Contact us to create your fund
Establish Your Fund
It is easy to establish your own named charitable fund and it can be done in less than a day. Working with a member of our staff (and your financial advisor, if you choose) you will take these 6 simple steps:
1. Select the type of charitable fund that best supports your purpose
The Foundation offers the following types of funds:
- Donor Advised Fund
- Designated Funds
- Field of Interest Fund
- Scholarship Fund
- Unrestricted Funds
Donor Advised Fund
Donor advised funds are established by donors who wish to actively participate in the grant-making process. Individuals who establish a donor advised fund recommend charitable projects or organizations they want to support. It is easy to give to multiple nonprofits through a donor advised fund. Our Board of Governors is legally responsible for approving all grants.
Donors who wish to support a specific agency or cause can establish a designated fund. If the original charity ceases to exist, becomes obsolete or is unable to perform their charitable purposes, our Board of Governors is able to redirect the funds to an organization providing similar services without the cost of expensive legal action.
Many nonprofit organizations establish an endowment fund with us in order to grow assets to meet both current and future needs. They look to our Board of Governors for strong investment oversight services and ask our staff to manage all of the administrative details of the endowment. This can provide a relatively constant source of annual income and help maintain their mission in perpetuity. It also frees the nonprofit to focus on what they do best in the community. Donors can create a new designated fund, or contribute to an existing one.
Field of Interest Fund
Field of interest funds are often established to support particular interest areas, specific program initiatives, causes or geographic areas. At the donor’s request, use of the funds is restricted to a specified area of interest, but flexibility remains to meet changing situations.
The creation of a scholarship fund is attractive to many donors and can be structured to benefit students at any education level, or for a specific institution. A scholarship fund can also be established to honor a loved one.
Some donors choose to stay involved through advisory relationships, while others name advisory committees to assist in the selection of recipients. Either way, our staff will handle the necessary paperwork and will ensure that scholarships are distributed in an equitable manner.
Unrestricted funds are not specifically designated for use by a particular agency, cause or area of interest. Our Board of Governors oversees the use of these funds, setting priorities for their use and determining how grants will be distributed to support the charitable needs of our community. Unrestricted funds give us the ability to respond to pressing and often changing needs in the community.
2. Determine the assets you will donate
The Foundation can accept a wide variety of assets, including:
- Real Estate
- Personal Property
- Retirement Plan Assets
- Life Insurance
Cash, usually in the form of a check, is an easy and convenient way for you to support worthy causes in the community. Gifts of cash enable you as a donor to claim a current tax deduction of up to 50% of your adjusted gross income in any one year when you itemize deductions, with the excess, if any, carried forward for an additional five years. Actual savings from gifts of cash depend on your tax bracket—the higher the tax bracket, the higher the deduction.
To give by Check
Make checks payable to the Greater Round Rock Community Foundation and mail to 206 East Main, Round Rock, TX 78664. Indicate the fund to which you are donating in the memo section or include a letter that outlines your intentions. Or, if you wish to set up a donor advised fund, the Foundation will work with you to complete a simple governing document.
For Wire Transfers
Contact us for wire transfer information.
Gifts of appreciated securities offer important tax advantages, since their full fair market value is deductible as a charitable contribution up to 30% of your adjusted gross income each year when you itemize deductions. Like gifts of cash, deduction amounts that exceed the limit can be carried forward for up to five additional years. You do not have to pay federal or state capital gains taxes on the appreciated portion of the gift. After the Foundation liquidates the securities, the full value of the gift is available to support your charitable goals.
Stock or bond certificates: When you hold a paper certificate
Mail your endorsed (not signed) certificates to the Foundation. Request a blank Irrevocable Stock/Bond Power Form from the Foundation staff. Send us, in a separate envelope, the signed Irrevocable Stock/Bond Power Form. Please do not mail the certificates and Irrevocable Stock/Bond form together, as the certificates would be negotiable. The date of the gift is the date your letter is postmarked or delivered to us in person.
