Just last week, our Program Officer Lauren Renda and I sat down with a member of the Community Foundation’s Professional Advisor Council. The financial advisor brought his clients to the Community Foundation of Western Nevada because they are thinking about setting up a fund to honor the memory of a loved one, and they wanted to learn about the options available to help them.
In this instance, dance played a vital role in the life of their loved one. The couple wants to share that joy with children and adults who might not be able to afford dance classes and they identified a specific nonprofit dance studio they want to support.
We discussed three charitable fund options that will achieve their goal.
- A scholarship fund can be set up with the Community Foundation. Scholarships have high administrative requirements to meet IRS regulations, and the Community Foundation staff manages compliance for our fundholders. The Community Foundation asks that endowed scholarship funds have a $50,000 minimum contribution. We offer the option to start with a gift of $25,000 and build the fund over a 5-year period. Scholarship grants start once the $50,000 threshold is achieved. Of course, donors have the option to contribute a current gift, while the endowment is growing, and can start granting scholarships immediately.
- The second option the couple considered is a designated fund. The couple can direct the dance company to receive regular grants from the fund to be used to offset class fees of students that need assistance. The minimum amount to establish a designated fund is $25,000.
- The third charitable fund option we talked about is a donor advised fund. Donor advised funds also have a $25,000 minimum establishment minimum. Donor advised funds are flexible and give the donors the ability to make grants to any 501(c)3 nonprofit, educational institution, religious entity or government organization, at any time, for any charitable purpose. With a donor advised fund, the couple will be able to recommend grants to support the dance company and any other charity they desire.
Whatever type of charitable fund the couple chooses, grants will be sent in their loved one’s honor and memory for the purpose they intend.
After just a short one-hour meeting the couple and their financial advisor left our office satisfied, with philanthropic choices to consider. Choices are good, and so is their big-hearted generosity. I can imagine the fun and sense of accomplishment that will be added to the lives of dance students, and the enduring connection this generous couple will create with their loved one who loved to dance.
Please give me a call, at 775-333-5499 if you would like to learn more about how you can help your community and your favorite organizations through a gift now or in the future through a Legacy Fund. It will be our pleasure to help you fulfill your philanthropic wishes.