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Community Foundation
113 N. Seventh, Suite 201
Box 2876
Salina, Kansas 67402-2876
785.823.1800
communityfoundation@gscf.org
Information for Donors
Frequently Asked Questions
How You Can Participate
Creating a Fund
Donor-Advised Guidelines
Donor Advised Recommendation Form (PDF)
Donor Advised Recommendation Form (Word.doc)
What is the Greater Salina Community Foundation? The Greater Salina Community Foundation is a collection of funds designed to link donors with charitable causes. We are a public charity serving the greater Salina area.
Who can give? Anyone. Donors to the Foundation are from a variety of backgrounds with a common commitment to the community's well being.
How are the funds managed? A local board of directors guides the foundation, chosen because of their knowledge of and contributions to the community as well as their diverse representation of the community. Through the Grants Committee the board is responsible for all grant distributions from the Foundation.
A board committee follows solid and responsible investment strategies to assure donors of the security of funds. Other board committees create policy, process grant requests, and work on asset development.
Is there someone available to answer questions? The Foundation is staffed with an executive director who is available to assist donors in creating funds, speak to community groups and answer questions from donors or charitable organizations. Additional staff includes a Finance Officer, an Affiliate/Scholarship Coordinator, an Administrative Assistant and a Youth Coordinator. The Foundation office is open from 8:30 a.m. to 3:00 p.m. Monday through Friday.
What's the minimum donation? No gift is too small. Gifts of $25, $10, or even $1 can be made to an existing named fund such as an organization, field of interest or scholarship fund, or to our unrestricted grant fund as memorials or charitable contributions. That is what makes this truly a community foundation. Minimums do exist for those who wish to establish a named fund.
Are gifts to the Foundation tax deductible? Our status as a public charity ensures that contributions to the Foundation are tax deductible to the highest extent allowed by the Internal Revenue Service. The donor receives tax benefits in the year a gift is made. Grants made from a donor’s established advised fund are not tax deductible.
Who manages the Foundation’s funds? The Foundation manages a pooled investment fund under the guidance of our Investment Committee. By pooling funds, the Foundation is able to provide donors the advantage of diversified investments and economies of scale in investments and fees.
Donors who establish funds of $25,000 or more may select an outside fund manager, as long as that manager is approved by the Foundation.
What costs are involved? There is no cost to set up a fund. The Foundation board determines administrative contributions annually. These contributions are never more than 1% of the annualized fair market value of a fund. Contributions are capped when a fund reaches $1 million.
Who monitors the Foundation? A 21-member volunteer board of directors governs the Foundation. An executive director and a finance officer manage the Foundation on a day-to-day basis. The Foundation is publicly accountable. An annual independent audit, tax returns and public disclosure of grants provide confidence as to the proper use of Foundation funds. A copy of the full audited financial statement and the most recently filed Form 990 are available for review at the Foundation office. The Foundation strives for excellence. It has recently received accreditation for National Standards for U.S. Community Foundations from the U.S. Council on Foundations.
Is the Foundation going to be here forever? The Greater Salina Community Foundation has grown from zero to more than $40 million in assets in just over seven years. Quickly and quietly, it has established itself as a vital organization in our community. The Foundation’s board of directors wisely created an administrative fund to ensure the stability of the Foundation. Please read the list of our generous Founding Donors.
How You Can Participate in the Foundation
1. Establish a charitable fund bearing your name to provide for your favorite charitable organization or cause, both today and beyond your lifetime.
2. Contribute to the Fund for Greater Salina, allowing the Community Foundation to respond to current, unmet needs in the community.
3. Contribute to the Foundation’s Administrative Fund and support the future needs of the Foundation.
4. Become a sustainer. Donate a minimum of $12,500 over five years, of which $10,000 will go to the Foundation’s Administrative Fund and $2,500 will go to any established fund or funds of your choice.
5. Contribute to any existing fund.
6. Encourage your favorite charity to establish an organization fund to provide ongoing support for their work.
7. Tell your friends about the Community Foundation and the services we provide.
1. Decide when to give. You can create a fund now, establish it in your will, or create it through a trust arrangement that benefits your family as well as charity. Tax deductions are eamed at the time of the gift, while grants awarded from your fund will continue into the future.
2. Decide what to give. Almost any kind of asset can be used to start a fund, such as cash, publicly traded securities, closely held stock, real estate, life insurance, tangible personal property and private foundation assets.
3. Choose a fund name. Most funds are named for the donor or the donor's family or as a memorial to someone special. Every grant from the fund will carry this name. Donors who prefer anonymity may choose a name that reflects the donor's charitable interests.
4. Choose a type of fund. We offer a variety of funds that are flexible in order to meet our donors' different charitable interests.
Once your decisions have been made, contact the Greater Salina Community Foundation to proceed in the creation of your desired fund.
Donor Advised Funds give donors an unparalleled opportunity to:
· play an active, personal role in their charitable giving;
· enhance their understanding of community agencies and needs;
· benefit from the Foundation’s expertise in fund and grant management;
· obtain immediate tax benefits; and
· Build an enduring, permanent resource that ensures perpetuation of their charitable presence in the community.
