Waco Foundation's Board of Trustees takes its role of steward of charitable intent very seriously. They seek to maintain the (1) purchasing power of funds entrusted to their care as well as (2) the philanthropic intentions of those who love Waco and call it home, past and present. Our investment policy provides growth that will maintain the value of the funds over time within risk that is appropriate for charitable endowments. In addition, a fund at Waco Foundation maintains donor intent permanently. Donors state intentions that are maintained as permanent records to advise future boards about the spirit and values behind the giving....the role of the Board of Trustees is to provide stewardship of these intentions in perpetuity.
As a public charity, Waco Foundation allows for donors to take a tax deduction of 50% of Adjusted Gross Income as compared to a 30% deduction for a gift to a private foundation.
Waco Foundation has been funding charitable organizations for over 50 years, and our work requires that we are constantly meeting with the local nonprofit community and listening to their needs. As a result, we are highly familiar with the range of organizations serving the community. In addition, not only do we maintain records on local organization tax status and current work, we also confirm the tax status of each advised gift, providing assurance that the recipient organization has maintained its charitable tax status with the IRS.
Donors may define income one of four ways, and many donors opt to use Waco Foundation’s spending policy, which is 5% of the average ending balance of the 28 trailing quarters (seven years). This allows for relatively steady income from endowed funds during severe economic downturns (even the most recent financial crisis). Waco Foundation maintained and even increased grantmaking budgets during the past few years as a result of using this conservative spending policy. This spending policy allows for steady streams of funding for local charities during economic downturns, which can stabilize revenue streams during inevitable stressful periods.
If your clients have their own private foundation, they may be interested in learning the benefits of converting it to a fund at Waco Foundation. A fund at Waco Foundation offers a simple solution to individuals and families that want to reduce administration and not be subject to annual payout requirements. A fund at Waco Foundation allows the philanthropist to focus on the giving instead of the administrative costs and IRS filings. This solution is an option for family foundations that are being divided with estate transitions to accommodate multiple generation families in different communities.