New Donor Frequently Asked Questions

How can I create a fund?
Creating a fund at The Cape Cod Foundation is easy and straightforward. As a donor, you have considerable flexibility in deciding how your fund will be managed to meet your charitable goals. The Foundation can provide a simple agreement letter that you should then review with your own attorney or financial advisor.

What's the best time to give?
You may create a fund during your lifetime or through a will or trust arrangement that benefits both your family and your charity. Tax deductions are earned at the time of the gift, while grantmaking from your fund continues into the future.

How should I name my fund?
You may name the fund after yourself or your family, or create a memorial to someone special. Every grant made from the fund will carry the name you choose. If you prefer anonymity, you can choose a name that reflects your fund's charitable purposes.

What kinds of assets can be used to create a fund?
You can use almost any kind of asset to start a fund, including cash, publicly-traded securities, qualified retirement plans, and insurance policies. With prior approval by the Board of Directors, you can also use real estate and tangible personal property to establish a fund. Gifts of long-term appreciated property earn tax deductions for their full market value, while eliminating any tax on the capital gains.

How much does it cost to establish a fund at The Cape Cod Foundation?
It costs nothing to set up a fund. The donor or contributing agency signs a fund agreement provided by the Foundation, therefore no legal fees are involved. Each fund held by the Foundation is subject to two fees:

• Administrative Fee: The annualized administrative fee of 1% is assessed to the total market value on the last day of each quarter. The administrative fee is set by the Board of Directors and is used by The Cape Cod Foundation to support its administration and programs.

• Investment Management Fee: Each fund is subject to a fee for custody of assets and investment management. These fees are based on the market value of the funds under management. The fees are assessed daily. Total investment fees for 2006 were approximately .70% of the total market value.

Is there a minimum gift to start a fund?
An initial gift of $10,000 is needed for a named, endowment fund. Smaller gifts can be made to start the fund with a plan to add in a few years.