Iowa Community Foundations

Endow Iowa, http://www.iowalifechanging.com/endowiowa/index.html, was created to enhance the quality of life for the citizens of this state through increased philanthropic activity by encouraging new investments to existing community foundations and facilitating the creation of new community foundations.  Funding is available from the legislature to provide funds in communities that do not have gaming facilities.  Also check the Iowa Council of Foundations Web site http://www.iowacounciloffoundations.org/endow.htm  for a list of recipients and application for the new year.

Iowa Community Foundations are tax-exempt, charitable organizations intended to “To help Iowans make a positive, local impact by helping people achieve their charitable goals and do good work in their communities that lasts forever.”

Benefits of Community Foundations

• Local organizations with deep roots in the community (approximately 115 including every part of Iowa)
  
• Help the communities they serve
  
• Help people invest in the causes they care about 
• Maximum tax advantages under state and federal law
  

1.  Libraries May Establish a "Fund" within their Community Foundations

• "Fund" becomes a vehicle for donations, large and small
  
• The library doesn’t have to go through the process and expense of establishing its own foundation and its own foundation board
  
• Administrative services including funds management and reporting are handled for the library (Most community foundations charge an administrative fee between 1 - 2%)

• Library may establish a number of funds within the foundation
• Each fund established has a designated purpose
• For each fund there is a written agreement which states the fund’s particular purpose, who makes decisions about the fund, how the funds are disbursed
• Your fund can be set up so that the library board is the decision making body for how the funds are used
  
• Keep in mind that the fund will be a source of long term funding.  If you are undertaking a library building project, you would not want to tie up large sums of money in a community foundation fund.
• If it is an endowed fund, 5% of the fund is the most that can be disbursed annually. 
• Community foundation is legally responsible for the funds and may request brief reports from the library to make sure the fund is being used in accord with the stated purpose
• Contact your community foundation for details on establishing a fund (see Web site below)
  

2.  Libraries May Apply for Grants from their Community Foundations

• Many libraries already apply for grants from their community foundations. 
• Community foundation grants are different than the funds described above.  Grants typically are competitive and require an application.
• Contact your community foundation about grants available (see Web site below)