The purpose of a Community Foundation is to build an endowment of funds in order to secure the future of giving. As our community continues to thrive and face new challenges, meeting the needs of a growing community will be crucial to supporting the overall wellbeing of our community. NBCF provides for meeting those needs now and in the future for generations to come.
By creating a new fund at NBCF; contributing to an existing fund; making an unrestricted contribution; or through estate planning, gifts will continue in perpetuity as funds grow.
For example, an endowment fund is a permanent fund bestowed upon an institution, by one or more donors, to be used for a specific purpose. The goal of the fund is to serve as a long-term funding source for the named agency.
An endowment fund creates a new source of revenue for nonprofits. It breaks the cycle of nonprofits having to depend on the donor giving levels each year in order for the nonprofits to survive.
While the need for annual fundraising never really goes away completely, an endowment can relieve the burden of annual fundraising. An endowment fund, because it provides for giving in perpetuity, provides more stability and prestige for a nonprofit. It can allow for the expansion of programs, and creates a vehicle for accepting future gifts.
From the donor’s perspective, gifts to an endowment fund provide a way to leave a legacy. It allows the donors to give to the causes they care most about and ensures a way that those causes are taken care of forever. Whether you have a heart for education, faith-based giving, or animal welfare – just to name a few giving categories – NBCF can help you create a giving plan or fund that works best for you.
Gifts also can be made in the following ways:
Designated Fund. Creates a fund specifically to benefit causes or nonprofits the benefactor identifies.
Unrestricted Gift. Fulfills a broader community focus by allowing the NBACF Board of Directors to assist with community needs as they arise.
Field of Interest Fund. Permits identification of specific areas of interest and the flexibility to meet community needs.
Advantages of creating a fund with the New Braunfels Community Foundation include:
Gifts can take many forms. Long-term capital-gain assets, such as appreciated stock, are an attractive option, as they generally qualify for deduction at fair market value.
Consolidate charitable giving and gain access to administrative capabilities, simplifying giving and reducing time and expenses.
Community funds allow donors to honor someone, to create a legacy, and to keep their gifts viable in perpetuity. All funds may be added to indefinitely, building a charitable vehicle with ever-increasing impact.
Gifts can be made in the form of:
Cash assets are the simplest and most convenient gift.
Securities. You pay no capital gains, and receive the maximum allowable tax deduction under the law, for the full market value of appreciated securities given to the Foundation.
Real Estate. A gift of real estate held for more than one year by the owner can yield the same tax advantages as gifts of securities. The Foundation’s ability to accept real estate gifts depends on a number of factors, including current market conditions and the value and condition of the property.
Transfer of assets of a private foundation. The expense and time of administering a private foundation can become an unwanted burden. Transferring the assets of a private foundation to a donor-advised fund at the New Braunfels Community Foundation provides significant tax and administrative benefits.
A bequest in your will, naming the Foundation as a beneficiary, is another ideal way to create a fund. Estate taxes may be significantly reduced, and the fund will continue to work as a living symbol of your interests.
Life insurance. If the protection of a life insurance policy is no longer needed, it may prove a practical, tax-deductible gift. Or you may retain ownership of a policy naming the Foundation as a beneficiary, resulting in an estate-tax reduction but no deduction for income tax purposes.
IRS or qualified retirement plans. You can name the Foundation as the beneficiary of an IRA or qualified retirement plan. Depending upon accumulations, retirement plan assets can be subject to multiple taxation if left to heirs. A gift of retirement plan assets can even be used to establish a charitable remainder trust to provide income to a spouse or family members.
Learn more at nbcommunityfoundation.org, via email at brit@nbcommunityfoundation.org or via phone at (830) 606-9536.
Did You Know?
A $10,000 donation to New Braunfels Community Foundation allows you to create an endowment fund to give back in perpetuity to the causes that you designated.
You can create an acorn fund with less than $10,000 and have five years to grow the fund to $10,000 or more. Fees are not accrued during the five-year timeframe.
The IRA Charitable Rollover allows donors age 70 ½ and older to transfer up to $100,000 from their IRA directly to a nonprofit this year. Eligible donors pay no taxes on the transfer and the gift counts dollar-for-dollar to support important nonprofit work.