Frequently
Asked Questions
Find the answers to some of these common questions.
What is the Community Foundation of Greater Fort Wayne?
Who governs the Community Foundation of Greater Fort Wayne?
How does the Community Foundation of Greater Fort Wayne
manage funds?
What does it cost a donor to establish
a fund?
To which organizations can a donor recommend a distribution?
Are distributions from the Community Foundation of Greater Fort Wayne limited to organizations in Allen County?
Can a donor establish a fund to be used
for scholarships?
How is the amount available for distribution
from a fund determined?
After a donor makes a gift to the Community Foundation of Greater Fort Wayne, what are the donor's reporting obligations?
What is the Community Foundation of Greater Fort Wayne?
A tax-exempt public charitable foundation established in 1956,
the Community Foundation establishes permanent
funds, invests the assets held in a fund, and distributes
the earnings to charitable organizations.
Who governs the Community Foundation of Greater Fort Wayne?
The Community Foundation is governed by a 15-person volunteer board of directors,
each of whom serves a three-year term. Board members are chosen
to be representative of the community and for their knowledge
of local needs and issues.
How does the Community Foundation of Greater Fort Wayne manage funds?
The Community Foundation invests all funds in a common investment pool. Investment
management is provided by four investment managers, and an
investment committee monitors the quarterly performance of
our investments.
Because of our large pool of invested assets, we achieve significant
economies of scale in our investment management fees.
What does it cost a donor
to establish a fund?
Establishing a fund at the Community Foundation
usually costs nothing to the donor. Each fund is charged an
annual fee covering investment management and fund administration.
For permanent endowment funds, total fees range from 0.3%
to 1.0%, depending on the nature of the fund.
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To which organizations can
a donor recommend a distribution?
Donors can recommend a distribution to any charitable organization
as long as it has its tax-exempt status. If the tax-exempt
status of the organization is unclear, Community Foundation staff will contact
the organization and request documentation of tax-exempt status.
Are distributions from the
Community Foundation of Greater Fort Wayne limited to organizations in
Allen County?
The Community Foundation is legally permitted to
distribute funds, upon the donor's recommendations, anywhere
in the country.
Can a donor establish a fund
to be used for scholarships?
Absolutely. Distributions from a fund can be used
for tuition for college students or returning adults, or to
pay for the costs of private or parochial K-12 education.
Each scholarship fund must contain certain elements. The scholarship
program must benefit a broad charitable class of beneficiaries,
and the selection process must be nondiscriminatory. You can't
set up a scholarship fund to benefit a member of your family,
or restrict the eligibility so that only one or two students
qualify. Potential recipients may be limited to members of
one sex or an economically disadvantaged group.
Another way to establish a scholarship fund is to make the
annual income payable to a school, and let school officials
select the eventual scholarship recipient.
How is the amount available for
distribution from a fund determined?
The Community Foundation of Greater Fort Wayne uses the Total Return
Concept, allowing a fund to benefit from both income and capital
appreciation. Distributions from a fund are determined by
the fund agreement, but generally range from 5% to 7% of a
fund's balance.
After a donor makes a gift to
the Community Foundation of Greater Fort Wayne, what are the donor's
reporting obligations?
Beyond taking the initial tax deduction, the donor has no
fiduciary, tax or reporting obligations for his or her fund.
Tax reporting for all funds at the Community Foundation is included in our single
990 tax form.
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