Frequently Asked Questions

What is a Community Foundation?
A community foundation is a tax-exempt pubic charity created by and for the people in a local area. The first Community Foundation was established in Cleveland in 1914. Since that time, over 700 community foundations have been established nation-wide.

A community foundation serves as administrator of what is, in essence, a community endowment, a collection of gifts, large and small, unrestricted and donor advised, given to enhance the quality of life for the citizens of the geographic area it serves.

A community foundation is an attractive alternative to creating and running a private foundation, as community foundations allow a donor to establish and name a grant-making fund, or contribute to existing funds that match their charitable passions.

The structure of community foundations allows for great efficiency and economies of scale. Separate endowment funds, established by individuals, families, businesses and nonprofit organizations are pooled for investment purposes; this also minimizes management fees and accounting expenses for each individual fund.

The structure also provides for the responsive and effective distribution of charitable funds into the community. Members of the volunteer Board of Directors, selected for their knowledge of the community served by the community foundation, continually assess the needs and opportunities facing its residents, and identify the areas in which the community foundation can have the greatest impact with its resources. This flexibility allows the foundation to grow and change with the communities it serves, maintaining its viability and relevance for ever.

Community foundations enable people with philanthropic interests to easily and effectively support the issues they care about—immediately or through their will or estate plan.

What options do I have in making a gift to NCCF?
NCCF has several options for donors who are interested in becoming more involved in philanthropy in our community. A donor may:

• make an unrestricted donation to the Foundation at any time to our Community Impact Fund which makes annual grants to support critical needs at non profit organization serving our community.
• make a contribution to one of our existing component funds. For instance if the donor is interested in the youth in our community then they may want to contribute to the Fund for Children and Youth or to the Young Philanthropists Fund. Other component fund options include The Spirit of New Canaan Fund and the Sapienza Scholarship Fund.
• make a contribution to establish a donor advised fund. This may be the best option if the donor has their own charitable passion or area of interest. Funds may be established to involve one's family in philanthropy, in memory of an individual, as a scholarship or to directly benefit a non profit organization or organizations of your choice.
• make a contribution that will be the first of additional contributions to build a grant making fund over time with NCCF's Acorn Fund option.
• name NCCF as a beneficiary in their will. This can be used as an unrestricted contribution or even to establish a fund.
• make a pass-through grant from their private foundation.

What types of gifts do you accept?
NCCF accepts gifts of cash, securities, IRAs and property.

How can I make a gift of securities?
You can give stock at any time. Please call the Foundation's office at 203-966-0231 to get instructions for transfer.

What is the difference between a community foundation and a private foundation?
There are several similarities and several differences. A chart outlining the differences is available for review by clicking here.

How do I make a contribution to NCCF?
To contribute cash, send a check to the New Canaan Community Foundation, PO Box 1285, New Canaan, CT 06840. The check should be made out to New Canaan Community Foundation. If you would like your contribution to be directed to a specific existing fund or to your donor advised fund, pleased put the name of the fund in the memo line.

For gifts of securities or other gift options, please contact the Foundation's office at 203-966-0231.

Is the New Canaan Community Foundation a non-profit?
Yes. NCCF is a non profit 501(c)(3) public charity under the IRS tax code.

Is my contribution to NCCF tax deductible?
Yes. Donors receive the maximum tax advantage when they contribute to NCCF.

I would like to establish a fund. What do I do?
It is easy to establish a fund with NCCF. You can give cash, appreciated securities or other assets to begin a fund with a minimum initial contribution of $10,000. If you would like to build to a grant making fund over the course of several years you may choose our Acorn Fund option. A simple fund application is completed and signed, a fund agreement is created and once funds are received, your fund is established. The whole process may be completed in just days.

When can I start recommending grants from my fund?
Most donors wait until the next calendar year before making their first grant requests. This process is consistent with the Foundation's overall spending policy, and also allows the fund to gain some investment income and have a greater grant-making ability. The specific timeframe for your fund's grant-making can be adjusted to meet your charitable needs, and should be documented in the fund agreement when the fund is created.

