Establish a Fund

groupCreating a permanent fund at the Missoula Community Foundation is a simple and flexible means of accomplishing your charitable objectives. Your gift allows for the maximum tax deduction and allows you to make a difference today as well as a lasting legacy.

Three Simple Steps to Make a Gift That Never Stops Giving

1. Choose a name for the fund.

A fund’s name is permanent. Whenever a grant is made from a fund, it is recognized by name. Thus, donors should give careful thought to their fund’s name.

Possibilities and examples of each include:

  • The name of the person(s) establishing the fund (the John Smith¬† and Betty Jones Unrestricted Fund)
  • A family name (the Millis Family Fund)
  • A favorite cause (the Jane Doe Fund for Watson Children’s Shelter)
  • A memorial (the Arthur Jay¬† Memorial Fund)
  • An anonymous fund (We Care Fund)

wave2. Focus your fund on the impact you want to make.

Donors may designate their funds in one or more of the following ways:

  • Unrestricted. Preferred by donors who want their fund to address the community’s highest priorities. The Missoula Community Foundation urges all donors to designate at least a portion of their fund for unrestricted purposes to help ensure resources for special projects and unanticipated needs in the future.
  • Field of Interest. Used by donors who want to support an area of special interest, such as education, the arts, or youth.
  • Designated. The choice of donors who want their fund to support specific charitable agencies.
  • Agency Endowment. Initiated by agencies and their donors to serve as an endowment supporting the organization’s work.
  • Donor Advised. Popular with donors who want to play a significant role in decisions about the use of fund proceeds. Advised fund donors make grant recommendations to the Foundation Board of Trustees. Donor advised funds can be endowed or nonendowed.
  • Supporting Organization. An appealing alternative to private foundations. A supporting organization has its own board, letterhead, checkbook, and investment manager, but qualifies for the preferential tax treatment afforded community foundations. The purposes of a supporting organization must be compatible with the Missoula Community Foundation, and a majority of its board (not necessarily its officers) must be appointed by the Foundation.

3. Choose the best way to make your gift and leave your legacy.

group2Long Term Gifts

  • Bequest. Establish a fund through your will.
  • Charitable Temainder Trust. The donor and/or other named beneficiaries retain a life income and earn immediate and long-term tax benefits. Upon termination, assets go to a charitable fund named and designed by the donor. Using assets remaining in IRAs to create charitable unitrusts can offer significant tax advantages to larger estates.
  • Insurance. Name the Missoula Community Foundation as owner and beneficiary of an insurance policy to be used to establish a future charitable fund. The donor earns an immediate tax deduction, and any additional premium payments are deductible as well.

Immediate Impact Gifts

  • Cash
  • Securities. For both closely held and publicly traded stocks, the charitable deduction is based on full market value. Also, capital gains taxes on appreciation are avoided.
  • Real Estate. If held for more than a year, a gift of real estate provides the same benefits as gifts of securities.