The Foundation can accept a gift of a house or other personal residence, farm, commercial buildings, and income-producing or non-income-producing land. A gift of real estate that you have owned for more than a year entitles you to the same federal tax advantages as those for gifts of securities—a tax deduction for the fair market value of the property—while allowing you to avoid paying capital gains tax. The Foundation can accept most unencumbered real property gifts.
The Foundation will consider gifts of personal property, such as artwork and jewelry. This type of gift must be discussed individually in advance by contacting the Foundation staff.
Naming the Foundation in your will or living trust is a popular way to support the community. A charitable bequest can be a specific dollar amount, a percentage of your estate, or what remains after other bequests—including those to family members—are made. Or, your will can specify that your heirs receive lifetime income from your estate, with the remainder going to the Foundation for charitable purposes. If you choose, the bequest can flow into a donor-advised fund for your children to carry on your family’s philanthropy. The suggested language below is provided to assist donors and their attorneys in making gifts to different types of funds at the Greater Round Rock Community Foundation, Inc.
“I give and bequeath the sum of $__/the following described property__ (description of assets given) to the Greater Round Rock Community Foundation, Inc.,; with the request, as consistent with the Articles of Organization and By-Laws of the Greater Round Rock Community Foundation, Inc., as amended from time to time, that the funds thus transferred be used to enhance the quality of life for all the citizens of Round Rock.”
Donor Advised Fund
“I give and bequeath the sum of $__ /the following described property __ to the Greater Round Rock Community Foundation, Inc.,; with the request, as consistent with the Articles of Organization and By-Laws of the Greater Round Rock Community Foundation, Inc., as amended from time to time, that the funds thus transferred be used to establish a fund, to be known as the __ (name of Donor Advised Fund), [SELECT ONE: the income OR the income and/or principal] to be used for grantmaking to qualified charitable organizations. While the Greater Round Rock Community Foundation, Inc. is given complete discretion in making grants, suggestions may be made from time to time to the Foundation’s Governing Board by __ (individuals named by the donor).”
“I give and bequeath the sum of $__ /the following described property __ to the Greater Round Rock Community Foundation, Inc.; with the request, as consistent with the Articles of Organization and By-Laws of the Greater Round Rock Community Foundation, Inc., as amended from time to time, that the funds thus transferred be used to establish an endowment fund, to be known as the __ (name of fund), the income to be used to make grants to the following nonprofit charitable and educational organization(s) (indicate percentage to each organization if more than one): __.”
Field of Interest Fund
“I give and bequeath the sum of $ _ /the following described property __ to the Greater Round Rock Community Foundation, Inc.; with the request, as consistent with the Articles of Organization and By-Laws of Greater Round Rock Community Foundation, Inc., as amended from time to time, that the funds thus transferred be used to establish an endowment fund, to be known as the __ (name of fund), the income to be used to make grants to nonprofit organizations engaged in the following charitable and education activities in the Greater Round Rock area (for example, sheltering the homeless, aiding the elderly, supporting the arts): __.”
Retirement Plan Assets
For a gift through your estate, retirement plan assets are often the best to give because they are so heavily taxed if left to heirs. Income and estate taxes can easily consume over 65% of the account balance at death. By naming the Foundation as the remainder beneficiary of these assets, you can leave a very efficient legacy.
Maximizing assets for yourself and your community
People who have planned carefully for their retirement may find that the assets in their IRAs and other qualified plans exceed their needs. While there is currently no tax benefit to transferring retirement plan assets, including the annual minimum distribution amount to any charity during your lifetime, you can designate that assets remaining in the plan after your death are contributed to a donor-advised fund—or to any other gift plan. This strategy can be far more advantageous than having those assets included in your taxable estate or leaving them to heirs, in which case they may be taxed at a cumulative rate of over 65%.
