<%@LANGUAGE="VBSCRIPT" CODEPAGE="1252"%> The Community Foundation - Donor Guide
Funding Opportunities

Reasons for Establishing A Fund in The Community Foundation
of South Alabama Rather Than A New Organization
Community
Foundation
New
Organization
Organization
Established 1976
Not yet established
Tax Exempt
501©(3) status
Not yet established
5% payout rule
Not subject to
May have to Pay out
5% of assets
Excise Tax on investment income
Do not pay
May be subject to tax
Tax Deductibility for Donors
Maximum under law
Uncertain; provisional
status if approved
Mechanism for Receiving Gifts
Established mechanisms
to handle gifts of real estate,
securities & cash
Need mechanisms for
receiving and managing
of gifts
Language for Making Gifts & Creation of Funds
In place
Must create
Sophisticated Gift Instruments
(Pooled Income, Lead, Annuity, and Unitrusts)
In place
Must create
Office
In place
Need to obtain
Staffing
In place
Need to obtain
Accounting
Computerized & independent
CPA audit conducted each year
Must employ
Tax Return (Attorney General & IRS)
Prepared by CPA
Must prepare
Public Report
Annual report to public
(1,000 copies distributed)
Prepare, print,
distribute
Acknowledge Donors
Donors recognized in
publications and thanked
individually for each gift
Need systems
Director and Officer Liability
In place 1 million
Needed (costly and
difficult to obtain)
Theft, Accident, Liability Umbrella Insurance
In place 2 million
Needed
Employee Bonding
Yes
Needed
Investment of Assets
Professional Investment
Committee
Need to obtain
Organization Overhead
Spread over all over
assets
Start-up costs and
costs spread over
smaller asset base
Credibility
Wide public acceptance
New organization