Why Corporate Charitable Funds?
Corporate Charitable Funds Save Time and Money
Charitable Giving becomes comfortable, convenient, and cost-effective once again
In an era of ever-lengthening lines of charitable solicitors, corporate charity has become an expensive proposition. It takes time to hear requests, time to review these requests and evaluate the organizations, and after the decisions are made, time to write the checks and do the bookkeeping.
There are ways for corporations to simplify the process. For example, The Community Foundation of Middle Tennessee has a mechanism – a Corporate Charitable Fund – in place to do just that. The corporate treasurer writes only one check (or makes only one gift of stock) to The Foundation, instead of writing many checks to multiple charities. One gift takes care of the corporate tax deduction, and establishes or increases a Fund from which grants may be made for years to come.
In our community, corporations are called upon to give charitably every year, not just in the profitable years. Wouldn’t it be nice to set aside charitable funds in the “good” years and then use them to give during less profitable times? Corporate charitable funds make it possible to set aside money when it is prudent for tax planning purposes, and then allows the funds to be granted over time. Funds are invested in a diversified portfolio from which grants are made based on your written recommendations.
The Corporate Charitable Fund program can cut costs and increase the scope and effectiveness of your giving. Instead of highly-compensated, busy corporate officers fielding and evaluating requests, you can “outsource” the administrative aspects to The Foundation. Nonprofit organizations requesting grants will be courteously received, given information on the corporation’s charitable priorities, experience fair and full evaluation of proposals, and be clearly informed about grant decisions. Corporate officers recommend projects for grants, receive summary reviews of proposals, and, if desired, solicit advice from The Foundation’s knowledgeable staff.
The Bottom Line
The Corporate Charitable Fund program is a win-win-win opportunity. You are free to earn the most you can, The Foundation fulfills its mission to promote and facilitate philanthropy, and through cost-effective administration, more money than ever reaches the charities and individuals who need it.