How can I be sure my client's wishes will be achieved with Communities Foundation of Texas?

CFT is very adept at matching donors' interests and beliefs with compatible organizations or projects. We draw upon more than five decades of experience, credibility and high level contacts, as well as thorough knowledge of the region's non-profit agencies and organizations.

Will donors have to turn the decision-making process on their funds over to CFT?

Donors can be very specific about their charitable wishes. Although our trustees make final decisions regarding distribution of funds, the preferences of donors are conscientiously considered throughout deliberations. 

What are the tax advantages of making donations through a community foundation?

Community foundations operate under Section 501(c)(3) and 509(a)(1) of the Internal Revenue Code as public charities. As a result, all contributions through CFT are tax deductible at the most favorable rates. There also are fewer rules and restrictions on us than on private foundations.

What kinds of gifts can my clients make through the Communities Foundation of Texas?

CFT is qualified to accept gifts of cash, real estate, intellectual property, stocks and bonds, annuities and life insurance. The foundation also can receive the assets of other private foundations and organizations, personal property such as antiques and fine art, oil and mineral royalties, and other interests.

What is the process for establishing a fund?

For many advisors, the first step is to involve CFT when you and your client begin to consider how much your client wishes to set aside for philanthropy. A donor can establish a fund at Communities Foundation of Texas for as little as $10,000. However, the foundation also manages nine-figure endowments.

Next, we work together to outline your client's personal philanthropic goals. Donor-advised funds can simplify achieving these goals. Donors are welcome to make suggestions at any time about grant distributions they would like to see made in a particular area of interest or to a specific organization or program; CFT will do the research, make the grants, maintain the records and complete all requisite reports on the  donor's behalf.

The donor selects a name for the fund. A fund may bear the name of the donor, a loved one or any other name the donor chooses. Anonymity also is an option.

Can CFT help with planned gifts?

Yes. Our staff gladly will work with you regarding provisions in a will to create a charitable bequest, or regarding the establishment of another type of appropriate planned gift that will generate lifetime income for the donor, such as a charitable remainder trust.

What are your operating costs?

The operating costs of Communities Foundation of Texas are less than one percent of its total assets.

What fees are involved?

Communities Foundation of Texas charges an annual administrative fee for its operations and a reasonable money management fee for its professional financial management services. Fees are generally less than those charged by banks or investment firms for the same services. CFT's "value added" services come from its more than 50-year involvement in the community.

When is the best time to establish a fund?

Giving is very personal, and gifts can be made to CFT at any time. Particularly whenever your client makes a significant business or financial decision - such as selling a business or other major asset or making decisions about estate planning or retirement - we can help analyze the implications for effective charitable giving. Another prime opportunity to establish a fund with CFT is during a year when your client has an unusually high amount of income. A gift to create a donor-advised fund at CFT creates an opportunity to claim an appropriate tax deduction, but affords the flexibility to recommend grants from the fund over time in accordance with their charitable interests.

How does CFT manage the investment of funds?

A vice president, investment committee of the board of trustees, and professional money managers actively manage the investment of charitable funds at CFT. Our investment program is conservative, yet works to reasonably maximize the potential earnings of funds that are held at CFT before they are awarded in charitable grants. Donors are invited to choose between an "asset appreciation" investment model (a 75/25 split between equities and fixed income) and an "asset preservation" investment model (a 60/40 split between equities and fixed income). Donors also are welcome to make other investment recommendations, although the board of trustees is charged with making final investment decisions. Investment returns and related information are available to individual donors for their respective funds.