All grant recommendations must be approved by the Foundation's Board of Directors. It usually takes no more than a few weeks to completely process your request. The Foundation must ensure that all grant recipients are eligible not-for-profit organizations. If you would like to take advantage of the annual grant process of the foundation, simply notify the office at 203-966-0231 and we will share the grant requests we have received with you. The Foundation's distributions committee reviews the grant proposals from area non-profit organizations in early spring.

Is there a minimum grant size?
We can process grants of $250 or more.

How much is available for my grant making?
In keeping with the official distributions policy of NCCF, 4.5% of the balance of the fund at the year end is available from your fund for grants in the next year, as long as the minimum fund balance of $10,000 is maintained. However, you are able to access more if your fund has accumulated income over time. If you are establishing a fund at the minimum level of $10,000, we recommend that you allow your fund to grow or make additional contributions, to enable greater impact with your grant recommendations.

What types of organizations/programs may I recommend grants to?
You may grant to any non-profit organization with a 501(c)(3) tax status, based in the United States.

May I make a grant outside New Canaan?
Yes. You may make grants to any non-profit organization that serves New Canaan residents or to any non-profit organization of your choice. The Foundation may need to verify the eligibility of the organization before approving a grant, if we have not already made a previous grant to the entity. NCCF does not make international grants.

I would like to grant more that I have available from my fund. May I add to the grant amount?
Yes, if you would like your grant to have a greater impact than what is available from your fund, you may make an additional contribution to the Foundation in the form of a pass through grant to a specific organization.

How do I request that a grant be made from my account?
Requesting that a grant be made from your account is simple. You simply make the request in writing and for your ease, a form is available.

I am not sure what organizations I would like to give to this year. What should I do?
This is where NCCF can make a major difference in your philanthropic process. Our staff and board of directors are well versed in the needs and organizations of our area. We would be happy to assist you in this process.

How quickly will my grant be processed after my request?
Generally, all grant requests are approved at a Board of Directors' meeting, which are held monthly. If your request needs faster consideration, please alert the professional staff and we can gain approval before the next scheduled meeting.

I would like to build up my fund's endowment. Is there a minimum that I must add at any one time? May I add to my fund any time I wish?
You may add any amount to your fund as often as, and whenever, you wish.

To contribute cash, send a check to New Canaan Community Foundation, PO Box 1285, New Canaan, CT 06840. The check should be made out to "New Canaan Community Foundation." Please write the name of your fund in the memo line of the check.

If you would like to contribute securities, to add to your fund, please call the Foundation's office at 203-966-0231 to make the arrangements.

What type of fees as charged to my fund?
NCCF assesses each fund an annual fee to partially offset the cost of administrative and investment services. A fee schedule is available by clicking here.

How does a fund at NCCF work?
Each fund has its own set of parameters and guidelines as described in each fund agreement. Some funds are permanently endowed, allowing grants to be awarded in perpetuity based on spending a percentage of the endowment according to the Community Foundation's spending policy. As mentioned above, NCCF allocates 4.5% of our assets annually as grants. Other funds are non-endowed, which means that the principle can be spent down through grants, within a set period of time.

Grants are awarded from funds to nonprofit organizations locally and anywhere else in the United States. Grants may also be made from Funds to support the grant requests received annually by the Community Foundation. A Fund advisor may be actively involved in this process, or leave the details of grant awards to the Community Foundation. A Fund advisor makes recommendation for the grants from the Fund, which in turn are reviewed and approved by the Community Foundation's Board.

NCCF provides philanthropic advice, professional investment management and handles all reporting requirements. In addition, private foundations and individuals can work with us to carry out pass through grants.

We can usually work with you to complete a founding document and open a fund within a matter of days. If you want to establish a fund in December and take advantage of a year-end tax deduction, please contact us as early in the month as possible.

What is variance power?
One of the distinguishing characteristics of a community foundation is its variance power. For any component fund to be considered by the IRS a fund of the community foundation, and not a separate private foundation, NCCF's Board of Directors must demonstrate variance power with respect to that fund.

