Working in Partnership with Professional Advisors. Information Pack

Transcription

1 Working in Partnership with Professiona Advisors Information Pack

2 Community Foundations are vita contributors to buiding socia capita. They aso pay a vita roe by providing a patform that enabes individuas and firms to invest in their communities. Community Foundations are heping to deiver a more incusive capitaism, one in which individua virtue and c oective prosperity can fourish Mark Carney Governor of the Bank of Engand

3 Working in Partnership with Professiona Advisors Heping you to exceed your cients expectations Estabished in 2005, Suffok Community Foundation is an independent, grantmaking charity. As the centra patform for giving in the county, we are part of a nationa network of community foundations whose aim is to improve the quaity of ife for oca residents by encouraging oca giving. Over the past decade, the Foundation has become a major funder to Suffok s vountary and community sector. From providing funding to support a handfu of community groups in 2005, we have now heped more than 2,500 sma charities and groups since our creation, with our donors grantmaking exceeding 12,000,000. Quaity accreditation and governance Suffok Community Foundation is Quaity Accredited by UK Community Foundations. Formay acknowedged and recognised by the Charity Commission for Engand and Waes, Quaity Accreditation is a programme which endorses and encourages best practice by Community Foundations. Achieving Quaity Accreditation demonstrates that a Community Foundation deivers to a standard and is serious about quaity and accountabiity. We view corporate governance as one of our most important responsibiities. Pubic confidence in the transparency and accountabiity of the work of charities has never been more important. Our promise to our donors is that, whatever the size and nature of their contribution, they can be sure it is going straight to where it is needed and wi do the most good. Need in Suffok It doesn t make easy reading, but it is important to highight the extent of deprivation which exists in Suffok. Our beautifu and much visited county, which has so much to offer, sti faces many chaenges of disadvantage and socia need and much of it is hidden. Popuar notions of poverty and deprivation in Britain often assume they are probems confined to inner city areas and arge housing estates. The reaity can be very different. In 2011 the Foundation commissioned University of Cambridge to undertake research to uncover the extent of socia deprivation across Suffok. The pubished findings indicated the probem of socia need was on a far arger scae than previousy thought. Income deprivation affecting chidren, for exampe, is particuary concentrated in the arger towns in Suffok.

4 Neary 78,000 peope* in Suffok ive in income deprivation at the most minima iving standard provided by wefare benefits and we beow the poverty ine. Over 30,000 peope currenty ive in fue poverty and over 500 chidren have received counseing foowing sexua abuse in the ast three years. Suffok Community Foundation was estabished to hep address these issues and other emerging needs. Through our research and understanding of oca issues, our purpose is to enabe donors to undertake informed and targeted grantmaking to the causes they care about. Our work with you As individuas understanding of socia needs and their roe in supporting their own communities increases, there is growing interest to earn more about phianthropy and effective charitabe giving and the options avaiabe to them. Good advice in this area is important. Working together we can provide a fuy incusive offering to hep you meet your cients charitabe goas and exceed their expectations in terms of the range of options avaiabe to them. Whether you are a awyer, accountant, financia panner, investment advisor or have a specific interest in the technica aspects of panned giving, by combining your expertise with our experience in advising on phianthropy, together, we can ensure that your cients charitabe giving meets the causes they wish to support. We provide a range of options for private cients who are interested in: Leaving a egacy or gift in their wi Transferring the burden of running a charitabe trust Setting up a persona fund Setting up an In memorium fund You wi find information on these aspects of charitabe giving within this pack. Corporate Donors We offer simiar support to corporate donors (incuding businesses of a sizes, soicitors, accountants and and agents etc) who have an interest in the oca community and are interested in putting their corporate socia responsibiity into practice. Charitabe Trusts We can aso take on existing charitabe trusts that are ineffective on account of difficuties in identifying beneficiaries or attracting new trustees. We provide a range of options from assisting with grantmaking to taking over ega responsibiities for the trust competey, yet with cients retaining an interest. You can find out more about that in our information on Charitabe Trust Transfers. *Hidden Deprivation and Community Need in Suffok a report, 2011

