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Donor
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Welcome
to The Community Foundation of South Alabama. Individuals, families,
corporations and
nonprofit organizations throughout South Alabama have discovered the
benefits of using The Community Foundation of South Alabama ("CFSA")
to meet their philanthropic goals. Donors to the CFSA are motivated by
personal circumstances and unique situations. While each has individual
preferences, all want to make their charitable giving more effective
- to make a meaningful difference. For good. For ever. The CFSA makes
giving easy. We wish to provide the best donor services. Because the
CFSA is a public charity, contributions qualify for the maximum deductibility
for income, gift and estate tax purposes.
This DONOR GUIDE provides detailed information about the many options, services and tax benefits that giving through the CFSA provides. The policies and procedures included will help you better understand how to make your charitable giving as effective as possible. Our expert professional staff is available to assist you and your professional advisor to tailor a charitable giving plan that best suits your goals, personal interest and financial situation. To arrange a confidential consultation, please contact the CFSA at (251) 438-5591 or Email at director@communityendowment.com. |
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Opening Your Gift Fund Naming Your Fund Types of Assets All gift acceptances are subject to Board approval and must meet criteria as outlined in the Gifts Acceptance Policy. Eligible Donors Back to top ^^ Undesignated Field of Interest Donor Advised Restricted Funds Scholarships Supporting Foundations Income Life Funds Community Life Annuities Gift Fund Management The formula is based on the 5% rolling average of the fund balance. The percentage of value used in the spending rule varies, but research indicates that the 5% of the fund balance is the most accepted rate. It may be set lower or higher. Adding the fund balances for the last 20 quarters, finding its average, and using 5% of that average for distribution determine the distribution amount. Currently, the distribution amount can vary significantly each year based on the interest income. By adopting the recommended formula, the distribution amount received by the beneficiary each year will vary only slightly. Historically, the CFSA managed portfolios have averaged a growth of 8% per year with 5 % recommended for grant distributions based on the above referenced formula with the 3% balance dedicated towards the fund growth. Managed Funds Options Available At the fund's establishment, the donor will select the portfolio that best meets the fund growth needs. The selection may be changed with written notice to the CFSA if the donor decides that the originally selected portfolio does not meet the goals of fund growth. The guideline for acceptance of new gifts and the disposition of assets other than cash follows: · Donated securities will be sold in a timely fashion if they are not compatible with the CFSA's investment guidelines. The proceeds will be reinvested to conform to the CFSA's investment guidelines. If the donor requests that securities be held and not sold, a letter is required from the donor documenting the request to hold securities. Retention of the securities shall continue to be at the discretion of the Investment Committee. · Gifts of real estate require review by the Board due to legal requirements for transfer, insurance, and expenses incurred in the maintenance and ownership of the real estate. The donor must provide the requirements set by the Board regarding real estate transfers, insurance, appraisals, Phase I environmental survey, hold harmless agreements, title policy, and related issues. · Gifts of paid up life insurance requires the CFSA as owner and irrevocable beneficiary and a letter assuring the donor will pay future premiums. Other gifts presented to the CFSA, such as collections of art, jewelry, etc. require special consideration as personal property and a qualified appraisal as to value. Gifts of Assets Other Than Cash Gifts Are Irrevocable Understanding Variance Power Grant Distributions Administration Fees Tax Considerations THANK YOU |