What is the WCCF?
The Washington County Community Foundation (WCCF) was initiated by community leaders to encourage charitable giving. Its mission is to improve the quality of life primarily in Washington County by providing a vehicle for charitable giving across a broad spectrum of giving levels to support diverse community needs and to provide prudent stewardship of those charitable funds.
A unique institution in our area, the foundation makes charitable giving easier, more satisfying and more effective. The foundation is a tax-exempt, 501(c)(3) not-for-profit corporation organized under the laws of Pennsylvania. It is registered with the Pennsylvania Charities Bureau, and is a member of The Council on Foundations, the leading national support organization for community foundations. It is governed by a Board of Trustees comprised of local volunteers, each of whom has a long history of involvement in community and civic affairs.
WCCF fosters philanthropy by offering charitable gifting opportunities to donors on an individualized basis and at reasonable fees. Since its beginning, the foundation has been focused on building an ever-increasing endowment to address changing community needs. Its purposes include helping donors accomplish their goals by professionally managing funds entrusted to it for today and for the future, and by distributing these funds as directed by the donor or the Board of Trustees in the areas of arts & humanities, education, environment & animal welfare, health & fitness, human needs and religion & faith-based programs.
From where do the funds come?
The foundation will accept gifts from both individual or institutional donors, such as corporations, churches, other foundations, or service organizations. WCCF may accept virtually any kind of gift, including cash, securities, and real or tangible property. WCCF can be used by the donor to create a fund for as little as $10,000, although different types of funds require different minimums. It is also an excellent vehicle for more sophisticated types of charitable giving, such as charitable remainder trusts or charitable lead trusts. Testamentary bequests and life insurance policies are two devices commonly used to fund a contribution to WCCF. While unrestricted gifts are encouraged, donors may make restricted gifts which are consistent with WCCF's mission. Restricted gifts often take the form of field-of-interest gifts or donor-advised gifts. See Funds of the WCCF for additional information.
Why do donors give through a Community Foundation?
WCCF is a valuable asset both to our community as a whole, and the donors who utilize charitable giving vehicles. The tax treatment can be favorably compared with those using privately-established foundations. WCCF can also provide more flexibility to the donor than a traditional trust arrangement. And perhaps its most attractive feature is that fund distribution decisions are made by qualified local persons who are knowledgeable about local needs and local issues.
Who decides on the grants?
Management and investment decisions are vested in the Board of Trustees. The services of professional fund managers are utilized when appropriate. All foundation decisions are made in strict compliance with established written administrative policies and operating procedures. Each donor and WCCF enter into a written agreement setting forth the relationship between the parties. Performance measurements are made regularly, and audits are performed annually.
Funds are distributed and grants are made from donor restricted funds in strict accordance with the terms of the fund. Distribution from unrestricted funds is made by the Trustees on the basis of established goals and priorities. WCCF does not operate programs.
What fees are charged?
There is no fee to create a new fund. Once the fund is created, there is an annual administrative fee charged to each fund. The fee is a percentage of the fair market value of the fund as of December 31, averaged over a 3 year period. Currently the administrative fee for permanent funds range from 1% to 2%.
Who are the Investment Managers?
The Foundation contracts with several banks for custody and investment of its permanent assets. Investment returns on the Statement of Financial Activity are reported net of the fees charged by the various banks. These fees are as follows:
Custodial Fee for Equity and Fixed Income Investments
· WesBanco Trust & Investment Services - 15 basis points (excluding investments managed by WesBanco)
Investment Fees – Equity Investments
· WesBanco Trust & Investment Services – 30 basis points (with further reductions for investments in proprietary mutual funds)
· PNC Bank – 60 basis points (with further reductions for investments in proprietary mutual funds)
· First Commonwealth – 75 basis points
· Community Foundation Program of the American Funds – 25 basis points to WesBanco. Referring brokers receive 25 basis points from the internal fee of the mutual fund.
Investment Fees – Fixed Income
· WesBanco Trust & Investment Services – 30 basis points (with further reductions for investments in proprietary mutual funds)
· Certificates of Deposit – Charleroi Federal, First Federal Savings Bank, Northwest Savings Bank, and Washington Financial – rates are net of fees
The WCCF does not provide financial benefits to third-party participants in the gift planning process.