A Minnesota community or organization affiliating with Minnesota Community Foundation enjoys these benefits:
Tax-exempt designation. Affiliation with Minnesota Community Foundation provides a community fund with tax-exempt status and fiduciary oversight without a need to incorporate as a 501(c)(3) public charity.
Professional financial and investment services. Resources are raised within a community and professionally invested by Minnesota Community Foundation as a permanent endowment. A portion of the endowment fund (about 5 percent of the fund balance annually) is made available for grantmaking back into the community.
Gift planning expertise. Experienced gift planners are available to review with donors the many charitable giving options available to them.
Training and resources. The Foundation actively helps its affiliated funds build their fund assets. We provide training opportunities, resources and individual counsel to community fund boards and volunteers to help them become strong local leaders.
Cost-effectiveness. The Foundation charges a simple administrative fee of 0.7% of the fund’s year-end balance annually, which generally includes all foundation services. Investment costs are deducted (without mark up) quarterly from the fund, as are expenses initiated by the local foundation.
Donor credibility. As permanent endowment funds, Minnesota Community Foundation owns the assets of affiliated community funds, which are used only as directed in the fund agreement. This fund ownership and permanence creates instant credibility among donors, who can be assured that their charitable gifts will be used according to their wishes for the long term.
Grantmaking expertise. The Foundation provides legally required verification of grantees, as well as advice and samples on creating a grantmaking program and materials.
“Back room” support. Because administrative, financial and professional services are handled by the Foundation, local community fund board members can hit the ground running. They are free to focus on promoting the fund and attracting assets.