5 Benefit to your cients Community Foundations are an idea vehice for phianthropists to provide some structure to their giving in a tax efficient way and offer a fexibe aternative to creating conventiona charitabe trusts or a foundation, which can prove compicated and costy to set up and administer. The administrative and governance burden on trustees of running a conventiona charitabe trust is ever increasing which, understandaby, can be off-putting to many cients. We offer a practica aternative, making charitabe giving to oca causes stress free, easy and enjoyabe for cients, whether the amounts they set aside are arge or reativey modest. We must stress that we beieve that there is sti a pace for the conventiona persona charitabe trust and, indeed, that may be the donor s preference. In ine with the Charity Commission s advice (see insert), our purpose is to ensure that donors are aware of the fu range of options avaiabe. Whether your cient is ooking to estabish a named famiy fund through a ifetime donation or a egacy in their wi, or wishes to reduce the administrative burden of an existing trust, we can work with you and your cient to find the best soution. By working with Suffok Community Foundation, you and your cients can benefit in a number of ways: We are oca your cients funds wi be used to support the oca community in which they ive and work. They can visit projects and see for themseves the positive impact that their charitabe giving achieves. We are impartia you may be reuctant to recommend specific charities to your cients for reasons of impartiaity. We do not favour any one particuar cause or theme. We are fexibe with a named famiy fund (which operates in a simiar way to a charitabe trust) your cients choose the causes they wish to support. Grants can be made to charitabe causes and not just registered charities (for exampe, improving heath and webeing or access to earning and improving skis and empoyabiity). Cients can change their focus at any time which enabes them to respond quicky to emerging socia need. Cients can be invoved as itte or as much as they ike in the grantmaking process. We are quick and efficient we can set up a named fund after one meeting rather than waiting severa months or onger to register as a charitabe trust. We make giving easy we promote the fund and invite appications from community groups to fund their project, review grant appications, provide summaries of the projects, check vaidity and that the charity s or community group s project fas within the Foundation s charitabe objectives. We arrange for the donations to be made from the fund and undertake monitoring to ensure the money has been spent on the project and to measure the impact it has made. We are knowedgeabe we have an exceent knowedge of oca community need and can match your cients interests to specific projects, causes and initiatives. Your cients decide which projects to support we encourage donors to have fu invovement in decision-making incuding which community projects to support and the eve of funding. Utimatey, responsibiity ies with the trustees of Suffok Community Foundation and grants can ony be made foowing their ratification.

6 We hep cients give tax-effectivey as a registered charity we are an idea vehice for a methods of tax-effective giving, offering significant tax benefits for your cients incuding reief from income tax, capita gains tax, inheritance tax and corporation tax. We can aso accept gifts in cash, shares, and, property or other assets which can aso be made tax efficienty. We are here to stay if a cient eaves a egacy in a wi today, it is possibe that the charity or cause they wanted to fund is either no onger in existence or in need of assistance by the time their wi comes into effect. With a named fund, our trustees have discretion over the distribution of gifts eft to them. We can ensure that the origina intentions of your cient are carried out without having to approach the Charity Commission for a variance of the origina deeds of a trust or intentions in a wi. We are transparent we ask for a contribution towards our administration costs for managing a fund which varies depending on the size and type of fund and we agree this, up front, with donors. We operate with a very ow overa administrative overhead, which means that more money can go out in grants to the community. We carry the financia and ega responsibiity setting up a persona charitabe trust can be time consuming and costy to estabish and administer. The onus on trustees is increasing to invest and monitor the investment of funds, to ensure reguations are foowed in grantmaking, to meet the stringent needs of accounting requirements under SORP as we as the independent scrutiny of the accounts. With a named fund at Suffok Community Foundation, a these responsibiities ie with our trustees. Above a, our offering is personaised and very fexibe so it is very ikey that we wi be abe to find a soution that meets, and maybe even exceeds, your cients needs and expectations, which we hope woud hep to strengthen your reationship with them further. To find out more about how we can work in partnership with you pease emai Judy Dow: judy.dow@suffokcf.org.uk or Tim Hoder: tim.hoder@suffokcf.org.uk or contact by teephone on: Suffok Community Foundation The Od Barns, Peninsua Business Centre, Wherstead, Ipswich, Suffok, IP9 2BB Registered Charity Number: Company Registration Number:

7 Community Foundations In 2014, the Charity Commission pubished revised guidance on setting up and registering a charity. The Charity Commission acknowedges that community foundations have a reputation for the effective management of charitabe funds in order to maximise their impact at a oca eve. Suffok Community Foundation is abe to offer an aternative, cost effective soution to those who are interested in oca charitabe giving, as we as having the knowedge to connect your cients with a wide range of charitabe activity. Setting up a named fund as an aternative to a charity The revised guideines were estabished to encourage peope to think carefuy about aternative options before setting up a charity, such as supporting an existing organisation with the same aim or setting up a named donor fund with a community foundation. The Charity Commission and community foundations have aso worked cosey in recent years to ensure that trustees seeking to revitaise moribund (dormant) or ineffective trust funds (and who are ooking for an effective way of carrying on their good work in future years) can reease their funds to a community foundation as part of their appraisa of options. The Charity Commission wecomes and supports this initiative and encourages a charities to ask themseves whether they shoud work with community foundations as an aternative to setting up a new charity or continuing with a dormant or ineffective trust fund, particuary if they agree with one or more of the foowing statements: We find it difficut to identify deserving beneficiaries (charities and community groups) We cannot spend the income of the charity We find ourseves providing money to the same peope or groups every year We find it difficut to attract trustees We woud ike to be invoved in how the money is spent but we do not want the ega responsibiity of being a trustee The work of administering the charity and its investment is becoming onerous or disproportionate to the eve of funding We wish that we knew more about oca issues and opportunities and who ese was funding what The Charity Commission website states: If you want to hep your oca community but don t have ots of spare time to run a charity, you coud consider setting up a fund with a Community Foundation instead. For more information visit and search for How to set up a charity or, to compare the benefits of estabishing a Fund through Suffok Community Foundation with setting up an independenty registered Charitabe Trust, see the Comparative Tabe insert produced by Suffok Community Foundation.

