Creating a charitable fund
that meets your needs
No matter what your interests, the Community Foundation staff can help you create a philanthropic plan that supports your charitable objectives both now and in the future. We can provide information on specific nonprofit organizations or help you identify organizations doing work in an area that is important to you.  As part of our team approach, we encourage you to consult with your legal and tax advisors to determine when and how gifts can be made to maximize your goals.

Immediate Tax Benefits, Flexible Giving
As a Community Foundation donor, you will receive a wide range of benefits that are flexible and cost-effective. Once you complete the  simple process of setting up a fund, you can enjoy giving without worrying about charitable gift acknowledgements and income taxes.

• Receive an immediate tax deduction the year in which the gift is made without having to rush into decisions regarding the ultimate timing or beneficiary of your gifts.
• Contribute a variety of assets to your fund both now and in the future, either regularly or infrequently (more detail in Gift Acceptance Policies).
• Recommend grants to an unlimited number of nonprofit organizations both in and out of the area as regularly as monthly.
• Enjoy the advantages of having your fund be part of an actively managed, diversified investment portfolio where donations of cash or securities are invested tax-free within a range of four investment options (more detail in Investment Options and Performance).
• Maximize your charitable impact through investment returns automatically credited to your fund.
• Allocate distributions from fund income, principal, or a combination of the two.

Many Ways to Give
The Community Foundation of Greater Memphis accepts a variety of assets:

• Cash
• Real estate, outright or with retained life interest
• Publicly traded securities
• Closely held stock
• Other readily converted assets which can be structured a variety of ways More detail in Gift Acceptance Policies

Choice of Gift Objectives
Creating a fund at the Community Foundation is simple.  As a donor you have great flexibility in deciding how your fund will be managed to meet your charitable giving needs and interests. You can begin by:

• Deciding when to give. You can create a fund during your lifetime, or through a will or trust that benefits both your family and charity. Tax deductions are earned at the time of the gift, while grants be made in the future.
• Selecting a name for the fund. You can name the fund for yourself or your family or create a fund in honor of or in memory of someone special. Every grant made from the fund will carry the name you chose. Funds may also be anonymous.
• Choosing a type of fund. You can choose from the eight options below, depending on your goals and interests. Any of these funds may be endowed. Scholarship funds must be endowed.
  
  1. Donor-Advised:  Donor-advised funds provide for continuous donor involvement and flexibility and allow donor advisors to submit grant recommendations on a regular basis for the benefit of charities they feel are deserving of support. Grants can be distributed from fund income, principal or a combination of the two. While tax laws require oversight by the Community Foundation Board of Governors, the Foundation routinely approves donor-advised grants to qualifying organizations and institutions. The minimum gift to open a donor-advised fund is $5,000. (For more information, see our frequently asked questions or our download a fund agreement.)
     
  2. Donor-Designated: Designated funds typically appeal to donors who wish to support one organization or several specific organizations in perpetuity.  Designated funds are endowed, and generally provide one grant payment annually to the designated organization or organizations. The initial gift to a designated fund must be at least $10,000.
     
  3. Field of Interest Funds:  Donors choose these funds to support a particular area of concern, such as the arts, health or social services. These funds provide grants for specific types of programs without restricting the grants to a single organization or agency. Field of interest funds at the Community Foundation of Greater Memphis benefit a variety of programs, including neighborhood improvement and summer camps for children. A field of interest funds must reach a balance of $100,000 before grants can be awarded. Donors have three years to reach the minimum balance.
     
  4. Scholarship Funds: These funds provide a permanent source of scholarships, which are awarded directly to educational institutions on behalf of students. Scholarship funds must be endowed and reach a balance of $25,000 before scholarships can be awarded.
     
  5. Unrestricted Funds: Unrestricted funds attract  individuals who understand that the needs and strengths of the community are constantly changing. Such donors, known as Community Partners, are committed to supporting the Foundation's efforts to build a permanent source of money to invest in worthwhile community projects. These donors entrust the assets in their named funds to the wisdom and experience of the Foundation's board. An unrestricted fund must reach a balance of $10,000 before grants will be awarded. The donor(s) have three years to contribute $10,000. If the minimum balance is not met, the assets will be transferred to the Foundation's Unrestricted Endowment Fund.
     
  6. Supporting Organizations: A supporting organization often is an attractive alternative to a private foundation for donors with $1 million or more in charitable assets.  A supporting organization has its own board of directors and independent grantmaking ability. The supporting organization takes advantage of the Foundation's professional staff assistance, administrative services and favorable tax status while avoiding the paperwork, excise tax and annual payout requirements inherent in a private foundation.
     
  7. Nonprofit Organization Funds:  These funds are established by 501(c)3 agencies to provide support for operations or a specific project. Many of the funds are endowments, which provide a permanent source of income for the organizations. The minimum gift to open a nonprofit fund is $10,000. For details, download a fund agreement.
     
  8. Project Funds: These funds are established by groups seeking 501(c)(3) status. The Community Foundation does not serve as fiscal agent, but will award grants to the organization's fiscal agent. A minimum gift of $5,000 is required to establish a Project Fund. If the group fails to obtain 501(c)(3) approval, the fund will be closed and a grant will be made to the Community Foundation's unrestricted endowment or to  an organization recommended by the fund advisor, provided that all donors to the fund agree to the change in recipients.

For more information on fund options, contact Dan Murrell at dmurrell@cfgm.org or (901) 722-0036, or order our free Donor-Advised Fund Information Packet by clicking here.

Investments That Yield Twice
Because most Foundation funds are pooled for investment purposes, donors have the additional advantage of having their funds be part of an actively managed, diversified investment portfolio. Your donations of cash or securities are invested tax-free in any one of four investment options from which you may select. Investment returns, reported quarterly, are automatically credited to your fund where they may become part of your fund's principal or used immediately for grants. See Investment Options and Performance.

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Community Foundation of Greater Memphis
1900 Union Avenue, Memphis, TN  38104
(901) 728-4600
EIN: 58-1723645

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