When forming a nonprofit, says Jacobs, the goals should be to fill a need that’s not being addressed and to create an organization that’s distinct from others.
an irrevocable donation of cash, stock or perhaps real estate to MCF and receives an immediate tax deduction. MCF then manages the funds in the account, makes donations to 501(c) (3) charities on the account holder’s behalf and is responsible for tax filings, audits and administration. “MCF takes on the burden,” she says, explaining that the donor gives up ownership of the funds, and the account is under MCF stewardship, frequently
the services are investment options, grantmaking support and private-label branding designed by MCF’s marketing, team as well as IRS compliance. Private foundations require public disclosure, so one of the advantages is that a donor who is concerned about privacy can remain anonymous. “Some families feel that discretion is important,” Henderson says. “They don’t want the spotlight to be on them. They want to be humble.” MCF also
“The ultimate goal is to solve a huge problem and go out of business.” —Linda Jacobs, on the greatest measure of success for a nonprofit
with the account holder as an advisor. The first step is a meeting to
partners with organizations such as Rotary clubs that are 501(c)(4)s and want an easy
discuss what the donor wants to accomplish. “We’re part of an advisory team. We do the planning, and you sit down with us to figure out the philanthropy,” says Henderson. Next they craft a fund agreement, with donors outlining where they want their dollars to go. A fund might be unrestricted, in which case, “They can say you guys are the experts,” and leave the decisions to MCF, Henderson explains. Or a donor might identify causes that are personally meaningful and designate funds to specific nonprofits every year. “The amount of involvement is up to the donor, and the details are outlined in the agreement.” MCF also offers Virtuoso, an alternative to a private foundation for funds of $5 million and higher. MCF describes it as custom-made philanthropy for people with substantial resources and a firm commitment to charitable giving. Among
way to make charitable donations. If a club receives a large gift and wants to be able to manage the money effectively without establishing its own foundation, it can open a fund and instruct MCF to make grants to support Rotary’s mission. Meanwhile, MCF’s investment team makes thoughtful investment decisions to grow the funds so the club doesn’t have to worry about where to invest. “I am often asked why someone should engage with MCF for their philanthropy, as opposed to all the other options that exist,” says President and CEO Rhea Suh. “My simple answer is community. If you want to have the opportunity to deeply understand your community, connect with those in it, collaborate to develop new approaches and generally feel really engaged with your giving, come join us. For us, community is everything.”
January 2024
NorthBaybiz 25
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