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Frequently Asked Questions

What is The Community Foundation of Henderson?

The Community Foundation of Henderson is a local nonprofit working to bring good people and good causes together by ensuring the excellent stewardship of lasting charitable funds and the wise investment of grants made all over the county. The Community Foundation exists to accomplish the charitable goals of donors by making giving personal, easy, accessible, and cost-effective. We are enriching the community by connecting generosity with need.

How does The Community Foundation function?

The Community Foundation receives contributions of all sizes from every corner of our community, and then through wise investment and efficient management, reinvests those contributions in the form of grants to nonprofit organizations working to benefit the community. By providing low-cost administrative services to a variety of donors throughout Henderson County, The Community Foundation is building a permanent collection of endowed funds while supporting the charitable objectives of the donor.

Why is The Community Foundation of Henderson an affiliate of CF West KY rather than a stand-alone foundation?

The Community Foundation of West Kentucky provides advice, integrity, experience, and administrative support to the Community Foundation of Henderson until it is able to stand on its own. Administration costs alone are insurmountable when starting up a Foundation of this magnitude. With this partnership, the Community Foundation of Henderson will see only a 1% administrative fee on the total value of the funds housed within the Community Foundation of West Kentucky.

Do you have to be wealthy to participate?

NO. This is a Foundation of the people and for the people. It is named “community” for a reason. Anyone can give any amount to an established fund. We stand ready to help anyone willing to give something back to enrich this community.

What are the advantages of using The Community Foundation of Henderson rather than a private foundation?

Our version of a private foundation for an individual, family or corporation is called a Donor-Advised Fund. It:

• Is easier and less expensive to establish (One-time$300 set up cost and a minimum contribution of $1,000*)
• Is easier and less expensive to maintain (Annual fee of only 1.25%**)
• Provides a greater annual tax deduction, in many cases
• Provides easy access to information about nonprofits seeking support
• Enables you to make gifts of stock options, closely held securities, insurance policies, real estate, etc. with ease and without most IRS limitations
• Lowers the administrative cost thereby increasing grant making capacity
• Permits you to time gifts without an IRS-mandated payout schedule
• Allows the avoidance of the 1-2% excise tax on investment income
• Creates the opportunity to make gifts anonymously
• Enables you to establish a legacy of caring in perpetuity – which will be overseen by committed leaders dedicated to preserving donor intent

* Grants will not begin to disburse until the fund reaches $10,000 balance
** In most cases there is also an investment management fee of 0.45%

Why should I give through The Community Foundation of Henderson instead of directly to the charity/charities of my choice?

Your charitable priorities may shift. Certain problems disappear over time and sometimes agencies “go out of business”. Through The Community Foundation, you can have the flexibility to address a variety of charitable priorities, whether you support many different causes or your interests change over time. A permanent fund in The Community Foundation is also a safeguard designed to carry out your charitable objectives in perpetuity – dedicated to making sure the spirit of your gift remains intact through changing time and circumstance.

I am interested in establishing a fund but some of my interests lie out-of-town. Can I recommend organizations beyond Henderson?

YES. While we hope most of the grants The Community Foundation makes will go to support community endeavors, we recognize that some of what has made our area so healthy has come from outside its borders. We support any funds which are designated to provide endowments for organizations around the country. They are here because their benefactors are here or do business here.

Can The Community Foundation help me reduce my estate taxes?

YES. Although it may sound too good to be true, time and time again, we have seen cases in which people actually increase what they can leave to their heirs through a gift to charity.

It often comes as a shock to us that taxes can take more than 50% of our estates before they reach our heirs. If you have an IRA, 401(k) or Keough, that estate tax is compounded by income taxation, as well.

But there are opportunities to leave a sizable portion of your estate to benefit your heirs and support charitable causes. To learn more about the options we can facilitate for you, or for your clients making estate plans, call us at 855-242-2395.

How does the Endow KY Tax Credit work?

Donors, including individuals and corporations, who contribute to a permanent endowment fund at the Community Foundation of Henderson may be eligible for a 20% tax credit up to $10,000 per donor per taxable year.
The credit may be taken against individual income tax, corporate income tax, and the limited liability entity tax, in addition to the federal charitable tax deduction value of the gift. This tax credit may be carried forward for up to five years.
The tax credit benefit is in addition to the federal charitable tax deduction value of the gift.
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