Questions & Answers about

The Community Foundation of Mount Vernon & Knox County

New Philanthropy Fund

      

What is the mission of the New Philanthropy Fund?

The strength of any Community Foundation is reflected in the breadth of its donor base. The Community Foundation of Mount Vernon & Knox County is proud to administer approximately 325 individually named charitable funds totaling more than $50 million in assets. The objective of the New Philanthropy Fund is to increase leadership gifts in the $10,000 and higher range.

How was the New Philanthropy Fund Created?

The New Philanthropy Fund has been created with a matching grant from Karen Buchwald Wright’s (pictured at left) Ariel Corporation Donor Advised Fund, with a focus on increasing the number and value of living-donor funds within the Community Foundation.

Where will donor funds be invested and maintained?

Assets may be held and invested in one of the Community Foundation’s investment pools maintained by the First-Knox national Bank Trust Department, or with an approved local investment manager, who has subscribed to the Community Foundation’s Investment Policy (available on request). Regardless of where funds are held and invested, they are uniformly administered by the Foundation for charitable purposes.

What about investment and administrative fees?

Combined investment and administrative fees for funds maintained by the Community Foundation are approximately one percent of a fund’s market value per year, assuring donors maximum charitable impact from their contributions. This fee estimate will vary somewhat depending upon the particular investment manager; however, the Community Foundation’s Investment Committee carefully monitors fund performance and fees for compliance with its policies and maximum charitable value.

What types of charitable funds are allowed?

The full complement of charitable fund options is available to donors utilizing New Philanthropy Fund matching gifts. These include named Unrestricted Funds, Area of Interest Funds, Designated Funds, Scholarship Funds, and Donor-Advised Funds. You may contribute cash or securities to create your Foundation fund. Gifting appreciated securities allow you to receive a tax deduction for their full market value on the day of transfer, and all capital gains taxes are bypassed for both the donor and the Community Foundation of Mount Vernon & Knox County.

How will matching dollars from the New Philanthropy Fund be credited to donor accounts?

Up to $125,000 in New Philanthropy matching funds will be available in 2015. Contributions from individuals of $10,000 to $50,000 to a new or existing fund will be matched on a 50 percent basis.

How much charitable giving is permitted from donor funds.

The current Community Foundation distribution policy provides approximately four percent of a fund’s three-year average market value for annual distribution. Investment income and market appreciation over and above distributions are added to fund principal to accelerate the growth of a fund’s corpus.

How does a donor initiate the process of creating a named Community Foundation fund?

Community Foundation Executive Director Sam Barone will meet with you and your investment manager to determine the type of fund you desire and will then create a draft fund agreement that describes your grant criteria and fund contingencies. Once donors are satisfied with the fund agreement, cash or securities will be transferred into a Community Foundation of Mount Vernon & Knox County account established with your investment manager. You will receive quarterly statements from the Community Foundation keeping you informed of your fund’s status.

 

If you have additional questions about the New Philanthropy Fund please feel free to call Sam Barone at 740.392.3270, or email sbarone@mvkcfoundation.org. Additional information about the Foundation is available at www.mvkcfoundation.org.