Administrative Fees and Fund Structures

Setting up a Giving Fund with the Whitefish Community Foundation could be the answer to many of your wishes and needs. Giving Funds combine convenience, flexibility and value with the expertise of a professional staff to make your charitable work effective, efficient and meaningful. They allow you to help your community while staying personally involved, and because the IRS recognizes our foundation as a public charity, your contributions are tax-deductible to the fullest extent allowed by law.

A Giving Fund provides the donor(s) with a number of benefits while directing donations to charity including:

• Ability to accept and process appreciated securities of which the donor does not have to pay capital gains tax.
• Capacity to receive one block of securities that can benefit multiple charities.
• Creation of a legacy that can be passed on to multiple generations.
• Separation of tax planning and charitable giving: Donor receives tax deduction when contribution is made,
but grants to charity can be made over an extended period of time.
• Simplicity: A single contribution can benefit multiple charities requiring only one tax substantiation letter.
• Ability to take a tax deduction immediately but budget the charitable grants over time.
• Recommend the size and number of gifts to be made to eligible nonprofits over current and future years.
• Carefully identify the charitable organization's you wish to support.
• Free yourself from the administrative tasks and IRS reporting requirements,
for which you would otherwise be responsible.

The Whitefish Community Foundation does all of this for you.

INTRODUCTION

We offer several structures of funds including:

Legacy Fund: Expect to have a Giving Fund for greater then 10 years, and intend to involve multiple generations of successors. This type of fund is managed as an endowment and adheres to the Foundation's current spending policy. Fund advisors recommend grants from the interest of the Fund.

Charitable Fund: Expect to hold a Giving Fund for 5 to 10 years but would like some growth through conservative investments. This Fund is not an endowed fund. Successor(s) may be appointed.

Impact Fund: Expect to hold the Giving Fund for 3 to 5 years. This type of fund seeks to earn income at current money market rates while preserving capital. It is not endowed and advisors plan to grant out all funds within 5 years. Successor(s) may be appointed.

Administrative fees for the above funds are on a sliding scale depending on fund size. Rates start at 1% for funds up $1 Million, and .5% for funds over $1 Million. A minimum fee of $100 annually will be charged.

Scholarship Funds: This type of fund may be endowed or not depending on the donors preference. An endowed fund will have successor advisors or a committee appointed to manage the scholarship program in perpetuity.

Target allocation follows the Legacy Fund if endowed and the Impact Fund if not endowed.
Administration fee is 1.5% annually. The process is simple and can be accomplished in a day.

TO ESTABLISH A FUND

• Giving Funds begin with a signed agreement and a charitable contribution of at least $5,000 to set-up a fund.
• The Whitefish Community Foundation accepts a variety of assets --
from cash to securities, including certain privately held, controlled and restricted stock.
• You name your fund. The name may reflect the donor(s), family name, organization or company,
or it may serve as a memorial. You may also name your fund in a way to remain anonymous.
• You select the advisors. Often they include you, your spouse and/or others.
• There are no set-up fees.
• Financial statements are provided annually to the advisor, detailing fund balance,
contributions made and grant-making activity.
• Your fund may grow but the interest it receives is tax-free growth.
• You have the ability to budget your giving over an extended period of time.
• The Whitefish Community Foundation staff will perform the due diligence required on all your grant making.

GIVING FUND INVESTMENT

Giving Funds are invested and professionally managed under the supervision of our Finance and Investment Committee and Board of Directors. Target allocations are assigned to each type of fund but the Investment Committee reserves the right to deviate from designated allocations as market conditions and fluctuations dictate. The Investment Committee is comprised of professional individuals with experience in money management.

Call the Community Foundation for more information on target allocations for each fund type 406-863-1781

MAKING GRANTS

• You may recommend grants from your Giving Fund at any time. Grants can be made to entities
recognized by the IRS as 501(c)3 tax-exempt public charities or units of government.
• Donor-advised grants may be made for $250 or more without any geographical restrictions. Grant requests are reviewed by the Foundation's Grant and Executive Committees and are typically fulfilled within two weeks of determining the eligibility of the recipient organization.
• Unless otherwise requested, the organization receiving the grant is informed of the fund name and asked to use the Whitefish Community Foundation and fund name in communications resulting from the grant. You may receive no goods or services for your grant to any organization.

Our staff and Grant Committee are dedicated to helping your charitable dollars achieve maximum impact and facilitating your philanthropic goals. We are available to review grant requests and to inform you of areas of need in our local nonprofit community.

Alternative to a Private Foundation:

If you are considering transitioning from a private foundation to a Donor-Advised Funds you will find that a Donor-Advised Fund is an excellent alternative to achieving the same goals. Please read one of several articles on the subject available on the Foundation website: www.whitefishcommunityfoundation.org under Giving Funds.

• Temporary or Permanent Funds:

Your Impact Fund (basic donor-advised fund) may be converted to a Legacy Fund at any time. Estate plans may incorporate Donor-Advised Funds as bequests or other charitable vehicles. Call our office or stop in
to discuss the options available to help you with your charitable giving.

• Diverse Programs and Services to Meet Your Philanthropic Goals:

We hope that you will avail yourself of the many other services and programs offered by the Whitefish Community Foundation. We are here to help you help your community.

For additional information, please contact us:

Whitefish Community Foundation
P.O. Box 1060
214 2nd Street West, Whitefish, Montana 59937
406-863-1781