Frequently Asked Questions
Find the answers to some of these common questions.
What is the Fort
Wayne Community Foundation?
A tax-exempt public charitable foundation established in 1956, the
Fort Wayne Community Foundation establishes permanent funds, invests the
assets held in a fund, and distributes the earnings to charitable
organizations. ( Return
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Who governs the
Fort Wayne Community Foundation?
FWCF 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. ( Return
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How does the Fort Wayne Community Foundation manage funds?
FWCF 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. ( Return
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What does it cost a donor to establish a fund?
Establishing a fund at the Fort Wayne 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. ( Return
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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, FWCF staff will contact the organization and request
documentation of tax-exempt status. ( Return
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Are distributions from the Fort Wayne Community Foundation limited to
organizations in Allen County?
The Fort Wayne Community Foundation is legally permitted to distribute
funds, upon the donor's recommendations, anywhere in the country. ( Return
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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. ( Return
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How is the amount available for distribution from a fund
determined?
The Fort Wayne Community Foundation 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. ( Return
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After a donor makes a gift to the Fort Wayne Community Foundation, 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 FWCF is included in our single 990 tax form. ( Return
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See also:
Advantages of the Community Foundation
Ways to Give
Types of Funds
Establishing Scholarships
Charitable Gift Annuities
Frequently Asked Questions
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