Work With Us
Donors may recommend an investment advisor to manage the assets of their Community Foundation fund; the minimum endowed balance required is $250,000. The Foundation retains the donor-recommended investment advisor as long as the advisor is qualified, meets the Foundation’s due diligence criteria, and adheres to the Foundation’s investment policy.
Investment Strategy
Investment Performance
The Community Foundation regularly updates stakeholders on the performance of its investment portfolio. Through December 31, 2023, the Foundation's diversified portfolios had a rate of return of net 14%.
The Foundation’s five-year rate of return is net 6.3%. All of these figures are net of all fees.
If you have questions about specific holdings of the Community Foundation, please contact us.
IRA Information
Doing Good With Your IRA
The IRA charitable rollover provision, which became permanent in 2015, allows tax-free distributions of up to $100,000 per taxpayer per taxable year to an eligible charitable organization, such as the Community Foundation of the Texas Hill Country, from an IRA held by individuals age 70½ or older. Because the distribution goes directly to a qualified charity (the Foundation), the amount will neither be counted as income nor subject to income tax. Using IRA assets to make a gift during your lifetime, as opposed to giving via bequest in your will, enables you to experience the joy of making a major gift.
How to Begin
Contact your IRA administrator and ask for instructions for executing an IRA charitable rollover. If needed, the Community Foundation can provide you with a sample letter that you can send to your provider to initiate the rollover gift.
IRA transfers to the Community Foundation address a broad range of current and future needs. We evaluate all aspects of community – the arts, aging and elder care, basic needs, education, environment, health and well-being, etc. – and awards grants to select projects and programs. The transfer can be a direct donation or as a gift to an established or newly created fund. IRA rollover gifts cannot be made to donor-advised funds, but they can be made to field of interest funds or designated funds.
Up to $100,000 Annually
You can transfer excess retirement assets up to $100,000 per year directly and easily to the Community Foundation. The transaction incurs no federal income tax, and the asset is no longer part of your estate for tax purposes. You can choose to give during your lifetime so that you (and the community) can see results sooner than if your gift had been made through a will.
Make the Community Foundation Your IRA’s Beneficiary
When you give your IRA to charity, your heirs are not burdened by the taxes associated with receiving your IRA upon your death. Instead, you can leave them other assets that have a more favorable tax treatment. Larger estates face tax rates that significantly reduce the amount left to their heirs (other than a spouse). Any amounts left in an IRA when an individual dies may be taxed as income to the beneficiary and are also considered assets for the purpose of calculating that person’s estate tax liability.
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Need more information? Please let us know how we can help.
The Community Foundation’s EIN is 74-2225369.
Fund Types
We have a variety of different fund types available to help meet specific donor objectives. We are happy to provide advice, assistance, and materials to help donors and their advisors understand their options – from funding assets and vehicle structures to investment portfolios and grantmaking.
Donor-Advised
Stay actively involved in the grantmaking process. Some donors wish to support multiple organizations and programs throughout the year. Other donors wish to build up a fund balance over multiple years before making charitable distributions. The Community Foundation identifies appropriate nonprofits and programs, ensures their charitable status, and provides grantmaking and administrative support. These funds offer an immediate tax benefit while allowing the donor to make grants over time to their favorite nonprofit organizations. Donor-advised funds are also a cost-effective alternative to creating a private foundation.
Click to view: Sample Donor Advised Fund Agreement
Unrestricted
Unrestricted funds allow donors to ensure their gifts support the most pressing community needs, however they may change over time. The Community Impact Fund (linked) is an unrestricted fund that provides a simple and efficient giving mechanism for donors who want to focus their gifts on the greatest needs of the Hill Country. The Fund annually reviews grant requests and makes awards.
Donors can also make fully tax-deductible, unrestricted gifts to the Community Foundation itself. Such unrestricted contributions support the greatest needs of the Community Foundation. Many donors choose this type of unrestricted giving by naming the Foundation as the beneficiary of a charitable remainder trust.
