For Advisors

A Resource for Professional Advisors

Charitable giving can play a significant role in planning when someone is making major decisions related to estate planning, sale of a business or other major asset, retirement planning or unusual financial gain. The Community Foundation is a resource for professional advisors to assist them in helping their clients, whether individuals, families or businesses, achieve charitable objectives and build legacies.

The Foundation respects a professional’s role as trusted advisor to their client and does not seek to interfere in that relationship, rather we partner with advisors to provide support, information and options to help clients develop the giving plan that meets their goals. Working collaboratively to develop individualized plans to suit each situation, the Foundation strives to exceed expectations and achieve a successful outcome.

Foundation staff is happy to consult with advisors regarding their client’s philanthropic objectives and how best to achieve them. For more information about working with the Community Foundation please contact us at (248) 608-2804.

“Real generosity toward the future lies in giving all to the present.” Albert Camus

Foundation Investment Policy

Respecting the relationship between professional advisors and their clients is paramount to the Community Foundation. When a gift of $250,000 or more is made to the Foundation the management of those funds may remain with the donor’s financial advisor so long as Foundation policies, including its Investment Policy, are followed.

Members of the Board of Trustees and outside advisors that have either special expertise or experience related to investing make up the Community Foundation’s Investment Committee. This group is responsible for oversight of the Foundation’s investments and investment manager. The Investment Committee acts in accordance with, and the policy complies with, the requirements of the Michigan Uniform Prudent Management of Institutional Funds Act, MCL §451.921, et seq (“UPMIFA”). The Committee holds quarterly meetings and reports to the Board of Trustees.

The purpose of the Community Foundation’s endowment funds is to accumulate a pool of assets sufficient to support the purpose of each permanent endowment fund. While shorter-term investment results will be monitored, adherence to a sound long-term investment policy, which balances short-term spending needs with the preservation of the real (inflation-adjusted) value of assets, is crucial to the long-term success of the Foundation’s endowment funds.

Special consideration is made for non-endowed assets. These assets can have varying investment or deposit time horizons significantly shorter than those associated with endowed assets. The objective for managing and investing non-endowed funds is to maximize preservation of principal.

The Committee recently voted to include sustainable and responsible investments known as ESG (Environmental, Social and Governance) Funds in the Foundation’s portfolios.

“Charity and personal force are the only investments worth anything.” Walt Whitman

Creating A Legacy

The Foundation recommends Professional Advisors consider a Donor Advised Fund for a client who wants to create a legacy of giving that focuses on more than a single charity or interest, beyond one year or a short-term challenge of a specific nonprofit. With a Donor Advised Fund the charitable interest of the donor can be honored forever, encouraging succeeding generations to carry on their philanthropic goals.

When a new fund is established, the donor and the Foundation execute a Fund Agreement that describes the gift, outlines the administrative procedures and defines the charitable goals of the fund.

As an alternative, the Foundation recommends Professional Advisors consider a Scholarship fund for a client who values training programs and continued education for high school graduates as a means or honoring or memorializing someone. The Community Foundation awards several dozen scholarships annually.

“You cannot do a kindness too soon, for you never know how soon it will be too late.” Ralph Waldo Emerson

Gift Options

Professional Advisors may consult with the Foundation whether a client wants to donate now or is interested in learning what planned giving options are available. There are many ways for individuals, families and corporations to make gifts to the Community Foundation and create opportunities for tax savings. The Foundation accepts many types of assets to establish a Fund and help integrate charitable giving with financial and estate planning.

Current gifts include cash, check and credit card payments, publicly traded securities and bonds. Other types of gifts such as intellectual property, collectables and real estate may be accepted subject to review and approval by the Foundation’s board.

Planned gifts include naming the Foundation as a beneficiary in a will or trust and disbursements from a retirement plan or life insurance policy. Through the Community Foundation, a planned gift creates a permanent legacy that will serve the community for generations to come.

Contact the Community Foundation for bequests not addressed above or for language to establish a Fund from a donor’s estate. Foundation staff is available to review any proposed bequest language to ensure clear understanding of a donor’s objectives and to determine the Foundation’s ability to carry out the donor’s intent.

“Success is finding satisfaction in giving a little more than you take.” Christopher Reeve

Advisor Checklist

Establishing a charitable fund within the Community Foundation offers your clients the maximum tax advantages of a public charity and the opportunity to be involved and recognized. The Community Foundation can serve as your client’s “charitable checkbook” for those who typically contribute to multiple organizations. Your client can make one donation to the Client’s Community Foundation Fund and thereafter direct multiple distributions. Giving through the Community Foundation is easy, flexible and rewarding.

Checklist for Professional Advisors:

The Foundation can help if you have a client who –

• cares deeply about the community
• gives to more than one charitable cause annually
• wants to create a personal, family or business legacy
• wishes to stay involved in the distribution of their donation
• aims to receive the maximum tax benefit under federal law for their charitable contribution
• places a priority on sound financial management of their gift dollars

“To give without any reward, or any notice, has a special quality of its own.” Anne Morrow Lindberg