What is the history of the Sierra Madre Community Foundation?
The Foundation was created in 2000 to benefit the community of Sierra Madre. A public outreach program is planned for 2001.

How much money will be available each year to spend on programs?
It depends on how much has been contributed. Since there will be an ongoing campaign for funds, it is anticipated that the amount will grow every year. The Sierra Madre Community Foundation will have available outright gifts plus investment revenue from the planned endowment fund.

How do I know my money will be used wisely?
You may specify how your gift will be used. If your gift totals $10,000 or more you will be able to create your own "Affiliated" fund and direct each contribution personally. Smaller gifts may be made to "Area of Interest" Described later in this document). A Board of Directors drawn from the community of Sierra Madre, representing a variety of interests and backgrounds, will see that your wishes are carried out.

How do I know that the Sierra Madre Community Foundation will avoid politics?
Elected officials do not serve on the Foundation Board while in office.

How many members are on the board?
The board may consist of up to fifteen members. Currently there are twelve.

What are the qualifications for board membership?
The members must currently reside in Sierra Madre.

What is the length of a board member's term?
Three years, with staggered terms so that one-third of the board members have terms expiring each year. There is a limit of two consecutive terms.

How are board members selected?
The Board Development Committee of the Sierra Madre Community Foundation nominates candidates. At large nominations from the community may also be considered. Persons wishing to nominate candidates for the Board may do so by addressing a letter to the Sierra Madre Community Foundation Board Development Committee.

What are the anticipated operating costs of the Foundation?
The administrative functions of the Sierra Madre Community Foundation will be performed by the California Community Foundation, the oldest and largest Community Foundation in the state. Our funds will be invested in a pool with other community foundations to gain economy of scale. Investment costs combined with administrative costs will be between 1 and 2% of the Fund's value.

How will those costs be paid?
All costs of the Sierra Madre Community Foundation will be paid from administrative costs (see above), so that 100% of contributions will be dedicated to the purpose specified by the donor.

Why was it necessary to involve the California Community Foundation?
We partnered with the California Community Foundation to keep costs at a minimum and to maximize investment yield through pooling our resources with other organizations. The California Community Foundation will provide the day-to-day administrative functions (bookkeeping, check-writing, legal and regulatory compliance, etc.).

Will the California Community Foundation determine how the Sierra Madre Community Foundation's funds are spent?
The California Community Foundation will ensure that proper legal and regulatory requirements are met, but all other decisions are within the purview of the Sierra Madre Community Foundation Board.

What are the startup costs?
Costs are expected to be between $5,000 and $10,000. The fund to cover these costs has already been underwritten by community members.

What is an Affiliated Fund?
An affiliated fund is a donor-designated fund which will be managed by the California Community Foundation in which a donor controls how contributions will be made. It provides flexibility for donors wishing to give appreciated assets such as stocks or real estate. The California Community Foundation produces literature on such funds, which will be provided on request. A Sierra Madre Affiliated Fund is one that promises to contribute 10% of all its contributions to the Sierra Madre Community Foundation Fund. Such donors will be permanently recognized as Founders of the Sierra Madre Community Foundation.

May I designate gifts for projects outside of Sierra Madre?
Yes. If you have an Affiliated Fund you are asked to contribute an unrestricted 10% of the distributions from your fund to the Sierra Madre Community Fund. You are free to make your other gifts to any legitimate charitable organization although we would hope that you give special consideration to organizations providing services to residents of Sierra Madre. Gifts to the Sierra Madre Community Fund will be used only for organizations serving residents of Sierra Madre.

Will the Sierra Madre Community Foundation be competing with other community groups in fundraising?
No. The Foundation exists to improve gift support for local causes. It is anticipated that all local groups will benefit from Foundation programs. For example, few local groups have the expertise to create trust
and estate gifts, but the Foundation will provide the mechanism for all local charitable groups to have a Planned Giving Program.

Have local charitable groups been contacted to seek their input into the creation of the Foundation?
A meeting was held in the Summer of 1999 to which all local groups were invited. More than 30 individuals representing charities and service organizations attended and endorsed creation of the Sierra Madre Community Foundation. Many of the people who attended that first meeting served on the organizing committee and some currently serve on the board.

What are suggested contribution levels?
Contributions of any size may be made to the Community Fund. Receipts will be issued for gifts of $25 or more and all contributions of $100 or more will receive recognition in the Foundations annual report. The minimum contribution to create an Affiliated Fund is $10,000 and may be in the form of a pledge as long as it will all be paid within one year.

May contributions be made anonymously?
Yes.

Are gifts to the Sierra Madre Community Foundation Tax-deductible?
Because the Sierra Madre Community Foundation is part of the California Community Foundation, a public charity, gifts to the SMCF are deductible to the extent allowed by law. Donors will receive receipts and/or acknowledgment letters that may be used to substantiate deductions for tax purposes.

May I leave a bequest to the Sierra Madre Community Foundation in my will?
Most certainly. Community members are urged to consider a bequest for the benefit of the Sierra Madre community through SMCF.

Can I designate a gift to the Sierra Madre Community Foundation through my United Way deduction at work?
Yes. We will be happy to provide you with the information needed to designate the SMCF.

May I make gifts to the endowment so that only interest/dividend income will be used
each year?
Yes. Endowment funds require a distribution of at least 5% per year, but all other income and principle may be left in the fund for future growth.

Will the Sierra Madre Community Foundation make gifts to the city or other political entities?
Yes, if requested by the donor or if the service needed can best be provided by that public entity.

May I use the Foundation to give to or endow my church or synagogue?
Yes, you may designate gifts to your house of worship.

Will contributions or organizations receiving support have to meet certain guidelines?
Yes. All organizations receiving gifts must have status as 501(c)3 organizations with the Internal Revenue Service or be public service institutions. Gifts may not be made through the Foundation to individuals, to support special event ticket purchase or to buy a raffle ticket, for example, because these gifts are not fully deductible.

May I make a political contribution through the Foundation?
No.

What are the available Area of Interest Funds I might support?

Will my name be released to third parties?
No. Donors of $100 or more will receive recognition in the SMCF annual report. However, if you wish to remain anonymous, your name will not appear in the report. Addresses of all donors will be confidential.

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