{Sample Unrestricted Fund CRT Language}
Designated
Designated funds name a specific organization(s) to be supported on an annual basis. Grants from these funds provide a reliable income stream to one or more of a donor’s favorite organizations. If the charity ceases to exist, another charity serving the same needs will benefit from the endowment.
The Foundation applies its annual spending rate – ranging from 3% to 5% in a given year – to the fund balance which determines the grant amount to be distributed. A donor may also select a specific dollar amount to be annually distributed.
Donors may also select a field of interest fund, one in which the Foundation staff select the specific grantees in a given year. For instance, if the field of interest is animal welfare in a certain city, county, or region, the Foundation will assess local organizations, then make grants with available funds. Field of interest funds differ from designated funds because they do not name specific nonprofit organizations, only a general field(s) of interest.
Both designated and field of interest funds are popular giving vehicles for:
- Donating a portion of an Investment Retirement Account’s Required Minimum Distribution.
- Serving as the beneficiary of a charitable remainder trust.
- Making a charitable gift(s), but not wishing to be involved in annual distribution decisions.
The Louise Livingston Fund is a designated fund with five named beneficiaries. The Dietert Center in Kerrville receives an annual distribution from the Fund to support essential programs like Meals on Wheels.
{Sample Designated Fund Agreement}
{Sample Designated Fund Will Language}
Scholarships
A scholarship fund lets donors establish criteria and determine their own degree of involvement while supporting students of any age, background, or education level. The Community Foundation administers scholarship funds for donors, nonprofit organizations, civic clubs, and businesses.
Click to view: Sample Scholarship Fund Agreement
Click to view: Sample Scholarship Fund Language for a Will
Asset Types
The Community Foundation accepts a wide range of asset types, including ones that many commercial brokerage firms are unable to accommodate. Often donors may not even be aware of the options available to them. We specialize in simplifying the process of converting assets into contributions.
Cash
Cash gifts allow donors to claim a current tax deduction and carry forward contributions exceeding annual limits for up to five subsequent tax years.
Real Estate
A gift of commercial, residential, farm, or ranch real estate owned for more than a year entitles the owner to a tax deduction for the property’s full fair market value while allowing the owner to avoid capital gains taxes.
Securities
Publicly Traded Securities & Mutual Fund Shares
Gifts of publicly traded securities and mutual fund shares qualify donors for an immediate charitable deduction of the full fair market value and an exemption from capital gains tax on the appreciation.
Interests
Partnership Interests and Mineral Rights
Donations of partial interests from an investment or business partnership permit donors to retain partial ownership of their business interests while also pursuing their charitable passions.
Many donors give mineral interests to the Foundation as well.
Retirement
Donating retirement plan assets assists donors in reducing or eliminating income and estate taxes while also supporting causes important to them. Click here to read more.
Bequests
Bequests enable donors to support the community while retaining complete control over assets during their lifetime through a living trust or will while earning a full charitable deduction on estate taxes.
Sample Bequest Language (Link)
Complex
Other Complex Assets
We specialize in simplifying the process of converting complex assets into charitable contributions. From commercial real estate to partnership interests, we accept a broad range of asset gifts that many commercial brokerage firms do not have the ability or the experience to accommodate.
Create A Legacy
For decades, we have worked with donors to create a legacy of generosity. An art center’s theatre, a wellness program for seniors, general support for an animal shelter, a new fleet of vans for the recreation center – these gifts and many others have all been funded by legacy donors whose vision and generosity live on.
The easiest way to assist charities with an estate gift is to include a provision in a will. When someone has an up-to-date will that they don’t want to change, a simple codicil can be signed, witnessed, and attached to an existing will.
The Community Foundation offers the following samples of language for wills and bequests. We have dozens of examples to share with you, if nothing below meets your specific goals. The Community Foundation’s EIN is 74-2225369.