8 Setting up a Persona Fund Many of us have a desire to put something back into the community and are ikey to be approached by peope who wish to estabish a charitabe trust so that their phianthropic wishes can be met. In these circumstances, setting up a new charitabe trust is the conventiona route. However, the ega responsibiities of trustees under charity aw are onerous. Any new charity wi need to prepare audited accounts annuay, decide on an investment poicy, monitor the investments, decide upon the sort of needs they wish to hep meet, agree the eve of support to provide to each group, advertise their fund, carry out due diigence checks on appicant groups, make awards and then monitor the impact that the grant award has had. Whist many donors have some of the skis to do this work, very often they do not have the time or the same eve of expertise in due diigence and grant award making as those in the charity sector. Charitabe trusts can be expensive to run and so some peope who ike the concept are put off by the cost and compiance requirements. We beieve that Suffok Community Foundation provides a simpe, cost effective aternative to a charitabe trust for individuas or businesses. Estabishing a fund through Suffok Community Foundation Whist there wi aways be a pace for the conventiona route, a unique feature of community foundations is the abiity to estabish a persona fund where the administrative burden and ega compiance is managed by us but, importanty, the donor can remain as cosey invoved in the appication of their money as they wish. A persona fund with Suffok Community Foundation works in a simiar way to a charitabe trust but is a ot easier to manage. We hande the investment, correspondence, compiance and governance. Persona funds are bespoke to your cients charitabe objectives and donors can choose the name of the fund or whether to remain anonymous. They can aso choose the geographica area to benefit in Suffok, the causes that they wish to support in their grantmaking and the eve of their invovement in terms of giving and seecting projects to fund. Suffok Community Foundation receives hundreds of requests for funding each year and we have a great depth of understanding as to what makes a good appication and project. We aso know how to reach sma groups that may be beyond the knowedge of the donor. When assessing appications for funding, there are checks in pace to ensure that the group has good governance and the ski set to deiver a project that is reay needed in the oca community. This provides a strategic approach to charitabe giving for your cient and ensures a ow eve of risk by making use of the Foundation s expertise in this fied.

9 Long term endowment or immediate impact? There are a number of options that your cient might consider when estabishing a fund and we can work cosey with them to expain the choices avaiabe to enabe them to make an informed decision about the most appropriate fund for them: Endowment Fund an endowment provides permanence to a donation and demonstrates a ong-term commitment to the oca community. Endowed funds are invested with the annua income being distributed as grants. Funds are invested with a view to growing the vaue of the fund over time to create an expanding and sustainabe source of funds for grantmaking in perpetuity. Revenue Fund revenue funds are often estabished by making an annua donation which is awarded as grants within that year to provide immediate support to oca communities. Combined Fund this is very appeaing for those donors who wish to grow an endowment fund over time but aso wish to make grants from a revenue fund to make an immediate impact. An additiona benefit of setting up a fund through a community foundation is that, periodicay, we have access to government match funding programmes such as Community First or the Grassroots Grant Programme, both of which provided a 50% upift on donations into endowment funds. In short, this coud potentiay grow 10,000 of your cient s donation to 17,500 after the appication of Gift Aid. We can provide further detais of any current schemes if your cient woud be interested in exporing this option. Management and costs As an independent charity, we are responsibe for raising 100% of our administration costs and accordingy, we need to ensure that we cover the cost of administering and managing our donors funds. These are met out of contributions to the Foundation. The size of the contribution to cover administrative costs depends on the size of fund but is typicay 1% annuay for endowment funds, and 10% for revenue funds. This offers our donors significant vaue for money when compared with the cost of estabishing a conventiona charitabe trust. The donation Where possibe, we encourage donations to be made in a tax-effective manner, usuay with Gift Aid. This means that for every 10,000 donated, we can caim back 2,500 at no extra cost to your cient. We can aso accept gifts in cash, shares, and, property or other assets which can aso be made tax efficienty. Giving shares to charity has ong been a usefu way of unocking capita and passing it on to good causes. Donations made in this way are eigibe for fu persona income tax reief as we as exemption from capita gains tax. A gift of 1,000 worth of isted shares coud reduce a basic rate taxpayer s income bi by 220 and a higher rate payer s by 400. In addition, no capita gains tax is payabe on gifts of shares to charity. Simiar reief aso appies to donations of and or buidings. We can hep you advise your cients on how to arrange the transaction.