Inclusion of the variance power in the foundation's governing documents is a requirement of the tax regulation applicable to the community foundation. The New Canaan Community Foundation was founded in 1977 and this principle was clear in our initial articles of incorporation. Variance power permits the Board of the Foundation to modify a restriction on a fund. For example, this power may be exercised when the Board determines that the restriction is unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the community. Perhaps more importantly as a practical matter, the variance power allows the community foundation to take changing times into account – for instance, to modify the purpose of a fund designated to fight a disease that is then defeated, such as polio. It is important to note that the Foundation would only exercise the variance power with great care, giving full consideration to the original intent of the donor and attempting to arrive at the closest similar purpose. Retaining and exercising the variance power ensures that the donors' interest in the community is efficiently executed and continues to remain relevant to that community's changing needs and opportunities.

A full statement of the variance power is outlined in the fund agreements and in NCCF's governing documents.

What are the advantages of setting up a fund under NCCF rather than donating directly to a nonprofit organization?

• Your fund is a permanent legacy that demonstrates your commitment to helping New Canaan thrive over the long term and gives you the assurance that your philanthropic goals will be carried on in the future.
• You can still recommend a donation from your fund to be directed to your favorite organizations. Your fund can make grants for the immediate benefit of an organization and will continue to remain available for future needs that can not be anticipated at this time.
• You receive expert administrative services, tools, and advice on a broad spectrum of community needs—incuding areas that you may not have considered.
• You have the opportunity to make a difference where it is most needed and best utilized, because you have the resources of NCCF Board members and staff that monitor community needs and are up-to-date on community issues, opportunities and resources.

What is an Agency Endowment?
An agency endowment is a type of designated fund established by a charity at a community foundation for the charity's own benefit. That is, the donor or resource provider and the beneficiary or recipient organization is the same entity. For example, an art museum transfers funds to a community foundation to establish a fund that will provide annual distributions to the art museum for its own use.

Why an Agency Endowment?
The main purpose of an agency endowment is to provide a long-term and growing source of financial support for an organization. In these days of uncertain funding, nonprofit organizations are looking for ways to stabilize their income and ensure their operating funds. One of the ways organizations can do that is by establishing an agency endowment within the New Canaan Community Foundation.

The New Canaan Community Foundation can be a great help in managing your organization's endowment. Classified for tax purposes as a public charity rather than a private foundation, community foundations specialize in managing permanently endowed funds for the benefit of a specific charitable cause or the general welfare of the community.

How it works

An agency endowment fund is created for the express purpose of providing a source of permanent, ongoing support to a specific nonprofit organization. A portion of the income from Agency Endowment Funds is distributed to the organization annually while the principle grows to provide future benefits. The endowments usually allow other donors to make contributions as well, growing the fund.

What types of organization can establish an agency endowment at a community foundation?
A public charity under Section 509(a)(1), 509(a)(2), or 509(a)(3) may establish an agency endowment at a community foundation. This may include an endowment created by a government unit.

Why would a nonprofit organization start or place its endowment fund in the New Canaan Community Foundation?
Although the answer varies from organization to organization, probably the strongest reason is the Community Foundation provides a natural setting for permanent gifts. Other benefits most often cited are:

• Investment with larger pool of assets and access to higher returns
• Professional investment oversight
• Receiving and processing additional contributions to Fund
• Allows organization to focus on other priorities
• Boosts donor confidence
• Preparation and filing tax returns related to that endowment.
• Administrative Support

Are there fees associated with an Agency Endowment?
Each fund is assessed its pro-rata share of investment expenses. Fees impact the net asset value of the fund and are not charged separately. An annual administrative fee of 1% is assessed to help cover costs associated with managing the fund.

When a public charity establishes an agency endowment at a community foundation, which organization owns the contributed funds?
The community foundation has legal ownership of funds contributed to an agency endowment. As such, the community foundation's board has fiduciary responsibility over the funds. The legal ownership of the funds is a frequent a source of confusion between agencies and community foundations. Therefore, the ownership should be clarified in the fund agreement at the start of the relationship. The confusion arises, in part, because accounting rules (FAS 136) require that an agency recognize a beneficial interest in assets held by a community foundation as an asset on the agency's books. This leads some agencies and their advisors to believe they maintain legal ownership over the funds. However, FAS 136 only affects the accounting treatment of the funds, not the legal ownership.

