Here's a great question.
The other day someone asked me a really good question. I have found that when someone asks a great question lots of people are probably wondering the same thing.
Here it is….
Why should I use the Faribault Community Foundation for my charitable giving? Why not just donate directly to my favorite causes?
Let me answer that by sharing our vision for the Foundation.
Our purpose is to help people who love Faribault make meaningful gifts to the causes and organizations that are important to them, now and long into the future. Donors can have a remarkable impact with their direct philanthropic gifts. But when donors plan ahead, they can multiply the impact immensely.
Let’s use a few fictional examples:
Josie loves the work done at the Hope Center – she gives generously to them year after year. Now that Josie is getting up in years, she is thinking about how the Hope Center will miss her annual gifts. (Here is where the magic happens) Josie sets up a Designated Fund through the Faribault Foundation. Her gift is endowed, so each year the proceeds of the endowment are given to the Hope Center – year after year – long after Josie has passed away. The Foundation is the trusted steward of that money. If the Hope Center, no longer needs the money then the Foundation Board would find another organization that has a similar mission and Josie’s money keeps supporting the cause she selected.
Another option is a Donor Advised Fund. Let’s say Sam is selling his business. He is happy to pay his fair share of taxes but wants to reduce his tax bill. He supports many local charities and wants to continue that. He can open a Donor Advised Fund, reduce his tax obligation, and use the DAF as a way to organize his charitable gifts for years to come.
Imagine a group of volunteers who work together at St. Vincent de Paul. They know the mission and have spent hours and hours helping the organization. Together they decide to open a fund to support St. Vincent de Paul. This fund is open to all contributions. Many people who cannot volunteer but love the mission, contribute to the fund. It is an endowed fund, so as it grows, their gifts continue to support St Vincent de Paul.
In these examples, the money is invested locally, and the earnings are added to the fund for granting to the specified causes. The small management fee supports the Foundation. The benefit of using a community foundation is that local people managing the foundation are trusted stewards of the money and of the goals of the donor. The board of the Foundation is bound by law to honor the donor’s intention.
And how does all that help improve the quality of life in Faribault? A dynamic Foundation can have a significant impact! Most nonprofits commonly serve a singular need or demographic by providing vital support or services. We need those organizations to be stable and strong. Community foundations like ours can support these local organizations. We can also focus on emerging issues and rally the needed financial support for solutions. The Faribault Foundation provides a meaningful opportunity for caring people to give back to the community they love and to leave a legacy to continue that support after they are gone. Our Foundation is helping to develop community spirit as people work together to focus on the future of Faribault by pursuing projects and increasing philanthropy to fund great causes.
The unique purpose of the Faribault Foundation is to support what is important for Faribault today and long into the future.
Laura Bock
Executive Director
507-805-8800
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