Public Disclosure: Copies of CFCC’s governing documents, including the Articles of Incorporation, Bylaws, organizational policies, current financial statements, Board of Directors meeting minutes, and meeting schedules, are available upon written request. Please contact Info@CecilCountyGives.org for more information.
Frequently Asked Questions
Below are frequently asked questions about the Community Foundation for Cecil County. If you would prefer to speak with someone directly, we are happy to help. Contact us via email at Info@CecilCountyGives.org or by phone at 443-350-1353.
What is a Community Foundation?
The primary purpose of a community foundation is to manage and distribute charitable funds to support local needs and ensure the long-term success of nonprofits. There are more than 900 community foundations in the United States, operating in every state and territory, to support local nonprofits. These philanthropic organizations act as public charities and manage billions of dollars in assets, with an estimated $158.1 billion held in 2023. Of those funds, an estimated $15 billion was distributed to local nonprofits. Community foundations represent the fastest growing sector of philanthropy in the U.S. and are a powerful catalyst for improving the quality of life in communities.
Why does Cecil County need a Community Foundation?
The Community Foundation for Cecil County (CFCC) was established to serve the nonprofits of Cecil County and help them grow their donor base and ensure stable, long-term financial resources through the receipt of Major Gifts and Endowment Funds.
The most economical way to do this is to retain individual and organizational wealth within our community. By redirecting donations from organizations outside Cecil County to CFCC, this money can be invested to directly benefit our Cecil nonprofits. This includes working with and encouraging individuals and organizations to establish endowments and set up major gifts that provide lasting support. CFCC then manages and invests these funds on behalf of the local nonprofits, ensuring that resources generate ongoing impact into the future.
How can local nonprofits benefit from CFCC?
There are dozens of ways for nonprofits to benefit from their community foundation. A few are listed below:
- Income – An endowment provides a regular source of income for your nonprofit. Distributions are made annually according to CFCC’s Spending Policy.
- Investment Expertise – Endowment funds are invested for long-term growth to achieve maximum returns while maintaining a reasonable financial risk. Your nonprofit’s endowment is pooled with CFCC’s total assets, which reduces investment management costs and provides the benefit of a professional investment management firm.
- Efficiency – Your organization’s endowment funds are safeguarded to support the future needs of your nonprofit. Your organization will receive quarterly financial reports on the status of the endowment fund, including donations, grants, fees and investment returns.
- Permanence – Establishing a permanent endowment is an important step to ensure your nonprofit is sustainable and has long-term access to financial resources. Endowment funds provide lasting benefits to your organization and the community for years to come.
Why would a donor give funds to the CFCC rather than directly to a specific nonprofit or charity?
Donors often choose CFCC because of the ease of supporting multiple nonprofits through a single gift, as well as the ability to establish a lasting endowment. Most nonprofits in Cecil County do not have the staff, time, or expertise to manage large gifts or endowment funds. Through CFCC, donors can be assured that their contributions are managed professionally, both now and into the future, by a reputable, stable, and growing organization. CFCC can accept a variety of assets and utilizes professional investment advisors to maximize impact. It’s all about “economies of scale” and “raising up” all Cecil nonprofit organizations.
What is the difference between an endowment and a major gift?
A donor may want to give a significant amount of money to a local nonprofit but want to make sure the funds are invested and distributed over time rather then spent all at once.
Major gifts are restricted funds that are designated by a donor to benefit a specific nonprofit(s) or purpose over a specified period of no more than five (5) years.
Endowment funds established through the CFCC are designed to provide lasting support. Donations of cash, securities, or other assets are invested over time, and a portion of the earnings from the fund is distributed to local nonprofits as specified by the initiating donor, while the principal remains intact and continues to grow. This ensures ongoing support for the community in perpetuity. Endowments are restricted funds and are governed by an endowment agreement.
What assets can I contribute to CFCC?
A variety of assets can be contributed to CFCC. Securities (stocks, bonds, mutual funds, and other financial instruments) can be transferred to CFCC’s investment firm. Donated investments may be sold and reinvested in accordance with CFCC’s Investment Policy or may be retained as received to maximize potential earnings. Gifts from wills or trusts may be accepted, based upon the gift’s marketability and/or their potential benefit to CFCC. Cash is always accepted.
Transfers can also be made from traditional IRAs, as Qualified Charitable Distributions for those individuals over the age of 70 ½, and from life insurance policies when CFCC is a named beneficiary.
Can I set up an anonymous endowment or gift?
Yes. All gifts, donations, and endowments can be made anonymously. Let us know your preference when you begin working with us.
How do I learn about the various nonprofits in Cecil County that can receive funds from CFCC?
There are hundreds and hundreds of nonprofits in Cecil County. CFCC focuses on working with the most active, financially stable organizations that are in “good standing” with both the IRS and the State of Maryland.
To research nonprofit organizations in Cecil County, visit Candid to search nonprofit profiles or use the Maryland Secretary of State Charities & Nonprofits Registry to verify an organization’s registration and standing.