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 Frequently
Asked Questions
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details.
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What is
the Tipton County Foundation?
The Tipton
County Foundation is a volunteer-driven public charity established in 1986 to
serve donors, award grants, and provide leadership to improve the quality of
life in Tipton County, forever. Contributions are tax-deductible under sections
501(c)(3), 509, and 170 of the Internal Revenue Code. (Federal ID# 31-1175045)
Tipton
County Foundation was recognized in January 2007 for having organizational and
financial practices that are in accordance with the Ethical and Operational
Standards for Indiana Community Foundations. These Standards demonstrate the
foundations’ transparency and financial responsibility in light of the increased
public scrutiny of foundation practices. In addition, Standards were developed
to distinguish community foundations from other philanthropic vehicles, build
the capacity of community foundations to carry out their missions, and assist
the field with self-regulation in a manner viewed positively by the Internal
Revenue Service. In order to achieve Confirmation of
Compliance with the National Standards, community foundations must undergo
an extensive review of their organizational and financial policies and
procedures. The review is performed by trained, experienced community foundation
practitioners, coordinated through the Indiana Grantmakers Alliance.
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What is
a Community Foundation?
A
tax-exempt, nonprofit, autonomous, publicly supported, nonsectarian
philanthropic institution with a long-term goal of building permanent, named
component funds established by many separate donors for the broad-based
charitable benefit of the residents of a defined geographic area, typically no
larger than a state.
There are over 90 community foundations and affiliate funds in Indiana. If you do not live or work in, or have
roots in, or another
connection to Tipton County and its people or institutions, you may want to use
the resources of the Indiana Grantmakers Alliance. Use
this tool to locate a
community foundation near you.
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What is
meant by “Volunteer-driven?”
TCF is
governed by a Board of Directors who serve four-year terms without financial
compensation. No one can serve more than ten consecutive years, but may be
re-elected or appointed after a lapse of at least one year. The names, terms,
and electing or appointing authority for the current Board may be found on the
Vision and Values page of this website.
The Board
regularly meets quarterly and makes policy decisions, approves committee
recommendations, develops strategic and operational plans, and evaluates staff.
They also individually lead and serve on operating committees.
The role of
staff is to assist volunteers with planning, organization, development, and
evaluation of all aspects of the Foundation. The employees perform
administrative duties, follow Board-adopted policies, comply with government
regulations and other laws, communicate with Foundation grantees, vendors, and
other contacts, and recommend plans, policies, and procedural alternatives for
Board or committee decisions. Staff members help to develop meeting agendas,
monitor follow-up, prepare communications, and accomplish objectives, all under
volunteer direction.
Major
committees meet quarterly, or more frequently when needed, and include Board
members as well as other members of the public who have a particular interest or
expertise in the work of that committee. The current active committees are
Finance/Investment, Grantmaking,
Scholarships, Resource
Development, Volunteer Development, and Conference
Center.
Project
sub-committees are also formed to diversify volunteer input and leadership even
more, and to enable community members to take part in the aspects of the
Foundation that interest them. Active sub-committees are currently working on A
Ducky Day in Tipton Park (August 24, 2008) and the growth of the
Women’s Fund.
Additionally, a committee is being formed in 2008 that will focus on a project
to develop a Volunteer Center to assist all the organizations that depend on
volunteers to make them work, including clubs, churches, schools, sports
leagues, and other institutions, as well as the social service agencies. Also,
representatives of the incorporated nonprofit agencies will be asked to make
plans for the future of the United Community Fund as
a means of collaborative fundraising. If they decide to go forward, campaign and
allocation committees will be organized with grassroots involvement of more
people.
People with
roots, residence, or business in Tipton County are welcome to become Foundation
volunteers. Orientation meetings are scheduled as needed and an agreement is
signed by both the new volunteer and a Foundation representative. Fundamental to
every “job description” is the commitment to make a personally significant
investment of time, talent, and treasure in a particular aspect of the Tipton
County Foundation, and encourage others to do the same. A
PowerPoint presentation about
Foundation operations may be viewed on this website.
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What is a Public
Charity?
A nonprofit
organization that qualifies for tax-exempt status under section 501(c)(3) of the
IRS code and that receives its financial support from a broad segment of the
general public. Organizations exempt under Section 501(c)(3) must pass a public
support test to be considered public charities, or must be formed to benefit an
organization that is a public charity. Charitable organizations that are not
public charities are private foundations and are subject to more stringent
regulatory and reporting requirements. Back to Top
What is the Public
Support Test?
There are
two public support tests, both of which are designed to ensure that a charitable
organization is responsive to the general public rather than to a limited number
of people. One test, sometimes referred to as 509(a)(1) or 170(b)(1)(A)(vi), is
for charities that rely mainly on gifts, grants, and contributions. To be
automatically classed as a public charity under this test, organizations must
show that they normally receive at least one-third of their support from the
general public (including government agencies and foundations).
The second test,
sometimes referred to as the 509(a)(2) test, applies to charities that get a
substantial part of their income from the sale of services that further their
mission. These charities must pass a one-third/one-third test. That is, they
must demonstrate that their sales and contributions normally add up to at least
one-third of their financial support, but their income from investments and
unrelated business activities does not exceed one-third of support.
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What
are the Programs of the Tipton County Foundation?
