Advantages of Community Foundations

Community foundations like AAACF are in the business of connecting donors like you with the causes they care about most. We are a nonprofit organization that administers and invests charitable funds for individuals, families, businesses, and other nonprofit organizations.

We are a cost-effective and hassle-free alternative to private foundations. And we offer more choices to donors than commercial gift funds. We pride ourselves on being 'fast, friendly, and flexible,' which means that we will work diligently with you to help you achieve a wide range of charitable giving objectives.

Here are the top 10 reasons that people choose community foundations over for-profit charitable gift funds:

  1. We are a local organization with deep roots in the community.
  2. Our professional program staff has broad expertise regarding community needs and issues. Our staff can help connect you to the causes you care about.
  3. We provide highly personalized service tailored to each individual's charitable and financial interests.
  4. Our funds help you invest in the causes you most care about. For more information about our various fund types, click here.
  5. We accept a wide variety of assets and can facilitate even the most complex forms of giving. For more information on the types of assets we accept, click here.
  6. We partner with professional advisors so that we can offer donors like you highly effective approaches to charitable giving.
  7. We offer maximum tax advantage under state and federal law.
  8. We multiply the impact of gift dollars by pooling your gifts with other gifts and grants.
  9. We build endowment funds that build a permanent pool of community capital and help create personal legacies.
  10. We are a community leader, convening agencies and coordinating resources to create positive change.

  1. We are a local organization with deep roots in the community.

    AAACF has been helping individuals achieve their philanthropic goals for over 40 years. Our experience and community contacts give us direct knowledge of the issues and needs of our community, and we know the best nonprofit organizations that serve those needs. Many donors depend on us to research and recommend nonprofits that are responsible and appropriate for possible grants.

  2. Our professional program staff has broad expertise regarding community needs and issues. Our staff can help connect you to the causes you care about.

    We offer the kind of support that you are looking for in a community foundation partner: charitable gift planning including one-on-one consultations; a bank of community history and expertise to draw upon; and user-friendly, professionally prepared sample documents.

  3. We provide highly personalized service tailored to each individual's charitable and financial interests.

    We offer the best value for donors - we're a one-stop, high quality, one-on-one, full service provider. You can establish your own fund without difficulty and avoid the cost and complexity of setting up a private foundation. We handle all of the record keeping and reporting required for charitable contributions. After you make a gift to AAACF and report the gift on your income tax, all subsequent tax reporting relative to your fund is handled by our organization.

  4. Our funds help you invest in the causes you most care about. For more information about our various fund types, click here.

    Community foundations offer a variety of fund types to help you accomplish your charitable giving objectives. Scholarship funds, designated funds supporting particular nonprofit agencies, and donor advised funds are among the many options that enable donors like you to focus their giving on the causes they care about the most. Our local grantmaking expertise makes it possible to for you to stay actively involved with the work you most want to see help the community.

  5. We accept a wide variety of assets and can facilitate even the most complex forms of giving. For more information on the types of assets we accept, click here.

    Whatever your situation or philanthropic desire - current tax planning, a large capital gain, a desire to leave a legacy - we can create a giving plan to meet your needs. You can make a gift to AAACF and get immediate tax benefits; you can be active or not in choosing charities, and can choose to receive acknowledgement for your gift or remain anonymous.

  6. We partner with professional advisors so that we can offer donors like you highly effective approaches to charitable giving.

    We work with your financial advisors, estate planners, and tax specialists to help you reach your financial, tax, estate and philanthropic goals.

  7. We offer maximum tax advantage under state and federal law.

    As a public charity, a community foundation like AAACF offers the highest level of tax benefits for charitable giving. This is especially true in Michigan, where donors receive the State of Michigan Tax Credit here for gifts to permanently endowed funds. You can donate a wide variety of assets and receive maximum tax benefits. [Click here to learn more about the types of assets we can accept.]

  8. We multiply the impact of gift dollars by pooling your gifts with other gifts and grants.

    Our endowed funds are pooled and invested for maximum return. Click here for more information about our Investment and Spending Policy. We also leverage our unrestricted and field-of-interest monies with additional funds from donors so that our grants program can have an even greater impact. Click here for more information about our grant leverage program and a list of recently leveraged grants.

  9. We build endowment funds that build a permanent pool of community capital and help create personal legacies.

    Endowment funds are invested and managed for perpetuity. Annual distributions in accordance with the terms of our Spending Policy provide a funding stream to support projects and causes envisioned in the terms of the fund agreement. Read more about the power of endowment in 'Types of Funds We Offer.' You can also learn more about our Spending Policy by clicking here.

  10. We are a community leader, convening agencies and coordinating resources to create positive change.

    At AAACF, our board members are experienced leaders of corporations, law firms, banks, and other organizations - for profit and nonprofit - vital to the community. They are committed volunteers who offer their experience and leadership to address the needs of the broader community of Washtenaw County. Individual staff members represent the Foundation on a number of boards and advisory committees, including the Continuum of Care Board and Human Services Collaborative Council. The Foundation also maintains on-going relationships with other funders such as Washtenaw United Way, the City of Ann Arbor, Washtenaw County, and area private foundations.

    Community leadership by community foundations is multi-faceted. It can involve many different roles and undertakings, including:

    Convening: Facilitating the gathering of community members to discuss matters of public concern; possibly mediating when issues are debated.

    Assessing: Assessing the capacity of nonprofit/public/private sectors of community; assessing historic priorities and/or identify new areas of need; establishing focus areas for allocation of human and financial resources.

    Being a Catalyst: Prompting and shaping collaborative and creative solutions to problems through grantmaking programs and RFP's (Request for Proposals).

    Being a Conduit: Bringing outside resources and expertise into the community; lending expertise (such as technical assistance) to nonprofits; enabling grantees to leverage their successes with other potential funders through power of endorsement, evaluation process, matching grants.

    Being a Broker: Working with other local funders to sort out funding priorities; creating joint support for community projects/eliminate duplication; involving donors in leveraging.

    Being an Innovator: Finding or developing innovative/model approaches to meeting community needs (challenge grants, program-related investments, loans, technical assistance, multi-year grants).

    Educating: Identifying and explaining the underlying elements of challenges facing the community and sorting out the fundamental public policy questions/issues; initiating and/or supporting events and activities to increase public awareness and involvement; developing and training community leaders.


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