Frequently Asked Questions From Donors
How does giving through the Mid-Shore Community Foundation work?
You start a fund by making an irrevocable gift (minimum value of $10,000). The community foundation invests your gift along with those of other donors. Investment returns are added to your fund and a percentage is set aside for grantmaking. You can establish a fund during your lifetime or afterwards through your estate plan. To make a grant, you simply complete a form. MSCF does the rest – ensures you are granting to a qualified nonprofit in sound standing; prepares grant award letters and checks; provides you with written confirmation of your grant awards. You can give anonymously through your fund or name your fund for yourself, family, or friends.
How do I start a fund?
Contact us. We will review your objectives and prepare a Fund Agreement confirming the intent and investment of your fund. Once your assets are transferred to the Community Foundation, your fund is established.
Is my fund permanent?
We manage both endowed and non-endowed funds. Create a permanent endowment where the initial value of the gift is preserved or use your gift immediately for the good of the community.
What are the available dollars from our permanently endowed fund?
An endowment fund is an investment for the future. Our goal is to increase dollars available to the organizations you care about while ensuring that your fund’s balance grows over time. Currently, you may annually grant up to five percent of your fund, based on a three-year rolling average of your fund’s year-end balance. You are not required to make annual distributions from your fund and may choose, instead, to reinvest the earnings. A five-percent spending policy is common among foundations and nonprofit endowments.
How often will we receive statements for the fund?
You will receive quarterly Fund Statements detailing your fund’s activities including investment performance, service and investment fees, and grants.
What fees are charged?
The Community Foundation assesses a sliding-scale administrative fee on all permanent / endowment funds – the fee ranges from 75 basis points to 125 basis points. These fees help defray the administrative costs associated with managing your fund and providing top quality donor services. Fees for pass through funds and agency funds are negotiated but typically range from 2.5% to 5%. The Foundation’s Board is committed to complete transparency. We disclose all fees – there are no “hidden” costs. Learn more about our Fee Schedule >
Should I establish a private foundation instead of a Donor Advised Fund?
Administering a private foundation can be time consuming and expensive, with considerable administrative and organizational duties – and related costs. A Donor Advised Fund contains many of the features of a private foundation with fewer complications. In addition, Donor Advised Funds have no rigid distribution requirement (private foundations must give away 5 percent of the assets every year).
Why should I choose a Donor Advised Fund at the Community Foundation over a Commercial Gift Fund?
We are community based, and we know both the issues facing the Mid-Shore and the organizations addressing them. You are completing more than a transaction by working through the Community Foundation. You – and the community - are benefiting from our abundant knowledge and resources.
