Private Foundations

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April 30, 2010

London Community Foundation Annual Report 2009

April 8, 2010

Clean Air Challenge 2010 launches: funding up to $100,000 available.

April 7, 2010

2009 Audited financial statements now available

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Donors

If you are thinking of starting a private foundation or have been running a private foundation for some time, London Community Foundation may be of some assistance.

Starting Up

Establishing a donor advised fund with us is a convenient, cost effective alternative to operating a private foundation. A donor advised fund will provide you with opportunity to be actively involved in recommending charitable organizations or programs for annual grants. You may choose to establish awards or scholarships, or select grant recipients through a grant application process. Either way, our staff will provide administrative, communication, and organizational support.

Comparison summary of working with an established community foundation versus establishing a private foundation:

Benefit	Community Foundation (CF)	Private Foundation
Outstanding community knowledge and impact	Expertise and advice in a wide range of granting areas including arts & culture, the environment, health, social services, education and recreation Cooperative relationships with other government bodies, funders and agencies in the city/region	Directors or trustees must perform, hire staff, or contract for these grantmaking activities
Assured legacy in Perpetuity	Named funds that exist in perpetuity	Named foundation Longevity depends on long-term family interests and succession plans
More impact for every dollar you give	No tax on capital gains on gifts of appreciated marketable securities Immediate tax savings for most gifts of private company shares Pooled investments often provide a better return with reduced risk Start up easy and minimal or no cost	Same tax treatment as gifts of marketable securities to community foundation Tax savings for private company shares deferred or denied Start up is lengthy process with associated costs of time and resources
Simplicity and cost effectiveness of ongoing operations	Staff look after day-to-day operations Ability to limit involvement to preferred level	Directors or trustees must perform, hire staff, or contract for these services which may be at a higher cost
Flexibility to change focus or involvement over time	Choice in grantmaking involvement from year to year - donors can designate their fund to support particular charities, advise CF on grants from time to time, or allow the CF to direct your grants based on community need	Donor or family members are responsible for all activities of Foundation Responsibility for operating Foundation must be assumed by someone, even if family members lose interest in direct involvement over time
Degree of recognition	Wide range of choice of recognition or anonymity is available	Work of private foundation is fairly public
‘Best Practices'	Staff are able to incorporate best practices throughout the operations	Principals must invest time and energy in keeping up to date with change
Passing mantle to next generation	Build on knowledge and experience gained from working with other like minded individuals	Principals are responsible for engaging next generation

Get advice from your professional advisor or call us to set up a meeting to learn more about how we can meet your needs.

Existing Private Foundation

Even if you have been successfully operating your private foundation for a number of years, changing circumstances may mean you are facing a number of challenges, including:

Obligations of annual administration including investment, granting, staffing, and reporting
No apparent successor to take on responsibilities
Not enough time or energy to invest in keeping up to date with change

Transferring the assets of your foundation to London Community Foundation is a great solution to these and other challenges. Your investment will be cared for and pooled with other funds, earning better returns at lower administrative fees. You and/or your board can have as much or as little involvement in the grants process, and your brand and mission can stay intact.

Whether the assets are transferred now or plans are put in place to be activated at some future date, as the principal of the private foundation, you can be content that your goals or the goals set by the founder of your private foundation, will continue to be met forever.

London Community Foundation

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