Question: What is a permanent endowment and why is MCF building one?

• Answer: MCF brings people and organisations together to create a perpetual source of locally held funds (a permanent endowment) as well as a body of knowledge about community issues and needs. The permanent endowment is invested over time to create a growing and sustainable source of funds for grantmaking to assist build the social capital of our community. This means that we can continue to support our community long term and meet the needs of future generations.

Question: How easy is it to become an MCF donor?

• Answer: Very.  MCF offers a range of options from starting a named sub-fund, to opening a Gumnut Account, to making a general donation to the community fund and leaving a bequest. 
  It is very easy to establish a sub-fund within MCF. This can be done within twenty four hours.

Question: Why should a donor establish a sub-fund in MCF rather make a once off donation to a charitable organization?

• Answer: First, a donation to MCF becomes a ‘perpetual’ investment in the community so it continues to give over time. Second, while charitable organisations come and go, MCF is ‘for good, for ever’. So MCF funds can be distributed to a specific community cause (like young people, education or cancer research) through any number of charitable organisations over time.
  
  In addition, as community needs change, MCF will change to meet those needs. Donors can always be assured that MCF is drawing on its community knowledge and utilising its extensive networks to ensure they are receiving the best advice as to how to address disadvantage and meet emerging community needs.

Question: How much money do I need to establish a sub-fund with MCF?

• Answer: You can establish a named sub-fund immediately, with $10,000 and an understanding that you will seek to build the sub-fund  to $100,000 over time. There is no upper limit.
  
  MCF welcomes donations of all sizes – every donation makes a difference. Smaller donations are pooled with others to have a greater impact in meeting local needs.

Question: What if I want to have a sub-fund, but don't have $10,000 now?

• Answer: MCF makes philanthropy accessible - if you want to support your community and make a lasting difference, we can help you do this.  You can open a Gumnut Account for as little as $2,000, and a commitment to contribute at least $2,000 per year until your account reaches $20,000.  Once your account 'matures' you can turn it into a named sub-fund and start your giving program.

Question: Are donations to MCF tax deductible?

• Answer: Yes. Donors have the ability to donate to both a tax deductible fund and a non tax deductible extension fund. All earnings are exempt from tax.

Question: Can I decide how my donations are used?

• Answer: When establishing a named sub-fund, donors can identify their areas of funding interest and work with MCF staff to identify organisations and projects that they would like to support, to address those areas of interest.
  
  Under the current Australian Taxation Office ruling governing the operation of community foundations, the trustee's are unable to delegate any decision-making in relation to funds distribution.
  
  However, given MCF’s commitment to meeting a diverse range of community needs, we always work with our donors to help you fulfill your charitable and philanthropic objectives and ensure the most mutually satisfactory funding outcomes.

Question: How do I ensure that my donations to MCF are used effectively?

• Answer: All our donors have access to MCF’s significant community and grantmaking knowledge as well as the opportunity to participate in a range of thought-provoking, insightful forums, site visits and other events enabling you to deepen your knowledge and connect with other like-minded people.

Question: Once I have a sub-fund, how do I know what's happening?

• Answer: MCF communicates regularly with all our donors.  There are monthly updates, reporting on investment performance, or on grantmaking opportunities and requests, as well as newsletters and event information.  Twice a year you will receive a detailed statement for your sub-fund.  This identifies all the donations to and grants from the sub-fund and calculates the income available for distribution. 

Question: Do I have to make a minimum distribution each year?

• Answer: MCF is obliged to distribute 80% of its income from investment annually.  This is calculated at the consolidated fund level - not at the individual sub-fund level.  Because we have such a wide-range of donors with varied giving patterns, it creates flexibility for other donors to accumulate and grow their funds for a period of time, without making grants.  However, should this change in any given year, we may need to ask these funds to distribute in order to achieve the 80% requirement. 

Question: What does it cost me?

• Answer: It is incredibly efficient and cost effective to have a sub-fund with MCF.  As a community not-for-profit organisation, we try very hard to keep the costs as low as possible in order to maximise the value of the endowment and the funds available for grant making. 
  MCF charges an annual administration fee of 1.35% on capital.  There are no start-up costs, and all the donor services (research, community engagement, donor forums and events, grantmaking advice and administration, reporting, etc) are included in this single fee.  In addition, our investment partners charge a very low annual investment management fee of 0.3% on capital. 
  In order to achieve these low costs, MCF receives outstanding pro-bono support from a range of partners including our investment managers, Carnbrea; our legal advisors, Freehills, and our Auditors, KPMG.

Question: Can my donations to MCF be publicly recognised?

• Answer: That's up to you. You can receive recognition for your generosity, or absolute anonymity. You can also choose the level and profile of your involvement.