Since the agency is releasing legal ownership of the transferred assets, how can the agency's board agree to the transfer of assets to establish an agency endowment without violating its fiduciary duties?
The agency's board must make the decision regarding whether transferring legal ownership of the funds to establish an agency endowment is consistent with its fiduciary duties. An agency's board may decide that such a transfer is prudent and consistent with its fiduciary responsibility to the organization because of the benefits provided as a result of the relationship with the community foundation. For example, the agency may benefit from the expertise of the community foundation in long-term management of assets, the flexibility the community foundation may provide by accepting types of non-cash contributions not accepted by the agency, or the protection that the transfer will provide by establishing an endowment at a separate organization.

If the fund is endowed, can the fund agreement still permit an agency to access principal?
A fund agreement may permit an agency to request or recommend a distribution of principal. The fund agreement may contain a general provision permitting a request for distributions of principal or the agreement could outline specific reasons for which a distribution of principal may be requested (e.g., capital projects). In either case, the agreement should be carefully drafted to ensure that any such agency request or recommendation is solely advisory. The community foundation must maintain final authority and control over whether such a distribution of principal will be permitted.

Most of your questions about applying for a grant from NCCF can be answered by reading the grant guidelines. We have created the following FAQ's to help you though this process.

Who can apply for a grant from the Community Impact Fund or the Young Philanthropists Fund?
1. Grant applications will be accepted only from organizations which are 501c (3) tax-exempt or be sponsored by a 501c (3) tax-exempt organization. Grants will also be accepted from school and government entities.
2. Organizations whose programs have demonstrable impact on the residents of New Canaan.

What is the deadline for grant proposals?
The application deadline for grants from the Community Impact Fund is February 1st of each year.
The application deadline for grants from the Young Philanthropists Fund is January 15th of each year.

What can an organization apply for?
Grants from the Community Impact Fund are awarded to programs that meet critical needs, through funding new programs and initiatives, start–up ventures and capital expenses.

Grants for the Young Philanthropists Fund are made based on the program areas that the YPF Steering Committee select each year. The YPF application is mailed out each year to organizations that operate in that year's program areas. If you are unsure whether you qualify, please contact the Foundation's office at 203-966-0231.

Are there restrictions for use of grant money from the Community Impact Fund?
Grants are not made to support expenses already incurred
Grants will not be made to endowments.
Grants will not be made to upgrade technology that already exists.

These restrictions also apply to the grants made from the Young Philanthropists Fund.

What can we expect once we submit our grant proposal?
Each grant proposal submitted for funding from the Community Impact Fund is assigned to a team of Board members for review. Each team will make a site visit to ensure that we understand your organization and your need for funding. Once this process is completed, the Board of Directors discusses each proposal. Funding decisions are made and organizations are contacted by letter, usually in April. Grants are awarded at our Grant Distribution Event in May.

For proposals to the Young Philanthropists Fund, each Steering Committee member reads every proposal. The proposals are discuss in great detail at the YPF meetings in February and March. In April the steering committee makes their recommendations for funding to the Board of Directors. Organizations are notified by letter and awards are distributed at our Grant Distribution Event in May.

With both Funds, if there is a need to receive the funding prior to the May meeting, please indicate this on your proposal and speak to the NCCF staff.

What happens if we do not use the grant money?
All unused grant monies must be returned to the Foundation unless permission is given to use the monies for another purpose.

Will our grant completely cover our project cost?
Each grant application is carefully considered by the NCCF Board of Directors and a recommendation is made based on established need, potential outside funding and available resources from Community Impact Fund. During each site visit the visiting Board member will ask about partial funding for your proposal.

For proposals to the Young Philanthropists Fund it is important to consider that the Steering Committee has approximately $4000 in total funds to grant each year. Proposals which exceed that amount in their requests will certainly not be fully funded. We recommend that in general proposals should not exceed half of the available amount.

if I have never written a grant before and want to apply?
The NCCF Grant Guidelines are designed to be helpful and list all the information you need to include in your proposal. The NCCF staff is also available to answer any of your questions at 203-966-0231.

