Information for Professionals
Guidelines for Attorneys
Because tax and estate planning can be a complex, ever-changing process, many of our donors choose to engage an advisor to assist them. While gifting itself is a relatively straightforward process, crafting a comprehensive financial plan often is not. The Montgomery County Community Foundation is happy to assist professionals who represent potential donors. Foundation staff can discuss available giving options, provide appropriate language and instruments for establishing funds within the foundation, and help advisors to understand which type of fund will best enable their clients’ charitable goals.
Three Important Facts about giving to MCCF
First, although MCCF welcomes inquiries about any potential gift, the Board of Directors must review and approve the terms of any donation. In the unusual case that MCCF is unable to fulfill the donor’s intentions, or in the rare instance that a gift imposes an unacceptable risk upon the foundation, the Board of Directors may either refuse the donation or work with the donor to vary the terms of the gift.
Second, it is important to know that MCCF cannot accept gifts that name a co-trustee. The bylaws of the foundation prohibit such arrangements.
Third, MCCF offers an important advantage to donors. In the event that a change of circumstances makes the terms of the gift instrument impossible, unnecessary, or impractical, it is within the power of the Board of Directors to vary the gift so that it does not become obsolete. For example, if a donor establishes a designated fund for an agency that at some point in the future ceases to exist, the Board may redirect the gift to a similar agency or other use that is consistent with the donor’s original intent.
Establishing a fund with MCCF can also be an attractive alternative to creating a private foundation. As a public foundation, MCCF is able to offer tax advantages beyond those associated with private organizations. A professional staff and dedicated board of directors oversee administrative and grantmaking activities, eliminating the need to establish a separate institution, set policies, file innumerable forms, and follow up with grant recipients. Establishing a private foundation can be an expensive, time-consuming experience, but a gift to MCCF can achieve the same outcomes quickly and with much less cost to the donor. Creating a fund, in fact, can take less than a day. The legal instruments are already in place, and can be easily customized to the unique wishes of the donor.
We have put together a Professional Advisors Handbook to assist you as you work with clients to fulfill their charitable goals. Please contact Ann Malott at 765-362-1267 if you or your clients have any further questions.
