Achieve Your Goals

The Community Foundation has two goals for its endowment investing – to preserve the purchasing power of the original gift(s) and to provide a steady stream of grantmaking income. Our Spending Policy, based on the Total Return Concept, accomplishes both goals.

The Community Foundation believes that the Total Return Concept (TRC) is the most effective way to invest permanent funds; that there is more to successful investing than merely maximizing current interest and dividend income; and that capital appreciation over time can be significant. Under the TRC, the interest and dividend income plus the appreciation (total market value) of the Community Foundation’s assets are taken into consideration in determining available grant dollars for distribution.

The TRC allows the Community Foundation to set a spending policy that is independent of the interest and dividend income earned by the funds and which may be more or less than the actual income earned by interest and dividends in any one year. The spending policy does not produce inordinately high levels of distributions because of the high market valuations and it does not produce detrimentally low levels because of market declines, thus smoothing out market volatility.

The level of spendable income is set at five percent (5%) of the rolling 23-quarter average market value of the endowment funds. Spendable income includes interest, dividends, and appreciation. The spending policy adjusts for unusual market fluctuations, thereby giving predictability to future distributions. In periods of poor market performance, newer funds may not have enough appreciation to make the full spending policy. In these circumstances, interest and dividends are available for spending.

Download the Spending Policy .

Gifts to the Community Foundation may take a variety of forms.  Many are outright gifts by living donors either on a one-time or periodic basis.  Others are bequests and testamentary gifts that take effect upon the donor's death. Some are deferred or split-interest gifts. The Community Foundation has a great deal of expertise with a wide variety of outright gifts including life insurance policies, real estate, tangible personal property, closely held stock, limited liability companies, partnership interests, and bargain sales as well as cash and publicaly traded securities.  Planned gift options include the Charitable Remainder Unitrust, Charitable Remainder Annuity Trust, Pooled Income Fund, Charitable Gift Annuities, Life Estate Agreement, Charitable lead Trust, gifts by Will or Trust, and Retirement Plan Assets.

All gifts must be reviewed by the President or Vice President, Advancement, and must adhere to established policies and procedures, and may need approval from the Board of Directors. Contact Jennifer Leonard (585) 271-4277 or Dana K. Miller (585) 341-4390 to get started.

A key consideration for donors interested in creating a fund at the Community Foundation is who will benefit from the fund. Fund founders may decide that it is the community as a whole that will benefit and therefore will create a General Purpose (or Discretionary) Fund, with grants supporting the changing needs of the community over time. A fund founder may be interested in limiting grant recipients to those addressing a particular purpose, for example, playgrounds, the environment, or the arts and will therefore create a Field of Interest Fund. Fund founders may want to designate (name) specific charities to receive grants through a Designated Fund (note that once named charities are listed in a Designated Fund agreement, they may not be changed); may wish to help students seeking education or training through a Scholarship Fund; or may wish to maintain maximum flexibility to recommend grants to any non-profit organization through an Advised Fund or Charitable Checking Account^SM.

Community Foundation are founded on the concept of “donor intent.”  We are obligated to adhere to the written language provided by the donor in a will, fund agreement or accompanying documents that establish a fund.  This obligation precludes the addition of binding restrictions on the fund that did not previously exist. This could include but would not be limited to adding a donor advisor, restricted clauses, or specific charitable beneficiaries; matters regarding permanence of the fund or timing of grant distributions; and requests for changes in standard policies of the Community Foundation.

However, in order to ensure that its assets remain relevant over time, the Community Foundation’s governing body – by law – retains variance power by which it may modify any restriction or condition on the distribution of funds for any specified charitable purpose or to specified organizations if the sole judgment of the board, such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the community served. Every effort is made to keep the varied use as consistent as possible with the original intent. To date (since 1982), the Community Foundation has used the variance power twice – once to redirect a fund established for the now-defunct Center for Educational Development to the purpose of “educational development and reform of Rochester public schools” and secondly to redirect funds intended for the now-defunct Genesee Hospital for “medical/dental equipment in order to serve the medical needs of the underserved, giving preference to those areas formerly served by Genesee Hospital.”

