A Community Gathering
An Event Sponsored by the Oak Bluffs Council on Aging
Vineyard House Fundraiser. Photo courtesy of petersimon.
Vineyard Nursing Home Care
One Vineyarder Helping Another
African American Heritage Trail of Martha's Vineyard Site
Becoming a Donor
Establishing a fund with the Permanent Endowment for Martha’s Vineyard is a simple and effective way to accomplish your goals for charitable giving. The Endowment invests the gifts it receives and applies the earnings to grants supporting programs and projects that affect our community and to scholarships for Island students. As your partner in philanthropy, we will work together to improve the quality of life on the Vineyard not only today but forever.
Types of Funds
Annual Giving
(Unrestricted, Designated or Field of Interest)
Contributions can be made to the General Discretionary Fund or to the Island Fund which was created to provide flexibility for donors wishing to support the current needs of Island public and charitable organizations through the distribution of an annual gift. Donors are encouraged to seek guidance and assistance from the Endowment in directing their contributions to the organizations and fields of interest of importance to them.
Donor Advised Fund
A donor advised fund allows you to make grant recommendations from the fund you establish.
Named Fund
(Unrestricted, Designated or Field of Interest)
By creating a named fund, you are able carry out your charitable legacy forever. Your gift can be unrestricted and support changing community needs now and in the future. Or it may be designated for a particular organization, a number of organizations or directed to a specific field of interest.
Scholarship Fund
Through a scholarship fund, donors support Island students pursuing further education. You determine the guidelines for candidate selection and the requirements for use of the award as well as participate on the scholarship fund’s advisory committee.
Donors and Contributions
Eligible Donors
The Endowment accepts gifts from individuals, families, businesses, organizations, trusts and estates.
Donor Contributions
Cash, mutual fund shares, stocks, bonds and other securities – including restricted stock and the stock of closely held businesses – and marketable real estate are eligible for contribution to the Endowment.
Charitable Income Tax Deduction
You are eligible to take an itemized deduction for your contribution to a public charity on the date that the contribution is made, subject to IRS limitations. All donors are encouraged to consult their legal or tax advisor for more information.
Cash
You may deduct the amount of your cash contribution, subject to IRS deduction limitations.
Publicly Traded Securities
For publicly traded securities held for more than a year, your deduction is the mean of the high and low prices reported on the date the contribution is made. For mutual fund shares held for more than one year, your deduction is based on the closing price on the date the contribution is made. For securities or mutual fund shares held for one year or less, your deduction is generally limited to your cost basis.
Non-Publicly Traded Securities
For securities that are not publicly traded and have been held for more than one year, you will be required to provide the IRS with a qualified independent appraisal for any such contributed property for which you claim a deduction of more than $5,000. For securities held for one year or less, the deduction is generally limited to your cost basis.
Deduction Limitations
You are eligible for an itemized deduction for cash contributions to the Endowment in an amount up to 50 percent of your adjusted gross income (AGI) in the tax year in which the contribution is made. Deductions for contributions of appreciated securities held for more than one year are limited to 30 percent of AGI. Any excess amount may be carried forward and deducted over the following five-year period after the year of the contribution. Your deduction may be subject to certain other limitations.
Estate Planning
Your gift to the Endowment, and any earnings related to your gift, are not included in your taxable estate and are not subject to probate administration. Gifts to the Endowment are exempt from federal gift tax and federal estate tax.
Testamentary Gifts and Gifts from Trusts
A fund at the Endowment may be named the beneficiary of a bequest of cash or securities, including mutual fund shares, Individual Retirement Accounts (IRAs) and other retirement assets. In addition, the Endowment may be named the beneficiary of a charitable remainder trust, charitable lead trust or life insurance policy. You should seek tax and legal advice in setting up any testamentary gift or trust.
Tax Treatment of Fund Income and Grants to Qualified Organizations
Income that accrues to your fund is income of the Endowment. It is not taxable income to you, nor is it available as a charitable deduction. Income is reflected in the value of the fund by the Endowment.
Donor Funds and Investment Pools
The fund you establish is an asset of the Endowment, which will maintain an accounting of your contribution, income earned by the fund and the Endowment’s grants to qualified charitable organizations.
Investment Management
The assets of the Endowment are managed by the Martha’s Vineyard Financial Group according to the guidelines of the Endowment’s investment policy. Performance is reviewed regularly by the Endowment’s Finance Committee and its Board.
Donor Advised Fund Guidelines
A donor advised fund with the Permanent Endowment for Martha’s Vineyard provides you with all of the tax advantages of a gift made to a public charity, without the regulatory and tax responsibilities.
Internal Revenue Service Regulations
All foundations must follow IRS regulations regarding the management of donor advised funds. These regulations stipulate that a donor may not retain control over his or her donation. To satisfy these regulations, the foundation manages the assets of the fund. Donors advise the foundation on grant recommendations during their lifetimes. In compliance with IRS regulations, the foundation’s board retains the right to make final determinations with respect to distributions from the fund. Grants are made to organizations recognized by the IRS as tax-exempt charitable organizations under Section 501 (c) (3) of the Internal Revenue Code.
IRS regulations prohibit grants from any foundation’s funds to be used to pay dues for an individual’s membership in an organization, to discharge or satisfy legally enforceable obligations or personal pledges which have been made by the donor or a family member, or for any other purpose from which the individual will receive any personal benefit.
Grant Recommendations
Donor recommendations for grants typically are made in writing to the Endowment’s Board and may be made for general support of the recipient organization or for a particular program or activity.
When the Endowment receives recommendations from advised fund donors, it carefully considers the donor’s request and determines if the organization is a charitable organization recognized by the IRS. For those organizations with which we are unfamiliar, we will gather information on their purpose, governance, exempt and financial status. If a recommended organization fails to provide this information or meet IRS requirements, IRS rules prohibit the Board from awarding a grant.
It is our hope that donors to the Endowment will assist us in our mission to use our resources to benefit the community of Martha’s Vineyard. However, we recognize that there may be institutions important to you outside of the Island. We will work with you in supporting those organizations as well through the fund you establish.
The Endowment handles the grant recommendation process and issues checks to charitable organizations in the name of the donor advised fund. A letter specifically stating the name of the fund from which the grant is made in addition to the purpose of the grant accompanies all grant payments. Grants can also be made anonymously if the donor does not wish to be identified.
Advisory Rights
Only you and other advisors designated at the fund’s inception may advise the Endowment on distributions from the fund. The advisory relationship terminates with your death or that of the appointed advisors. The fund then becomes a Permanent Endowment fund, as you stipulate when the fund is established. The Endowment will manage the fund to meet your charitable interests in perpetuity.
General Operating Expenses and Charges to Donor Funds
Endowment funds are subject to fees in effect for each fiscal year. These fees are reviewed annually by the Board.
