Why Start A Fund?
- Lifetime and estate planning
- Inheritance
- Windfall profits
- Appreciated assets
- Sale of business
- Acquisition of closely held stock through sale, gift, or inheritance
- To memorialize a loved one
- Life insurance policy
- IRA
What Is The Long Island Community Foundation?
The Long Island Community Foundation, a division of The New York Community Trust, is one of 700 community foundations around the nation:
- We manage and administer charitable funds for individuals, families, and businesses, allowing donors to focus on their philanthropy, not on the paperwork.
- We award millions of dollars in grants to support nonprofit organizations located throughout Long Island, the region, and the country.
For almost 30 years, the LICF has been helping Long Islanders make a difference.
Why Consider Opening A Fund In The LICF?
Charitable giving through a fund in the LICF offers donors maximum tax benefits without the bother of administration. The New York Community Trust manages $2 billion in assets, oversees investment of the LICF funds in order to generate income for charitable giving now and into the future. LICF and Trust staff perform all of the administrative work - bookkeeping, accounting, and check writing -- and assure that only bona fide charities are supported.
More economical than a private foundation
The benefits of charitable giving through an LICF fund accrue, no matter its size. Donors gain: immediate and favorable tax advantages; investment and management of funds by The New York Community Trust; freedom from the burden of filing annual reports with the IRS and New York State Office of Charities; and relief from excise or penalty taxes and a mandatory annual payout. Unlike the time and effort required to establish a private foundation, setting up an LICF fund usually takes less than an hour and can be accomplished by a simple letter agreement. The savings to donors are considerable, both in set-up and on-going administrative fees.
More advantageous than a commercial gift fund
In addition to investment and fund management, unlike most commercial gift funds, LICF donors have the added bonus of access to an entire staff knowledgeable about the nonprofit sector. Even donors with a well-articulated philanthropic vision benefit from the LICF staff's expertise. Through forums, newsletters, and site visits, LICF donors can learn more about the region, its nonprofit community, and its changing needs.
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How To Start A Fund
Funds may be started during the lifetime of a donor or through bequest. Most funds are started by a simple one-page letter and the transfer of cash, stock, or other assets. Of course, funds started with more complex assets - closely held stock, limited partnership interests, restricted securities, and intellectual property rights - might take more time to process.
There are four basic fund types from which to choose: donor advised; field-of-interest; designated; and community response.
Funds must maintain a balance of $5,000 for a minimum of five years. Grants may be suggested from income generated from investment of the fund, or from a portion of principal and income for funds with more than $5,000. The minimum grant size is $250.
Upon request, the LICF staff will work with a donor's attorney, accountant, or professional advisor to match the donor's tax planning and personal interests with the right type of fund.
Personalized Services
Advantages of a Public Charity
Because the LICF is itself a public charity, donors may deduct the full market value for gifts of securities that start a fund or add to an existing one. Donors may deduct up to 30% of their adjusted gross income for appreciated property and 50% for cash. These allowable deductions surpass the limits allowed for contributing to a private foundation.
Assets Accepted
An LICF fund can be started with a broad array of assets. In addition to cash and publicly traded securities, the LICF accepts contributions of closely held or restricted stock, copyrights, and paid up life insurance interests upon a case-by-case review of those assets. In addition, through one of our bank trustees, we can consider gifts of real estate. Transfers of assets held in IRAs and Keoghs also will be accepted.
Flexible Timing
LICF donors can establish a fund during their lifetime through outright gift, a variety of deferred payment plans, and by Will or trust. This flexible timing maximizes tax benefits and tailors giving to fit into an overall planning strategy. LICF accepts a variety of deferred giving instruments, including a charitable remainder trust as well as gifts of paid up life insurance policies and IRAs. We are glad to discuss proposed contributions with you. We may not be able to accept assets that cannot readily be converted to the financial benefit of charity or that carry unusual potential liability.
Experienced staff
LICF donors enjoy the personalized service that a professional staff well-versed in Long Island can offer. LICF staff has a wide range of experience and among them possess degrees in social work, education, law, sociology, divinity, psychology, philosophy, political science, history, and business management. The LICF staff is committed to knowing Long Island. The New York Community Trust staff is available to assist donors with information about New York City, national, and international charities.
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