Author: Kirk Demyan, Vice President & Chief Financial Officer
Why is TFEC a better choice for charitable giving than commercial charitable gift institutions?
At TFEC we provide you with flexibility in giving and peace of mind with your contributions. Because of TFEC’s variance power, your gift will never become obsolete and will always represent your initial charitable intent. We have established, expert investment policies, oversight, and a total return investment philosophy. Our investments are not limited to the options offered by a particular mutual fund, family, or financial institution. Other members of the community can also contribute to your fund. We partner with you to help you achieve your charitable goals.
What advantage is there to using TFEC when I could just give to my favorite local charity?
Most nonprofit organizations are experts in their particular service areas, but are they experts in investment management and oversight? Do they have investment policies that are designed to provide a predictable income, while providing for growth and avoiding the erosion of buying power due to inflation? Are there absolute safeguards in place that protect the principal from being invaded for emergencies or by a future spendthrift board of directors? TFEC can answer “yes” to all of these questions. While some larger organizations have development staff, many smaller ones do not. TFEC can offer you the expertise of a team knowledgeable about sophisticated gift plans such as charitable remainder trusts and gifts of real estate. Most donors also have multiple charitable interests. TFEC can set up a single endowment fund for you to support one or many charities. It is easy to accomplish all of your charitable goals in our “one stop shop.” Most of us believe that our favorite nonprofit organizations will continue to exist forever. Unfortunately, history tells us that this is not always the case. TFEC has the built-in flexibility, through the Board’s variance power, to redirect funds to a similar purpose if a named nonprofit organization ceases to exist. This flexibility assures that your legacy endures forever and your charitable intent is maintained and never used to pay off the debts of a nonprofit organization in financial trouble.
Can I create a memorial fund to honor my relative who was always interested in children’s health?
You can establish an Area of Interest Fund, named for your relative, which directs grants to nonprofit organizations that promote children’s health. TFEC’s community investment team and grantmaking committees identify worthy and effective nonprofit organizations to be supported by the fund.
Is there a way I can use TFEC for my charitable giving without committing to a specific nonprofit organization or even a particular purpose?
TFEC offers a variety of flexible plans for donors who wish to be active in recommending the best use of funds annually. We can help you develop a plan that provides the flexibility you desire with your charitable giving through either a permanent or nonpermanent Donor Advised Fund. TFEC’s Board of Directors must ratify all grant recommendations of donor advisors.
Are there any limitations to what TFEC can do?
There are some limitations placed on all nonprofit organizations and as such, we are limited by statutes, regulations and policies, and we work diligently to comply with all such limitations. We make grants to nonprofit organizations described under Section 501(c)(3) of the Internal Revenue Code. Among other limitations we cannot: make grants to individuals, influence legislation, pay a donor’s pledges, dues, or memberships, provide grants for any purpose that provides direct benefit to the donor.
Are you interested in learning more about how TFEC can help you achieve your philanthropic goals? Contact our experts!