10 Benefits The key benefit to your cient is knowing that by setting up a fund through Suffok Community Foundation they are making a significant and asting difference to those in need in the oca community without the burden of running it themseves. In short, we beieve that we take out the stress and make giving the peasure that it shoud be. There are further advantages that we beieve persona funds have over the estabishment of a charitabe trust. Pease refer to our Comparative Tabe, which highights the comparisons. CASE STUDY Haesworth Vounteer Centre funded by the Martineau Fund Richard and Diney Martineau created the Martineau Fund through a charitabe gift in the form of some of Washam-Le-Wiows most historic cottages with the aim to transform the ives of oca communities ong into the future. Offering a gift in their ifetime has aowed them to fuy invove themseves in seeing the good that their gift is giving to the county they ove. We reay wanted to keep the cottages for oca peope, but reaised that our chidren woud probaby have to eventuay se two or three bocks to pay for death duties. We have been gifting a cottage bock a year. So now tenants don t pay rent to us instead they pay it to the Foundation who in turn have created an endowment fund aowing us to make grants to oca charities from the proceeds. We went to the Foundation because the charity is so professiona and works so hard. They reay know what they are doing Richard Martineau Haesworth Vounteer Centre received a grant from the Martineau Fund towards the running costs of the community car scheme, heping oca residents with journeys to appointments such as denta, opticians, doctors, and socia activities such as visiting friends or reatives. Interacting with other members of the community can stimuate peope mentay and improve the ives of those who may be sociay or ruray isoated. As we as the fact that we transport passengers to essentia hospita and doctor appointments, we know a shopping trip or a trip to meet a friend for coffee is just as important to the heath and socia we-being of the peope that we dea with Tracey Gardner Manager at the Haesworth Vounteer Centre

11 CASE STUDY Got to Read funded by the Birketts Fund Recognising the importance of the community in which they work and their responsibiity to contribute to it in a positive way, oca aw firm Birketts, estabished a corporate fund with the Foundation in Every year the partners of the firm give 10,000 towards it, part is used to make grants to oca charities and the rest forms an endowment to buid up a giving fund for the future. Suffok Community Foundation is amazing whenever the charity pane meets they present a ist of appications, which have a been carefuy screened. There are six or seven grants to choose from, they ve checked the sustainabiity of the project and the charity too, which reay heps. We have been privieged through the Foundation to come into contact with a number of community projects which have not had the profie and funding of arger charitabe projects but which are making a noticeabe difference on our doorstep. That is hugey satisfying Mike Richards Senior Associate, Birketts LLP Among the charities they have supported are Got to Read in Ipswich, which heps individuas and communities to share and enjoy reading. It provides training and support to vounteers who have a ove of reading and want to share that with peope who want to increase their confidence in reading, writing and speaking. Vounteers give one-to-one support to hep someone with their own persona reading goas, whether that is buiding on what they can do aready, or starting right from the beginning. The Birketts Fund contributed towards the running costs, heping the charity to assist peope with iteracy chaenges.

12 Comparative Tabe Comparing a Fund estabished through Suffok Community Foundation (SCF) with an independenty registered Charitabe Trust. SETTING UP A CHARITABLE TRUST ESTABLISHING A FUND THROUGH SCF SET-UP PROCEDURE COSTS TIME FRAME INVESTMENT, AUDIT, ACCOUNTING AND TAX REPORTING TO AUTHORITIES GRANTMAKING PROCESS, ADMINISTRATION AND FOLLOW UP Must register as a charity and appy to the Charity Commission. Must appoint a Board of Trustees. Cost ikey to be from 1,000. May take weeks or months. Tax status covered by registration with the Charity Commission. Must fufi financia and administrative requirements and may incur professiona fees. Donor/trustees must maintain a financia records, prepare accounts, and submit to the Charity Commission. Donor responsibe for own grantmaking process, administration and overseeing. Must research and check activities and status of a recipient organisations; has utimate say in a grant decisions. Simpe fund agreement. No start-up fees or costs* Annua cost contribution of 1% of fund vaue. Can be set-up within hours. We hande a financia and administrative management, arrange audit and report to the Charity Commission. Tax status is covered under SCF s charity status. We take care of reporting to the Charity Commission, particuary the Annua Report and Accounts. Professiona staff avaiabe to hep identify and assess grantees, provide input on community needs, and ensure foow up with recipients and reports back to donor. SCF verifies activities and status of a potentia grantees. Donors can be invoved as much or as itte as they choose in the grantmaking process. SCF Trustees approva is required for a grants.

