Hamilton Community Foundation - Advisors

Advisors

Other HCF Services

1. HCF as Successor to a Private Foundation
2. Partial Transfer of a Private Foundation's Income or Capital
3. Gifts from an Estate or Trust
4. Transfer of Trusts
5. Help for Charities that are Closing

1. HCF as Successor to a Private Foundation

Your client may have established a private foundation to fulfill their charitable goals. In some cases however, with the passage of time, priorities and family circumstances may change, and problems may emerge:

The foundation's original purpose may become obsolete or need updating to meet changing philanthropic needs.
Paperwork, reporting, investment responsibility and administrative expenses become discouraging and even diminish the funds available for charity.
The donor's family and succeeding generations may lose interest, and the foundation may have difficulty attracting suitable trustees.

In any of these situations Hamilton Community Foundation may be a sensible alternative.

There are a number of ways to transfer the assets of a private foundation. HCF is the successor to several local private foundations, including: The Edith H. Turner Foundation ($8 million) and the Clark Family's Willahome Foundation ($1 million). We welcome enquiries and would be pleased to provide detailed information on the procedures for transfer of assets and continuity of philanthropic purpose.

For further thoughts and comparisons on HCF as an alternative or successor organization to a private foundation, see An Alternative to a Private Foundation.

2. Partial Transfer of a Private Foundation's Income or Capital

Your client may wish to explore transferring his/her private foundation to HCF gradually. A first step toward transfer of a private foundation's assets, allowing a trial relationship with the HCF, would be to establish a fund at HCF bearing the private foundation's name. Part or all of the current year's income or a portion of the capital would be transferred to HCF under agreement. The trustees would then have an opportunity to get to know HCF and the way it works. If mutually desirable, this arrangement could continue indefinitely until the trustees are ready to take full advantage of HCF's services.

3. Gifts from an Estate or Trust

HCF can offer a unique service to personal representatives or trustees of Wills responsible for allocating money to charity without direction as to amounts or specified organizations. The trustee can set up a fund at HCF in the name of the deceased and, with the approval of the Court if necessary, arrange to have the charitable portion of the estate paid to the fund. HCF then assumes the burden of carrying out the charitable provisions.

4. Transfer of Trusts

Trust departments in financial institutions may have accumulated a number of charitable trusts that can no longer be effectively managed. Sometimes the principal amounts are too low to provide adequate charitable support and pay current fees, or potential beneficiaries are difficult to identify and locate, or changing times or conditions make alterations or amendments to the original documentation advisable. When the administrative, reporting and grantmaking tasks become excessive, it may be useful to transfer the assets of these trusts to HCF, which then assumes responsibility for the funds.

5. Help for Charities that are Closing

Charities faced with closure due to questions of continuing relevance, financial viability or other threat may wish to establish a fund with HCF. The organization can use the remaining assets to continue both the name and history of the organization as well as support for a particular field of service. HCF has experience in this situation and can work with the organization's Board of Directors to design an appropriate solution.