Funds
Charitable giving tends to be a reactive process – a solicitation arrives by phone, letter or email, which generates some kind of response.
Charitable giving also tends to be unplanned and very discretionary. A year end accounting of charitable giving for tax purposes, in many cases, can cause a surprise either in terms of how much (or how little) has been given. At other times, a preset limit on charitable giving can result in that limit being reached; after which a more compelling request for charitable support comes in.
Yet, 85% of households in New England give something, somewhere – of which approximately 75% goes to secular causes.
With that amount of Giving taking place, it is surprising that so little planning takes place with respect to the need, locally, and the return. Return in terms not just of the joy of giving, especially locally, where it can be seen and felt, but also the economic benefit both to the community and to the donor.
So the first stage in starting a charitable fund is to think about your giving – in other words change your approach from purely a ‘heart-based’ attitude to more of a ‘head-based’ attitude towards giving. Plan which or what areas of charitable activities you want to give to.
Households with income of $100,000 give up to $10,000 per year, much of that out of income. Yet, establishing a donor advised fund capable of generating just $1,000 in annual giving, in perpetuity, can be done with a tax deductible gift of $20,000 in appreciated stock – with that tax deduction being applied to your income.
Then, once you have decided to establish a fund, ECCF can help you in the following ways:
- Establish a fund to make your giving convenient and easy without all the expense or hassle of setting up a separate organization.
- You can set up a fund for as little as $10,000.
- The type of fund you establish depends upon your charitable goals and the type and level of service you need to meet them.
We are a 501(c)(3) so when you set up a fund, you receive the maximum tax donation allowed under the law.
We differ from private foundations and commercial funds because we are a local, philanthropic service provider with deep, local knowledge, experience and a track record of giving to the communities of Essex County.
Foundation Options Comparison
We accept a variety of assets most commonly appreciated stock that provides significant tax benefits to the donor. However, these are all described on our website Ways to Give
Contact us
If you have any questions about setting up a fund, please contact ECCF.
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