Hiawatha Community Foundation is an Affiliate of the Greater Manhattan Community Foundation, which is a non-profit 501(c)3 organization. The HCF Board decided affiliation was the best route for Hiawatha to benefit from establishing a community foundation.
GMCF takes care of all the legal and accounting work for us for 1% of the Annual Amounts. (Or 1/12% each month is taken from the funds). The Hiawatha Community Foundation receives ¼ of 1% and GMCF keeps ¾% for Administrative purposes.
What are the benefits of having a Community Foundation are:
- A Community Foundation helps current 501(c)3 Non-Profits and Groups that we sponsor with a fiscal sponsorship to broaden their net of donors. Website presence not only on the Fund Holders site but also on our web page. (Give example of missed out donation to Sabetha Hospital)
- A Non-Profit or Fiscal Sponsored Organization signs on with the Community Foundation to be a Fund Holder by completing a Fund Agreement and paying $1000.00 to begin the process. The money is theirs and they have control of it.
- A Fiscal Sponsorship provides the ability for an organization or group that works within the community but is not a designated 501(c)3 so they can get tax deductible donations.
- You ask how does this match day work – For example if we do a 1:1 match so when you make a donation of say $100.00 to one of the above funds and then the Foundation uses their match money to match yours to make the donation to the fund a total of $2000.00. There is a cap that each fund can receive.
There are different ways in which one can donate to the Hiawatha Community Foundation – donation of stocks/bonds, cash or gifts of grain. If a farmer donates grain, they take the grain to the elevator and let them know that it is for the Hiawatha Community Foundation. We in turn take control of the grain and GMCF sells the grain. The farmer gets the benefit of the donation and they don’t have to claim the bushels donated on their taxes, but they get the claim the expense of raising those bushels of grain.
The flexibility of the Foundation allows individuals or organizations to choose from any one of the following fund options – Unrestricted Funds, Field of Interest Fund , Designated Fund, Scholarship Fund, Donor Advised Fund. Currently we have Designated Funds and a Donor Advised Fund set up.
Each Fund Holders decides what type of Portfolio they want their money to be placed in – Growth, Balanced, Income, Capital Preservation or Money Market.
Greater Manhattan Community Foundation has a great group of staff that is a great resource to us. They help us out with our Webpage, advertising, any questions that come up and support. They also support the Fund Holders in many different ways. They work behind the scenes during our match days.
If anyone has any questions regarding the Hiawatha Community Foundation or would like to know how to help the Hiawatha Community Foundation to help others. Please contact us at 785-740-4423 or www.hiawathacf.org