Frequently Asked Questions

WHAT ARE THE MINIMUM AMOUNTS TO ESTABLISH FUNDS?

There is a $10,000 minimum gift amount required  to establish an unrestricted fund.  A $25,000 minimum gift is required to establish an endowed donor-advised, field of interest, designated, or agency fund.  A permanent scholarship fund with standard guidelines may be established with a minimum gift of $30,000, and a scholarship with customized guidelines can be established with a minimum gift of $50,000.  Non-endowed advised funds must maintain a $1,000 minimum balance. Top

CAN DONORS FULFILL PLEDGES WITH A DONOR-ADVISED FUND?

Many times donor advisors include "pledge" language in their recommendations to the Foundation for their donor-advised funds.  In accordance with the Treasury Department regulations, grants awarded from The Winston-Salem Foundation funds may not be used to fulfill personal pledges or a financial obligation of a donor.

The Foundation cannot pay pledges that were pre-existing personal commitments.  We suggest that instead of completing a pledge card indicating a legally-binding commitment, donors communicate with the charity their intent to recommend a grant from their fund at The Winston-Salem Foundation.  The Foundation can make multi-year grants (or grants with multiple payments) from donor-advised funds. These are not  legally-binding commitments.  We will not honor recommendations that reference a pledge or copies of invoices.

We recommend that for both donor convenience and the convenience of a charity who will receive funds through a donor-advised fund, that donors include special instructions such as "capital campaign" or "general support" when making a recommendation.  Space is provided for these instructions on the donor recommendation form.   Top

WHAT IF A DONOR WANTS TO MAKE A GRANT TO A CHARITY OUT OF STATE?  OR OVERSEAS?

Donors may support any charitable organization across the United States.  International organizations may be supported provided there is a qualified U.S.-based nonprofit available to receive grants on their behalf.   Top

IS THERE ANY LIMIT TO THE NUMBER OF GRANTS A DONOR CAN MAKE OR THE AMOUNT OF EACH?

There is no minimum number of grants that must be made from a donor-advised fund, and there is no limit on the number of grants an advisor can recommend.  The Foundation does require that each grant be a minimum of $100.   Top

WILL DONORS RECEIVE ACKNOWLEDGMENT OF THEIR GIFTS FOR TAX PURPOSES?

Yes, the Foundation acknowledges gifts to all funds.  We offer maximum tax advantage under state and federal law.  Top

WHAT ARE THE BENEFITS OF A DONOR-ADVISED FUND OVER A PRIVATE FOUNDATION?

There are many reasons why establishing a donor-advised fund can be more beneficial than a private foundation.  (learn more)  Top

HOW MUCH DOES IT COST TO SET UP A FUND?

There is no set-up fee to establish a fund or have the Foundation serve as trustee. Fees for funds are based on fund value and fund type. (learn more)  Top

HOW DO DONORS COMMUNICATE WITH THE FOUNDATION ABOUT THE GRANTS THEY WANT TO RECOMMEND?

Donor advisors may submit grant recommendations by faxing or mailing a recommendation form to the Foundation, or by logging on to the Foundation's Web site to make recommendations online.  Top

HOW ARE ENDOWMENT FUNDS INVESTED? CAN FINANCIAL ADVISORS BE INVOLVED?

Endowment funds are invested with 65-70% equity and 30-35% fixed income positions.  The spending policy allows for 4.3% of each fund's trailing 12-quarter market value average to be used for charitable purposes annually unless donors enable the spending of principal. (In 2015, this percentage will change to 4.2%.)  (learn more)

The Foundation values its relationship with many investment managers.  If a donor's investment manager is not one the Foundation currently holds a relationship with, we would be happy to discuss ways to involve them.  Top

WHAT GIFTS ARE ACCEPTED OTHER THAN CASH AND STOCK?

The Foundation accepts gifts of cash, securities, real estate, personal property, retirement plan assets, and life insurance.  Naming the Foundation in a will or living trust or as a designated or contingent beneficiary are also ways to support the causes donors care most about. (learn moreTop

WHAT IF A DONOR NEEDS HELP WITH GRANTMAKING?

The Foundation's expertise in the community is available to all of our donors.  A donor services officer will be happy to answer any questions a donor may have about their grantmaking.  Top

CAN A DONOR REMAIN ANONYMOUS?

Yes, the Foundation honors a donor's right to remain anonymous to the organizations you support.  Please make the Foundation aware of a donor's desire to remain anonymous so that we can tailor their fund, their grants, and our records accordingly.  Top

 

 
 


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