The YPF Grant Application is also helpful and again the NCCF staff is available to offer their assistance.

What if my non-profit organization has previously received a grant from NCCF and wants to apply again?
The NCCF does not limit the number of grants it gives to non-profit organizations. You can apply as many times as you wish. However you can only submit the same proposal two times.

Are grant requests always fully funded?
If your grant application is approved, your organization might receive a grant for partial funding of your project.

What if my organization has a need for funding that cannot wait until NCCF's next grant cycle?
Please contact the Executive Director in the Foundation office at 203-966-0231 for assistance with out of cycle funding.

What if my organization does not use all of the funds for the approved project? Grants are provided by NCCF for specific purposes as stated in your proposal. If your project changes or you do not require all of the funds provided, you must contact the Executive Director through the Foundation office at 203-966-0231 for a determination. In most cases, an alternative use of the funds can be agreed upon, although in some cases the grant funds must be returned.

What if our proposed and funded project is delayed or altered for unexpected reasons?
For grants form the Community Impact Fund please contact the Executive Director at 203-966-0231 to discuss the change in circumstances, and for guidance as to how to proceed.

For grants from the Young Philanthropists Fund please contact the NCCF staff to discuss your situation.

Can I receive a grant from a donor advised fund?
Advisors to donor advised funds held at the Foundation recommend grants to nonprofit organizations based on their areas of interest. Individual organizations are not able to directly request support from these funds. However, we often share our grant proposals for the Community Impact Fund with the advisors of our donor advised funds, and will contact any non-profit that may benefit from a grant from a donor advised fund.

If my organization receives a grant, what kind of follow-up is expected?
NCCF requires that all organizations who receive a grant from NCCF complete a Follow Up report. The form to use is located under the Grant Application section in Publications and Applications on this site. In addition, the Foundation requires a photograph of grant-related activities for use in our publications.

 

Am I eligible to apply?
The criteria that apply to the Sapienza Scholarship Fund for individual applicants are as follows:

• Be a permanent resident of New Canaan
• Demonstrate financial need
• Demonstrate academic achievement
• Demonstrate good moral character
• File a completed application by the deadline

Your site mentions two possible Sapienza Scholarship awards 1. to Individuals and 2. to Non-Profit Organizations. Mrs. Sapienza had two visions when she created this fund. The first was to award scholarships to deserving individuals of all ages to further their education. The second was to award funds to non profit organizations that in turn would award scholarships to their students, clients, or employees trying to further their education in their professional field.

Is the Sapienza Scholarship only available to those seeking a college education?
No. The Sapienza Scholarship is available to any resident seeking to further their education.

Is the Sapienza Scholarship only available to current high school seniors?
No. The Sapienza Scholarship is available to all New Canaan residents seeking to further their education. We encourage younger students seeking educational options to apply and older adults seeking to further their education to apply.

If I am an older adult seeking to further my education, how do I get my current transcript?
If you are an older adult currently enrolled in a local education organization, we ask that you use the transcript from that organization. If you are seeking to return to school after a long absence, we ask that you submit a copy of your most recent education transcript that you have available. If this is not available, please call the NCCF office at 203-966-0231 for assistance with this requirement.

Is there a fee to apply for a scholarship?
There is no charge to apply.

What do I send in?

• A completed application form
• A personal statement as outlined in the application
• Copy of Student Aid Report (SAR) available at www.fafsa.ed.gov, if you are not qualified to complete this form, you must submit other relevant financial information as requested by the Scholarship Committee. If you fall within this category, please contact the NCCF office for assistance at 203-966-0231
• Official Grade Transcript from school (a photo copy is not acceptable)
• 2 Personal Recommendations (please use the form provided)

Application and support materials must be mailed to:
New Canaan Community Foundation – Sapienza Scholarship
21 Locust Avenue, Suite 1B
New Canaan, CT 06840

When is the deadline?
The deadline is in March each year. The date adjusts to fit the New Canaan public school vacation calendar. Please visit our web site to determine the application date each year.

do I obtain my Student Aid Report (SAR)?
Go to www.fafsa.ed.gov and follow the instructions for filing a report.

