
Frequently Asked Questions
What is the community trust foundation?
Established in 2006, the Community Trust Foundation, Inc. (CTF), is a 501(c)(3) charitable organization serving Allegany, Garrett, and Mineral Counties. The mission of CTF is to strengthen the region by working in partnership with donors and community groups. We put our donors’ generosity to work through strategic grantmaking and connecting donors with opportunities to make an impact. We support our community, collaborate with community partners, and facilitate philanthropy for good across the region. We are the causeway to growing stronger, more vibrant communities.
How does a community foundation differ from other nonprofit organizations?
As a philanthropic leader, we understand the needs of our community and make it easy for our local citizens to establish funds that will serve organizations and programs important to them. The breadth of our mission provides many unique opportunities for donors to make a difference in the community in which they live – for good, for ever
How is the Community Trust Foundation funded?
We cover our administrative expenses by charging a small annual fee to each fund. Our major source for funds comes from local citizens of varying means, who donate their assets to help improve the quality of life in their region. Many contribute cash, securities, insurance, and real property as outright gifts, or they give through their personal will or other planned giving instruments.
What types of charitable funds are available?
Donor Advised Fund- we help you create a fund for your specific charitable intent, and you reserve the right to recommend grants. Although federal tax law requires the Foundation to make the ultimate decisions, we endeavor to follow your wishes under the law.
Field of Interest – we help you create a fund in which you specify your general area of community needs. Then, CTF awards the grants to address your area of concern such as the arts, education, healthcare, youth, animal welfare, environment, and historical preservation.
Restricted Fund-you designate one or more existing charities to be supported, and we will issue grants to those respective charities. The board’s variance power equips them to ensure the fund remains relevant over time.
Unrestricted funds –we help you establish a fund and CTF awards grants in response to community needs, forever.
Scholarship Fund –you specify the criteria for the scholarship and may participate on the scholarship selection committee.
Smaller donations are always valued and can be used to supplement any existing fund.
What types of donations does CTF accept?
Cash gifts are the swiftest and easiest form of contribution.
Appreciated securities may frequently be more advantageous than making a direct cash gift. Contributing appreciated stock or mutual fund shares allows the donor to avoid capital gains tax on the appreciation and usually allows the donor to deduct the full fair market value of the stock for income tax purposes. Closely held stock may also be given to the Foundation.
Real estate gifts provide tax savings similar to gifts of appreciated securities. Real estate gifts must be readily marketable and free of environmental concerns.
Life insurance policy ownership may be assigned to the Foundation. By naming it as an irrevocable beneficiary gives the donor an immediate tax deduction for the present cash value of the policy, while at the same time making a considerable contribution. If the donor continues paying the annual premiums, these too may be tax-deductible.
Planned gifts are welcomed. A Charitable Remainder Trust gives a lifetime income to the donor while also providing a future gift of the trust to the Foundation. In addition to cash, securities and real estate, personal property (i.e., artwork, vehicles, or collectibles) that could be sold to produce income, may also be used to make a gift, or establish a planned gift, such as a charitable remainder or charitable lead trust.
A bequest to the Foundation through a will is not subject to estate taxes. Adding a codicil to your will naming the Foundation, describing your gift, and designating how you want the Foundation to use the gift, will create a permanent legacy for your community in your family name. Some donors also have substantial retirement plan assets, (401(k), IRA, or Keogh plans/HR-10 plans) in their estates. From a tax standpoint, these assets are often the most advantageous to donate via a bequest or charitable trust as they may be heavily taxed as part of the estate and as income to beneficiaries. The Foundation can be named as the plan beneficiary to avoid these taxes. When making any type of planned gift, be certain to consult your financial advisor to structure your will and review your retirement plan accounts to insure the best use of these assets.
A Private foundation may be transferred into the Community Trust Foundation, keeping your foundation’s name and board intact by creating a donor-advised fund. By transferring all or part of the assets of the private foundation to the component fund of the Foundation, you avoid the considerable paperwork, administrative duties, restrictions, and taxes imposed upon private foundations. Establishing your fund as a donor-advised fund allows you to keep an advisory role in grant making from the fund.
What are the benefits of establishing a fund through the Community Trust Foundation?
We provide an easy, efficient, and effective process to help you establish a professionally managed fund that serves your community interests.
We partner with you to create a fund to achieve your charitable vision.
We save you the time, administrative expense, and legal costs of starting a private foundation.
We offer tax-saving and estate planning strategies.
We spare you federal and state record keeping and filing.
We invest your fund with professional financial managers.
We provide on-going guidance and help to achieve your charitable goals.
We keep you informed about current community needs.
YOU are making a positive difference in building a stronger and more vibrant community.
How do I set up a fund?
With gifts of $10,000 or more, we can help you create a new fund. You define your charitable intention, name your fund, and establish the criteria for awarding grants.
With gifts of less than $10,000, you may contribute to an existing fund or join with others to create a new fund to support a community need.
What is the difference between an Endowed and a Non-Endowed fund?
In a Non-Endowed fund, your contributions are invested and both a portion of your contribution and the investment earnings support your charitable purpose.
How much does it cost to start up a fund?
Who manages the CTF funds?
Site Photography Credits
We would like to express our gratitude to the talented photographers and organizations who have generously contributed their work to enhance our website. Their stunning imagery beautifully captures the spirit of our region. Below is a list of contributors whose work is featured throughout the site:
- Allegany County Tourism, MDMountainSide.com
- Garrett County Chamber of Commerce: Kristen Fischetti, Sarah Duck, & Tim Jacobsen
- John A. Bone Photography
- Randy Crane
- Dave Romero Photography
Ways to Give
Private donations are the building blocks of the Community Trust Foundation. It’s easy to create a new Fund at CTF to reflect your own charitable interests. We’ll work with you to define your charitable dream and determine the fund type that best meets your unique needs. We help make your charitable dream become reality by providing administrative services and financial management for your philanthropic fund.
