Grants from your fund can benefit up to five nonprofits and can be used to support an organization's general mission or a specific program – it's up to you.
Designated funds allow you to support your favorite nonprofit organizations forever. With a single fund, you can create an enduring source of support for an array of charities – from the library to the art museum and beyond.
Designated funds are almost always endowed, meaning only the interest from the fund is distributed to charity, while the principal is invested and grown over time. This allows you to sustain a nonprofit's charitable mission both during your lifetime and long after you're gone.
Benefits of a Designated Fund
Designated funds make your annual giving a breeze. Instead of writing individual checks to your favorite charities each year, Akron Community Foundation will automatically award annual grants to the charities you've chosen and handle all the paperwork for you. We'll also simplify your taxes by sending you tax acknowledgments from only one organization, so you no longer have to keep track of receipts from several different charities.
If you'd like to add to your fund in the future, Akron Community Foundation can accept a variety of gifts – from the simple, like cash, to the complex, like gifts of closely held stock and real estate. And once your fund has been established, there is no minimum requirement for future donations. We even offer all of our funds custom giving URLs so gifts can be made online easily – by you, or by friends and family who wish to give to your fund in your honor.
Additionally, unlike donor-advised funds, designated funds are able to accept qualified charitable distributions from an IRA. This savvy planning technique allows you to make tax-free distributions from a traditional or inherited IRA directly to your fund once you reach the age of 70 ½. These transfers also count toward any required minimum distributions you may have for the year.
We understand how important your relationships are with your legal and financial advisors, and it's common for us to work with your advisors while establishing your fund. In certain situations, your advisor can also continue to manage the fund's assets.
Our investment strategy aims for superior long-term returns with minimal risk. Our Finance Committee and staff follow a strict financial discipline and provide regular oversight of our investments, which are managed by a board-approved independent consultant.
Should your designated organization eventually cease to exist, Akron Community Foundation will redirect your fund's income to maintain your original charitable intent. You can choose your own contingent beneficiary at the time your fund is established, or leave it up to our staff to identify a qualified charitable organization with a similar mission should the need arise. Either way, you can feel satisfied knowing your fund will continue to fulfill your charitable legacy next year and next century.
Designated funds are almost always endowed, ensuring that your fund will grow and Akron Community Foundation will make grants in your name forever. Designated funds are also a lasting way to pay tribute to a loved one with a passion for a particular charity.
Designated funds can be started with as little as $5,000. Once your fund is established, the community foundation collects a nominal annual fee of about 1.93% to cover administration and investment fees. Rather than going to an outside financial institution or corporate entity, your fund's administrative fees support the work of Akron Community Foundation, a permanent local charity that benefits Summit County.
Ways to Give
Akron Community Foundation can accept a variety of assets to establish your fund, and the best donation isn't always cash.
Cash
Cash gifts may be deducted up to 60% of adjusted gross income for income tax purposes. Contributions over that limit can be carried over for up to five years. Gifts can be made via cash, check or credit card.
Publicly traded securities
You'll receive a double benefit if the stock has appreciated: an immediate charitable deduction for the fair market value of the securities donated and exemption from any capital gains tax on the appreciation.
Qualified Charitable Distributions
For donors age 70 ½ or older, a qualified charitable distribution (QCD) made directly from your IRA to your designated fund at Akron Community Foundation can help you avoid paying taxes on the distribution and reduce any RMDs for the year.
Closely held stock
By donating a portion of your privately held stock, you can receive a fair market value deduction for the contribution and avoid paying capital gains tax on illiquid assets that have greatly appreciated in value.
Bequests
Include your designated fund in your will or trust to make sure your favorite nonprofits are taken care of after your lifetime. Let us know if you have included your fund in your estate plans so we can fulfill your specific wishes and welcome you into our Edwin C. Shaw legacy society.
Life insurance
Many people find that the protection offered by life insurance is no longer needed later in life, making life insurance policies an ideal gift. If the policy is paid up, you will receive an immediate tax deduction for the policy's cash surrender value.
Real estate
Gifts of real estate can include a house, apartment building, farm, vacation home, commercial building or land. Once accepted, Akron Community Foundation has a separate LLC set up to handle these types of gifts for you.
Other property
Some donors may prefer to give their automobile, antiques or jewelry. Akron Community Foundation can accept these more complex gifts, too, but most will require an appraisal by an impartial party.
The Benefits of Working with Us
- We're accessible online, by phone and in person
- We help you learn about local nonprofits
- Our administrative fees are low and stay in your community
- We're happy to work with your advisor
- We'll always be here, for you and future generations
- We offer many tax-smart ways to give