CRCF FAQ

1. When is the deadline for scholarship applications?

Applications for all students are due June 1st with the supporting materials due June 30th to the CRCF office. All application information can be found on the scholarship section of this website.

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3. Does the award get mailed to me or my college?

Your award will be mailed to you at the address you included on your application.

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2. When will I be notified if I receive an award?

All scholarship awards are approved by CRCF's Board of Directors in November. You will be notified in November after this approval. You will receive your award in January, upon CRCF receiving your proof of enrollment from your college.

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4. How much will I receive if I am selected as a recipient?

Awards are determined based upon a number of factors including the number of qualified applicants and the pool of monies available for award. Based on these, specific amounts are determined by special scholarship committees.

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5. Do I have to apply for each scholarship fund?

No. By completing CRCF's general scholarship application, you become eligible for all scholarships in the general category. There are also special individual scholarships that you would need to apply for separately. These special applications can be found on the scholarship section of this website.

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6. I am not a straight 'A' student or athlete. Do I still qualify?

Yes. While there are scholarships based upon academic achievement, there are also many others focused on other criteria.

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1. What is the status of my grant?

This depends upon the grant cycle. Field of Interest Grants are approved monthly; therefore, you should know of your award within a month of submission. Community Service, Karl Peterson, and Kids First Mini-Grants are more intensive in process. Time from submission to Board approval can take 3 to 4 months for these processes.

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2. We have never needed to ask for a grant -- can you tell me what is available?

There are four grant cycles at the Community Foundation: Community Service Grants, Karl Peterson Grants, Kids First Mini-Grants, and Field of Interest Grants. You can learn more about these processes by reading the grant section of this website.

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3. Where else can I look for money besides CRCF?

Go to www.chautauquagrants.org for a list of funding resources in Chautauqua County.

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1. I'm having trouble opening a file...what is wrong?

All files on this website are in .PDF format. Therefore, you need a current version of Adobe Acrobat to view these files. To download the Acrobat Reader go to: http://get.adobe.com/reader/

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2. What geographic location do you serve?

The Community Foundation serves all of Chautauqua County. We will not accept scholarship applications, grant requests, or award any funding to organizations falling outside of Chautauqua County.

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3. Whom do I make my check payable to for a memorial gift?

You can make your check payable to the Chautauqua Region Community Foundation. Please note on your check to which fund you would like the donation to go or who the memorial gift is being made for.

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4. If I make a memorial gift, do you automatically notify the family member?

We will not notify the family member of your memorial gift unless you specify who should be notified.

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1. Why do donors want to give IRA assets to their community foundation?

After decades of deliberate saving and favorable investment returns, some retirees have more money in their IRAs than they’ll ever need. For larger estates, a good portion of IRA wealth goes to estate taxes and income taxes of non-spousal beneficiaries; heirs may receive only 25 percent to 30 percent of IRA assets passed on to them through estates.

Instead, IRA holders may choose to leave their IRAs to qualified charitable organizations—choosing charity over taxes.

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2. Which donors stand to benefit most from giving their IRAs to charity?

Because charitable IRA transfers are not included in taxable income and not available for itemized charitable deductions, these special rules may benefit many different types of individuals:

·High-income earners—Donors who itemize deductions may find that they cannot take full advantage of their tax deductions. Often referred to as the 3 percent floor, a taxpayer must reduce itemized deductions by 3 percent of the amount by which the taxpayer’s adjusted gross income exceeds a certain amount that is adjusted annually for inflation (currently $150,500 or $75,250 each for married people filing separately). For the years 2006 and 2007, the reduction on itemized deductions for affected taxpayers is reduced by one-third.

Example: In the 2006 tax year, a married couple filing jointly has $1,000,000 in adjusted gross income (AGI). Because the couple’s AGI exceeded $150,500, the phase-out rules will apply to the couple’s itemized deductions. A complex formula shows that the couple’s itemized deductions will be reduced by $16,990 and, as a result, the couple can claim $133,010 in itemized deductions. Presuming the couple’s tax rate is 35 percent, the reduction in itemized deductions potentially results in additional taxes of approximately $5,945. (Note that this is a simplified example; please see your professional tax advisor for how it may affect you.)

·Generous donors—When making a major gift, some taxpayers may give more to charity than they can deduct that year. Donors cannot deduct more than 50 percent of their income for gifts of cash to public charities (30 percent, if giving to private foundations). Although amounts over 50 percent can be carried forward and deducted in future years, taxpayers will face an immediate tax bill and may lose some of the benefit of the deduction if they die before the gift has been fully deducted. Donors who consistently give above the limit will not be able to take advantage of the carry forward provisions.

·Non-itemizers—Donors who regularly give a portion of their income to charity are not able to enjoy a tax break from the contribution because the standard deduction is still greater than the total of all itemized deductions. This may be especially true if state and local income taxes are low.

·Financially comfortable—Individuals or couples who distribute the minimum from their IRA—and have other forms of income to pay living expenses—may find that transferring their minimum distributions to the community foundation helps fulfill personal charitable goals, tax-free.

