BCF has established an investment policy and a grant policy to provide for the growth of donated funds and property which can be reinvested in the community. The BCF offers various types of funds. Each type of fund can be created as an (1) "endowment fund" in which only the income is distributed and the principal remains intact, or as a (2) "pass-through fund" in which both principal and income can be granted to charitable causes.

The Foundation provides a vehicle for donors to meet their charitable needs. Donors have the freedom to structure funds to accomplish their specific charitable goals. Different types of funds managed by the Foundations include:

Unrestricted Funds
Provides the Foundation the greatest flexibility in responding to present and future charitable needs within the community. Donors creating an Unrestricted Fund rely on the expertise of the Foundation Board to identify and evaluate the most effective uses of the fund.

Field Of Interest Funds
This type of fund allows donors to pick a particular field of interest, such as the arts, museums, local youth groups, environmental issues, schools and education, senior citizen needs, parks, American Red Cross, American Cancer Society, etc. The BCF will distribute the funds within one or more field of interests as directed by the donor.

Donor Advised Funds
The BCF maintains your gift in a sub-account named for you, your family or company. This allows you to advise how you want the funds distributed to meet your specific objectives, secure enhanced tax benefits and avoid the administrative burden of a private foundation. Donor-advised funds offer great flexibility for you. You can create a philanthropic fund without naming specific charities and then recommend grants from the fund over time. Donor advised funds are an attractive alternative to a private foundation because they offer a full charitable deduction for gifts of appreciated securities as well as low-cost administration and granting services.

Designated Funds
These can be established by donors who wish to specify a particular charitable agency or organization to receive the proceeds of their fund. If the designated beneficiary of your fund would cease to exist, the BCF will identify organizations of similar purpose so that your charitable intentions continue to be fulfilled.

The BCF’s classification as a public charity under Section 501(c)(3) of the Internal Revenue Service allows you maximum tax deductions for income and estate tax purposes. In general, this means that gifts of appreciated securities or other property are deductible at full market value, and your contributions grow tax free if you wish to establish an endowment fund. The BCF offers you the freedom and flexibility in charitable giving without the IRS paperwork or time and expense of maintaining a private foundation. We can help you gain maximum tax savings while providing a vehicle for you to better the community through the investment of your funds.

OPPORTUNITIES TO GIVE

We welcome any gift of any size. Or you may decide to set up your own fund in your name, family name or company name. A minimum gift of $1,000.00 will allow you to create a new fund. Once your fund reaches $10,000.00, it can be established as an endowment if you elect to do so. Your gift can be made in one or more of the following ways.

Cash – Give us your check or money order payable to the Bloomington Community Foundation.

Securities – Once securities have been held for the required period, a donor can deduct the full market value of the gift (given before June 30, 1998, under the current IRS laws) and will not have to pay capital gains on the appreciated value of the securities.

Bequest – A donor may create a fund through a bequest, which will help avoid estate and inheritance taxes.

Life Insurance – This allows you to fund a sizable gift over time. You assign ownership of the life insurance policy to the Foundation. You receive an immediate tax deduction and eliminate the proceeds of the policy from your estate. Subject to IRS limitations, all premium payments made by you thereafter will also be deductible.

Charitable Remainder Trust -- Enable donors to transfer assets to a trustee to be held on behalf of specified beneficiaries during the trust’s lifetime. You receive an immediate tax deduction for the year the trust is established, subject to Internal Revenue Service limitations. Distributions of income from the trust will be made to you and/or to other beneficiaries for the life of the trust. When the trust terminates, the proceeds will be used to create a charitable fund in your name or in any other name as designated in the original trust agreement.

Charitable Lead Trust -- Operate the opposite way as charitable remainder trusts. When a charitable lead trust is established, the designated charity will receive the income from the trust for a specified period of time. At the end of that period, the property will then be transferred to the designated beneficiaries (i.e., children or grandchildren). The benefit of a charitable lead trust is to direct income away from the donor for tax purposes, but still preserve the legacy for future generations.

This information does not constitute legal advice, please consult your accountant or attorney with questions you have about charitable giving.