DONOR FREQUENTLY ASKED QUESTIONS

Q. How does giving through the VCF work?
A. You set up a fund at the Foundation with an
irrevocable gift (minimum value of $10,000). You
can make your gift now or through your estate plan.
The Foundation invests your gift along with those of
other donors, and each year investment returns are
added to the principal and a percentage of the fund
is set aside for grants. Many donors establish a fund
during their lifetime, then add to the fund upon
their death.

Q. Does the Foundation charge fees?
A. Each fund pays a “supporting fee” (a percentage of
the fund’s assets) that supports the VCF’s mission
and allows the Foundation to offer services like
grantmaking and gift administration, investment
and asset management, and donor education. The
supporting fee varies by the type and size of the
fund. Additionally, invested funds are assessed an
investment management fee.

Q. What is the Foundation’s investment policy?
A. The Foundation invests its assets for the support
of current and future generations. This is
accomplished using a diversified asset allocation
strategy oriented towards higher return assets,
and executed using highly capable investment
managers.

Q. Is there a giving option that helps the
Foundation address Vermont’s needs as they
arise?
A. Discretionary field of interest and discretionary
unrestricted funds leave the annual grantmaking
decisions to the VCF to respond to pressing
community needs. It’s a wonderful way to ensure
that your gift remains relevant over time.

Q. Can I specify how my gift is to be used?
A. Yes. An advised fund allows you to review your
giving and recommend grants to any IRSqualified
charity you wish to help. A designated
fund is established to help the organization(s)
you specify when you create the fund.
Discretionary funds (unrestricted and field of
interest) leave the grantmaking decisions to the
Foundation.

Q. Can my children continue to advise the funds?
A. Yes. An advised fund can help nurture a lasting
philanthropic spirit in your family. You may name
one generation of successors to advise grants
from the fund you establish.

Q. How does the VCF differ from commercial
charitable gift funds?
A. Many financial institutions offer “charitable gift
funds,” which are similar in some respects to
the funds offered by the Foundation: you give
money, you get a tax advantage, and the institution
handles all of the paperwork associated with
your fund’s transactions. Indeed, if your primary
concern is ease in transacting grants, then a
charitable gift fund may be right for you.
The Foundation can offer much more, though.
We are a true resource for Vermont-focused
philanthropists. We help you understand
the most pressing issues facing Vermont, and
point you to where your grants can make a real
difference. We find the organizations that are
doing outstanding and innovative work. We
spearhead statewide initiatives and invite you into
the fold. We connect you with other Vermont focused
philanthropists and help you signal
others to build the state’s charitable capital.
In short, we go far beyond transacting grants
and managing your charitable investment.
Our “business” is helping Vermont-focused
philanthropists like you have lasting impact.

Q. How will I know my wishes will be followed?
A. At the time a fund is established, and throughout
the life of the fund we make sure we understand
what your wishes are, and ensure that your
charitable interests are followed. We take
stewardship of funds very seriously.

Q. Do I have to give cash?
A. No. Many donors give appreciated stock or real
estate to maximize their tax benefits. You can also
earmark IRAs or pensions to the VCF, or even
purchase life insurance that names the VCF as the
beneficiary. Almost any asset of appreciable value
can be transferred to the Foundation.

Q. Can I give out-of-state as well as in Vermont?
A. Yes, as long as the recipient is a qualified charity.

Q. I’d like to set up a fund. But I can’t afford
a large fund now. Can small gifts make a
difference?
A. Absolutely. Many of the Foundation’s funds
started modestly. And if you choose to establish
a discretionary fund, its grantmaking dollars are
combined with others to have broad impact
through our grantmaking programs. You can also
make a gift to the VCF’s Community Fund, which
pools contributions to be awarded as grants each
year to hundreds of organizations across the state.

Q. I’m interested in establishing a memorial
fund. Can I name the fund?
A. Of course. You choose the name for any fund you
establish. Or you can give anonymously, if you
prefer.

Do you have other questions? Please contact one of our philanthropic advisors to learn more.