What is a community foundation?
A community foundation is a 501(c)(3), nonprofit organization governed
by a board of private citizens chosen to be representative of the
public interest and for their knowledge of the community. It
administers individual funds contributed or bequeathed to it by
individuals, families, other organizations, businesses and other
sources. Community foundations provide donors of diverse financial
capabilities and interests with a vehicle for pooling their resources
to accomplish charitable goals. There are more than 700 community
foundations across America with a combined asset base of more than $30
billion.
Community foundations serve three distinct constituencies: donors, the nonprofit sector and the community as a whole. The purposes of a community foundation are in general to:
Does the Community Foundation receive funding
from city, county and state government?
No. the Community Foundation is a public 501(c)(3) charitable
foundation. Its funds come from donations from individuals and
organizations and from grants from private foundations.
Who are the donors to Yolo Community Foundation?
Our donors are people of modest to magnificent means and they have a
lasting impact on the quality of life in Yolo County.
Who names and establishes the purposes of a fund?
The donor does. Yolo Community Foundation is here to help you achieve
your own personal charitable objectives.
Can a fund be established in someone's name?
Yes. Funds are named any way you wish, so a family or corporate name
can be used. Or if you prefer, funds can remain anonymous.
Are there options if one cannot afford to part
with assets or income right now?
Yes. Through deferred giving vehicles such as charitable remainder
trusts or gift annuities, you can plan to create a fund in the future
while receiving current-year tax deductions. Some arrangements may even
help you increase your current income, help you diversify your
portfolio, and avoid capital gains, gift or estate taxes. Of course,
you can also make a bequest through your will.
What is the difference between a private
foundation and a community Foundation?
Community foundations qualify as a public charity 501(c)(3). This
allows donors the maximum tax deduction for gifts and bequests. A
single individual or family usually establishes a private foundation
while community foundations are a pool of funds given by various donors
for charitable purposes. A community foundation is what you would have
if private foundations got together to pool their assets for investment
purposes, reduce overhead, share staff, make grants, and address
community needs.
Why should one choose Yolo Community Foundation
rather than establishing a private foundation?
With a community foundation, there are no excise taxes, no payout
requirements, and no excessive paperwork. As a donor, you will have
access to a professional staff who can help you achieve your goals.
What is an endowment fund?
An endowment fund is a permanent fund established within the Foundation
for either specific or general purposes. Because the principal will
always remain intact (only the earnings are spent for grants), the fund
will always be here, supporting community programs year after year.
Does the Foundation spend its principal?
Not unless a donor requests that we do so. Otherwise, funds are
permanently endowed and will support the types of important community
projects and programs stipulated by the donor well into the future.
What types of programs does the Foundation
support with its grants?
Yolo Community Foundation is able to make grants across an entire
spectrum of community concerns. Our main criterion is that the projects
benefit the people who live and/or work in Yolo County.
Who decides on grants?
Foundation staff and Grants Committee members review the applications,
make site visits, and recommend grants to the Foundation's Board of
Directors. The Board of Directors has final responsibility for all
grants and scholarships. Individuals who have Donor Advised Funds can
participate in the grant making process by suggesting grants from their
Named Fund.
What is the Founders' Circle?
Founding donors represent local supporters who are committed to
supporting a community foundation in Yolo County. The Founders' Circle
members are those individuals or organizations who contribute $5,000
for three consecutive years. This support provides start-up capital
required by Yolo Community Foundation until it becomes self-sustaining.
Once a Founder, always a Founder. The names of the Founders' will be
prominently displayed in our materials.
What is the Sustainers' Circle?
Sustainers Circle members donate $1000 to support Yolo Community
Foundation's programs and services.
Administrative Fees
Administrative fees are assessed on all funds at the Community
Foundation to help defray the costs of servicing your fund. These are
annual fees, calculated on the total value of the fund during that
calendar year, and assessed in January of the next year. Funds are
assessed 2% each year on the total value of the fund during that
calendar year. These rates are all in keeping with the accepted
standards and practices of community foundations throughout the United
States. They are lower than those charged by many other community
foundations.
How can I get more information
about the Yolo
Community Foundation?
Please feel free to contact us via phone (530) 312-0593 or e-mail
info@yolocf.org