Advisor FAQ

The Community Foundation serves as a vehicle for easy, tax-effective giving. We have earned the trust of many financial advisors and we look forward to the opportunity to earn yours as well.

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 volunteer Board of Directors, each of whom serve 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 endowed funds in a common investment pool. Investment management has provided several 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 both investment management and cost of fund administration fees on an annual basis.

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. In addition, a fund cannot be used to make a distribution to benefit a specific individual and the donor cannot receive personal benefit from a distribution from a fund. This includes a charity dinner, tickets to an entertainment event, raffle, or any other benefit above the de minimus value.  Under IRS regulations, donors can receive items of value up to the de minimus amount (which is redefined annually).

Are distributions 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, vocational 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.

After a donor makes a gift, what are the 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.

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 Community Foundation Spending Policy, which is generally 4% to 5% depending upon the investment environment.

How do I request a distribution from my fund?

To request a distribution from your fund, simply contact Kiley Tate-Potts at 260-969-3113 or  Kiley will ensure that your recommendation fulfills your philanthropic goals and conforms to IRS regulations.

How do I read my fund statement?

See the document below for a quick glossary of terms and a legend.

How to read your fund statement

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