Advisor Toolkit – Community Foundation of Greater Greensboro

Investment Options

Kabrina Shamburger on March 25, 2024

The Community Foundation of Greater Greensboro offers four primary investment options: Main (Long-Term) Pool, ESG Pool, Direct Asset Manager Portfolios, and Charitable Trusts’ Portfolios. Most assets are invested in one of the Community Foundation’s pools, based on the preference and the time horizons of our donors. Large investment pools benefit from economies of scale in terms of both investment fees and access to types of investment holdings. Over time, lower investment fees result in higher annual grant support for charitable causes.

Main (Long-Term) Pool

Our largest pool to date has a long-term horizon, with a broadly diversified portfolio, including specific allocations to private capital investments. For this long-term pool, the Investment Committee is responsible for selecting the investment managers, along with all other aspects of investment policy.

ESG Pool

Investments for this pool are focused on investment managers and underlying companies that integrate environmental, social, and corporate governance (ESG) factors into their business practices and decision-making processes. As with the Main Pool, the ESG Pool has a long-term focus, and the Investment Committee is responsible for selecting its managers and overseeing the investment policy.

Direct Asset Manager Portfolios

These represent a pool(s) of charitable assets managed by local investment advisor(s) in order to enhance client relationships and facilitate charitable giving to the Community Foundation. The minimum balance for a Direct Asset Manager portfolio is $500,000, and total fees should be comparable to the Community Foundation’s Main Pool. Direct Asset Manager accounts may not confer any financial benefit to the donor or related party. The Investment Committee maintains fiduciary responsibilities for the approval of these Manager relationships, along with oversight of asset allocation and investment policy.

Charitable Trusts’ Portfolios

These are charitable trust accounts, established by donors, in which the Community Foundation retains a financial interest. Investment managers may be selected by the donor. Similar to a Direct Asset Manager portfolio, the Investment Committee maintains all fiduciary responsibilities for these assets and for setting overall investment policy.

Short Term Pool

The Community Foundation also has a short-term pool which is invested solely in cash equivalents, and an option for a 50/50 “balanced” pool, invested in publicly traded, liquid equity, and fixed income holdings.

Talking with Your Clients about Philanthropy

Kabrina Shamburger on January 7, 2024

Talking Philanthropy

According to recent studies, 91% of high net worth individuals donate to charitable organizations. By engaging in conversations about philanthropy with your client, you have an opportunity to deepen your relationship and provide comprehensive, unbiased information so they may make good long-term decisions. The Community Foundation of Greater Greensboro is here to provide philanthropic resources you need.

When Should Advisors Have a Conversation about Charitable Giving?

Writing or revising a will or trust
Planning for year-end tax strategies
Preparing for the sale of a business or major asset
Planning for retirement
Receiving an inheritance
During annual financial reviews

The Community Foundation of Greater Greensboro makes it easy and meaningful to give back to Greensboro. Just ask the hundreds of individuals, families, businesses, and nonprofit organizations that have partnered with us. Your clients can join in making an immediate and lasting impact by establishing their own fund or giving to one of our existing funds.

Cathy Knowles

VP Development and Donor Engagement

Whether your clients want to give today or in the future, we can help devise a strategy that matches their philanthropic interests.

Benefits of a CFGG Donor Advised Fund

Kabrina Shamburger on January 7, 2024

Knowledge of local organizations. CFGG works with nonprofits in our community every day, and we can provide valuable information to help you plan your philanthropy.

Simplified Recordkeeping. We keep track of your donations, providing timely gift acknowledgments, and we utilize professional money managers for endowed assets. Statement access is provided securely online.

Tax Timing Advantages. From a tax perspective, it may make sense to make larger charitable contributions in some years more than in others. With a donor-advised fund, you can make contributions in years when it’s more tax advantageous, and then make charitable distributions in subsequent years- without having to add to the fund each year.

Fast and Easy Set-up. A non-endowed donor-advised fund can be opened in a day with a simple one-page agreement and an initial gift of $10,000 or more. An endowed donor-advised fund is established with an agreement and can be set up in a few days with an initial gift of at least $25,000.

Modest Fees. A donor-advised fund is typically less costly and easier to administer than other forms of organized giving, such as family or corporate foundations.

Make Charitable Grants Anonymously. If desired, you can make grants anonymously on a grant-by-grant basis.

Avoid Capital Gains Taxes on Appreciated Securities. If you have stocks or bonds purchased more than a year ago that are worth more now than when you bought them; you will not have to pay capital gains taxes on the earnings if you gift them to the Foundation.

Give Strategically. You can choose to partner with the Foundation to fund Community Grants in a variety of areas to strengthen the community.

