Expanding Your Impact: FAQs About Unrestricted Funds

Charitable giving takes many forms, and at Greater Manhattan Community Foundation (GMCF), we're honored to work with individuals, families, businesses, and nonprofit organizations who share a commitment to strengthening our communities.

Whether you volunteer, serve on a nonprofit board, support your favorite organizations, or have established a charitable fund, your generosity makes a difference.

As you consider your charitable giving goals, you may be looking for ways to expand your impact and support the community's changing needs. One option worth exploring is an unrestricted gift or unrestricted fund at GMCF.

An unrestricted fund allows you to entrust charitable dollars to GMCF's board of directors and professional staff, who determine how best to use those resources to address community needs. Depending on how the fund is structured, your generosity can support the community today and for generations to come.

Here are answers to some frequently asked questions about unrestricted funds.

Why invest in the community through an unrestricted fund?

One of the greatest advantages of unrestricted giving is flexibility. Community needs change over time, and an unrestricted fund allows your generosity to respond to those changes.

At GMCF, our mission is to build relationships between donors and community needs. Our board and professional staff work alongside nonprofit organizations, community leaders, and local partners to understand emerging challenges and identify opportunities to make a meaningful difference.

By establishing an unrestricted fund, you're investing in GMCF's ability to address today's most pressing needs while preparing for challenges and opportunities we may not yet anticipate.

What are the steps to establish an unrestricted fund?

Establishing an unrestricted fund at GMCF begins with a conversation about your charitable goals. Our team will work with you to create the necessary documentation and determine how you'd like your fund to be structured.

There are several options to consider:

• Name your fund. You can choose a name that reflects your family, honors someone special, or represents your charitable values.

• Make gifts during your lifetime. You may contribute assets when establishing your fund and make additional gifts over time.

• Include your fund in your estate plan. You may arrange for your fund to receive a charitable bequest through your will, trust, or beneficiary designation.

• Explore potential tax benefits. Lifetime contributions to an unrestricted fund generally qualify for an income tax charitable deduction, subject to applicable rules and limitations. Qualifying charitable bequests may also be eligible for a federal estate tax charitable deduction.

Our team can help you explore these options alongside your financial, tax, and estate planning advisors.

How is an unrestricted fund administered?

When you establish an unrestricted fund at GMCF, you give our board of directors and professional staff the flexibility to direct charitable resources toward community needs and opportunities. Through relationships with nonprofit organizations, civic leaders, and community partners, GMCF works to understand where support is needed and how charitable dollars can make a difference.

Today, that might mean responding to an unexpected community emergency or supporting organizations addressing food insecurity. Tomorrow, it could mean investing in education, youth services, healthcare access, or another emerging need.

An unrestricted fund allows your generosity to remain relevant as the community evolves, supporting meaningful impact over time.

What are the ways to make an unrestricted gift?

Cash gifts are one way to establish or contribute to an unrestricted fund, but other giving options may offer additional financial or tax advantages depending on your circumstances.

• Appreciated stock or other assets. Donating long-term appreciated assets directly to GMCF may be more tax-efficient than selling those assets and donating the proceeds.

• Qualified charitable distributions (QCDs). If you're age 70½ or older, you may be eligible to make an unrestricted gift directly from your IRA through a QCD to GMCF or an eligible unrestricted fund, subject to applicable requirements.

• Estate gifts. Naming GMCF as a beneficiary through your will, trust, or retirement account and directing the gift to an unrestricted fund can help create a lasting charitable legacy.

Each giving strategy has different considerations, so we encourage you to consult your tax, legal and financial advisors to determine which options are appropriate for your situation.

Your generosity. Your community. Lasting possibilities.

Unrestricted giving provides an opportunity to make a meaningful investment in the community's future. By allowing charitable resources to respond to changing needs, you can help strengthen the places, and people you care about for years to come.

Whether you're ready to establish an unrestricted fund, considering making a gift, or simply interested in learning more, the GMCF team is here to help.

Contact the Greater Manhattan Community Foundation at 785-587-8995 or foundation@mcfks.org to start the conversation.

This article is intended for general informational purposes and does not constitute tax, legal or financial advice. Please consult your professional advisors regarding your individual circumstances.