The Nebraska Community Foundation works with community, organizational and donor-advised affiliated funds serving 250 communities located in 80 counties. NCF and its affiliated funds have reinvested $269 million in Nebraska since 1994.
NCF’s legal counsel cautions us about the risks involved when affiliated funds misrepresent themselves as independent legal entities. These risks are real and involve potential legal challenges to charitable bequests, contract fulfillment, grant disbursements and more.
Our legal advisors note that the most common misrepresentation – one that occurs frequently throughout the NCF system – is the use of the single word “foundation” as the marketing name for an affiliated fund. In the truest legal sense, an affiliated fund is not a foundation. We are advised that affiliated funds can remedy this by being sure to include the word “fund” to their marketing name.
Another common inaccuracy occurs when an affiliated fund refers to itself as a 501(c)(3) organization. Affiliated funds should be very clear that NCF is the 501(c)(3) organization, which enables its affiliated funds to receive tax-deductible contributions.
In April 2010, the Shickley Community Foundation Fund announced its semi-annual grant awards. The Fund provided nearly $7,000 to 10 area nonprofits. What makes this last round of grantmaking special in this town of about 350 people is that the Fund has now surpassed the $100,000 mark in community reinvestment, the majority of that occurring in the last 10 years. Most of those grants have been made from earnings on the Fund’s endowment account.Read more →