13 SETTING UP A CHARITABLE TRUST ESTABLISHING A FUND THROUGH SCF PHILANTHROPY ADVICE DONOR CONTROL DONATIONS PRIVACY PROFILE GEOGRAPHY NETWORKING Donor/Trustees responsibe for own giving strategy. Donor appoints Board of Trustees to contro a aspects of grantmaking and investment. Often restricted to registered charities. The Charitabe Trust must keep pubic records. Responsibe for own profie. Donor/Trustees determine their geographica reach. Must find own network and information sources. We provide fu charitabe giving and grantmaking know how to ensure the donor maximises the impact of their fund. Trustees of SCF take on ega and fisca responsibiity for the donor s fund, whie the donor chooses grants to organisations vetted by SCF. To both registered charities and non-registered community groups. Anonymity of donor can be maintained if desired. If the donor wishes, SCF can serve as a mediator between donor and grant seekers. We can hep the donor as much or as itte as necessary. We can raise the donor s profie in the community by making grants in the donor s name and featuring the donor in pubications. SCF operates across Suffok but partners with other UK Community Foundations on the deivery of regiona and nationa initiatives which may be of interest to donors. We connect donors to a variety of groups and issues in the community and connect ike-minded donors through events and initiatives. * Where a Trust is set up through a Government match funding initiative, for exampe, the Government s Community First Programme (which provided a 50% upift on the donation), there may be a sma set up cost per donation.

14 Leaving a Gift in a Wi Many of our supporters have been committed to Suffok for many years, and they don t want that commitment to end when they die. Athough some peope have a cear idea of the charities they wish to support through eaving a gift in their wi, others may want to give back to their oca community but are unsure exacty which charities to support. A ong term and viabe aternative is for Suffok Community Foundation to be named as the recipient in a wi, with the instruction to use the egacy to support a particuar cause or a particuar area of the county. Leaving a egacy for Suffok Do you have a cient who is interested in setting up a charitabe trust through their wi, but is wary of the cost and the ega responsibiities they may be eaving for famiy and friends? Has your cient approached you with a request to eave a charitabe bequest to hep a variety of Suffok based charities? Do you have a cient who woud ike to eave a gift to their oca community, but hasn t been abe to find the right vehice? If the answer is yes to any of these questions, Suffok Community Foundation can hep. Types of egacy There are a number of ways that donors can support oca causes via a egacy to Suffok Community Foundation; we work cosey with professiona advisors to agree the most appropriate soution for their cients. Whether a residuary egacy, pecuniary or specific egacy, the Foundation is abe to manage egacies of a kinds. Suffok Community Foundation provides a uniquey fexibe range of options and support for cients. Whatever the charitabe interests of your cients, the Foundation can: Use its oca expertise to match deserving causes with the criteria set by your cient. For exampe, if your cient has a particuar wish to support young peope in Lowestoft or menta heath issues across the county, we can set up a fund agreement with them which states their wishes. Provide a soution for eaving a one-off egacy which benefits a wide range of deserving, oca causes across Suffok.

15 Offer a way, through an endowment fund, to make a singe gift that keeps on giving, in perpetuity, to the causes your cient supports. Enabe famiy and friends to be invoved in the decision making process without the burden of ega or fisca responsibiity. Simpy naming Suffok Community Foundation as the beneficiary in a wi provides your cient with the fexibiity to support a wide variety of important oca causes and to respond to changing needs over time. Suffok Community Foundation guarantees to use the donation in the best and most effective way to improve ives in the oca community whist adhering to the cient s wishes. Tax benefits As an accredited community foundation, egacies made to Suffok Community Foundation quaify as charitabe donations. As you wi be aware, charitabe egacies are exempt from inheritance tax and coud hep reduce the tota amount of tax paid on your cient s estate, maximising what is avaiabe for their heirs. We can aso accept gifts in cash, shares, and, property or other assets which can aso be made tax efficienty. Case study exampes for cients The basic principe is that if an individua eaves 10% or more of their estate in their wi to charity, the rate of inheritance tax (IHT) wi be reduced from 40% to 36%. However, this doesn t necessariy mean that they have to eave 10% of the whoe estate - the rues are more generous than this. In short, it is ony necessary to eave 10% of the net vaue of their estate. This is the sum of a the assets after deducting any debts, reiefs, exemptions and the tax free band. Suffok Community Foundation is not quaified to provide tax advice to individuas and we aways advise any potentia donor to discuss the tax impications with their professiona advisor. However, we set out beow some exampes of how the rues governing the IHT exemptions on charitabe gifts work, which show how favourabe they are. You might find these exampes hepfu to share with your cients to iustrate the tax benefits of eaving a egacy: Exampe 1 Robert dies eaving an estate worth 500,000. He has a fu tax free band of 325,000 so his taxabe estate is 175,000. To quaify for the reduced rate of tax he needs to eave 10% of 175,000 to charity i.e. 17,500. The 17,500 quaifies for the charitabe gift exemption eaving 157,500 which is taxabe at 36% making a tax iabiity of 56,700. This eaves 425,800 for his heirs. Exampe 2 Had Robert eft a egacy of 15,000 to charity his estate woud not have quaified for the reduced rate as 15,000 is ess than 10% of the net vaue. After making a deduction of the tax free band of 325,000 and the charitabe gift exemption of 15,000, his taxabe estate woud be 160,000. This woud be taxed at 40% making a tax iabiity of 64,000 eaving just 421,000 for his heirs. So, interestingy, Robert s heirs wi better off if he eaves 17,500 to charity rather than just 15,000.