- No estate tax is due on the retirement plan assets that pass to the Foundation.
- The gift will qualify your estate for a charitable deduction.
- The funds may be used to establish a life income trust for a person of your choice.
- The only document required is a change of beneficiary form, which is available from your plan’s administrator.
- You retain access to all your retirement plan assets during your lifetime.
- Your fund at the Foundation will reflect your charitable interests.
- There is no minimum amount required for this type of gift, and there is no fee to establish a fund.
For those whose need for life insurance has decreased, making a gift of an unneeded policy can be a convenient and effective way of meeting your charitable goals. When you transfer ownership of a cash value policy to the Foundation you become eligible for a charitable tax deduction based on its current value.
Make your Community your Beneficiary
There are two good and easy ways you can use life insurance to fund your giving. If you have a paid-up (or cash value) life insurance policy that you no longer need for its intended purpose (e.g., your children are grown, your spouse is pre-deceased, or tax laws have changed), you can give the policy to a fund at the Foundation. The policy will be cashed in, and you can use the proceeds to make grants to charities you recommend immediately. Or, you can make life insurance part of your estate planning by naming the Foundation as a partial and/or contingent beneficiary of any insurance policy’s death benefit. If one or more of their primary beneficiaries predecease you, their share can go directly into a fund you establish.
- When you make an immediate gift of an insurance policy, you may claim an income tax deduction based on the policy’s current value. The Foundation can cash in the policy and have proceeds go directly into the fund you establish. Or, you can convert the assets of the policy into a charitable remainder trust.
- You reduce estate taxes, since the value of the policy is removed from your estate.
- Naming the Foundation as the beneficiary or contingent beneficiary of your life insurance enables you to protect your loved ones while providing for the causes you care about if the policy’s beneficiaries predecease you.
- You remove an unneeded asset from your estate—without affecting your income.
Or, you may choose to include the Foundation in your Estate Planning through the following means:
Charitable remainder trusts allow you to receive income (or provide income for another person) with the knowledge that the funds remaining when the trust terminates will be used to support your charitable interests.
Charitable Lead Trusts enable you to make significant charitable gifts in the near term while transferring substantial assets to beneficiaries, who may benefit from significantly lowered gift and estate taxes.
Retained Life Estates ensure that or another person have lifetime security in a home they you have given to the Foundation as a charitable contribution.
3. Select a name for your fund
You can use your name, your family name, the name of a family member or a favorite cause, or choose a name that allows you to remain anonymous. Examples:
|John and Jane Doe Family Fund||Jane Doe Endowment Fund|
|John Doe Memorial Fund||Doe Administrative Fund|
|Doe Family Fund||Doe Family Charitable Fund|
|Jane Doe for Higher Education Fund||Operation High Hopes Fund|
|Jane Doe Fund for Nursing Education||Round Rock Charitable Endowment Fund|
|Friends of Higher Education Fund||Doe Corporation Fund|
|Doe Family Education Initiative|
4. Determine fund advisors
Depending on the type of fund you establish, you may designate current fund advisors such as yourself and spouse, and successor advisors such as your children.
5. Complete a simple governing document
If you have the answers to the four questions below, you’re ready to go! The staff will help you to complete a simple document that incorporates all the specifics you have determined based on the options above.
- What type of fund best suits your needs?
- What type of asset will you be donating?
- What will you name your fund?
- If you are setting up a donor advised fund, who will be the designated advisors?
6. Enjoy giving through your fund
Once your fund is established you can:
- Add to the fund at any time in any dollar amount.
- Specify how grant disbursements are to be acknowledged – whether in the name of the fund or anonymously.
- If you’ve established a donor advised fund you may recommend distributions to charities, locally or throughout the United States.
All information regarding tax advantages, etc. is deemed reliable but is not guaranteed as it may not pertain to your specific situation. A review by your accountant, lawyer or other professional will determine the overall effect of any financial decision you may be considering.