Fund FAQs

There are several ways you can give to an existing fund:

1. Contact the KRCF via phone or e-mail regarding your donation,

2. Download the PDF donation form and mail or fax it to the KRCF, or

3. Submit the online form using your credit or debit card via a secure server.

Through careful guidance by KRCF’s Investment and Finance Committee, investment decisions are made to achieve the highest return with the lowest risk. Any funds invested in stocks and bonds are professionally managed by the Trust Company of Manhattan.

• Outright gifts of cash, publicly traded or closely held stock, real estate, insurance, or other assets.

• Bequests by will of cash or property.

• Memorial tributes in honor of a friend or loved one or contributions in honor of anniversaries, birthdays, etc.

• Life insurance naming the Foundation as beneficiary and owner.

• Private foundation transfers in which your family foundation, private foundation, trust, or civic endowment transfers its assets to KRCF, while your fund retains its name and purpose. In some cases, the private foundation may choose to become a Supporting Organization to KRCF, thus achieving public foundation status. This approach saves management costs, excise taxes, and administrative burdens.

• There is no minimum for a contribution to an existing fund.

A fund can be established quickly. You may choose any name you wish for the fund you establish. Funds may be increased at any time by additional gifts. Grants from the fund you established will always be recorded in the name of the fund, a lasting symbol of your caring. The length of time depends on the complexity of your wishes, but generally a fund can be established in a matter of days or weeks.

KRCF charges a $100 setup fee to establish a new fund.

Most funds can be established in one brief meeting and can be funded with cash, securities, real estate, publicly traded or closely held stock, insurance, or other assets. Or you may wish to create a fund in your will or through special charitable trust arrangements that benefit you and your family by providing them with life income while carrying out your charitable intent. All options provide you with maximum tax advantages while helping you invest in the growth of your community.

The primary purpose of a community foundation is to preserve and protect donors’ investments and charitable intentions while still providing as high a return on investment as possible. KRCF is organized to provide permanent investment and grant making protection for each donor’s fund.

There is no minimum amount required to contribute to an existing fund.

Any individual or group may establish a fund or endowment. Individuals who want to set up their own donor advised funds will be able to do so. As long as its use falls within IRS guidelines, the community, group, or individual who establishes the endowment will determine how that money is to be used.

The Trust Company of Manhattan professionally “manages” the endowed fund money within the KRCF, and there is an emphasis on getting a maximum return on investment for endowed funds. Generally, money will be invested in securities, bonds, and CDs. Funds that are not endowed may be invested only in shorter term investments that preserve capital.

No. Once enough money has been raised to fund the operation of the organization, the KRCF will only work within those communities to solicit money for each community’s endowed fund.

That depends upon how the fund is set up. Endowed funds will exist in perpetuity and annually grant back a portion of the money earned on the investment. The remainder will be put back into the endowment so it will continue to grow. Other funds may be set up to allow communities immediate or periodic access to the money deposited.

You would need a minimum of $1,000 to establish a special purpose/pass through fund, plus the $100 administrative fee. You would need a minimum of $5,000 to establish an endowment fund, plus the $100 administrative fee.

The IRS has determined that organizing or sponsoring these efforts can be a charitable activity so long as the benefit to the public is demonstrable – and the benefit to any private interests is minimal or insignificant in comparison with the benefits realized by the public. Once renovated, if the structure is going to be used mainly for a public or educational purpose, (e.g. as a museum), then this will be a project for which you can accept contributions. You must also investigate the benefit of this project to the private owner. If it is more than incidental, then it can raise flags with the IRS. Again, if the building will be used primarily for a public purpose, this can be done. Also, restoring/preserving sites on the national historic register is considered a charitable activity, even though privately owned, but again the public benefit must far outweigh any benefit to the private owner.