Ideas for Giving
Information for Donors
Every individual is capable of becoming a philanthropist and the Community Foundation of Southern Maryland is here to show you how.
Folks can set up their own fund, endowment or scholarship and choose the type of fund – see Types of Funds below.
What is an endowment? An endowment is a permanent fund on which the earnings are available for grants for nonprofit organizations while the principal (the amount deposited into the fund) remains intact. The amount available for the grants are based on the Community Foundation’s spending rate. Our current spending rate is:
- After One Year 2%
- After Two Years 4%
- After Three Years Plus 5%
What is philanthropy? The word is of Greek origin, meaning, "Love for humankind." Today, philanthropy includes the concept of voluntary giving by individuals or groups to promote the common good.
Philanthropy addresses contributions by individuals or groups to other organizations that in turn work to alleviate the causes of poverty or social problems—improving the quality of life for all citizens.
Philanthropic giving also supports a variety of activities in the areas of research, health, education, arts and culture, and environmental issues.
Ways to become a philanthropist with the Community Foundation of Southern Maryland
- Do you want to give; but are only "rich" in assets? Donate a piece of personal property (art, jewelry, etc.) or real property (land, farm, acres, etc.) to the Community Foundation and we will take care of the rest. The funds made on the sale can go to a specific charity; an area of interest (like art; youth; etc.) or to the Community Foundation’s Capacity Building Fund. You pick.
- Create a Fund in memory of someone special; in honor of someone special; in your family’s name or call it whatever you would like... This Fund will distribute grants to a specific nonprofit or to several. You can be involved in the giving or let the Community Foundation handle the giving for you. As long as the Fund is giving money, you or whomever the fund is named after will always "get credit" for the contributions.
- Are you a non-profit saving money for a capital improvement project or just want to have additional funds always available for operating? Start your own agency endowment and invest money while you are saving it.
- Getting tired of the paperwork with the IRS -- Dissolve your family foundation into a fund within the Community Foundation;
- Contribute to the Community Grant Fund – the CFSOMD’s own unrestricted grant fund used for distributing grants to non-profits serving Southern Maryland.
The Community Foundation of Southern Maryland Accepts:
- Appreciated Securities
- Assets of private foundations
- Charitable IRA Transfers
- Life Insurance
- Planned Gifts
- Real Estate or Personal Property
Types of Funds
- Unrestricted Fund
- Used to support CFSOMD’s annual grantmaking. There are no restrictions on its use, but typically follows grant guidelines.
Ideal for: Bequests, CFSOMD’s board and friends, donors who want to give back to his/her community but not be directly involved.
- Field of Interest Fund
- Dedicated to a specific cause or "field" of grantmaking (e.g. arts, youth, education, environment). Allows CFSOMD to make grant decisions per fund agreement.
Ideal for: Bequests, CFSOMD board and friends, donors who are committed to certain causes but not specific nonprofits.
- Donor Advised Fund
- Like a private family foundation, allows donors to make grants from his/her fund. Final approval rests with CFSOMD. Successor advisors okay if included in fund agreement.
Ideal for: Donors who want to help decide on grants, but don’t want the hassle of setting up their own private foundation.
- Scholarship Fund
- Educational or vocational scholarships for area youth. Follows CFSOMD scholarship process and guidelines. Donor may participate in process, but can’t make final decision alone.
Ideal for: Bequests, donors who want help administering a scholarship program.
- Designated/Organization Fund
- Established by a donor to benefit a specific nonprofit. Can also be set up by a nonprofit to benefit itself. Funds are used solely to support named NPO beneficiary.
Ideal for: Bequests, nonprofit organizations and their board members, donors who are committed to helping a specific nonprofit.
- Supporting Organization Fund
- A separate 501 c 3 nonprofit under the umbrella of the Community Foundation. The CFSOMD must nominate 51% of this organization’s board; donor may nominate the rest.
Ideal for: Donors (for their professional advisors) who want more control and are willing to pay the extra set up charges.