FAQ

What types of funds do you administer?
We offer a variety of fund options, including: unrestricted funds, designated funds, scholarships, donor advised, committee advised, field of interest, nonprofit endowment, charitable unitrust, community projects, nonprofit support, and Build A Fund.

Why do donors establish funds at the Community Foundation instead of giving directly to their favorite charities?
Although some donors want to give directly to a particular organization, many are more comfortable giving through us because of our permanence, professional investment management, and oversight role in ensuring that their wishes are met by the recipient organizations.

How much control and freedom do I have when recommending where grants from my donor advised funds should go—can I specify my church, synagogue, or other faith-based organization?
You can recommend a grant to any organization that falls within the broad mission of the Community Foundation and is qualified as a public charity under Section 501(c)(3) of the IRS code. We ensure that groups recommended for a grant meet this requirement. Due to federal tax laws, we must reject grant recommendations that would benefit a specific individual, fulfill a personal obligation, or support a political campaign or private foundation.

Can I recommend grants to charities outside of Muskegon County?
We are focused on the needs of Muskegon County, but we allow grants from donor advised and designated funds to any 501(c)(3) nonprofit in the U.S.

What is the minimum gift required to start a fund?
In most cases, the minimum for establishing a fund with us is $10,000.  However, unrestricted funds and funds that support the Community Foundation’s strategic causes can be started for $5,000. Scholarship funds require a minimum gift of $50,000. You can also create a Build-a-Fund and make periodic contributions until your fund reaches the desired amount.

What type of assets can I use to start a fund?
We accept a range of assets including: cash, stocks and bonds, real estate, personal property such as jewelry and artwork, life insurance policies and IRA assets. Contact us for a copy of our Gift Acceptance Policy.

How do the Community Foundation’s fees compare with those of commercial gift funds and private foundations?
Our fees are highly competitive with commercial gift funds and considerably less expensive than starting a private foundation. We handle all administrative tasks, including filing annual tax returns, performing due diligence on grants, and all details associated with processing and tracking grants—and there are no setup fees. We offer you all the options of your own private foundation, but without the hassle or extra cost.

Can I get my money back if I change my mind?
Gifts to the Community Foundation are irrevocable. The decision to partner with us is a serious one and we encourage potential fundholders to discuss their intent with their financial or legal advisors.

Can I make a gift to the Community Foundation and retain income for myself or a family member?
We offer several opportunities to make life income gifts and we’re happy to work with you and your professional advisors to determine which type is right for you.

Can my children or other family members get involved?
If you choose a donor advised fund, you may name co-advisors and successor advisors to continue guiding the fund now and in the future.

What is your donor confidentiality policy?
Donor information is highly confidential. The Community Foundation does not share donor names, addresses or fund-related financial information with any individual or organization without express permission from the donor.

Why should I discuss charitable giving with my clients?  The following are just a few of the many reasons it’s important to discuss giving with your clients.

Many clients are seeking a way to express gratitude or appreciation for places and causes they care about.

• By making it easy to give, you serve your community as well as your clients.
• Helping clients give can create a bond, making you a positive stakeholder.
• You expand your areas of professional expertise.
• Clients you assist in giving may be motivated to refer new clients to you who want to do the same.
• You become part of a supportive network of like-minded colleagues willing to share their time and expertise.

What are the advantages to working with the Community Foundation?
As members of the community, we know local issues and leaders, and how to bring government, community and nonprofit players together in meaningful ways. Using us as a resource for giving makes everything simpler and easier for you and your clients. Our purpose is to provide support and expertise, so we can work entirely in the background or we can attend every meeting with you—it’s up to you and your client.

The Community Foundation is a cost-free resource for charitable and estate planning and we’ve been working with professional advisors since 1961. When legislative or tax changes impact your clients, we’ll keep you informed.

How do I know if giving through the Community Foundation is right for my clients?
If any of the following points describe your clients, they may benefit from knowing more about the Community Foundation. We’d be happy to help you introduce them to our work.

• Care deeply about the local community
• Contribute to more than one charitable cause
• Want to create a legacy in the community for their family or themselves
• Have IRA Required Minimum Distributions they don’t need and would like to avoid taxes
• Have an interest in forming a private foundation, but are concerned about cost and administrative complexity
• Desire a say in how gifts are used
• Expect sound financial management for gifts, as well as maximum tax benefits

What are the tax benefits to my client?
We offer the maximum charitable tax advantages available by law. The Community Foundation is not subject to the taxes and regulations affecting private foundations, and we have greater flexibility on matters such as minimum payout, so more money goes toward the cause.

What types of funds do you administer?
The Community Foundation offers a variety of fund options, including unrestricted, designated, scholarship, donor advised, committee advised, field of interest, organization endowment, and community project funds. We also offer charitable gift annuities for clients interested in providing much-needed support to their community while receiving guaranteed payments for life.

