Jim and Jane Smith want to support local arts and education programs and the ABC Nonprofit which is located in their community.
The family has $65,000 in proceeds from an inheritance. The Community Foundation staff helps them create two funds to accomplish their goals:
- The family uses $35,000 of their inheritance to open a donor advised fund. The annual earnings from the fund are used by the family for grants.
- A fund for ABC Nonprofit is opened with the remaining $30,000. ABC nonprofit receives annual earnings from the fund and the Community Foundation monitors and ensures the funds are used as the donors intended.
Jim and Jane Smith would like to support their community in their estate planning. Once they pass away, 75 percent of the estate will go to their three children and 25 percent will go to the Community Foundation of Snohomish County to be used for the charitable purposes spelled out in the Smith Family Fund agreement.
- According to the agreement, the family would like 50 percent of the funds to be used in the Community Foundation’s Arts and Culture Community Impact Fund. Twice a year a group of community members meets to review and decide on grants in the arts. Each year the number of grants grows because donors like the Smith family donate to the Arts and Culture Community Impact Fund.
- The remaining 50 percent will be used to create a donor advised fund that Jim and Jane’s three adult children will oversee. They will make grant recommendations to nonprofit programs and services that their parents cared about.
These are just two of the many options possible in this scenario.
Foundation staff can work with you to customize your giving plans. Contact Elena at Elena@cf-sc.org or call (425) 212-4056 to learn more.