Frequent Questions

Why should donors consider making a gift to the Community Foundation rather than directly to their favorite organization?

The intended use of the funds is protected. The funds cannot be moved to another location.

The identity of the gift is maintained. Each year a check is received from the donor?s fund rather than having the donation mingled with others in a general fund. Other potential donors will be encouraged by this example to make their own contributions.

The organization benefiting from a fund receives an annual income. They do not have to invest the principal, which can be a difficult task. Professionals who are trained in the best investment practices and have a current understanding of the factors that must be considered when making investment decisions will make investments. The investment cost will be less because all funds are invested in the same way.

Charities do not have the burden of dealing with a large contribution, which could influence some of their members to embark on projects that might be inappropriate.

What happens if the Community Foundation goes out of business?

The directors of the Community Foundation are required by law to select another Community Foundation that is willing and able to accept the funds. The organization that receives the assets must continue to follow the donor's wishes as described in the fund agreement.

How does the Community Foundation invest its money?

The money is invested in a mutual fund that is managed by Vanguard. The portfolio contains stocks and bonds as well as some money market funds.

How can the donor know that the Community Foundation will not lose money?

A broadly diversified investment portfolio offers the greatest protection against a loss. The Community Foundation's investment portfolio contains over three thousand different securities. The poor performance of a single security will not have a significant impact.

How does the Foundation determine how much to pay out?

The Investment Committee selects an amount to pay out that will allow the fund to grow and still provide income as directed by the fund agreement. For this year, the Committee has determined that the Foundation should pay out 5% of the principal amount at the previous year-end.