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Investment Management

Under the oversight of the Racine Community Foundation's Investment Committee, Bogdahn Consulting, LLC provides investment consulting services, advising the committee on growth and diversification strategies and high-performing sectors, as well as monitoring the Community Foundation's investment pool to maintain its balanced investment approach.

The Investment Fee on the portfolio is 0.69% (69 basis points). The Racine Community Foundation's Investment Committee reviews investment performance and consultant recommendations, adjusting its investments to stay on top of emerging developments.

Racine Community Foundation
Junior Achievement
Focused on providing educational opportunities that broaden knowledge of free enterprise and entrepreneurialism, the Racine Community Foundation partnered with Junior Achievement to help students learn to recognize and create opportunities, advance the ideals of citizenship, cultivate a sense of economic ownership for Western Racine County and develop the necessary action steps to achieve life goals.

Community Foundation

vs.

Private Foundation

TAX BENEFITS
RCF handles filing Form 990.   Private Foundation must prepare Form 990-PF.
GETTING STARTED
Racine Community Foundation (RCF) was established in 1975. Setting up a fund is easy and inexpensive. There are no initial tax filing requirements. There are no necessary corporate documents.   A foundation must be started from the ground up. Can be costly and time consuming. Requires filing with the IRS to receive tax-exempt status. Must establish a separate corporation or trust.
ADMINISTRATION
Costs are shared by all funds. The RCF Board is informed of community needs. Investments are managed by a responsible committee and professional investment managers.   Various costs for administration, insurance, accounting and audit. Must obtain knowledge of community needs. Requires research for managing investment vehicles.
CASH GIFTS
Cash gifts are deductible up to 50% of adjusted gross income. Full market value of appreciated assets is deductible up to 30% of adjusted gross income. Tax-exempt income.   Cash gifts are limited to 30% of adjusted gross income. Full market value is deductible limited to 20% of AGI or tax cost basis is deductible limited to 50% of AGI. Tax-exempt income but may be subject to excise tax of up to 2% of net investment gains.
DONOR CONTROL
Donor may make recommendations regarding distributions. Donors may remain anonymous.   Donor retains control over investments and distributions. Donor information is open to the public for up to three years.
DISTRIBUTIONS
Currently, there is no minimum pay-out requirement.   Approximately 5% of net asset value must be paid out for charitable purposes annually.

THE BENEFITS OF PARTNERING WITH RACINE COMMUNITY FOUNDATION

As the administrative entity that oversees an array of charitable funds established by individuals and organizations, the Racine Community Foundation, and its donors, work together to enhance the quality of life for the people of Racine County.

Utilizing the investment and administrative strength of a public foundation like the Racine Community Foundation--versus establishing one's own private foundation--offers many benefits.

At a glance, some of those benefits include:

  • Increased tax deductibility on all types of gifts.
  • Greater earning power from pooled charitable gifts.
  • Total ease in creating a fund plus the elimination of start-up costs.
  • Access to respected professionals with expertise in the investment and distribution of funds.
  • The opportunity to have an active role in determining how your gifts are distributed.

Additionally, the Racine Community Foundation takes care of all required government reporting and paperwork. It has a well-established and responsive grant solicitation, review, and awarding structure, and is at the vanguard in the network of community non-profits. With a seasoned staff and a highly respected Board of Trustees, the Racine Community Foundation is able to effectively address a broad array of needs across all of Racine County.

"A cost-effective, high-impact
way for residents who love a
community or a cause to
make a lasting difference."