HOW TO ESTABLISH A FUND
Creating a fund with us is a simple and flexible means of accomplishing your charitable objectives. Your gift affords the maximum tax deduction, and allows you to make a difference today and always through a lasting legacy for our area.

1. Focus your fund on the impact you want to make.
Donors may designate their funds in one or more of the following ways:

- Discretionary: Preferred by donors who want their fund always to address the region's highest priorities. We urge all donors to designate at least a portion of their fund for unrestricted purposes to help ensure resources for special projects and unanticipated needs in the future.

- Field of Interest: Used by donors who want to support an area of special interest.

- Designated: The choice of donors who want their fund always to support specific organizations.

- Donor Advised: Popular with donors who desire a role in decisions about the use of fund proceeds. Advised fund donors make grant recommendations to the Board of Directors. Donor advised funds can be endowed or non-endowed.

- Administrative Endowment Fund: Contributions to this fund are made to support our operations and activities. The principal and income of this Fund may be used to defray current operating expenses at the discretion of the Board of Directors. Income from this Fund in excess of current administrative needs may be used to augment the income from the Discretionary Fund.

- Community Fund: A permanent charitable endowment that specifically supports non-profit, government and other public agencies with a particular defined area. Local citizens knowledgeable about the area serve as the grantmaking advisors.

- Agency Endowment Fund: Popular choice for nonprofit organizations. A fund that is kept in perpetuity to provide interest and dividend earnings for the benefit of the agency.

- Flow-Through: Under certain circumstances we will accept and manage non-endowed, temporary Flow-Through Funds as long as they are designated for a specific charitable purpose and are consistent with our mission.

- Acorn: Funds that start small and grow as dollars are "planted" within it.

2. Choose the best way to make your gift and leave your legacy.

- Bequests: Establish a fund through your will.

- Charitable Gift Annuity: A gift annuity is a simple, contractual agreement between one or two donors and a charity in which the donor(s) transfer assets to the charity in exchange for that charity paying the donor(s) an annuity.

- Charitable Lead Trusts: The donor transfers cash or appreciated assets such as securities or real estate to a trust. The trust provides annual income (a fixed amount or a percentage of the trust principal as revalued annually) to the Foundation for a period of years. After this term ends, the principal transfers to your beneficiaries, enabling you to pass significant assets to family members with little or no gift or estate tax.

- Charitable Remainder Trusts: The most popular and flexible type of life income plan is a charitable remainder trust. Cash, securities, real property, or other assets are transferred into a trust. The trustee manages the trust assets and pays you or others you choose either a fixed or a variable income for life or for a term of years. When the trust terminates, the remaining assets in the trust are transferred to the Foundation.

- Pooled Income Fund: The pooled income fund (PIF) is often referred to as the "mutual fund of life income gifts." A gift of cash or securities is transferred into a pooled income fund with a trust department at a bank or other financial institution that, as trustee, manages the assets and pays an income for life to the donor or the income beneficiaries the donor designates. At the death of the income beneficiary, the remaining assets left in the pooled income fund account are transferred to the Southern Tier West Development Foundation.

- Charitable IRA: Donors can help their heirs save on taxes by naming the Foundation as the beneficiary of their Individual Retirement Account and establishing a charitable trust. The trust provides income for the donor's children or loved ones for the next 20 years, after which the balance is used to create a permanent fund in the donor's name. Under this arrangement, the donor's heirs will receive more income than if they named them the outright beneficiaries of the IRA. Another alternative is to name the Southern Tier West Development Foundation as the outright beneficiary of your IRA. Instead of being reduced by income and estate taxes, your IRA - and all of its assets - will continue to benefit the region.

- Life Insurance: Donors can name the Foundation as the owner and beneficiary of a new or existing life insurance policy and receive a current income tax charitable deduction.

Gift that go to work immediately:

- Cash:

- Securities: For both closely held and publicly traded stocks, the charitable deduction is based on full market value. Capital gains taxes on appreciation are also avoided.

- Real Estate: If held for more than a year, it usually provides the same benefits as gifts of securities.

- Personal Property: Virtually anything of value can be donated to charity. There are special rules that apply to the donation of personal property, and you should discuss your plans with the Foundation ahead of time.

3. Choose a name for the fund.
With a minimum gift of $5,000, you can personalize your contribution by naming it after yourself of a loved one. A fund's name stays with it forever. Whenever a grant is made from a fund, it is recognized by name. Thus, donors should give careful thought to their fund's name.