Donor FAQs
What can I give to the Foundation?
The San Juan Island Community Foundation can accept cash, appreciated securities, real estate, raw land, an interest in commercial property and almost any asset that can be converted to cash. By policy, the Foundation will convert all non-cash assets to cash as soon as possible and invest the cash in a manner that is consistent with the Foundation’s investment policy and donor wishes.
How do I transfer stocks or bonds to the Endowment?
The Foundation maintains a brokerage account to accept short term gifts of securities (stocks, bonds, mutual funds, and certificates of deposit). Please call the office, (360) 378-1001 to arrange for a transfer of securities. All securities will be sold and converted to cash and made available for grants or, invested in a manner that is consistent with the Foundation’s current policy on investments. Long-term gifts are transferred to the Seattle Foundation.
Can I name a specific San Juan Island charity as the “income” beneficiary of an endowment gift?
Yes, through a Designated Fund of the endowment.
Can I give the Foundation an asset, including cash, and then have the Foundation pay me a specific rate of income for a stated length of time (or for my lifetime)?
This refers to a life income gift, such as a charitable annuity, where you reserve the right to the income for your lifetime or until the death of you and your spouse.
This type of gift has certain IRS restrictions, but in general, the answer is ‘yes’. To explore various options, please visit PhilanthroCalc and call our office for more information.
Can I set up a self-directed endowment, where each year I, or a specific individual, can advise where I want the income to go?
Yes. This popular option is called a Donor Advised Fund. It provides many of the advantages that a private foundation offers without the restrictions and costs.
The San Juan Island Community Foundation will accept a gift to an advised fund, for which you will normally receive immediate tax benefits. Periodically, you would advise the Foundation of the amounts to be distributed to San Juan Island charitable organizations.
If I have a large IRA, Rollover IRA, or Pension/Profit Sharing Plan, is there any way that I can escape the high income and estate taxes on the benefits after both my spouse and I have died?
Yes. Taxes can be substantial in an estate settlement because they are usually taxed twice. First, they are taxed at ordinary income rates and then, if your taxable estate is more than the statutory exclusion, the estate tax rate will take between 18% and 55% of the remainder. Knowledgeable donors leave the balance of tax deferred IRAs and other plans to charitable organizations.
Who manages the Foundation’s assets?
The San Juan Island Community Foundation has a strong working relationship with the Seattle Foundation, the oldest and most experienced community foundation in the region. The Seattle Foundation currently manages over $300 million in the endowment funds (besides ours), has an active investment program structure, and utilizes professional, institutional, investment managers.
For short term funds, or those with an active turnover, The San Juan Island Community Foundation offers investment options that keep the principle secure and allow for maximum flexibility.
What are the administrative costs of the Foundation?
We work hard to keep the administrative costs low – we want donated funds to be used in the community! Currently, we have a volunteer Board of Directors and of our funds raised each year, just 5% is used for fund raising expenses and administration. Historically, fully 95% of all funds raised are invested in the general endowment providing, us with grant funds for our Island community.