Elk County Community Foundation

Frequently Asked Questions

Below is a list of questions frequently asked about the Elk County Foundation. Please also take a look at the Glossary.

Q. What exactly is a Community Foundation?

A Community Foundation is a public, not-for-profit, tax-exempt organization. It is a community savings account. As a permanent charitable endowment trust, a Community Foundation develops assets for community needs, manages these assets wisely, and awards grants from these funds to tackle today's needs and prepare for tomorrow's challenges. Simply put, a community foundation is collection of separate funds that make grants to improve the quality of life in a particular geographic region and support a wide variety of charitable interests.
Q. Where does the foundation get its funds?

The Foundation receives its money from individuals, families, organizations or corporations interested in providing financial support to charitable organizations that serve your community. These gifts and bequests make up the permanent endowment of the Foundation; this is used to make grants to benefit our community for years to come.
Q. What is an endowment?

An endowment is a type of fund established that permits grants to be made only from the earnings. The balance of the fund is never spent, which insures that grant support can be provided for generations.
Q. Why give thought a community foundation?

The Foundation provides advantages otherwise available only to the wealthiest philanthropists. In addition to knowing that your gift will enrich the quality of life in your community for years to come, The Elk County Community Foundation provides:

Tax Advantages- Maximum tax benefits can come from establishing a fund and present a winning situation for donors and the Foundation. The Community Foundation is a public charity and your contributions are tax deductible to the full extent allowed at the time your gift is made. Donors can also get an immediate tax deduction for a gift to be allocated in future years. You may make gifts with various types of assets. (What kind of assets can I give).

Positive Community Impact- Your gift will keep on giving. Your principle will continue to grow and benefit your community for years to come. These endowed funds will serve our region in perpetuity -growing each year- in order to provide an ever-increasing source of income for the needs of the area non-profit community.
Responsible Investing- Your Elk County Community Foundation exists to create named endowments and to group these funds under the umbrella of a single public charity. This can provide significant economies of scale and enhanced investment alternatives for donors.

Professionalism- The Foundation is structured to serve donors. We take care of the administrative tasks and paperwork associated with managing gifts and remove the burden of management from the donor. Donors are not subject to tax audits. The Community Foundation provides a professional perspective on community needs and a variety of alternatives in addressing charitable interests. We process grants, send grants checks and award letters, and we are always glad to prepare statements about your fund activity.
Q. What are the benefits of being a donor?

Your gift will keep on giving as the principal continues to grow and benefit our communities for years to come. The Foundation assures the meaningful existence of your named fund generation after generation.

You may give visibly or anonymously. Grants can be made in your name and can be publicly acknowledged. There is no greater encouragement for others to give than to see what friends and family have given. However, if you prefer, all grants from your fund will be kept anonymous. Your gift keeps pace with changing times. The Foundation safeguards your charitable intent to make sure your gift is put to good use and to meet the current needs in your community. Causes that benefit our communities today may become obsolete over time and wouldn't benefit our region in the future. We can't begin to anticipate the needs of tomorrow today. Regardless of how these needs change over time, the Board of Directors will ensure that your gift will always have meaningful impact on our communities.
Q. How are gifts made to the foundation?

A donor may make a gift or bequest of any size to the foundation for the benefit of your community. Donors may make unrestricted gifts (unrestricted funds) to the Fund for the Future which gives the Foundation the greatest flexibility to meet the regions changing needs over the years. You may designate a specific organization or area of interest to receive your grants. Gifts to the ECCF in memory or honor of a loved one is also a dignified and meaningful way to express sympathy or respect.
Q. What kind of assets can I give?

You can make gifts of cash, stock, life insurance, real estate, grants from charitable gift funds, or Retirement Plans and IRA's. In the case of life insurance, you can name the Foundation as owner and beneficiary of a life insurance policy, while continuing to pay annual premiums, which are tax-deductible as charitable contributions. Charitable gift fund grants may also be used to establish a fund or add to a specific fund within the Community Foundations. Simply call the administrator and name the Elk County Community Foundation as one of your grantees. When a donor designates the Foundation as a beneficiary of an Individual Retirement Account, the donor is assured of preserving the assets for charitable purposes. Otherwise, upon the death of both the donor and the donor's spouse, as much as 80 percent of the account's value may go to taxes. Your professional advisor can help you decide which of the above asset types will best fit your situation.
Q. How can I create my fund at the ECCF?

Establishing a fund is a simple process and we will be pleased to consult with you or your professional advisor to learn about your charitable interests. Our simple forms allow paperwork and legal fees to be significantly reduced. You have a variety of options on how to structure your fund. Donors may choose to name their fund in honor of family or friends. Every grant from this fund will carry the funds name, unless you request to remain anonymous. Your contributions quality for maximum tax deductions immediately after your application is accepted.
Q. What type of fund can I establish?
Donors can choose from several types of funds including: Unrestricted, Field of Interest, Donor Advised Fund, Designated fund, and Scholarship Fund.
- Unrestricted Fund - The Fund for the Future gives the Foundation Board of Trustee the greatest flexibility to make discretionary grants meets the needs of Elk County over time
- Field of Interest - The donor specifies a broad area of interest to benefits from fund grants and ensures that the foundation will always attend to these concerns.
- Donor Advised Fund - Donors advise the Foundation as to what grants should be made to which organizations and when. For many donors this type of funds more advantageous than starting a private foundation.
- Designated Fund - You may choose specific organizations to receive grants.
- Scholarship Fund - You may endow scholarships to benefit a certain type of students or a specific institution or to encourage study of a particular subject.
More information about the types of funds can be found here.
Q. Is there a minimum size to start a named fund?

No. However in order to distribute grants the fund needs to reach $5,000. This amount may be gifted over time or reached at once. Each fund is assessed a minimal administrative fee.
Q. Is the fund I establish permanent?

The majority of funds at the ECCF are permanently endowed. In some cases, the governing instrument of the fund may allow for principal invasions. In other cases, donors may wish to make a non-endowed gift to the Foundation that "passes through" to a favorite charity.
Q. If I establish a Donor Advised Fund what happens after my death?

A donor can name advisors to succeed him or her so after a donor's death, the fund can continue to be advised by individuals selected by the fund's founder. After the death of the named advisor, the fund balance will be transferred to the Fund for the Future, where it will be used to meet current needs.
Q. What kind of charities can I give to?

In most cases, charities must be 501 (c ) (3) organizations as classified by the Internal Revenue Service. Grants are made to tax-exempt, charitable organizations serving residents of your community.
Q. Can I suggest grants to organizations outside of Elk County?

Yes. We can make grants to nonprofits in most states.
Q. What control do I have in the use of my donation?

Your gift can establish a permanently endowed fund in your name, a family or business name or in memory of a loved one. You can designate a specific institution to benefit from your fund in perpetuity. With a Donor Advised Fund, you advise the Foundation of your preference.
Q. Are there restrictions on the size of the gift I may make through the Foundation?

Anyone can be a philanthropist! Gifts of all sizes are welcome. The Elk County Community Foundation offers donors flexibility in charitable giving. You may make annual gifts to handle your annual charitable giving, or you may make large, long-term gifts to endow future charitable purposes. The minimum amount of a named fund is $5,000 which may be gifted all at once or over time
Q. What if I want to make an outright donation to the Community Foundation without starting a named fund, what are my options?

You can designate your gift to benefit existing named funds or simply make a gift to build the Fund for the Future.