The Power of Community Foundations
The end of each year is a time of reflection, and a time for charitable giving. The recent wildfires that ravaged California, particularly the Camp Fire in and around Paradise, made the national news, and also put the power of Community Foundations in the spotlight.
A Community Foundation serves as an ‘umbrella’ organization to distribute grants for many smaller non-profits which provide direct services where needed most. They offer the benefit of professional staff to analyze and assess the non-profits they fund, as well as lower investment fees for larger pooled funds.
The North Valley Community Foundation has been featured in the media as a good choice for donations to help Paradise residents who lost homes in the tragic fire. Families need urgent funds and services to find housing and replace lost income. In the longer term, the community will need much more to rebuild homes, businesses and vital government services.
Other Community Foundations in our area include the Placer Community Foundation, the Tahoe Truckee Community Foundation, and the Sacramento Regional Community Foundation.
As a donor to a Community Foundation, you can feel confident that your funds are being used as intended, to non-profits in your geographic region which have been reviewed to assure quality services and proper administration.
You may wish to establish a Pooled Income Fund (PIC) or Donor Advised Fund (DAF) at a Community Foundation or other financial institution such as Fidelity or Schwab. With a DAF, you may “advise” how you wish your account to be distributed. Your directions will be honored as long as the charitable organizations you select meet specified qualifications.
Read more about structured giving options, with immediate and long-term tax benefits, in a previous article, “The Season for Charitable Giving”.
Our sincerest appreciation and warmest wishes for the Holiday Season
and throughout the New Year!