What is a Community Foundation?
This is a non-profit foundation which builds its endowment through contributions from many donors, usually within a given geographic region. It is designated a "public charity" rather than a "private foundation" by the IRS because it raises a significant portion of its resources from a broad crosssection of the public each year. (From the Web site for the Council on Foundations) There are many community foundations across the country serving respective local communities.

What is the Community Foundation of Southern Indiana?
Established in 1991, the Community Foundation of Southern Indiana is a non-profit organization that helps people be generous. One of our primary purposes is to grow funds for people, businesses, and organizations and spend only the interest earned on those funds as grants to non-profit organizations. That way, the money stays around, forever, continuing to contribute to the community every year. We also provide expertise to non-profits and professional advisors. If a non-profit or estate attorney has a donor or client who wants to give a complicated gift of stock, or land, or another asset, we have experts on staff who can help them figure out exactly how to do that. We also are a grant-maker. We have a large, unrestricted endowment fund that we manage and grow. We make grants from the interest earned on that fund every year. As the funds have grown, so have our grants. We are also a problem-solver. We lend grant-writing expertise and problem-solving skills to issues throughout Clark, Floyd and Harrison counties. Think of us as a resource for anyone who wants to contribute to the community and isn t sure where to start.

What area do you serve?
We serve Clark, Floyd and Harrison counties in southeastern Indiana, across the Ohio River from Louisville, Ky. We help the residents of those counties work with non-profits, and we help non-profits that serve those counties work with their donors and clients. We ve also played roles in the development of Community Foundations in Scott and Crawford counties, though each of those Community Foundations grew into separate entities.

Why give now?
It s easy to think of philanthropy as something that s for the retirement set, or something to be handled through an estate. While we always welcome those gifts, we encourage people to give now to see the impact that they can have on their community. Your joy at watching your funds make a difference in the community encourages others to do the same. It s also a great example for your children, to learn how to give back to their communities.

Why not just give funds directly to a charity?
We would never want to discourage you from doing that. But one reason to consider giving through a Community Foundation is that the gift lasts forever. Think of this: that charity that you love so much can benefit from your generosity every year, even after you re gone. You can even appoint a child, spouse or friend to watch over the fund and make sure you want to continue that gift to the organization you ve designated. You could also create what we call a field of interest fund. That means you d say generally what you want the money to go to, such as the arts, but not say specifically what organization you want the funds to go to. That allows for a lot of flexibility, if, say, your favorite charity combines with another group or a new charity is formed that you, or your heirs, would like to support.

How do we know the money will be managed well?
Our organization s president and CEO is Mike Waiz, an attorney with extensive banking and non-profit experience in Southern Indiana. Our finance officer, Elizabeth Baxter, is a licensed CPA with years of experience. Our board of directors has a finance committee with several accountants serving on it. We are audited annually and we issue fund statements quarterly. Bankers, lawyers, accountants and numerous other area people turn to us to help us manage their charitable funds, knowing it is in good hands.

How can I get involved in the Community Foundation?
We would love to have your help! Opportunities include assisting with our annual volunteer recognition luncheons, serving on a committee or serving on our board of directors. We can also connect you with area non-profits that need volunteers and tell you who might need your specific skills. Contact Melissa Harbeson at mharbeson@cfsouthernindiana.com for more information.

I don t live in Southern Indiana. Is there a Community Foundation where I live?
Probably. One place to check is the Web site for the Council on Foundations. They maintain a list of all Community Foundations across the U.S. at this link: http://www.cof.org/Locator/index.cfm?crumb=2&navItemNumber=2502

What is a donor advised fund?
A donor-advised fund allows you to take a more active role in how your charitable gifts are invested in the community. A donor advised fund can be established by an individual, family or business.

Who plays what roles in donor-advised grants?
A donor is the person who establishes the fund. A fund advisor is designated by the donor in the fund agreement as the only person who can suggest disbursements from the fund. The donor may serve as the fund advisor, or may designate other living persons business associates, friends, or relatives to act as fund advisors to make grant recommendations. It is recommended that if more than one person is listed as the fund advisor, that a single person be designated to submit a Grant Recommendation Form to CFSI. Funds having a substantial balance may designate a successor advisor to the fund that can pass the advising role from generation to generation.

How do I make a recommendation for a grant from my fund?
Recommendations for grants are made in writing using a Grant Recommendation Form provided by CFSI. Once fund representatives make recommendations, CFSI staff carefully checks to make sure each organization is qualified. If it cannot be determined that the organization is an IRS designated public charity, the Board of Directors has the right to reject the recommendation.

What types of charitable organizations can I support with a donor-advised fund?
Grants can be made to any U.S. entity recognized by the Internal Revenue Service (IRS) as a tax exempt, publicly supported 501(c)(3) charitable organization, place of worship, public and private school, and governmental agency.

What can my advised-fund grants support/fund?
Your fund may support most programs or activities of a qualified charitable organization. Examples include: general operating support, museum exhibits, laboratory equipment, a neighborhood project, child care programs, or underwriting a particular development effort. You can also designate a grant in honor of or in memory of a person or event.

Is my fund prohibited from making any type of grant?
The IRS restricts grants from donor-advised funds to pay membership dues; fulfill personal pledges; discharge or satisfy legally enforceable obligations; or for any purpose from which you will receive some benefit. Other ineligible grants include ticket purchases to fundraising dinners, greens fees for charity golf tournaments, grants to individuals, or grants to political campaigns.

Can my fund recommend grants outside Southern Indiana?
Yes. While one of CFSI s objectives is to make grants that benefit our local community, grants also can be made to institutions outside the local area. And, grants can also be made to publicly supported U.S. 501(c)(3) not-for-profit organizations serving charitable needs in other countries. However, grants to non-U.S. organizations in foreign countries are not permitted.

What about pledges?
The IRS requires that grants from donor-advised funds cannot fulfill pre-existing obligations such as pledges. The word pledge implies a legal obligation on the part of CFSI to satisfy a debt or that a contribution to CFSI was restricted for another charity.

Can my family or I receive benefits?
No. The IRS prohibits fund representatives, their families, and the fund s donors from receiving goods or services from a charity in return for a grant. The funds cannot pay fund representatives or their family members for travel expenses or other costs. Grant distributions from a donor advised fund are NOT tax deductible to a donor or fund representative. Only donations into a donor-advised fund can be claimed for a tax deduction by a donor. Consult your tax advisor regarding the amount available to deduct.

How are my grants acknowledged?
An award letter accompanies all grant checks from an advised fund. The letter specifically identifies the fund from which the grant is made and the purpose of the grant. Grants can also be made anonymously if you desire. A copy of each grant award letter is sent to you. CFSI can forward all thank you letters from not-for-profit organizations to you upon request.

Are my grant recommendations final?
The vast majority of the time, CFSI honors all grant recommendations that meet IRS requirements. However, in all cases the board of directors of the Community Foundation of Southern Indiana is legally bound to determine how the funds are distributed. The Foundation must adhere to IRS regulations regarding advised-fund donors recommendations. IRS rules stipulate that a donor cannot make a tax-deductible contribution while at the same time retaining control over his or her contribution. However, the law expressly recognizes the right of living donors to make grant recommendations.