Guide to Giving - Berkshire Taconic Community Foundation

Comparing Your OptionsInvestment ManagementA BTCF Donor Advised Fund or BTCF Supporting Organization will help you support local nonprofitsin your community and may be less expensive and easier to manage.The pooled resources of BTCF’s many donors gives you access to a highly diversified portfolio with worldclass money managers that would not otherwise be available to individuals or many organizations on their own.OptionsBTCFDonor AdvisedFundTax Deductibility Administrative Costs GrantmakingFully deductible up to50% AGI* for cash gifts,30% AGI for gifts ofstock, real estate andclosely held stockCan be establishedimmediatelyNo administrationor tax reportingrequiredNo start up costs;fees starting at 1.5% ofassets and declining forlarger funds; $10,000minimum contributionFees re-invested intothe communityDeep knowledgeof local needs &nonprofits. No minimumannual payoutOur staff is available tohelp you identify whereyour gifts will have themost impactAs stewards of the charitable resources entrusted to us, we work meticulously to manageyour investments, overseen by our nationally recognized Investment Committee –a group of board and community members with deep institutional investment experience.BTCF’s investment strategy is to maximize return while preserving capital andliquidity, producing consistent and stable growth with low to moderate risk. Our goal is togrow your endowment so that you can grant more to the causes you care about.Learn more about our investment strategy and performance at berkshiretaconic.org.BTCFSupportingOrganizationFully deductible up to50% AGI for cash gifts,30% AGI for gifts ofstock, real estate andclosely held stockSeveral monthsto establishAdministration andtax reporting handledby BTCFSome start-up legal &filing costs; fees startingat 1% and declining forlarger funds; $1 millionminimum contributionFees re-invested intothe communityDeep knowledgeof local needs &nonprofits. No minimumannual payoutOur staff is available tohelp you identify whereyour gifts will have themost impactWE HELP YOUR FUND GROW...SO THAT YOU CAN DO MORE GOOD.$1,400,000 bequest in 1996*$1,700,000 value of endowment, 2012$900,000 in scholarships granted from 1997-2012PrivateFoundationCommercialGift FundFully deductible up to30% AGI for cash gifts,20% AGI for giftsof stockDeduction limited tocost basis for gifts ofreal estate and closelyheld stockFully deductible up to50% AGI for cash gifts,30% AGI for giftsof stockSeveral monthsto establishAnnual tax returnrequired includingdetailedfinancial schedulesCan be establishedimmediatelyNo administrationor tax reportingrequiredSeveral thousanddollars in legal,accounting & filing fees;1-2% excise tax on netinvestment incomeNot cost effectiveunless $10 millionor moreFees and minimumcontributions varyFees supportcorporate entity5% minimum annualpayout requiredYou must arrange andsupport your owngrantmaking structureNo knowledge of localneeds or nonprofits;Payouts may require amin. of 5% of net assetson a 5 yr. rolling basisMost do not offerpersonalized advice ongrantee selection* Adjusted Gross IncomeDONOR ADVISED FUNDSMinimum to open: $10,000Endowed minimum: $25,0001.5% per year on first $250,0001.25% per year on portion $250,000 - $1 million1.0% per year on portion $1 million - $3 million0.75% per year on portion $3 million and aboveOr 3% of grants given out, whichever is higherMinimum quarterly fee: $87.50*The McLaughlin Wilson ScholarshipAdministrative FeesEach fund pays a fee that covers handling costs and supports Berkshire Taconic’s wide range of community work.Fees are charged quarterly based on the average daily balance of the fund.DESIGNATED FUNDSMinimum to open: $25,0001.5% per year if balance is less than $250,0000.75% per year if balance is more than $250,000Minimum quarterly fee: $125NONPROFIT ENDOWED FUNDSMinimum to open: $25,0001.5% per year if balance is less than $250,0000.75% per year if balance is more than $250,000Minimum quarterly fee: $125SCHOLARSHIP & FIELD OFINTEREST FUNDSMinimum to open: $25,0002.0% per year on first $250,0001.75% per year on portion $250,000 - $1 million1.0% per year on portion $1 million - $3 million0.75% per year on portion $3 million and aboveMinimum quarterly fee: $12526 berkshiretaconic.orgberkshiretaconic.org 27