How can I recommend a charitable gift without recommending a specific nonprofit?
If you want to discuss the many benefits of charitable giving with your clients without recommending specific causes or organizations, the Community Foundation is a simple solution. A community foundation provides a single, trusted place where clients can address issues they care about, while gaining the maximum tax benefit under state and federal law. We offer many giving options, including the ability to set up a fund in your client’s name. Clients can suggest grants to the nonprofit of their choice each year, or select one or more organizations to give to, perpetually.

Why do donors establish funds at the Community Foundation instead of giving directly to their favorite charities?
Many donors do both, giving directly to nonprofits to provide current operating support, and giving to us to provide long-term sustaining support through endowment. The Community Foundation offers permanence, professional investment management, and oversight in ensuring that their wishes are met by the recipient organizations.

How can my client provide support for a favorite charity through the Community Foundation?
Your client can support a favorite charity through a donor advised fund or a designated fund, as well as by adding to that organization’s endowment fund if we have it. We handle all the administration, record keeping, and financial statements for both options. With donor advised funds, donors have ongoing flexibility to recommend which organizations and programs receive grants. Designated funds provide endowment funding for specific nonprofit organization(s) and can be set up to allow building of the fund over time.

How much control and freedom would my client have in recommending gift recipients—such as their church, synagogue or other faith-based organization—through their donor advised fund?
Your client can recommend a grant to any qualified 501(c)(3) organization, as well as schools, places of worship, and municipalities. We ensure that groups recommended for a grant meet this requirement. Due to federal tax laws, we must reject grant recommendations that would benefit a specific individual, fulfill a personal obligation or support a political campaign or private foundation.

Can my client recommend grants to charities outside of Muskegon County?
We are focused on the needs of Muskegon County, but we allow grants from donor advised and designated funds to any 501(c)(3) nonprofit in the U.S.

What is the minimum gift required to start a fund?
Strategic Funds can be started for $5,000 or built up with annual $500 gifts over 10 years. Strategic Funds support one of our strategic focus areas:

• Education
• Community & Economic Development
• Diversity, Equity & Inclusion
• Frauenthal Center
• All of the above! (Unrestricted)

Scholarship funds require a minimum gift of $50,000; they can be built up with annual $10,000 gifts over 5 years.

All other permanent funds start with $10,000 and can be built up with annual $2,000 gifts over 5 years.

What type of assets can my client use to start a fund?
We accept a range of assets including cash, stocks and bonds, Qualified Charitable Distributions from IRAs (cannot go to a Donor Advised Fund), real estate, personal property such as jewelry and artwork, life insurance policies, and retirement account assets.

What does it cost to start a fund?
Nothing. Starting a fund is free of cost. Our annual fee structure depends on the type of fund and ranges from 1% to 2%. Fees are deducted from the fund and they support our overall operations.

How do the Community Foundation’s fees compare with those of commercial gift funds and private foundations?
Our fees are competitive with commercial gift funds and considerably less expensive than starting a private foundation. They support the work we do, and we provide expert, personal service with local knowledge of our shared community. We handle all administrative tasks, including filing annual tax returns, performing due diligence on grants, and all details associated with processing and tracking grants—and there are no setup fees. We offer all the options of a private foundation, but without the hassle and extra cost.

How do I broach the subject of giving with my clients?
Although giving may be an essential part of any financial plan, there are times when you may need some recommendations on the best ways to begin that discussion. Just give us a call. We can provide a variety of suggestions on how you can get that conversation started.

What is your donor confidentiality policy?
Donor information is highly confidential. We do not share donor names, addresses or fund-related financial information with any individual or organization without express permission from the donor.

Who is eligible for grants from the Community Foundation for Muskegon County?
We award grants to nonprofit, tax-exempt organizations serving Muskegon County that have been determined by the IRS to be 501(c)(3), schools, religious institutions, and governmental units.

My organization is not a 501(c)(3).  What should I do?
We recommend you seek a fiduciary partner with a qualified grantee.

What are the Community Foundation’s grant making priorities?
For grant application guidelines and more information about the Community Foundation’s priorities for awarding grants, please visit the Grants section of our website.

How much can I apply for?
We are happy to discuss the appropriate level of funding for your project with you before you apply, as grant amounts vary widely based the type of grant and impact of the project. You can view past awards here.

How do I apply for a grant?
Begin by reviewing the grants section of our website to learn about open opportunities and grant priorities. If you have further questions, you can contact us at grants@muskegonfoundation.org.

When will I hear the results of my grant application?
All grant processes have different timelines for decision – award dates are typically listed with each Available Grant.

Can my organization apply for grants from donor advised funds?
We do not accept applications for specific donor advised funds, which are advised by individuals or families. However, we do bring funding ideas to the attention of these donors through our Community Wish Lists.

Does the Community Foundation fund faith-based organizations through its competitive grant process?
We award grants to faith-based organizations for programs that serve the broader community, regardless of faith affiliation or beliefs. Faith Partner grants are also available for houses of worship interested in advancing literacy. We will not award competitive grants for inherently religious activities. 

Does the Community Foundation award grants to individuals? 
No. Individuals should review our scholarship page to learn about the awards available to support individuals on their educational journeys.

