New Funds: Frequently Asked Questions

1. How are community foundations different from private foundations? A community foundation is a publicly supported, nonprofit, tax-exempt organization. Community foundations are classified under the tax code as public charities, subjecting them to different tax policies and regulations than private foundations.

2. Why would someone start a fund at a community foundation? A fund with a community foundation allows people an easy, flexible way to direct their charitable giving while receiving an immediate tax benefit.

3. What kinds of gifts can be given to the foundation? The St. Croix Valley Foundation offers simple giving solutions that can be tailored to each individual’s values and goals. The gift can include bequests, cash, stock, real estate, life insurance, charitable remainder trusts or charitable lead trusts with maximum tax advantages.

4. What type of organization may be recommended for a grant? Grants can be recommended to any 501(c) (3) nonprofit public charity.

5. How is a fund started and how do you make a grant? • Sign a fund agreement • Make a deposit to the fund • Submit a grant recommendation for to the St. Croix Valley Foundation for Board approval.

6. Can grants be recommended to organizations outside of the St. Croix Valley? Yes. Donors may recommend grants to any qualified 501 (c) (3) public charity or operating foundation in the country.

7. Can grants be recommended anonymously? Yes. The donor may request that the fund name and/or the donor’s name remain anonymous. In addition, the donor may request that the fund name not appears in the St. Croix Valley Foundation’s annual report and other publications.