What should my fund be named?
The choice is yours. The name of your fund can represent you, your family or be anonymous. Gifts will be made to the charities you select in the name of your fund.
Can my family be Involved?
As the donor establishing the fund, you can determine if or how advisers are chosen.
Is my information confidential?
The Community Foundation of Johnson County allows contributors to give anonymously.
Grant-making through your fund may also be anonymous (or selectively anonymous).
Would my fund require minimum distributions?
There is no minimum distribution requirement for a fund at the Community Foundation of Johnson County unlike a private foundation, which must distribute a minimum of 5 percent of net investment assets annually.
What are the costs of having a fund at the Community Foundation?
The cost of administering a fund at the Community Foundation of Johnson County is typically lower than the annual operating expenses of a private foundation. In addition, a private foundation often incurs legal, accounting, tax exempt and filing fees. Our current fees are:
- Nonprofit organizations with a 501(c)(3) IRS designation: 1.25 percent
- Other funds and donor-advised services: 2.25 percent
What are the tax benefits?
Contributions through the Community Foundation of Johnson County offer a tax deduction of up to 50 percent of adjusted gross income for gifts of cash versus 30 percent for private foundations, and 30 percent of adjusted gross income for capital gain property versus 20 percent for private foundations.
In addition, Endow Iowa Tax Credits are available only through Iowa community foundations and provide a 25 percent Endow Iowa tax credit in addition to normal federal charitable income tax deductions for charitable gifts.
Will an excise tax be imposed?
A private foundation requires you to pay 1 to 2 percent excise tax on the foundation's net investment income. Community Foundation funds are not subject to excise tax.
Who manages investments for the Community Foundation?
The Community Foundation of Johnson County provides professional fund management and investment expertise, but if you choose, you may also to work with your preferred investment manager. If you prefer to transfer your private foundation to the Community Foundation, we can provide investment services to your private foundation fund.
Who takes care of my fund following my death?
You have multiple options for succession planning:
- crafting language that describes your intentions to select multigenerational successors
- selecting the Community Foundation of Johnson County to handle your intentions
- allowing the Community Foundation to direct your funds to emerging community needs
How can I support specific nonprofit organizations?
You can support any 501(c)(3) charitable organization through your fund. These can be local, national and international charities as long as they have a 501(c)(3) tax-exempt determination letter.
Can I transfer my assets from my private foundation?
When you are ready to transfer your private foundation's assets to establish a fund at the Community Foundation, our staff will work with you to keep the process simple. Consult with your attorney and contact us to learn more about transferring your private foundation.
Who manages the Community Foundation?
The Community Foundation of Johnson County offers knowledgeable staff who provide a high level of professional expertise and personal service to match your interests. Contact us for more information.
The Community Foundation of Johnson County provides you and your family an efficient and effective way to conduct your charitable giving, while allowing you to focus on making a difference with your charitable funds in the areas you care about most.