An endowment is a type of fund that is established to produce income for charitable purposes. A typical endowment fund will distribute only the income generated from investments; its principal will never be distributed. This is to ensure that endowment funds remain permanent as long as the principal is never invaded and as long as the distribution rate reflects the long-term growth patterns of investment.

Community foundations use the power of endowed funds to meet both the current needs of the local community as well as the future needs. By giving to a community foundation, you guarantee that the causes you care about will be provided for today, tomorrow and generations to come. The expertise of a community foundation’s staff and Board of Directors ensures that each donation has the desired impact the donor intended.

Of course you can certainly give directly to the nonprofit or cause of your choice and community foundations can help with that as well.

Yes. All community foundations are independently organized and operated. There are 17 community foundations in Connecticut, each serving a defined geographic area.

A community foundation is supported by the public – individuals, families, businesses and organizations. Private foundations, by contrast, are generally supported by a single individual, family or business. Because of a community foundation’s broad base of support, community foundations are classified by the IRS as publicly-supported charities, thus giving them tax advantages not enjoyed by private foundations.

Community foundations are committed to maintaining a focus on the perpetuity of its funds and are responsible for providing a stable source of funding for organizations in the local communities. Most community foundations seek the services of outside investment professionals, selected and monitored by the community foundation’s Investment Committee, who manage the endowment in compliance with the Foundation’s Investment Policy Statement.

By giving through a community foundation, you are supporting local philanthropy and the causes you care about in a long-term manner.

• Experience. The staff of community foundations consist of dedicated, experienced professionals whose mission is to assist you and keep your intent always at the front of their mind. The staff understands the changing needs of your community and has a thorough understanding of the nonprofit organizations serving those needs.
• Personalized Service and Customization. Community foundations will meet with you individually or with your financial advisor to discuss your charitable giving interests and needs, and how we can best fulfill them while making the most of your philanthropic dollars. You choose what to give, when to give, and what cause(s) or organization(s) you wish to support. You can be as involved in your charitable giving as you choose.
• Local Commitment. A Board of Directors, made up of knowledgeable community leaders and volunteers like you, serve as the policy makers and ambassadors for the community foundations.
• Immediate and Long-Term Impact. Community foundations are committed to the stewardship of assets ensures that the charitable goals of donors are met now and for generations to come.
• Privacy. You decide when or whether you want to be recognized for your gift or remain anonymous. You can feel secure in knowing that your personal information will never be disclosed.
• Tax Advantages. Community foundations are public charities and donations qualify for the maximum available deduction for charitable contributions in the year when the gift is made.