Donor FAQ
What type of asset 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.
How do I transfer stocks or bonds to the Endowment?
The Foundation maintains an account with Salomon Smith Barney (in Friday Harbor) to accept gifts of securities (stocks, bonds, mutual funds, certificates of deposit) for immediate distribution to the community short term. 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 our linked site: PhilanthroCalc.
Can I set up a self-directed endowment, where each year, a specific individual, or I can advise where I want the income to go?
Yes, this popular option is called a Donor Advised Fund and it provides you with many of the advantages of a private foundation 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 then "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, have an active investment program structure, and utilize professional, institutional, investment managers. San Juan Island Community Foundation funds are pooled with those of the Seattle Foundation (as well as those of several other area community foundations), thus benefiting from the resulting economies of scale. The Seattle Foundation does charge a minimal administration and management fee.
What are the administrative costs of the Foundation?
The San Juan Island Community Foundation is run by a 11-person, volunteer Board of Directors. Historically, fully 95% of all funds raised are invested in the general endowment, providing us with grant funds for our island community. Just 5% is used for fund-raising expenses and administration.