FREQUENTLY ASKED QUESTIONS (F.A.Q.)
What is a Community Foundation?
The Laguna Beach Community Foundation is one of more than 700 Community Foundations in the United States. Community Foundations are tax-exempt public charities serving people who share a common interest in improving the quality of life in their area. Community Foundations bring together the financial resources of individuals, families and businesses that create charitable funds at the Community Foundation. The Community Foundation invests and administers these funds to nonprofits through grant making and other charitable distributions. Please click here for our Fact Sheet.
What does a Community Foundation do?
We enhance philanthropy by connecting donor passions with nonprofit needs. We assist our donors in making grants to nonprofit groups in the community and throughout the United States through charitable funds maintained at the Community Foundation. The Community Foundation offers significant non-financial support to nonprofits and community organizations through workshops and meetings and provides philanthropic leadership within the community.
Where do you get the money you donate?
Donors to the Laguna Beach Community Foundation range from people of relatively modest means to those with large financial resources. By establishing a fund or donating to an existing fund within a Community Foundation, donors can contribute their gifts of cash and appreciated property to a wide variety of charitable funds, including our Laguna Beach Community Enrichment Fund, a donor advised fund, or numerous other charitable funds. Many donors are interested in planned giving and have named Laguna Beach Community Foundation in their estate plans or other planned gifts.
Why be a donor?
Our donors have varied interests, a strong sense of community and a commitment to philanthropy. We help them connect their charitable passions with nonprofit needs. Our staff and Board of Trustees have significant expertise with the local nonprofit community and do due diligence prior to making any contribution.
Our donors appreciate the speed, flexibility, personal service and ease of using the Laguna Beach Community Foundation. Because the legal apparatus is already in place, existing forms are available so that a charitable fund can be established, including obtaining all applicable tax advantages, in a very short time.
Who governs The Community Foundation?
A governing Board of Trustees comprised of individuals who are representative of Laguna Beach.
What are the financial benefits and tax advantages of gifting through LBCF?
Our approach offers a number of important financial benefits to donors. First, donors can support a number of charitable causes by creating a single tax-deductible fund at the Community Foundation. Second, the Federal tax code provides significant tax advantages for contributions to a Community Foundation. Laguna Beach Community Foundation offers a wide variety of charitable fund types to accommodate the varied interests of our donors.
How do I set up a charitable fund?
It is easy to set up a fund. You may want to create your fund to address a variety of community needs or you may indicate a specific purpose for your fund. Donors may name the fund for themselves, a spouse, a family member, a company, or a valued friend. Funds may also be anonymous. Please contact the Laguna Beach Community Foundation to obtain sample fund agreements and to discuss your preferences. We encourage prospective donors to review completed forms with their professional advisors. Please click here for a list of fund types.
How can I give to Laguna Beach Community Foundation?
Some people prefer the simplicity of cash gifts. There are however, many other ways to give including donations of securities and real estate. Gifts to Laguna Beach Community Foundation may be made at a relatively low cost by giving real estate or securities that have appreciated in value. For example, if a donor sells the appreciated property that has been held longer than one year, a capital gains tax may be levied. Instead, if a gift of those appreciated assets is made to the Laguna Beach Community Foundation, the donor may avoid the capital gains tax and may be entitled to a charitable income tax deduction for the full value.
Gifts to Laguna Beach Community Foundation may also be made subject to life income agreements. Such an irrevocable gift may provide for an annual income paid to a donor for the remainder of the donor's life. Through this type of gift, depending on the individual circumstances, substantial tax benefits may be created. A variety of instruments could be used including a charitable remainder unitrust or a charitable remainder annuity trust. A charitable lead trust can have gift and estate tax advantages. For more information on gift strategies, please contact the Laguna Beach Community Foundation. Please click here for a list of giving methods.
How are the Foundation funds invested and managed?
An Investment Committee of respected individuals from the Laguna Beach area with financial knowledge and expertise serve pro bono to wisely guide the Board of Trustees in maximizing short and long term investments of the charitable funds. Laguna Beach Community Foundation uses a diversified investment portfolio. Please click here for our investment guidelines.
What services do I receive as a donor and is there a fee for this?
Laguna Beach Community Foundation provides all IRS reporting, accounting and accountability. The Grants Committee of Laguna Beach Community Foundation does extensive grant review and site visits and its recommendations and evaluations are available to donors. The Community Foundation does due diligence to assure that all grant recipients meet the requirements for tax-deductible status. When appropriate, Laguna Beach Community Foundation can help donors solicit proposals to fund certain categories of specific interest to the donor. Our donors are also kept apprised of special community needs. We can help donors publicize their funds or, conversely, provide anonymity for donors, whichever they prefer.
Can I give anonymously?
Yes.
