A private foundation recently gifted assets of nearly $1.5 million to the Community Foundation of the Quincy Area.
The private foundation’s trustees gave permission to announce the gift and share why it made the decision to gift all of its assets.
“We are also honoring the desire for anonymity,” said Jill Arnold Blickhan, executive director of the Community Foundation of the Quincy Area.
Approximately 18 months ago, a representative of the private foundation told Blickhan that the trustees were considering termination. They were also contemplating how to best fulfill its charitable intent. Would the Community Foundation be a suitable partner?
Blickhan met with one of the trustees. They discussed the private foundation’s charitable interests.
The trustee asked questions. How does the Community Foundation differ from a private foundation? Can donors set up funds to serve charitable organizations that are outside the region as well as for local organizations? What does the Community Foundation charge to have a fund? If a fund was established, would the private foundation still be responsible for IRS reports and other related requirements that not-for-profits must manage?
Blickhan explained how working through the Community Foundation could alleviate the administrative burden, complexity and expense that often result from managing a private foundation. Once the questions were answered, the trustees resolved to terminate the private foundation and gift its assets to establish an anonymous fund which will serve various charitable causes.
“We wanted a way to continue charitable giving and grantmaking. We also want to keep a low profile,” said a trustee.
“The trustees realized that their charitable giving can be easy, flexible, and effective through the Community Foundation. They decided that a fund with us would allow them to focus on the charitable aspect of grants while we take responsibility for researching, reading applications, distributing the grants, and performing due diligence,” Blickhan said. “We also handle fund management including recordkeeping, accounting, investments, and reporting to the IRS.”
“We’re paying a fee for the services and in doing so we’re helping the Community Foundation. I believe it helps out all the way around,” said the trustee.