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How to Become A Donor
Creating an Endowment Fund
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Bob & Betty Lowe
Bob Lowe believed in giving back. He felt the community had always been good to his family. In memory of Betty, he created a Fund to help organizations they supported through their lifetimes and help his family as well. That Fund will now be a legacy for both of them.
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Creating a permanent fund at the Minot Area Community Foundation is a simple and flexible means of accomplishing your charitable objectives. Your gift affords the maximum tax deduction, and allows you to make a difference today and always through a lasting legacy for our area.
Three simple steps to make a Gift that never stops Giving
1. Choose a name for the Fund
Your fund's name stays with it forever. 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 Mike & Dorothy Dolan Fund)
A family name (the Beckham Family Fund)
A favorite cause (the Maggy Morford Fund for Minot Catholic Schools)
A memorial fund (the Brent Hovdestad Memorial Fund)
An anonymous fund (the Emerald Fund)
2. Focus your fund on the impact you want to make.
Donors may designate their funds in one or more of the following ways:
- Donor Advised Fund: 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 non-endowed.
Unrestricted Fund: Preferred by donors who want their fund always to address the community's highest priorities. The 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 Fund: Used by donors who want to support an area of special interest, such as education, the arts or a particular geographic area.
Designated Fund: The choice of donors who want their fund always to support specific charitable agencies.
Agency Endowment Fund: Initiated by agencies and their donors to serve as an endowment supporting the organization's work.
3. Choose the best way to make your gift and leave your legacy
- Bequests: Establish a fund through your will.
Charitable Remainder Trusts: 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 Minot Area 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.
Gifts that go to work immediately:
- Cash
Securities: For both closely held and publicly traded stocks, the charitable deduction is based on full market value. Capital gains taxes on appreciation are also avoided.
Real Estate: If held for more than a year, it usually provides the same benefits as gifts of securities.
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