Yolo Community Foundation continues to seek new and innovative ways to meet the needs of charitable donors. As the community's permanent "Charitable Investment Firm," our primary purpose is to work with donors who wish to return a portion of their resources to the community. Many donors choose to give through the Foundation because of the advantages a community foundation offers.
Permanent Guardianship of Gifts
A gift to the Foundation may establish, or be added to, an endowment
fund in which only the income is distributed. The principal of each
endowment gift is permanently retained to provide a continuing stream
of charitable income for the future. Donors appreciate
knowing that their contributions will extend beyond
their lifetimes and will be carefully safeguarded to
serve the community as originally intended.
Maximum Tax Deductibility
Yolo Community Foundation is classified as a public
charity under Section 501(c)(3) of the Internal Revenue Code. This
status affords donors tax deductions for income and estate tax purposes
to the maximum extent permissible under current tax law.
Special Tax Benefits
Donors contributing appreciated assets to the
Foundation receive the following benefits: (1) capital
gains taxes will not be levied on the donated
property, and (2) an income tax deduction can be
taken on the full, fair market value of the gift.
These advantages apply if the assets have been
owned for the requisite period of time (currently for
at least one year and a day).
Tax-Sheltered Growth of Funds
Contributions to charitable funds within the
Foundation grow tax free. This means that donors are
able to build charitable reserves in their names without incurring
additional taxes.
Choice of Charitable Beneficiaries
Donors are able to realize most charitable intents by
designating the organizations or the philanthropic
purposes to be served by their fund. Through the
Foundation, donors have the freedom to structure
funds to accomplish their charitable objectives.
Economies of Scale
We strive to offer a better investment return to each
participating fund within the Foundation through:
(1) the pooling of assets, (2) the diversification of
investments, and (3) the reduction of costs to any one fund through
shared expenses.
Recognition
Funds may be established in the name of the donor,
the donor’s family, a friend, a business, a charitable
purpose, or another organization. Those establishing
endowment funds are guaranteed perpetual recognition through
publications and through the annual distributions of grants in the name
of the fund.
Conversely, the Foundation understands and respects
a donor’s wish for anonymity and will administer
such gifts accordingly.
Flexibility
The Foundation carefully adheres to the terms of all
gifts entrusted to its care. If the original purposes of a
fund become obsolete or incapable of fulfillment, the
Foundation has the power to redirect the fund to
other related purposes. That power is used sparingly
and donors may rest assured that the spirit of their
charitable objectives will be represented in perpetuity.
Accountability
Annual reviews through an independent audit, filing
of tax returns, public disclosure of all grant activity,
and careful selection of board members ensure continued use of funds in
the public interest.
Foundation within a Foundation
Affiliation with the Foundation offers the advantages
of a private foundation without the attendant expense
and time commitment. We relieve donors of the complications of
administering their own foundations by assuming full responsibility for
the efficient, prudent management of each fund entrusted to our care.