Creating a 501(c)3 vs a Charitable Fund

The Community Foundation has been quite effective in helping new nonprofits get established. Once a group has decided that they are on the road to creating a separate charitable entity, they can create a fund with us to provide a charitable conduit for donations, and pay associated expenses, while they await their IRS letter of determination as a 501c3 charity.

Many groups determine that there is no need to create a new charity to fulfill their charitable intent, and create a fund with the Community Foundation to serve that purpose. These Project Funds tend to have a specific purpose and goal, but do not require a corporate structure or staff to move forward.

Any new group of individuals who are considering a worthwhile project on the Island should contact us to see which option is a better fit – it is unlikely that there is a good idea out there that we cannot create a fund for in some way.