In creating a Donor Advised Fund, donors retain the right during their lifetimes or during the lifetimes of other advisors they name, to recommend grants to specific organizations or program fields. Donors may consult with the Foundation’s staff about community needs, programs and agencies. Grant distributions are handled by the Foundation.
By establishing Donor Advised Funds, donors have the satisfaction of shaping philanthropic programs that reflect their special interests and concerns. Their giving patterns will guide the Foundation in managing their endowment funds through the years.
The following policies and guidelines have been established to govern the handling of Donor Advised Funds in a manner consistent with the purposes of the Foundation and in keeping with applicable tax regulations.
1. Minimum Amount
The minimum amount required to establish a Donor Advised Fund is $10,000, designated as endowment. Donors who intend to establish a fund may take up to 5 years to reach the fund minimum. If, at the end of five years, the fund has not reached the minimum, the fund will become an unrestricted grant fund within the Foundation. If the fund has at least $5,000 at the end of five years, the donor will receive permanent recognition in Foundation materials.
2. Investment of Funds
Donor Advised Funds belong to the Foundation and are subject to the terms and conditions of its governing instruments. Donor Advised funds are commingled with other Foundation funds to encourage maximum investment performance. The Foundation’s portfolio is managed with a view toward maximization of total return considering inflation risk, interest rate risk, and business or economic risk, while at all times being prudently diversified. A copy of the Foundation’s investment policy is available on request.
3. Outside Investment Managers
Donors may request to use an outside investment manager if the fund maintains a minimum balance of $25,000. If the request is granted, the fund remains a component fund of the Foundation, but is managed and invested by a bank, trust company or other entity of the donor’s choice. In order to manage component funds for the Foundation, outside fund managers are required to sign an investment management agreement with the Foundation, and maintain an investment performance level that is acceptable to the Foundation’s Investment Committee.
4. Grant Recommendations
Donors or other advisors named by the donor when a fund is established may submit recommendations for grants to be made from the fund. A grant recommendation form is available from the Foundation. Such recommendations will be given careful attention. They must be advisory, however, and may not bind the Foundation, which, by law, must have exclusive legal control and is the final authority to determine the use and distributions of all of its funds.
When the fund is established the donors will complete a Donor Advised Memorandum prepared by Foundation staff together with the donors. The memorandum includes instructions for the Foundation regarding the donors’ wishes for grant making in the event of their death or incapacity. Donor Advised Memorandums are subject to the approval of the Foundation. In the event of the death of the donor or, in the case of joint donors, the death of the survivor of them, the desires expressed in the Donor Advised Memorandum shall be followed by the Foundation to the greatest extent the law permits. The appointment of successor advisers is governed by section 10 below.
Grant recommendations made by donors will be evaluated to determine that they are consistent with the broad purpose of the Foundation and that recommended agencies are eligible to receive charitable distributions. Donor recommendations are then acted upon by the Foundation’s Grant Committee. Grants are ordinarily processed within 30 days. Each grant recommended from a Donor Advised Fund must be for a minimum of $250. Grants from a Donor Advised Fund may invade principal of the fund provided the fund balance remains at $10,000.
The Foundation performs due diligence to be sure all recipients of grants are qualified charitable recipients. Donors wishing to make grants to charitable organizations in other countries must submit a written grant recommendation. All recommendations to foreign charities will be considered on a case-by-case basis by the Foundation’s Administrative Committee. Special fees may apply on grants to foreign charities.
5. Special Projects
Donors may allocate a portion of the fund’s distributions to the support of special projects identified by the Foundation’s Board as critical to our community. Such allocations help the Foundation respond to new opportunities and emerging needs. From time to time the Foundation may call advisors’ attention to special community needs and programs. Foundation staff is available to consult with fund advisors.
6. Satisfaction of Pledges
In accordance with Treasury Department regulations, grants awarded from Donor Advised Funds may not be used to pay for memberships, dues or anything that might be perceived as giving material benefit to their donors. In addition, grants may not be used to satisfy a previously committed personal pledge made to a charity by a donor.
7. Permissible Recipients
Grants from Donor Advised Funds are made primarily to nonprofit organizations exempt from Federal taxation under section 501(c) 3 of the internal Revenue Code. Grants to other organizations may be considered, if the Foundation determines the grant is being used for a charitable purpose. Grants from Donor Advised Funds may not be made to individuals, or to an entity for the benefit of a specified individual.
8. Tickets and Events
Whether they are tickets to a dinner, a performance or for general admission to a facility, tickets have economic value, generally the fair market value of the goods and services provided. For the purpose of the self-dealing rule, the IRS has taken the position that it is not possible to separate the price of a ticket into its charitable and non-charitable components. Therefore, the Foundation does not allow the purchase of tickets from Donor Advised Funds.
