Frequently Asked Questions
At Nevada Community Foundation (NCF), we value your commitment to philanthropy and strive to provide you with clear and concise information to enhance your charitable journey. Below, you’ll find answers to some of the most common questions our donors ask:
What is an Endowed DAF?
An endowed DAF is a permanent fund.
Key things to know:
Principal Balance – The principal balance can never be spent, so the endowment earning power is protected against inflation. Excess income or appreciation is added to the principal to protect its value over time.
Distributable – The distributable balance consists of net income and appreciation (realized and unrealized) of the principal. This is the portion of the fund from which grants may be made.
Advantages – The principal amount of money gifted will never be depleted. In this way, the fund will continue to give for good, forever.
Limitations – As the amount of money available for distribution is based on the principal amount in the fund, each year’s grants will be directly affected by the fund’s overall success in the market.
Liquidity – The principal balance invested is never liquidated, allowing for a continuous, perpetual gift.
Are you a public charity, and will I get my tax deduction?
Yes, we are an exempt public charity recognized under section 501(c)(3) of the Internal Revenue Code, with EIN 88-0241420. We are incorporated in Las Vegas, Nevada, and adhere to the charitable laws of the State of Nevada. Your contributions are eligible for tax deductions as permitted by law.
How can I discover causes that align with my values?
When embarking on your philanthropic journey, you may consider various well-known and impactful causes, such as supporting food banks, animal welfare initiatives, environmental conservation efforts, or contributing to medical institutions. Alternatively, you might be drawn to a particular cause or inspired by the impactful work being done within your community.
At NCF, we provide access to invaluable resources through our Philanthropic Advisory Council (PAC) and dedicated researchers. Our PAC consists of esteemed community leaders in Nevada who are experts in their respective fields, offering real-time insights and expertise. They collaborate with NCF and our donors in an informal capacity, enriching our understanding of community needs and opportunities.
Additionally, our researchers are available to provide you with top-notch research, policy recommendations, and comprehensive analysis addressing a wide range of community challenges. With their assistance, we tailor our approach to help you select where your charitable gift can have the most significant and meaningful impact.
What if an organization changes its mission?
As individual donors, you may have limited influence over an organization’s mission, as U.S. charitable law mandates a degree of separation and independence for all charities. In the event that an organization changes its mission, we recommend engaging directly with the charity to understand the reasons behind this shift and how it aligns with your values. If the new mission does not align with your philanthropic goals, you may consider redirecting your support to a different charitable organization.
How can I ensure my vision for the use of funds is safeguarded over time?
U.S. charitable law and IRS regulations provide charities with significant flexibility to fulfill their charitable missions. While this flexibility is beneficial, it also means that charities may evolve away from your original vision.
We are dedicated to safeguarding “donor intent.” We employ several effective tools to ensure your philanthropic vision endures:
- Grant Parameters and Agreements: We can establish grant parameters and require the recipient charity to sign a grant agreement. This approach places some reporting responsibilities on the charity but is a common and reliable method to ensure that your funds are used in alignment with your specific intentions.
- Endowed Funds: Alternatively, we can create an endowed fund benefiting the recipient charity and dedicated to a specific cause. This strategic approach allows us flexibility to redirect funding should the charity ever deviate from your intended mission, ensuring your vision remains intact.
How are fees structured?
We’re committed to providing cost-effective fee structures for our various funds. To learn more about our fees and how they apply to your specific situation, please contact us directly.
What is a Donor Advised Fund (DAF)?
A donor DAF is a strategic approach to enhance and streamline your charitable giving.
In our financial lives, we often manage various accounts for specific purposes, like checking accounts, money market accounts, 401(k) retirement accounts, and 529 college savings accounts. It’s only natural to have a dedicated account for charitable giving.
We offer you the opportunity to establish a donor advised fund, providing a structured and efficient way to optimize your philanthropic efforts. Setting up a DAF is a straightforward process, and you can tailor it to your unique needs, whether you’re an individual, a family, or a business.
Moreover, you have the flexibility to designate younger generations as future advisors to the fund, passing on the invaluable gift of giving and creating a lasting legacy for your philanthropy. It’s also important to note that non-endowment donor advised funds have no permanent principal balance and are immediately available for grant distribution. A non-endowment donor advised fund can become an endowment fund at any time upon request.
Can I establish a direct relationship with the recipient organization of my contribution?
Absolutely. Many donors find it highly rewarding to engage directly with the organizations they support. NCF can help facilitate this process by arranging introductions and participating in visits and meetings with you.
We also recognize that some donors prefer to maintain a lower profile or utilize our services as “gatekeepers” to manage and reduce unsolicited donation requests from charities. This approach can help preserve anonymity and align with your preferences for engaging with recipient organizations.
Whether you choose direct engagement or prefer a more discreet approach, we are here to support your philanthropic journey and ensure that your giving experience aligns seamlessly with your preferences and values.
How long does it take to set up a fund?
Typically, the process of opening a fund at NCF takes approximately 2-3 weeks from the date we receive a completed fund application. It’s important to keep in mind that in some cases, additional complexities or the need for clarifications identified during the application review process may extend the timeline for fund establishment. Rest assured, our team is committed to expediting the process while ensuring accuracy and compliance with your unique preferences.
Why choose Fiscal Partnership?
NCF offers trust, transparency, and innovation as the cornerstones of our commitment to nonprofit excellence. With us, launching and managing your nonprofit is seamless and efficient. Here’s why you should choose NCF:
Leverage our Proficiency: Benefit from our expertise in legal and best practices, ensuring comprehensive compliance and sparing you from potential headaches.
Cost Efficiency: Experience lower operational costs with our dedicated and experienced team.
Turnkey Solution: Enjoy ready financial, operational, and technical expertise, streamlining your operations effortlessly.
National Fundraising Reach: Expand your fundraising opportunities with Charitable Solicitation filed in all states, enabling nationwide fundraising and gift receipt.
Experienced Leadership: Trust our leadership team with decades of collective experience in the community foundation space, providing seasoned guidance and support for your charitable endeavors.
How long does it take to get set up as a fiscal partner?
Typically, the process to establish a fiscal partnership at NCF requires a minimum of 10-12 weeks. However, please be aware that the timeline may extend based on the complexity of your specific project and its unique requirements. Our aim is to ensure a thorough and efficient setup process that aligns with your project’s needs and objectives.
What are the cost of fiscal partnership?
We understand that every organization has unique needs and aspirations. That’s why we offer four tiers of services designed to cater to your specific requirements. Our tiers encompass a comprehensive suite of services, including financial management, event partnership, grant management, and technical support.
Explore our four tiers of services designed to accommodate organizations at various stages, whether you’re at the inception stage, seeking expansion, or contemplating a transition. NCF stands ready to provide essential administrative infrastructure and expertise in the business aspects of nonprofits.
Please contact us directly to discuss the available packages and the associated costs. We’re here to work with you to ensure that your fiscal partnership arrangement aligns perfectly with your organization’s goals.
What does Philanthropic Alpha mean?
Philanthropic alpha refers to a strategic shift beyond traditional grant-making and transactional philanthropy. It involves the pursuit of greater impact by actively engaging in innovative and collaborative community investments. Philanthropic alpha aims to optimize the effectiveness of philanthropic efforts, often by taking a more proactive, forward-thinking, and holistic approach to addressing social issues and achieving meaningful change.