Are these scholarship awards taxable?
We recommend that you consult a tax expert for advice regarding your individual situation. Some portions of scholarships may be taxable but as the Sapienza Scholarships are awarded to all ages of students pursuing further education, the taxable amount may vary for each individual. You can visit the IRS website or consult an advisor for your situation.

Are the scholarships awarded sufficient to pay the cost of my education?
No. These scholarships are intended to provide only partial support.

If I am awarded a scholarship, how much will I get?
The amount awarded varies according to the applicant's need and educational costs. The NCCF Scholarship Committee also takes into account other forms of assistance the applicant is receiving.

Do I need to pay scholarship money back?
No. These are charitable grants that do not need to be paid back.

If I am awarded a scholarship, do I get the check?
No. The checks are sent directly to your school's financial aid office.

What can my scholarship be used for?
The scholarships can be used for any educational expenses: tuition and fees, books and supplies, room and board, and other miscellaneous school expenses.

Will a Community Foundation award affect a student's financial aid package?
This will depend according to each institution. Institutions/Colleges/Universities may adjust financial aid packages to reflect scholarships other than those granted by the college. Usually a college or university will first use an outside scholarship to replace unmet need, or reduce the amount of loans or work study before adjusting grants or scholarships. However, policies vary and students should check with their institutions' financial aid office.

I receive a scholarship one year, will I automatically receive an award for the following year?
No. Students must complete the application process again in order to be considered for another scholarship award. The Scholarship Committee will want to review your most current academic transcript.

When will I be notified?
You will be notified after the Scholarship Committee meets, which will be between late April and early May. The awards are publically announced at our Distribution Meeting in mid May.

If I receive a grant should I send a thank you note? Where do I send it?
Thank you notes are highly encouraged. Donors and scholarship committees enjoy reading thank you notes. Your note may be mailed to:
NCCF Scholarship Committee
21 Locust Avenue, Suite 1B
New Canaan. CT 06840

I am looking to apply for a "Block Grant" Scholarship. What do I do?
Grants are made only to those organizations that have received IRS tax-exempt status. Scholarship funds support non-profit organizations with grants to fund their existing or planned scholarship programs, to benefit their students, clients or employees. Grants may be used to support tuition expenses, books, lab fees, tutoring costs, and other related educational expenses and fees paid to the school or program. Awards will be paid by the Foundation directly to the non-profit organization, not to the recipients.

Based on the donor's intentions, the Foundation makes "block" grants that enable non profit organizations to provide scholarship funds to students, clients or employees who show great promise in their field of study and who may not otherwise be able to afford to continue their education. Note that financial need may, but need not be, a consideration for determining the award recipients.

Information to be Supplied By Non Profit Grant Applicant

Scholarship Program
A. General description of the scholarship program intentions and operations;
B. Amount of grant request;
C. Specific details as to how the NCCF grant will be allocated to students seeking scholarship assistance;
D. Need of applicants and benefit to student recipients;
E. Estimates of educational costs, such as tuition, books, tutoring, other costs;
F. Who will assume responsibility for carrying out the program;
G. Contact person: name, address and phone number.

Background Information About Your Organization
A. Stated purpose as set forth in your By-laws;
B. Brief history of your organization;
C. List of officers and management personnel;
D. List of board members and home towns;
E. Use of volunteers and number of volunteer hours;
F. Copy of IRS tax-exemption letter.

Financial Information
A. Copy of current operating budget for your existing scholarship program, in terms of grants and administrative expenses;
B. Other sources of scholarship funds currently administered by your organization;
C. Description of how any previous NCCF grants have been used (if applicable);
D. Audited financial statements if available.

SAPIENZA BLOCK GRANT APPLICATION FORMAT
A. Requests should not exceed 5 pages in length (financials not included);
B. Pages must be one-sided only, 8 1/2 x 11, 3-hole punched;
C. No staples should be used;
D. Ten copies of the completed application must be submitted, including the budget ; (It is not necessary to send 10 copies of brochure, annual report, financial statement etc.)
E. Ten copies of the grant proposal cover sheet (included) must be submitted as well;
F. Please three-hole punch everything that you send 10 copies of.