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3. In the past, how did the tax law treat charitable gifts made from IRAs?

Under past law, IRA holders faced a disincentive for giving retirement assets to charity during their lifetimes because all withdrawals from traditional IRAs were subject to income tax. Thanks to the new tax provision, retirees will be able to give far more support without being penalized, doing so during their lifetimes and seeing their gifts benefit their communities.

In the past, when a donor of any age withdrew IRA funds to make a charitable gift, he or she was liable to pay income tax on the withdrawal, offset to varying degrees by a charitable deduction for the gift. (Charitable deductions are limited by legal restrictions, such as the percentage of adjusted gross income [AGI] limitation on charitable deductions and the 3 percent floor on all itemized deductions. If an individual does not itemize on his or her income tax return, no charitable deduction can be taken.)

As a consequence of this unfavorable tax treatment, very few individuals donated IRA funds to charity during their lifetimes.

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4. How has the tax law changed?

The Pension Protection Act of 2006 permits individuals to transfer up to $100,000 from individual retirement accounts directly to a qualifying charity without recognizing the assets transferred as income for federal tax purposes. In tax years beginning after December 31, 2005, a donor who has reached age 70½ is now allowed to exclude from his or her income tax calculations certain IRA withdrawals. In most circumstances, these charitable contributions are not tax deductible unless the retirement accounts were funded with after-tax dollars.

This provision is time-limited. It will not apply to any distribution made in taxable years beginning after December 31, 2007.

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5. What are the advantages of this new law?

The tax benefits now available to American seniors will encourage new contributions from individuals who will no longer have to pay tax on a charitable gift of IRA funds. When given through a community foundation, these contributions can support all aspects of community well-being: arts and culture, economic development, education, environment, health and human services, neighborhood revitalization and more.

Now it is easier than ever for more people to enjoy the experience of making the tax-free gift of a lifetime using their excess retirement assets.

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6. What if a donor contributes more than $100,000 from an IRA?

Because the amount that the donor is able to exclude from income is limited to $100,000 under the act, the remaining amount would be recognized as income. Within a married couple, each person can transfer $100,000 from his or her account. A $100,000 charitable distribution may be made in 2006 and again in 2007.

Donors may choose to contribute additional amounts to charity; however, the extent to which additional amounts can be deducted from their income will be determined following general rules of itemized deductions where the charitable percentage limitations and itemized deduction reduction are factors.

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7. Does a donor also receive a charitable deduction when he or she transfers assets to a charity under this provision?

No. The benefit under this provision is that the individual does not realize the amount contributed directly from the IRA to a qualifying charity. Because a donor does not include the amount in his or her gross income, the individual may not take a charitable contribution deduction for the contribution. To do so would allow a donor to receive a double benefit from the contribution. For this reason, charitable contribution deductions are explicitly prohibited.

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8. How will charitable distributions affect the minimum required distributions from a taxpayer's IRA?

Shortly after an individual reaches age 70½, he or she is generally required to receive distributions from his or her traditional IRA. Distributions from an IRA to a charity will receive the same treatment as distributions to the individual taxpayer for the purposes of minimum required distributions.

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9. Are there any IRA transfers to the community foundation that do not qualify for preferred tax treatment?

Yes. Transfers to Supporting Organizations and Donor Advised Funds do not qualify. In addition, split interest gifts, such as Charitable Annuities, Charitable Lead Trusts and Charitable Remainder Trusts, do not qualify. Further, an individual may not receive a benefit in return for an IRA distribution.
Because such transfers do not count as qualified distributions under these special rules, the donor will have to first recognize those distributions as income. The donor's charitable deduction must then be calculated as a regular itemized deduction.

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10. How can an IRA gift be made?

IRAs are typically held by a financial service or trust company. These custodians will likely provide a form that could be used to transfer the IRA directly to charity, with no tax incurred.

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1. Why have a Legacy Society?

Sometimes such gifts go unrecognized because they come at the end of the donor’s life. The Chautauqua Region Community Foundation Legacy Society provides a way for the Foundation to recognize and thank donors during their lifetimes. You may choose to remain anonymous; however, your participation in the Legacy Society can be an inspirational experience and may encourage others.

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2. How do I become a member?

If you have already made a gift or have included the Foundation in your will, you are already eligible for Legacy Society membership. If not, making a planned gift now or in the future through your will qualifies you for membership. Through your gifts, the Community Foundation will continue into the future, and you truly do create a legacy of timeless giving.

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3. What types of gifts qualify?

Estates
Bequest in a Will or Living Trust
Charitable Lead Trusts
Gifts of Life Insurance
Charitable Remainder Trusts
Pooled Income Fund Gift
Bank Account
Beneficiary Designation of Individual Retirement Accounts (IRA, 401K, 403B)

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4. What to expect as a member?

As a member you will receive these special benefits:

Initiation gift
Peer recognition (with permission)
Recognition in publications and at special events (with permission)
Staff resources
A permanent legacy

Frequently Asked Questions

♦ Scholarship Questions ♦ Grant Questions ♦
♦ General Questions ♦ IRA Questions ♦
♦ Legacy Society Questions ♦