16 Exampe 3 If Robert eft nothing at a to charity his taxabe estate woud be 175,000 and the tax charged at 40% woud be 70,000 eaving 430,000 for his heirs. So whist Robert s heirs woud be better off if he eft nothing to charity at a, as can be seen in points 1 and 2 above, by reducing what is avaiabe to his heirs by just 4,200 the charity benefits by 17,500. The Foundation has specimen wording avaiabe to hep soicitors ensure that we can manage your cient s gift according to their wishes. CASE STUDY Private Legacy Fund One of the Foundation s argest funds came from a mystery 1.2miion donation from an estate in the Sudbury area. This was compemented by match funding, which brought the tota up to 1.7miion. The fund was brought to ife thanks to the advice given to the donor from Weath Advisor Darren Chapin from Towry Ltd and Catriona Gaoway from Birketts Soicitors, who heped their cient fufi her desire to hep the peope of Suffok before she died. She was an incrediby private person, a widow with no chidren or cose famiy and she had spent her ife being very active in the community. She had ived in Suffok a her ife and wanted her estate to be used for charitabe purposes but did not ike the idea of her estate passing to just one or two nationa charities which aready receive significant funding from other donors and where she fet there was a risk her egacy woud be ost. This specia fund wi not ony hep oca communities for generations to come, it is aso a fitting permanent memoria to a very generous ady Darren Chapin Weath Advisor from Towry Ltd Darren and Catriona are now in the very specia position of seeing her money in action as grant pane members. Among the charities that have benefitted are the Eden-Rose Coppice Trust in Sudbury, a woodand sanctuary for peope with cancer or termina inesses, and The Bridge Project, aso in Sudbury, which heps disadvantaged aduts, incuding those with earning difficuties or menta heath probems.

17 I m sure they woud be very peased to know that there is a egacy that wi go on heping peope in Suffok. It is ony a sma contribution but hopefuy the grants wi provide a much needed boost to projects, just as the grants we received at The Yard Project did Care Meade

18 In Memory and Tribute Funds In your capacity as a soicitor, accountant or weath advisor, you wi no doubt come across cases where famiy and friends of peope who have died wish to set up a fund in memory of their oved one. This is usuay so that they can support issues cose to the oved one s heart, or that ink to the cause of their death. Funds ike these enabe famiy and friends to remember them in a specia way. As an aternative to setting up a new charitabe trust through the Charity Commission, a named fund can be estabished with Suffok Community Foundation whereby funds are raised for the cause and an agreement is estabished with the famiy as to how funds shoud be spent and the type of charity and community groups that they wish to benefit. By doing this, the monies raised can be paid into the Suffok Community Foundation named fund and wi be tax efficient, as Gift Aid can be caimed as appropriate. This is a ow cost soution for a famiy and can be set up immediatey, without any need to register as a charity or seect trustees (with a the statutory obigations that carries) at what might be a very difficut and emotiona time for those invoved. Peter & Dorothy Meade Grantmaking Fund Peter and Dorothy Meade oved Suffok and spent much time in the county. When Dorothy died at the end of 2012, her daughter, Care Meade, wanted to eave a egacy in her parents names, so she estabished a fund in their memory to provide ongoing support to individuas and projects working in Suffok to combat inequaity. Care, aong with her husband, heped estabish the Yard Project in Lowestoft, which ten years ago was given one of Suffok Community Foundation s first ever grants. I m sure they woud be very peased to know that there is a egacy that wi go on heping peope in Suffok. It is ony a sma contribution but hopefuy the grants wi provide a much needed boost to projects, just as the grants we received at The Yard Project did Care Meade

