How does it work?
A Community Foundation receives contributions from a wide range of local individuals, families, and businesses. Most establish separate, named funds for specific purposes: to support local education or health, to fund a scholarship for local students, or to endow a local non-profit institution. A community foundation saves individual donors time and money by handling the administrative details of many funds jointly:
- Through the community foundation’s finance committee it makes investment decisions for all funds
- Through its staff it handles all tax filings, bookkeeping, and grants processing
Because of this and other built-in “safeguards” of the community foundation model, the IRS permits each fund established in a community foundation to qualify as a “component fund” of it. In effect, that means that each fund qualifies as a publicly-supported, non-profit 501(c)3 organization unto itself. It becomes, as it were, a “foundation within a foundation.” In turn, the advantage of public-charity status gives donors maximum tax benefits for all their donations.
← How does it work?
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- CFOS Awards More than $400,000 in Scholarships
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- Orange and Sullivan COVID-19 Response Fund Grants are Available Through CFOS
- Orange and Sullivan COVID-19 Response Fund Addressing Escalating Needs
- Hudson Valley Gives Raises Half a Million Dollars for 145 Local Nonprofits with Virtual Fundraising Day