"We
encourage philanthropy
in Laguna Beach."
Please click on a question for more information...
What
is a Community Foundation?
The Laguna Beach Community Foundation is one of nearly 650 community foundations
across the country and around the world. They are set up by people, corporations
and families that are dedicated to improving the quality of life in a specific
region.
It is a tax-exempt public charity that allows people to establish permanent endowment funds and gift funds within the confines of one large foundation, and offers an inexpensive, value-added way to establish a named family foundation. The income from these separate funds - and the principal if the donor desires - is available to respond to emerging problems and opportunities in the community.
What
does a Community Foundation do?
Our primary work is to make grants to community groups working in the Arts
and Culture, Environment, Education, Health and Social Services, Community
Improvement and Development, Animal Welfare and Youth Development. The foundation
also provides non-financial support to community groups and provides philanthropic
leadership in the community. 
Where
do you get the money you donate?
Donors to community foundations 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 toward a permanently named endowment
or an advised gift fund, in which the principal of the fund is available for
grants. Many donors are interested in planned giving and have LBCF in their
estate plans or other planned gifts.
Why be a donor?
LBCF donors are people with a strong sense of community and personal commitment
to making a contribution to the communities in which they live. Some donors
want to support worthwhile causes in their communities, and LBCF, which offers
considerable expertise and familiarity with the community, can help them find
the best way to commit their funds. Other donors appreciate the speed, flexibility,
and ease of using LBCF. Because the legal apparatus is already in place, existing
forms are available so that a 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?
LBCF's approach offers a number of important financial benefits to donors.
First, donors can support a number of charitable causes by creating a single
fund at the LBCF. Secondly, an important tax advantage is that the Federal
tax code provides significant incentives for contributions to a community
foundation.
LBCF has a number of different types of funds to accommodate donors who prefer the long-term strategy of endowments, as well as those who want to give more actively each year. Donors can choose to establish one of these funds, which allow donors to recommend grants, or can choose to contribute to an existing fund that is flexible in response to emerging needs in the community.
How
do I set up a fund?
Please click here to see
our Giving Options page for a complete list
of types of funds. LBCF has sample fund agreements available by contacting
the Foundation. We encourage prospective donors to review them with their
own professional advisors. The donor may wish to establish the fund to help
meet a variety of needs within the community or may specify a purpose or area
of concern for which income from the fund is best used. Donors may also name
the fund that they endow for themselves, spouses, a family member, a company,
or a valued friend. Funds may also be anonymous.
How
can I give to LBCF?
Some people prefer the simplicity of cash. There are, however, many other
ways to give, including securities and real estate. Gifts to LBCF may be made
at a relatively low cost by giving real estate or securities that have appreciated
in value. Were the donor to sell the property, a capital gains tax may be
levied if the asset had been held longer than 1 year. If a gift of these assets
is made to the LBCF, the donor may avoid the capital gains tax and may be
entitle to a charitable income tax deduction for the full value.
Gifts to LBCF may be made subject to life income agreements. Such an irrevocable gift may provide for an annual income paid to the donor for the remainder of his and/or her 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 call the LBCF.
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 funds.
LBCF uses a diversified investment portfolio.
What services do I receive as a donor and is there a fee for this?
LBCF provides all IRS reporting, accounting and accountability. The Grant
Committee of LBCF does extensive grant review and site visit work, and their
recommendations and evaluations are always available to donors. The Foundation
assures that all grant recipients meet the tests to assure tax-deductible
status. When appropriate, LBCF can help donors solicit proposals to fund certain
categories of interest to the donor. Donors are kept apprised of special community
needs on a regular basis. We can also help donors publicize their funds or,
conversely, provide anonymity for donors.
Can I give anonymously?
Yes.