19 Charitabe Trust Transfers There are thousands of sma charitabe trusts across the UK that are either dormant, inactive, or ineffective. You wi no doubt have come across charities or charitabe trusts that have ceased to operate for a variety of reasons, often through circumstances that are beyond the contro of the origina trustees. Reasons why a charitabe trust may become dormant, inactive or ineffective incude: The origina purposes may be outdated and irreevant to current needs The purposes may have been fufied or ceased to exist or the beneficiaries may no onger exist Funding chaenges that many in the vountary sector are facing The fund may be too sma to make a significant impact (as it generates amost no income) or a ack of expertise may make grant decision-making chaenging With arger funds, it might be that over the years the trustees are not abe to distribute funds and they become dormant, or moribund. Trustees may find it hard to stand down or to find someone to repace them, or they may not fuy understand their ega or financia obigations. Our experience We can provide a range of soutions from assisting with grantmaking to taking over a trust competey. If they wish, the cient can retain an invovement without having the burden of the financia and ega responsibiities. Working together with professiona advisors, we can assist cients with trust transfers, moving the funds into another endowed fund with modern and appicabe objectives. We are abe, if it is required, through the transfer process to change the specific objects of the trusts and continue to distribute grants in the spirit of the origina founders. With active trusts, it may be that trustees are ooking for a sustainabe approach to their fund, to ensure that the exceent work they have undertaken for many years is continued in perpetuity without osing invovement in the funds. As an aternative to transferring a trust, where appicabe, we are aso abe to take over the management of active trusts, sometimes by becoming corporate trustees of an existing trust. Trustees of charities and community groups facing cosure may decide the work that Suffok Community Foundation does to support oca communities and individuas is in ine with the aims of their group and that a transfer of funds to the Foundation woud ensure a worthwhie and effective use of remaining assets. Whatever the reason for cosure, it is not uncommon for organisations to have residua funds and the trustees wi be required to distribute these in accordance with the dissoution cause in their governing document and may turn to you for assistance. Charity Commission rues are cear that residua assets shoud be passed on to another charitabe organisation that can use such assets to foow the same or simiar objectives.

20 The benefits of transferring a Charitabe Trust to Suffok Community Foundation We can often provide better returns on investments as we are abe to poo arger sums of money which are effectivey and prudenty managed through appointed investment managers. Our oca expertise means that we can identify current socia need and often find beneficiaries and causes that provide the 21st century equivaent of the issues the origina trust was set up to tacke. In some cases we have match funding schemes in pace such as the Government s Community First programme that provided a 50% match on eigibe donations. Trustees can reease the responsibiity of managing and administering a trust fund directy, but retain an interest in the fund by acting as an adviser or continuing to award grants. Options for transfer There are severa options that can be considered under reevant sections of the Charities Act. This can incude: Cosing a trust and transferring the proceeds to the Foundation. Any group or charity wishing to pursue this shoud ensure that this action is in compiance with their governing document, and where reevant, has the approva of the Charity Commission. We can assist by writing to the Charity Commission to enabe this to take pace. Suffok Community Foundation becoming a corporate trustee and retaining the origina charity number, but under new management. The Foundation can aso offer a range of grantmaking services to existing trusts. This can be a fuy supportive offering incuding a of the aspects beow, or can just focus on one or more of these eements: Designing the appication process Promoting avaiabiity of grants to the right target audience Accepting the appications and carrying out due diigence Producing papers for the pane Providing administrative support in terms of making the grant payments Monitoring progress Providing an annua report on the impact of the grantmaking The Shruband Foundation was originay set up in the 1930s with the aim of heping oca peope, athough more recenty no grants were being made. I suggested that it might be a good idea to pass the trust to Suffok Community Foundation who coud invest the capita and put the money to good use heping oca charities. So in 2011 the trust was transferred to the Suffok Giving Fund where it s now used for genera grantmaking David Nicoson Persona Tax Manager at Ensors