Grow Your Giving Capacity. When you open a donor-advised fund, your initial gift can grow significantly over time, and all growth in the fund is tax-free.

Make a Difference in Perpetuity. You can name a second generation of advisors to a donor-advised fund.

Explore Fund Types at the Community Foundation

Kabrina Shamburger on January 7, 2024

The Community Foundation of Greater Greensboro offers a wide variety of giving vehicles, making it easy for you to support your favorite organizations and causes during your lifetime and after. Here are some options you might consider:

Donor Advised Funds give donors simplicity and flexibility in their giving and tax planning.

You make contributions to your fund and recommend grants to qualifying charities; the fund operates like a “charitable checking account” but is invested in the foundation’s long-term investment pool, unless advised otherwise.
You receive an immediate tax deduction whenever you add assets (cash or non-cash assets) and pay no tax on the fund’s future earnings.
You can let the fund grow until you are ready to recommend grants without being obligated to make a minimum distribution.
You may manage your grantmaking online and access historical reports on gifts, grants, and performance of your fund.
You may create a tradition of giving by naming future generations as successor advisors.
You can continue your support in perpetuity if you choose to endow your fund.
All financial reporting is done by the Community Foundation.

Special Interest Funds allow you to support your favorite non-profit organization, school, or religious institution in perpetuity.

This is an endowed fund – you are creating a permanent charitable legacy.
The organization receives the benefit of endowed funds but isn’t burdened with the management and record-keeping requirements.
Your fund will be invested in our long-term investment pool, minimizing fund costs and improving efficiency; the fund’s earnings will provide the grantmaking resources to the designated institution.
You receive an immediate tax deduction on all your contributions, and the Community Foundation provides all necessary administrative and record-keeping services.
If the beneficiary organization ceases to exist, loses its tax-exempt status, or changes its mission, the Community Foundation can redirect support for a purpose as close as possible to your original intentions.

Field of Interest Funds let you support your favorite cause or need in the community in perpetuity. You identify the area of focus and entrust the Community Foundation with the responsibility of selecting specific recipients of grants from your fund. By doing so, your gift is flexible enough to meet changing community needs.

This is an endowed fund – you are creating a permanent charitable legacy.
Your fund will be invested in our long-term investment pool, minimizing fund costs and improving efficiency; the fund’s earnings will provide the grantmaking resources.
You receive an immediate tax deduction on all your contributions, and the Community Foundation provides all administrative and record-keeping services.
You are able to tap the Community Foundation’s expertise in program areas to make the most impactful grants to target your issue.

Unrestricted Discretionary Funds give the Community Foundation the ability to take on forward-thinking projects as the needs arise across Greensboro.

This is an endowed fund – you are creating a permanent, named charitable legacy.
Your fund will be invested in our long-term investment pool, minimizing fund costs and improving efficiency; the fund’s earnings will provide the grantmaking resources.
The Community Foundation’s staff and Board of Trustees have been at the forefront of addressing community needs through thoughtful, well-researched local initiatives; this type of fund provides a cornerstone for our civic leadership.
You receive an immediate tax deduction on all your contributions and all necessary administrative and record-keeping services are handled by the Community Foundation.
You join some of the most notable philanthropists in Greensboro as change agents for our community, and your giving will be magnified by the collective power of other unrestricted gifts, allowing the Community Foundation to leverage its impact.

Legacy Funds can be used to fulfill a broad array of charitable, community, or estate-planning interests.

These funds can be endowed or time-specific.
Your fund will be invested in accordance with its charitable interest.
You receive an immediate tax deduction on all your contributions and all necessary administrative and record-keeping services are handled by the Community Foundation.

IRA Qualified Charitable Distribution

Kabrina Shamburger on January 7, 2024

The IRA Charitable Rollover provision allows individuals who have reached age 72 to donate up to $100,000 per year to eligible charitable organizations directly from their Individual Retirement Account (IRA) without treating the distribution as taxable income. These gifts can be used to meet the donor’s required minimum distribution. Individuals may exclude this income from their gross income on their Federal income tax return.

During your lifetime, gifts from your IRA can be given to many funds at CFGG, including community endowment funds, scholarship funds, organizational endowments, and field of interest funds. The IRS does not allow QCDs to be made to a Donor-Advised Fund. Contact us for a complete list of funds available.

It’s easy to make an IRA rollover gift. Contact your IRA plan administrator to transfer your gift amount to CFGG (56-1380249), then contact your development team at development@cfgg.org to let us know which fund you would like to support.

Please consult with your professional advisors to determine if an IRA Qualified Charitable Distribution may be a viable option for you.

*Before 12/31/19, the age for distribution was 70.5.