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The WCF staff all live in Westchester and bring to their work a profound knowledge of the region, its nearly one million people, institutions, and resources.
Why Start A Fund?
What Is the Westchester Community Foundation?The Westchester Community Foundation, a division of The New York Community Trust, is one of 650 community foundations around the nation:
Since 1975, the WCF has been helping Westchester County make a difference. Why Consider Opening A Fund In The WCF?Charitable giving through a fund in the WCF offers donors maximum tax benefits without the bother of administration. The WCF staff performs all of the administrative work - bookkeeping, accounting, and check writing - and assures that only bona fide charities are supported. The New York Community Trust, the largest community foundation in the country, managing assets of $1.8 billion, oversees investment of the WCF funds in order to generate income for charitable giving now and into the future. A gift of $5,000 starts a fund. A broad array of assets is accepted to start a fund, more options than are available when establishing a private foundation. More economical than a private foundationThe benefits of charitable giving through a WCF fund accrue, no matter its size. Whether a gift of $5,000 or $5 million starts a fund, donors gain: immediate and favorable tax advantages; investment and management of funds by The New York Community Trust; freedom from the burden of filing annual reports with the IRS and the New York State Office of Charities; and relief from excise or penalty taxes and a mandatory annual payout. Unlike the time and effort required to establish a private foundation, setting up a WCF fund usually takes less than an hour and can be accomplished by a simple letter agreement. The savings to donors are considerable, both in set-up and on-going administrative fees. More advantageous than a commercial gift fundIn addition to investment and fund management, unlike most commercial gift funds, WCF donors have the added bonus of access to an entire staff knowledgeable about the nonprofit sector. Even donors with a well-articulated philanthropic vision benefit from the WCF staff's expertise. Through forums, newsletters, and site visits, WCF donors can learn more about the region, its nonprofit community, and its changing needs. The WCF is one of 650 community foundations throughout the world and a member of the Council of Foundations, which permits access to a network of information about nonprofit organizations and issues throughout the country. Although it's the "Westchester" Community Foundation, donors may direct their philanthropy nationally as well as locally. How to Start A FundMost funds are started by a simple one-page letter and the transfer of cash, stock, or other assets valued at $5,000. Of course, funds started with more complex forms of assets - closely held stock, limited partnership interests, restricted securities, and intellectual property rights might take more time to process. However, most WCF funds can be opened in less than an hour. There are five basic fund types from which to choose: Unrestricted Fund, Field-of-Interest Fund, Designated Fund, Donor-Advised Fund and Scholarship Fund. Funds must maintain a balance of $5,000 for a minimum of five years. Grants may be suggested from income generated from investment of the fund, or from a portion of principal and income from funds with more than $5,000. Types of FundsUnrestricted FundAn Unrestricted Fund allows the Foundation's Board of Advisors to distribute grants to meet emerging challenges and needs in Westchester. Field-of-Interest FundA Field-of-Interest Fund enables your client to focus his or her giving on a particular area of charitable interest, e.g., children. Designated FundA Designated Fund names the charity or charities your client would like to support with the advantage that should it become unnecessary, undesirable, impracticle or impossible to continue making grants, the Foundation can redirect funds for important charitable puproses. Donor-Advised FundA Donor-Advised Fund, while legally unrestricted, enables your client to recommend grants to nonprofit organizations. Scholarship FundA Scholarship Fund helps students pursue their academic goals. Your client may even define the guidelines for the candidates, as well as the school. Personalized ServicesAdvantages of a Public CharityBecause the WCF is itself a public charity, donors may deduct the full market value for all gifts that start a fund or add to an existing one. Donors may deduct up to 40% of their adjusted gross income for appreciated property and 50% for cash. These allowable deductions surpass the limits allowed for contributing to a private foundation. Assets AcceptedA WCF fund can be started with a broader array of assets than a private foundation. In addition to cash and securities traded on major exchanges, the WCF accepts closely held and restricted stock; interests in limited partnerships; literature copyrights, motion picture and television rights; life insurance; IRA's; and the annual payout of a private foundation. Flexible TimingWCF donors can establish a fund during their lifetime through an outright gift, a variety of deferred payment plans, and by will or trust. This flexible timing maximizes tax benefits and can tailor your givings into an overall planning strategy. WCF accepts a variety of deferred giving instruments, including Charitable Remainder Trusts, Charitable Lead Trusts as well as gifts of life insurance policies and IRA's. Experienced staffWCF donors enjoy the personalized service that a professional staff well versed in Westchester County can offer. WCF staff has a wide range of experienced and professional degrees. The WCF staff is committed to knowing Westchester. The New York Community Trust staff is available to assist donors with information about New York City and national charities. |