How do 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. 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.
The Cape Cod Foundation offer six different types of funds.
What’s the best time to give?
You may create a fund during your lifetime or through a will or trust 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.
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 Foundation 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: (1) An administrative fee: The annualized administrative fee is assessed on the total market value and ranges from 1% to 1.50%, depending on the type of fund. The administrative fee is set by the Board of Directors and is used by the Foundation to support its administration and civic leadership programs. The minimum annual fee is $250. (2) 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 2009 were approximately .55% of the total market value. Fee Policy
Is there a minimum gift to start a fund?
An initial gift of $10,000 is required for a named, permanent fund, with the exception of a named, permanent scholarship fund, which requires a minimum of $25,000. Smaller gifts can be made to start the fund with a plan to add in a few years.