21 Dormant Cient Funds & Uncaimed Cient Accounts Professiona firms are required to return baances on cient accounts as soon as there is no onger a proper reason to retain them. In addition to the handing of dormant charitabe trust transfers, Suffok Community Foundation has experience of transforming uncaimed baances into an asset for the community. For exampe, soicitors wi be aware of the Soicitors Reguatory Code of Conduct Rues (20.1) which aows for practices where funds under the sum of 500 hed on cient account which can t be traced and returned to the cient can now be payabe to a charity. (Soicitors do need authorisation to transfer amounts over 500 from the SRA, and the appication form and guidance can be found at It can be in the interests of the firm to ensure that money, which woud otherwise remain inactive and subject to audit each year, goes directy to support a charity. There may be an uncaimed amount hed on cient account for a number of reasons, perhaps where: The rightfu owner cannot be traced The rightfu owner wi not provide instructions on how the funds shoud be deat with Monies returned to the cient have not been cashed Suffok Community Foundation handes a cases sensitivey and in confidence. Any uncaimed cient funds transferred in this way can be used to directy fund charities and community groups who support the peope of Suffok. The exact type of organisation and cause to be supported can be seected by you and your team according to your organisation s charitabe objectives. As required by SRA rue 20.1 we are a registered charity (No: ) and can be ocated on the charity commission website: Suffok Community Foundation is abe to accept funds donated in this way and can provide an indemnity in case the origina beneficiary shoud ask for the money. We are happy to discuss, in confidence, ways of working with you to protect you in cases where arge sums are transferred to the Foundation shoud the origina owner seek recompense. It might be, for exampe, that the funds are hed in a genera endowment fund earmarked for your firm, protecting the capita and distributing the annua income earned from the interest and dividends to oca community groups.

22 A Word from your Coeagues Everyone working in the Suffok area shoud famiiarise themseves with what the Foundation is achieving. Cients when making Wis or ifetime gifts often find it difficut to choose between the vast numbers of charities avaiabe. The Foundation provides a conduit for those with a arge variety of needs to benefit ocay. If the cient so desires, there can be compete transparency as separate funds can be set up in cients name to provide funds at the cients discretion. Equay the discretion can be eft with the Foundation. A too often arge sums are eft to nationa charities with no indication as to what they might be used for Jonathan Long Partner, Ashton KCJ Soicitors We are deighted to support the Suffok Community Foundation. As a charitabe organisation, they work tireessy with such a wide number of oca area groups to gain a unique understanding of needs and then to bring vaue to individuas ives, providing strength, comfort and inspiration to so many Care Harra Partner, RSM Often cients, when discussing their affairs, wish for the community where they ive to benefit from their charitabe giving, but can be unsure as to which specific charity they wish to benefit. Suffok Community Foundation is abe to match our cients aspirations with a suitabe charity or cause. Our cients have been happy to expore these opportunities further, being gratefu for the introduction made David Nicoson Director, Private Cient Services, Ensors Working with the Suffok Community Foundation is aways a rewarding and productive experience. The team at Wherstead are knowedgeabe and very supportive. The Foundation is a marveous organisation that has enabed our cients to achieve their phianthropic goas Wayne Perrin Partner, Greene & Greene Soicitors

23 Our county is intrinsicay rura, and whist a diverse economy has deveoped in recent years, many of the principes synonymous with the famiy farm are to be found in the DNA of Suffok s empoyers. Stewardship for the next generation. Buiding ong-term vaue. Consideration for the oca community our own doorstep. It stands to reason; many of us empoy and train peope from the oca schoos and coeges, and count each other oca businesses as suppiers and customers. So in caring for the community around us, by supporting Suffok Community Foundation and the essentia roe that it pays, we are aso acting with sensibe sef-interest as business peope. Supporting those organisations at the grass-roots eve, those that don t have fash marketing campaigns or highy paid fundraisers but that are doing things to make a difference to the ives of peope in our communities, has to make sense. That s why I m proud to be fuy behind the work of Suffok Community Foundation Luke Morris Larking Gowen and Past Chairman of Suffok IoD I am so impressed with the work of the Suffok Community Foundation the recognition that reativey modest eves of funding can make an enormous beneficia impact on oca community run groups is key to the wonderfu contribution this charity makes in the county Eizabeth Dunn Associate, Ashton KCJ Our charitabe fund with the Suffok Community Foundation gives us the opportunity to hep vountary and community groups whose primary aim is to improve the quaity of peope s ives but who don t have the same access to the eves of funding enjoyed by arger charities. We have aso been abe to assist some of our cients in setting up their own Trusts with the Foundation. Our cients have wecomed the support they have received and the one to one advice to hep them decide which particuar causes they support within Suffok. One of the advantages for our cients in setting up their own Trusts is that the Foundation is abe to take on the day to day management, ensuring that grants are awarded in ine with the Trust s origina objectives and picking up the administrative burden invoved in the practica eements of deaing with grant requests Louise Long Partner, Birketts I think that the Suffok Community Foundation is in a unique position within our community to support oca, grass roots charities and as such is perfecty paced to hep with persona, famiy and corporate phianthropy Andrew Wheeer Investment Manager, Brewin Dophin

24 The Od Barns Peninsua Business Centre Wherstead Ipswich Suffok IP9 2BB Suffok Community Foundation is a member of UK Community Foundations. Charity No: