Frequently Asked Questions

1) What is a Community Foundation?
It is a tax-exempt, public charity that exists to help donors carry out their charitable wishes for a community. In addition, a community foundation provides charitable, educational, and human service grants to organizations within the area. Thirdly, a community foundation serves as a neutral convenor and collaborator to work with individuals and organizations toward finding solutions to unmet community needs.

2) Are there other advantages to a Community Foundation?
The exciting aspect of community foundations and the main reason they exist, is their ability to respond to changing conditions, quickly enough to be effective, but always reflecting the objectives of the donor. As a neutral, nonpartisan entity, the Foundation can often serve as a catalyst to spearhead new projects and programs that meet important community needs.

3) How was the Fond du Lac Area Foundation formed?
In 1976, a group of local citizens, headed by "Founding Father", Carl W. Tonjes, and Allen Edgarton, were awarded with $50,000 of the proceeds from the disbanded Children's Home to establish the Fond du Lac Area Foundation. For more than twenty years, Mr. Tonjes worked full-time as a volunteer to promote the Foundation and to educate donors about how they could carry out their own charitable dreams and also leave a philanthropic legacy to the community through the Foundation. In the 1990's staff was hired and the office was established.

4) Does the Community Foundation compete with other charitable organizations?
The Foundation is not like other charitable organizations in the Fond du Lac area. The Foundation does not compete with other non-profits. In fact the Fond du Lac Area Foundation often provides grants to many of the local non-profits to help them to carry out their work in the community. Another way the Foundation differs, is that the Foundation seeks substantial gifts from a limited number of individuals. The Foundation applies its funds to a wide range of community needs unlike most charitable organizations that exist to support the needs of a single cause.

5) Where Does the Community Foundation get its funds?
The Fond du Lac Area Foundation receives its contributions from individuals, businesses, and private foundations. Current gifts and bequests make up the permanent endowment of the Foundation. It is the income from these gifts, that is used to make grants.

6) What is an endowment?
An endowment is a fund that is kept in perpetuity. The original contribution is invested and only the investment income and gains from the investment are used to support the charitable grants. The original contribution stays, intact, and continues to grow and generate charitable dollars.

7) Who handles the investments of the Fond du Lac Area Foundation?
The Fond du Lac Area Foundation employs a number of local trust departments to invest the Foundation's money. A volunteer Finance Committee made up of very knowledgeable business and civic leaders on our Board of Directors, monitors these investment returns very carefully and works with the trust departments to ensure the continued growth of each permanent fund in the Fond du Lac Area Foundation.

8) Aren't Foundations only for the wealthy?
No, the Fond du Lac Area Foundation accepts contributions of all sizes. Your contributions can be combined with those of others who share your charitable interests to provide maximum impact to the community at a minimum administrative cost.

9) I can't afford to start my own named Fund. How can I use the Fond du Lac Area Foundation?
Many people choose to make small gifts to the Foundation in honor of, or in memory of a family member, friend, or loved one. The Foundation will send acknowledgments to the person being honored or to the family of the person being remembered and will also send thank you notes and appropriate tax receipts to the donors.

10) Ways of Giving . . . what should I give to the Fond du Lac Area Foundation?
  • Cash Direct gifts of cash (or checks) are a convenient way to establish a fund.
  • Securities Stock can be donated to and sold in the Foundation's name. The donor is allowed the full value as a charitable income tax deduction, but pays no capital gains taxes on the sale of the stock.
  • Personal Property or Real Estate Personal property or real-estate can be donated in the same manner and tax advantages as securities.
  • Will Bequests When making a will, and after providing for loved ones, you may also make a gift to the Fond du Lac Area Foundation. Your gift may be a specified amount, a percentage of your estate or specific assets.
  • Life Insurance You may designate the Fond du Lac Area Foundation as the owner and beneficiary of a new or existing life insurance policy. Insurance premiums paid by the donor are deductible as a charitable contribution.
  • Charitable Remainder Trusts You may transfer assets to a Charitable Remainder Trust. This trust provides for payment of a fixed income to you, a spouse, a disabled person or other loved ones. This trust enables the donor to provide a lifetime personal income and income for beneficiaries for a specified period or death of the last heir. The assets are then transferred to your fund in the Fond du Lac Area Foundation.
    • 11) Tax receipts . . . are there tax advantages to giving to a Community Foundation?
    All gifts to the Fond du Lac Area Foundation are tax deductible to the full-extent of the law. Gifts of cash and ordinary income property to a Community Foundation are deductible up to 50% of adjusted gross income. Gifts of appreciated property can be credited for up to 30% of adjusted gross income. Remember, too, that gifts of appreciated property (stock, real estate, etc.) are deducted at the full appreciated market value, not the low basis price and no capital gains taxes are due.

    12) How is the Fond du Lac Area Foundation different from the United Way?
    Both are very important resources to the community, but the Fond du Lac Area Foundation's broad scope of funding also covers the arts, the environment, education and scholarships, not just health and human services. Some have also differentiated between the two as that the United Way is kind of like a checking account, raising and distributing money annually, for community needs, while the Community Foundation is more like a savings account, distributing earnings from long term funds invested for perpetuity for community needs for the present and the future.

    13) When is the best time to give?
    Whenever you are ready. . . You can establish a fund now and add to it whenever you like. You may choose to give as a bequest from your will. You may want to make contributions to any of our funds in honor of or in memory of someone. Hopefully, you will also respond to our annual solicitation for contributions demonstrating public support of the Foundation.

    14) How do a I establish a fund?
    Establishing a fund is easy. Because the legal apparatus is already in place, community foundations have appropriate forms available so that a fund can be established and the tax advantages obtained quickly and easily. Foundation personnel can meet with you to learn about your charitable intentions. Your fund can be named to honor your family or the charitable intention you wish your fund to support. Foundation personnel will explain the kinds of funds that can be established and the variety of ways to give.

    15) When establishing a fund, what type of fund should I choose?
    When deciding to establish a fund, you must decide what your charitable dream is. Once you know what organization or charitable purpose you might want to support, you may choose from the following four choices:
  • Undesignated Fund: Undesignated funds are granted at the discretion of the Fond du Lac Area Foundation's Board of Directors who determine where the most needs are in the community. Undesignated funds offer great flexibility in meeting existing and future community needs.
  • Designated Fund: The donor names the charity or charities to receive the income from the fund.
  • Field of Interest Fund: The donor specifies that income from the fund be used to support a particular area of community life, such as the arts, social services, education, the environment, the elderly, youth.
  • Donor Advised Fund: Within certain guidelines the donor may make suggestions on grant distributions from the fund. A donor advised fund allows the donor(s) to continue on as an active participant in the fund's grantmaking. With a donor advised fund, a donor may support varying causes from year to year as donor's choices or community needs change. Donors may also use their donor advised endowment fund with "pass-through" privileges to make larger contributions than the income generated by the fund's endowment investments.

    • 16) What is the minimum amount necessary to establish a fund?
    A $5,000 gift will establish a named fund. Another option is an Acorn Fund. Acorn Funds allow donors to build meaningful permanent funds over time with an initial contribution of $1,000. All contributions are accumulated until the donor's goal for the fund is realized. Once a fund is established, any amount may be added as a gift, memorial or bequest.

    17) How is the Foundation governed?
    The Foundation is governed by an eleven member volunteer board of directors who are chosen because of their demonstrated commitment to and knowledge of the needs of the community. Each board member is appointed to serve a three year term and may be re-appointed for two additonal three year terms.

    18) How can I contact the Fond du Lac Area Foundation?
    The Fond du Lac Area Foundation is located at 384 N. Main Street, Suite 4 in Fond du Lac. The telephone number is (920) 921-2215. The fax number is (920) 921-1036. The email address is info@fdlareafoundation.com Call the Foundation or stop in for a "no obligation", no-cost consultation. Our office hours are 8:00 a.m. - 4:30 p.m., Monday through Friday. Evening appointments are also available.

     

    Fond du Lac Area Foundation

    Phone: (920) 921-2215
    Fax: (920) 921-1036
    384 N. Main Street - Suite 4
    Fond du Lac, WI 54935

    ©2010 Fond du Lac Area Foundation