Q. What is the Adirondack Trust Company Community Fund?
A. The Adirondack Trust Community Fund (the “ATC Community Fund”) is a registered public charity under Internal Revenue Code 501(c)(3). The ATC Community Fund allows donors to make contributions that qualify for a charitable deduction from income taxes. The Fund serves Saratoga, Warren and Washington Counties and the surrounding region.
Q. Why was the ATC Community Fund created?
A. The purpose and goal of the ATC Community Fund is to become a perpetual source of capital to help meet the needs of local charities. The ATC Community Fund allows individuals, families and businesses to create a lasting influence on local charities through a Donor Advised Fund or the General Fund.
Q. What are my options for contributing to the ATC Community Fund?
A. Contributions can be made in cash, stocks or bonds. Donations of any amount will be accepted by the General Fund and an Independent Advisory Committee will be responsible for making grants to local nonprofits from the General Fund. If you wish to establish a Donor Advised Fund the minimum contribution is $5,000 with subsequent contributions of $1,000 or more.
Q. How is the ATC Community Fund structured?
A. The Adirondack Trust Company is the Trustee of the ATC Community Fund. An Independent Advisory Committee reviews the actions of the Trustee and makes decisions on grants to be made from the General Fund. The Trust Department of The Adirondack Trust Company will oversee the administration and investment of the ATC Community Fund. The Fund has two gifting options: The General Fund or individual Donor Advised Funds.
Q. What is a Donor Advised Fund (“DAF”) and what are the benefits?
A. A DAF is a charitable giving vehicle under the umbrella of the ATC Community Fund. It offers an easy-to-establish flexible vehicle for charitable giving as an alternative to direct giving or creating a private foundation. Donors enjoy administrative convenience, cost savings, and possible tax advantages by conducting their grant making through a DAF.
Q. How does the DAF process work?
A. The process is quite simple. The individual, family, or organization completes an application, makes an irrevocable gift of cash, stocks, bonds, etc. to their DAF and claims a tax deduction for that year. The DAF can be named for the donor or it can be anonymous. The Trustee will manage and invest the gift and await recommendations for grants from the Donor. Once the DAF is established the Donor can make additional contributions at any point. The donor, or whoever they appoint, can make recommendations for grants to be made from their DAF. The Trustee will ascertain that the recipient is a 501(c)(3) qualified charity and then make the Grant.
Q. What is the General Fund and what are the benefits?
A. The General Fund accepts donations of any amount. These donations are tax deductible and the Independent Advisory Committee will select qualified local nonprofits to receive grants from this pool of funds. The General Fund provides donors the comfort of knowing their contributions will be funneled to deserving causes.
Q. Can I make a grant request outside of the local area through my DAF?
A. The ATC Community Fund will honor requests outside of our geographical area as long as the recipient is a 501(c)(3) registered charity.
Q. Does the Community Fund charge fees?
A. The Adirondack Trust Company has committed to do the administration of the plan at no charge. The Bank does charge a discounted investment management fee. The investment fee will be waived for the first year and thereafter assessed at an annual rate of ½% (one-half percent) of the market value of the Fund’s assets.
Q. Can I transfer my Private Foundation to the Community Fund?
A. Yes, you can. Private foundations can be expensive and labor intensive. Donor Advised Funds can be an efficient low-cost alternative. To learn more about transferring a private foundation to the ATC Community Fund, please contact John Fullerton at (518) 584-5844 (x) 2311.