How often can I apply for a grant, and how many applications can I submit?
We encourage only one application per organization per grant round, as additional applications would be competing for the same funds.

Who decides which applications are awarded grants?
Our volunteer advisory committees, with staff support, review requests for funding and then present recommendations to our Board of Trustees for final approval.

Who is eligible for scholarships from the Community Foundation for Muskegon County?
To be eligible, you must live within the Muskegon Area Intermediate School District boundaries and attend a Muskegon County School. We welcome applications from U.S. citizens, permanent legal residents, or DACA. If you are eligible for the Muskegon Promise, see note below before applying.

Can I still apply for scholarships if I am enrolled in the Muskegon Area Promise?
In order to maximize scholarship support for all students in Muskegon County, we concentrate our scholarship dollars on students who will not be utilizing the Muskegon Area Promise. Details on Promise eligibility can be found here.

Students who are Promise eligible are welcome to apply for a CFMC scholarship, however, applicants who qualify for the Promise and who plan to attend Baker College or Muskegon Community College will not be considered. If an applicant is determined to be utilizing the Promise after being awarded a CFMC scholarship, the Scholarship Committees will award that scholarship to another student. If you are a Promise recipient, we encourage you to apply for a Community Foundation scholarship to support your remaining higher education once you are no longer using the Promise.

How can I use my scholarship?

• Scholarships are paid to accredited institutions and divided equally between the terms of the academic year.
• The scholarship award is used toward the cost of tuition, fees, room and board, books, or other educational expenses the student may incur.
• While many scholarships are for specific types of students, colleges, or fields of study, the Foundation’s process is a “general application.” One application allows you to apply for the hundreds of scholarships facilitated by the Foundation!
• Each individual application is reviewed and matched with the best-fitting scholarship source.

How do I renew a multi-year scholarship?
If you received a multi-year scholarship in the previous year(s), you must submit an unofficial transcript of your fall grades with your renewal application by March 31. You will be contacted by our scholarship staff in January. Not all scholarships are renewable.

General Questions

What is YAC?
The Youth Advisory Council (YAC) is a collective of youth grant makers who represent all Muskegon-area high schools. This team meets monthly to allot over $60,000 to local youth-serving organizations and projects. When YAC isn’t grant making, it’s planning community service projects and site visits to the organizations it funds.

Who is YAC?
The Youth Advisory Council of Muskegon County is made up of students from all Muskegon-area high schools; typically each school has 2 YAC representatives.

Where does the money that YAC grants come from?
YAC started up in 1989, when the W. K. Kellogg Foundation challenged Michigan community foundations to help youth give. This was the deal: if you (the Community Foundation) raise enough money to create an unrestricted youth endowment fund, we (Kellogg) will match your efforts so that teenagers can keep on giving, year after year.  To date, the Muskegon YAC alone has awarded over $1 million to organizations in Muskegon County, a fraction of the total $33+ million given by Youth Advisory Councils in Michigan every year.

How can I follow YAC’s work?
One way to stay in touch with all things YAC is to sign up for the Community Foundation’s email list: Subscribe to our newsletter.
Follow YAC on social media! Instagram: @muskegon_yac

For Youth

Why should I join YAC?
Join YAC, and you’ll work to combat mental health issues, substance use, race discrimination, and other challenges you and/or your peers grapple with every day. You’ll be a grant maker who helps dispense tens of thousands of dollars of aid to youth-related projects in Muskegon County. Interested? Apply.

How do I join YAC?
Apply to YAC by completing our online application. The application cycle is currently closed.

For Organizations and Donors

I’m applying for a grant. When is my proposal due?
YAC  is a grantmaking committee of the Community Foundation for Muskegon County and accepts grants through the Committee Grants process. YAC reviews grants twice a year, once in the spring and once in the fall. Visit the Available Grants page for additional information.

How much money should my organization apply for?
YAC distributes its funds to various community organizations rather than granting a large amount to any one organization. Generally, YAC aims to give organizations a jump start, with the intent of helping them become self-sustaining so that it can support a diverse pool of grantees. View a list of past grants here: Past Grant Awards

How does YAC decide on which organizations to fund?
Every few years, the Youth Advisory Council of Muskegon County sends out the Youth Empowerment Survey (YES) to students in Muskegon County high schools. The committee considers data from these assessments in its goal-setting and decision-making processes. Read our 2021 Youth Empowerment Survey Results here.

Who gets grants?
Recent grant recipients include the Boys and Girls Club of the Muskegon Lakeshore, Centro de Esperanza-Center of Hope, and the Muskegon Area District Library. Check out our recent grants here. Nonprofits with 501(c)(3) status are encouraged to apply.

What are Teacher Mini-Grants?
Each year, YAC sets aside approximately $12,000 to support smaller projects in the Muskegon area. This funding often goes to anyone in the pre—K—12 education system seeking learning tools to enhance their students’ experiences. Applications will be open in early fall each year.

I am a donor and would like to support YAC. How do I give to YAC?
We are incredibly appreciative of your interest in helping us develop our fund. You can support YAC by giving online here. Thank you very much!