Chester County

Chester County

COMMUNITY FOUNDATION

How do I open a fund with the Community Foundation?

Creating any fund with the Chester County Community Foundation is simple. Learn just how easy it is by clicking here. You can initiate the process by contacting our President, Karen Simmons, at karen@chescocf.org or calling 610-696-8211.

Do I have to make any grant recommendations to organizations in Chester County?

While the majority of the grants made by Fund Advisors are to nonprofit organizations in Chester County, you may recommend a grant to any organization in the United States recognized under section 501(c)(3) of the Internal Revenue Code.

Is there a minimum contribution necessary to open a fund?

The minimum contribution needed to establish any fund is $10,000, which can be given in cash, stocks, and a variety of other assets that your banker, broker, or financial advisor may transfer directly to the Foundation at your request.

What is an "endowed" fund?

Endowed funds are created by donors interested in making a permanent philanthropic gift to the community. The Fund Advisor of an endowed fund has the opportunity to recommend grants worth up to 5% of the asset value of the fund each year. This spending policy allows the fund to grow and the charitable intention of the donor to remain in perpetuity. Any of our fund types can be established as an "endowed" fund.

What is a "provisional" fund?

Although the Community Foundation was established to develop and manage permanent endowments, donors may choose to use the Community Foundation as a conduit for provisional or "pass-through" gifts. This mechanism allows a donor to customize philanthropy for short term giving, end of year gifts to be distributed at a later date, or special circumstances. Many of our Donor Advised Funds are provisional or have a provisional component so that giving can be as flexible as the donor intends.

What will my tax deduction be?

You will receive a charitable deduction for the full amount of the gift in the year that the contribution is made. You can make additional contributions to the fund in any amount at any time. Others can also make contributions to your fund, perhaps to mark a special occasion or support a special project that interests you. All of these gifts are tax deductible.

Who can act as a fund advisor?

Throughout your lifetime, you may advise on the grantmaking activities of the fund. You may also choose to designate your spouse or partner, your child, or another member of your family or a friend as an advisor to your fund.

Will my grant requests always be honored?

As a fund advisor, you may recommend grants to any public charities you wish. To comply with applicable IRS regulations however, The Chester County Community Foundation's Board of Directors retains the final responsibility for approving distributions from funds. Grants are generally made to organizations recognized under Section 501(c)(3) of the Internal Revenue Code.

What is a spending policy?

It is a formula for grantmaking that is based on a designated percentage of an endowed fund's fair market value. The Foundation's current spending policy is 5% of the fund's value, and is designed to allow grants to be made from the fund during your lifetime as well as in perpetuity.

Can I name a successor to my donor advised fund?

Yes, you may name successors to your fund.

Can you help me find effective charities to support?

The Chester County Community Foundation grantmaking staff is an invaluable resource that is available to you. They can work with you to identify organizations involved in the causes you care about through site visits, research, and their knowledge of current issues in Chester County.

What can I name the fund?

How you name the fund is up to you. Many donor use their family name for their fund, which will appear in Foundation publications such as the annual report. Many Field of Interest Funds or Donor Designated Funds have names that are representative of the types of programs they support. Your fund's name could be tied to your name as much as you like, or not at all if you'd like to remain anonymous.

How are funds invested?

The Investment Committee of the Foundation's Board of Directors is responsible for managing and overseeing the funds. Our overall investment strategy is to provide careful management of the capital while still producing income for grantmaking and growth, Additionally, endowed funds are held in perpetuity, ensuring that your gift benefits your community forever.

What are the costs involved in establishing an endowed fund?

Establishing a fund at the Foundation is free-of-charge. The Foundation files the federal and state tax returns, provides an independent audit, processes disbursements, mails checks to recipients and grant reports to the donor, administers and invests the assets of the fund and issues regular financial reports on the status of the fund to the donor. For these services, the Foundation assesses an annual fee on endowed funds of 25 basis points (one quarter of one percent) per quarter, which equals 1% per year. For a complete listing of fees and charges please see the fund agreements schedule A.

Can other people contribute to the fund I establish?

Yes.

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in Chester County