The Pension Protection Act of 2006 clearly indicates that donors, advisors or related parties should not receive more than incidental benefits from donor advised fund distributions. Grants to scholarship funds and other similar funds that enable the donor to be eligible to purchase tickets to athletic or other events are not permissible under the Act, and therefore the Foundation does not allow contributions of this kind from Donor Advised funds.
9. Anonymity
Unless the donor wishes to remain anonymous, the Foundation identifies for grant recipients the named funds from which grants are paid, and the grant recipients are encouraged to acknowledge the donor whose generosity made the grant possible.
10. Successor Advisors
Donors may recommend other living persons – children, friends, or business associates – as successor advisors to recommend grants from the fund. However, for advised funds with balances of less than $500,000, successor advisors selected by the donor may not name others to serve as their successors. Exceptions to this policy may be made when, for example, the special expertise or knowledge of advisors is felt to be critical in managing a fund such as a medical research fund.
Exceptions to the single generation successor advisors can be requested on funds that maintain a balance of at least $500,000. Such exceptions may be made when a private family foundation terminates and becomes an advised fund, or when a new fund is established with at least $500,000. The request for unlimited successor advisors must be made by the original donor and be specified in the Donor Advised Memorandum. Successor advisers have the privilege of suggesting grants from the income of the total fund, and, in addition, from the principal that has been contributed by the successor adviser. Successor advisers may not recommend grants that invade the original principal gift. It is recommended that annual grants be limited to 5% of the total fund balance each year.
In the event that there are multiple advisers on a fund, one adviser must be named as the contact adviser, who will have the authority to communicate suggestions to the Foundation. Advisers must be at least 18 years of age; however, donors may wish to include younger children or grandchildren as a part of a plan to pass on family values to the next generation. Minor children must serve in conjunction with an adviser of legal age.
Donor advised funds established by corporations or entities other than individuals or families are often advised by an appointed committee with a process for selecting new members. A list of these committee members/advisers must be submitted to the Foundation annually. Grant suggestions must be signed by an officer or authorized representative of the entity that established the fund. Any changes in the structure of grant recommendation process within the entity must be communicated in writing by an officer or authorized representative of the entity that established the fund.
The primary purpose of a community foundation is to encourage active philanthropy. For a fund to remain active the successor advisor must propose at least one approvable grant, or add to the fund, during the course of a calendar year. If after that year no activity has occurred, and the Foundation is unable to make contact with the named advisor(s) at the address furnished, the fund will be transferred to the Fund for Greater Salina Unrestricted Fund. It is the sole responsibility of the successor advisers to notify the Foundation of changes in addresses or contact information.
Rather than naming a successor advisor, Donor Advised Fund holders may rather choose to designate that their fund:
1) become a named fund within the Fund for Greater Salina unrestricted fund
2) become a designated fund with the distributable earnings designated to specific nonprofit organizations
3) be transferred to an existing fund or funds within the Foundation
4) be come a new Field of Interest Fund within the Foundation
11. Restricted vs. Unrestricted Funds
At the time the Fund is established, through the execution of a Donor Advised Memorandum, donors may identify areas of charitable interest for which the fund always will be used. However, the Foundation encourages donors to leave funds as unrestricted as possible upon the termination of the role of the last advisor. Funds that become unrestricted will continue to be recognized in Foundation materials.
12. Subject to Governing Instruments
All funds are subject to the terms and conditions of the Foundation’s governing instruments, as amended. Among other things, the governing instruments provide that the Foundation has the power to modify and vary any donor direction or restriction in the event it becomes unnecessary, incapable of fulfillment, or inconsistent with the charitable purposes of the Foundation.
13. Administrative Contributions and Special Fees
(a) All component funds are required to share in the administrative costs of operating the Foundation. Although the Foundation has a separate and permanently endowed administrative fund that that supports the Foundation’s work, the Foundation reserves the right to annually assess from each fund a contribution in an amount not to exceed 1% of its average daily fund balance as of June 30; provided, however, that for funds greater than $1 million in size, the contribution will be based only on the first $1 million of their average daily fund balance. The administrative contribution supports the charitable work of the Foundation by assisting in covering administrative costs so the Foundation can achieve its goal of increasing philanthropic giving and improving the quality of life in our community
(b) If the Foundation opts to exempt (in part or in full) component funds from the maximum 1% contribution for a given year, Donor Advised Funds that designate more than 80% of their annual distributions to charitable organizations whose operations are not principally within the greater Salina area (i.e., Saline County charitable organizations and non-Saline County charitable organizations that are Founding Donors to the Foundation) will not be exempt and will contribute the full 1% for that year on the full (i.e., even if in excess of $1 million) average daily fund balance. The Foundation recognizes that its generous administrative endowment was created by individuals, families, private foundations, and businesses within the greater
(c) Each specific component fund will be charged a fee for any extraordinary expenses incurred on behalf of that fund, such as commissions for the sale of contributed securities. Additional fees may be charged for extraordinary services, such as special grant processing, large numbers of transactions, or other non-standard services.
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