with your tax professional or financial advisor for details). Donations to the Community Foundation of the Verdugos are deductible as allowed by the U.S. Tax Code. In addition, gifts of appreciated assets like stocks, bonds, mutual funds and real estate, and gifts made through wills or trusts, have other added benefits.