East Texas Communities Foundation recognizes the importance of solid legal and financial counsel. For this reason, the Foundation welcomes Donors to include their trusted professional advisors when opening a fund. Though the Foundation offers all services necessary to maintain a fund, it does not intend to replace a trusted professional advisor. Instead, the Foundation partners with advisors, aiming to strengthen the bond between Donors and Advisors by providing highly effective approaches to charitable giving. These approaches include:
Personalization: ETCF understands that no two Donors are alike. Donors come with diverse philanthropic goals, ranging from capital campaigns to simple advised funds. Equally diverse are the types of assets used to open funds. No matter how routine or complex the situation, ETCF partners with professional advisors to create an individualized plan for giving. When requested, the Foundation also works to integrate established estate and financial plans into Donor Advised Funds or Charitable Endowment Funds.
Accommodation: Further underscoring a commitment to personalization, ETCF accommodates Donors in their desire for involvement. Donors may choose to remain anonymous or to receive acknowledgment. Donors also define their level of involvement; they may closely attend to their fund and its work in the community, or allow the Foundation to manage the fund.
Simplicity: East Texas Communities Foundation functions as a “one-stop shop” offering simple, effective solutions for Donors and advisors. Our services include professional preparation of documents, financial reporting, distribution and receipting, and all other administrative tasks required of a fund. Through the Foundation, Donors and advisors may set up a fund and receive immediate tax benefits in a single day.
Advantages: As a public charity, ETCF offers the highest level of tax benefits for charitable giving. Thus, any asset invested with the Foundation immediately receives maximum tax benefits. The impact of an investment is further multiplied by pooling funds - a standard practice of ETCF.
For more information about how ETCF can partner with you to serve your clients, contact Kyle Penney, ETCF President, at 903.533.0208 or by e-mail.
Why shouldn't my client give directly to the organization(s) they wish to support?
When your clients give to their favorite organizations through the Foundation, they're able to recommend contributions on their timeframe and have the flexibility of supporting any charitable organization they wish. Additionally, the Foundation handles all of the administration, record keeping, and financial statements.
Through the East Texas Communities Foundation, your client's giving is made simple. The Foundation is also equipped to accept a wide variety of assets, from cash and securities to real property and closely held stock. Another benefit of using the East Texas Communities Foundation for your clients' charitable giving activities is timeliness. With a donor-advised fund, for example, a donor receives an immediate tax credit for his or her contribution, but retains the ability to recommend grants to nonprofit organizations at a later time.
What are the tax benefits for my clients if they give through the East Texas Communities Foundation?
As a community foundation, ETCF offers the maximum charitable tax advantaged available by law. Because the Foundation is a community foundation, it is not subject to the taxes and regulations affecting private foundations, and it has greater flexibility on matters such as minimum payout.
How much control and freedom would my client have in recommending gift recipients? How does a donor-advised fund work?
Can my client name a successor to the fund?
Your client can recommend a grant to any organization that falls within the broad philanthropic mission of the Foundation and is qualified as a public charity under Section 501(c)(3) of the Internal Revenue Code. The United States has over 650,000 IRS-approved charities. The Foundation will ensure that groups recommended for a grant meet this requirement.
In complying with federal tax laws, and for the protection of your client, the Foundation must reject grant recommendations that would benefit an individual, fulfill a personal obligation, support a political campaign, or that is for a private foundation.
How does a donor-advised fund work?
Your client can establish a donor-advised fund without a minimum opening gift. At that time, your client will receive a tax deduction. Your client then recommends how the fund should be invested, choosing between one of our four investment options, or a combination. Your client then recommends grants when they would like to support a particular group.
Can my client name a successor to the fund?
Yes, your client can name a successor or successors to the fund. If they do not name a successor, or after the successor's death, the Foundation's board of trustees will continue to use the funds in accordance with your client's wishes.
How do ETCF's costs compare with those of commercial gift funds and private foundations?
The Foundation's fees are highly competitive with commercial gift funds. But even more important, the Foundation offers your clients unique value that can come from our staff's knowledge of the community and expertise in the philanthropic field.
Opening a fund at ETCF is considerably less expensive than starting a private foundation, since we handle all administrative details, including filing annual tax returns, performing due diligence on grants, and all details associated with processing and tracking grants.
Can charitable funds established at the East Texas Communities Foundation benefit areas other than East Texas?
Our role is to help donors create funds that carry out their charitable goals, be that in East Texas or elsewhere. Foundation donors have the ability to recommend grants to organizations around the world.
What type of assets can my client use to start a fund?
The East Texas Communities Foundation has the ability to accept a range of assets, including:
- Stocks and bonds
- Real estate, surface and mineral interests
- Personal property, such as jewelry and artwork
- Life insurance policies
Can I receive CE credits through the Foundation?
Yes, the Foundation regularly offers workshops for which professionals can receive credit.