In order to
have the resources needed to improve the quality of Tipton County life, the
Foundation’s primary function is to work with donors. Everyone can be a
philanthropist through the Tipton County Foundation. If a fund does not
exist already to fulfill a donor’s charitable intent, it can probably be created
in a legal and ethical manner, that will accomplish the donor’s wishes for all
time.
Endowed
dollars are invested to provide the proceeds that can be spent each year.
Besides the direct distribution of fund earnings for their intended purposes,
contributions and earnings provide resources for grants to Tipton County groups
for the charitable projects they care about.
The
Foundation administers funds contributed for certain well-known programs,
raising the money and paying it out as needed by the organizations that actually
run the programs. For example:
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City of
Tipton Fireworks
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Shoes
for Kids, now administered by Tipton County Mustard Seed
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Medicine Chest, a prescription fund now operated by the Tipton County Senior
Center
The
Foundation also assists other groups by collecting and growing their building
funds, or unincorporated charitable efforts, like Eagle Scout service projects,
by handling donations in a legal manner.
Projects
administered more directly by the Foundation include:
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A Ducky Day in Tipton Park, a family-oriented
community activity involving every interested group that focuses on young
children.
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Higher Education Promotion, involving
administration of scholarships, as now required in compliance with federal
law, through the local high schools and their affiliated Dollars for
Scholars programs.
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The Women’s Fund, a new initiative, enabling women
and girls with roots in Tipton County to unite their charitable giving. This
will lead to grantmaking that creates a stronger, healthier, and more
vibrant community where women are empowered to reach their full potential.
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The United Community Fund, carrying on the
valuable mission of the Tipton County Community Fund, following their
corporate dissolution in 2007.
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Volunteer Center. This project, in collaboration with all the organization
that rely on volunteers for their operation, is at the dreaming stage. It is
hoped it can assist all the organizations that depend on volunteers to make
them work, including clubs, churches, schools, sports leagues, and other
institutions, as well as the social service agencies. It would eventually
conduct a “Leadership Tipton County” training program to help prepare people
for membership on nonprofit boards of directors.
An
organized community program that makes annual appeals to the general public for
funds that are usually not retained in an endowment but are instead used for the
ongoing operational support of local agencies. Contributions received by the
United Community Fund will be distributed in 2008 to
the organizations that had a partnership with the former Tipton County Community
Fund in 2007. Those agencies will also make plans for the future of
collaborative fundraising. Some donors designated a preference for the
allocation of their gift, and those designations will be fulfilled.
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What
other Funds does the Foundation include?
Donors may
set up advised or designated funds where the Foundation administers them and
provides a permanent stream for earnings to fulfill their charitable intent.
There are also numerous scholarship funds handled in a similar way at the
Foundation. Agency endowments exist to benefit designated organizations, and the
annual proceeds are made available for use at their discretion (once the fund
value has reached at least $10,000).
Field of
Interest Funds have been set up for any donor to contribute to a cause he or she
cares about without naming a particular organization. The Foundation makes
grants to these as the needs arise. They include:
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#305
City of Tipton Fireworks
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#314
Disaster Recovery
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#507
Schram Education Fund (Not Scholarships)
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#544
Tri-Kappa Park Gazebo Maintenance
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#551
American Legion Veterans Memorial
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#560
Women’s Philanthropy
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#561
Arts & Cultural Interests (Theater, Musical Performances, Exhibitions)
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#562
John B. Findling Legacy (The “Findling Trust” for
the Neediest Children)
Does
the Foundation control every charitable contribution and nonprofit
organization in Tipton County?
No. There
are several organizations incorporated in Tipton County that are also nonprofit
charitable organizations, tax exempt and eligible to receive tax-deductible
contributions under section 501(c)(3) and other sections of the Internal Revenue
Code.
Most
incorporated nonprofit organizations are exempt from paying taxes,
but donors to those that are 501(c)(4) or higher designees are generally not eligible to deduct those gifts from their adjusted gross income.
(Certain exceptions can be made for fire and rescue squads and veterans’
organizations.) While many individuals are not that concerned about
deductibility, especially if they do not itemize on their tax returns, larger
individual donors may want to consider this. Many corporations will not give
except to 501(c)(3) charities.
There are
new regulations for processing and acknowledging donated dollars, that are more
time consuming and expensive for small nonprofits to comply with. There is an
economy of scale, and the Foundation is happy to assist any charity,
incorporated or not, with its own fundraising, to whatever extent that charity
would like.
Almost all
incorporated social service organizations in Tipton County receive grants, even
annually, from the Foundation, amounting to a significant portion of their
operating budgets.
The only
control the Foundation exerts is required by federal law. It is that dollars
that pass through its books must be used exclusively for charitable purposes.
The recipient organization must report on the use of funds and return any that
are not used for the intended purpose. Back to Top
Whether your
resources are great or small, and whatever your charitable intent, your local
community foundation can help you support the causes you care about--now, and
forever.
You can make a
gift in memory of a departed loved one or in appreciation of a
significant birthday, anniversary, graduation, wedding, or other occasion or
achievement. Besides acknowledging the tax-deductible gift to the donor, the
Foundation informs the bereaved family (or honoree in the case of tributes) that
you have paid homage by making a lasting investment in the community- and the
donor may specify whether the gift should be invested or what cause it should
support.
Email
the Foundation staff or call 765-675-8480 to arrange a visit to discuss how you
can make a personally significant investment of time, talent, and treasure in
the Tipton County Foundation, and encourage others to do the same.
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Please contact us to ask.
        
Last modified:
Monday, July 14, 2008
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