Questions from prospective donors
1. What are the benefits of giving through a community foundation?
Giving through a community foundation means you are giving locally and making a long-lasting impact. It is a convenient, cost-effective, simple and flexible form of giving. Community foundations are accountable for the grants they make and can advise you on tax-effective ways of giving.
2. Why should I give through a community foundation, rather than direct to a charity?
As a potential donor, picking your way round the charitable world can be a difficult task. Who, what, where or how do you wish to help? This is where community foundations help, with their in-depth knowledge of local communities
3. For a company, what are the benefits of giving through a community foundation?
Community foundations make corporate giving hassle-free and straightforward. They are ideally placed to help companies wishing to demonstrate commitment and involvement in their local community. Companies can outsource their in-house Corporate Social Responsibility function to their local community foundation and benefit from the efficiency, impact on staff motivation and recognition of giving locally.
4. What kind of donations can be made through community foundations? Community foundations work with a wide variety of donors – individuals, families, businesses, charitable trusts and statutory bodies – with a broad range of means. Donations vary widely in size and form, including gifts of cash, trusts, bequests, shares or property. Donors can direct their funds to a favourite cause, organisation or specific geographical area. Donations can be pooled into themed funds to address a particular issue. A donation to a general endowment can be used more flexibly to make grants for a broad range of local activities.
5. I can’t afford a big donation, but I want to support my local community. Can I still give through a community foundation?
All donations whether large or small, repeat or one-off are welcome. Small donations are pooled in general funds, or can build toward a larger Named Fund. Advice on tax effective giving is also available. Some foundations run Acorn funds when you give a small amount each month to build up to your own fund.
6. How can I give tax-effectively through community foundations?
The main ways are by using Gift Aid, giving shares or property, leaving a legacy or by joining a payroll giving scheme. You can get advice on tax effective giving appropriate to your particular circumstances from your local community foundation or from your own financial adviser.
7. Is establishing a fund through a community foundation a good alternative to setting up my own trust? Many donors have found establishing a fund at a community foundation a straightforward and convenient alternative to setting up their own charitable trust. Find out how to establish a Named Fund
8. As a professional adviser, why should I advise my clients to give through a community foundation?
Community foundations are the ideal product for financial advisers, solicitors and accountants with clients wishing to give.