Why open a charitable fund with a community foundation?
Weighing your options when establishing a charitable fund
Table of Contents
What is a community foundation?
Community foundations are tax-exempt public charities recognized by the IRS that work to support a specific geographic region. These nonprofits manage charitable funds established by individuals, families and organizations and provide expert giving advice and grantmaking services to invest those philanthropic dollars into the community. Most community foundations also engage in their own social good work, which is fueled by fund expenses and contributions, and funds donated for the purpose of supporting the Foundation.
Central Florida Foundation is a community foundation. For over 30 years, we’ve worked with community-minded individuals, families and organizations that want to give back in a personalized, high-impact way.
How is establishing a charitable fund with a community foundation different than with a large financial institution?
It’s true: both community foundations and large financial institutions offer charitable fund structures, such as the simple and flexible donor-advised fund.
While you could choose to establish a charitable fund at a community foundation or a large financial institution, the similarities largely end there.
Related Reading: Learn more about different charitable fund structures here.
Working with a community foundation is like partnering with your community. Community foundations have a staff of locals who not only offer expert and nuanced giving advice, but also engage in research, and develop relationships with the region’s nonprofit community.
We have a Philanthropy Team. Think of this team as your personal, local charitable giving advisors.
At Central Florida Foundation, our philanthropy team includes Chartered Advisors in Philanthropy®, meaning that while our giving experts have achieved this national designation requiring graduate-level financial services education, as residents of Central Florida, we also know our region’s unique challenges and opportunities. Therefore, you receive expert advice that fits our local landscape.
Setting up your legacy. Working with CFF’s team of experts offers the opportunity for us to get to know you, your goals and your values. We are able to customize a plan that fits your unique situation, in a personalized and professional manner. From short-term giving goals to long-term endowment and estate planning, we listen to what you want to accomplish. You’ll never feel like a number; your philanthropic legacy is personal to us, because it’s personal to you.
We also have a Community Investment team. Think of this team as your personal, local community research team who knows what’s working to solve real issues in the region.
Working in tandem with our philanthropy team, our community investment team works hand-in-hand with Central Florida’s nonprofits, getting to know the organizations and programs that show promising solutions to our toughest social issues. We work to truly understand the issues affecting our diverse populations by sitting at the table, listening, and analyzing research that gives our community the best shot at making our region an even better place to call home.
Our community investment team also maintains Nonprofit Search, a free tool by Central Florida Foundation that shares a searchable database of local nonprofits, their management, financials, impact, governance, and more. This tool empowers you to make informed giving decisions through a local lens. If you need assistance with understanding which nonprofit might align with your goals and values, our philanthropy team is there for you.
What if I want to give outside of our community? While CFF serves the Central Florida region, there are no location restrictions on where you recommend a grant. As long as your intended grantee is a 501c3 charitable organization, you can make a recommendation for a grant from your fund. You can also recommend grants to educational institutions for charitable purposes and government entities.
Community foundations are with you now, and into the future.
While you want to give back to your community now, that giving might look a little different in the future. Community foundations have the unique ability to help guide you through all your life stages and what that might mean for your philanthropy.
From giving in life to fulfilling sustainable philanthropic legacies, Central Florida Foundation has the expertise and resources to be your reliable, trusted partner. Large financial institutions often don’t have the ability to manage long-term endowment structures or fulfill legacies.
What about fund expenses?
Expenses assessed to your charitable funds are likely a component in your decision making. Community foundations and large financial institutions both assess fund management expenses (fees); however, similarities end there.
Large financial institutions profit from the management expenses you pay. With community foundations, management expenses support further community work, spearheaded by the foundation.
What work would my fund expenses be supporting by establishing a fund with Central Florida Foundation? CFF is focused on high-impact philanthropy. While we grant to support crisis-focused nonprofits (organizations that work to solve the crisis at hand now), the core of our work focuses on systemic solutions. Think of it this way: feeding hungry people is important; but why are they hungry to begin with? The latter question is what we aim for – impact that will last for generations.
CFF works within our Thrive Framework, which is a localized version of the global Sustainable Development Goals, with 5 focus areas that organize our community’s issues: economic stability, healthcare, education, livability and community & social connection.
However, we also know we can’t do it all, all at one time.
Therefore, at any given time, CFF’s own work is focused on specific areas, while also maintaining a holistic understanding of our community at large through our community investment team.
Whether we’re focused on attainable housing, women and children, racial equity, or any other critical community issue, we can guarantee your fund fees support:
- equity for all Central Florida residents,
- productive and solutions-based conversations,
- a thriving social entrepreneurship community,
- cross-sector collaboration,
- the fostering of women-led strategic philanthropy,
- and incremental change through our Thrive Framework.
When you work with Central Florida Foundation, your fund expenses give your philanthropic dollars a double bottom line: impact through the grants your fund distributes and impact through fueling the work of the Foundation.
The Takeaway: Why choose Central Florida Foundation, our region’s community foundation?
If you are looking for a way to make a lasting difference in your community that is personalized to your goals and values, your local community foundation is the partner for you. While a large financial institution might, on paper, look like a great option, it often lacks the ability to personalize your giving strategy, community knowledge and understanding of the issues, and the capacity to get to know you as a person.
It’s simply different with a community foundation. In addition to highly personalized giving advice and support, Central Florida Foundation is a community leader, convener, and catalyst for positive change in Central Florida – and you get to be a part of that when you establish a fund with us. As a CFF Fundholder, you benefit from our deep knowledge of the region’s needs, opportunities, and best practices. Your fund fees power a double-bottom line. Plus, you also join a network of generous donors who share your passion for making a difference.
Working with your community foundation is partnering with your community, and we’re here for you when you’re ready to start your philanthropic journey.