While the Community Foundation encourages grantmaking within the eight-county region around Rochester and has special expertise in local charities, we provide careful due diligence to ensure that all grants reach bona fide and operational charitable organizations. We check to make sure that the required charitable status of each organization is documented, that the charity is adhering to its mission, and that it is financially sustainable. The minimum grant amount for most funds is $250.

Each type of fund has its own grantmaking process and timeline. Discretionary and Field of Interest Funds accept applications from local non-profits on a predetermined schedule; staff and volunteer committees review them and recommend them to the Board of Directors for approval or decline. Recommendations for grants from Advised Fund grants are accepted from donor advisors on an on-going basis; they are processed weekly with recommendations received by Friday paid the following Friday. Grants from most Designated Funds to their predetermined charities are processed annually although schedules can be established. Online access to view fund activity and recommend grants is available free of charge.

We share information about regional grant opportunities with philanthropists quarterly, and provide personal assistance in giving upon request. International giving is possible through U.S.-based “friends” type organizations or churches.

The Community Foundation is our community’s “Catalyst for Change." We participate in local initiatives and work with other local nonprofit organizations to monitor the changing needs of our community. We can help you determine where funds are most needed at any time to make the greatest impact on our community’s largest or most pressing problems.

Donors have a right to know that grants from their funds are doing what they intend. A formal process of grant reporting and evaluation is being put in place for grants made from Discretionary and Field of Interest Funds. This information will be shared with Community philanthropists through our newsletter, quarterly mailings, website, press releases, etc. Grants from Advised Funds and Charitable Checking Accounts are accompanied by letters stating the purpose of the grant, the fund from which it is paid, and how to direct thanks; philanthropists may receive copies of these letters. Philanthropist who want to see their grants at work also may participate in site visits to organizations.

You can be as connected to the Community Foundation as you want! At the very least, you will receive from us - quarterly fund statements accompanied by a letter from our President, Jennifer Leonard; quarterly Giving Opportunities coving a wide variety of issues where support can make a difference; occasional newsletters; an annual report or update; and invitations to educational or social events. You can always check our website or utilize our online DonorCentral service to view your fund activity 24/7. And we encourage you to contact Stefanie Griffin with any philanthropic questions or concerns. (We promise to get back to you with an answer or status within a day!)

Each fund at the Community Foundation is assigned a staff member who serves as its “fund manager.” That person is responsible for being the most knowledgable about the fund: making sure that grants from the fund are appropriate as to purpose and intent; looking for opportunities to engage and leverage the fund donor’s interests and resources for additional engagement and impact; welcoming and integrating new funds and their donors into the appropriate process; and – when necessary – closing funds.

The Philanthropic Services department is dedicated to ensuring that each donor is satisfied with his or her relationship with the Community Foundation. Stefanie Griffin is happy to help donors create personalized grantmaking programs, arrange site visits, meet with other interested philanthropists, or explore new opportunities. Regular education and engagement opportunities are offered, including presentations, discussions, and luncheons; 21st Century Club events; and Joe U Posner Breakfast series. Contact Stefanie for more information or to get involved.

Confidentiality: Privileged information
Staff, board members, and volunteers of the Community Foundation are bound by a code of ethics that stresses the proprietary and confidential nature of the information they deal with. Each person has the professional and ethical responsibility to treat this information as privileged and to ensure such information is not improperly or accidentally disclosed. We do not sell any donor or grantee information or make such information available to other sources. Donors may indicate the degree to which they want us to share personal information (name, address, fund name) with grantees. (See Anonymity section below.)

Anonymity: Personalized to your specifications
Issues of anonymity affect both donor information and fund information. Each donor may determine the desires degree (if any) at the time the fund is established and may change it at any time. The following questions are considered:

• Do you want your name(s) given to grant recipients?
• Do you want your address given to grant recipients so they can thank you directly?
• Do you want to be identified as a donor to the Community Foundation?
• Do you want your name(s) listed in Community Foundation publications? If yes, please indicate how you would like your name(s) to appear:

• May we list your Fund in our annual or biennial report or other publications?
• Do you want the Fund amount listed in the annual or biennial report or other publications?