Because the legal apparatus is already in place, community foundations have appropriate forms available so that a fund can be established and the tax advantages obtained quickly and easily. The federal tax code provides significant incentives for contributions to a community foundation. There is also a significant benefit in the deductibility of gifts of certain appreciated assets. The donor can deduct the full-appreciated value and avoids capital gains taxes. The Foundation's professional staff and voluntary community board of directors provide careful administration.
Staff is available to answer questions, identify community needs and screen grant requests.
Additions can be made to the funds at any time. Firstar Bank, National Exchange Bank and Trust, and Bank One. The Foundation Board of Directors sets investment policy and monitors performance. New gifts and market appreciation are added to the endowment. If the donor's intended use of a gift should ever become obsolete, the Board of Directors of the Foundation will strive to find a successor purpose or organization which as closely as possible resembles the donor's original intention.