Even if your credit union is well established as community benefactor, in times of intense turmoil you may feel called upon to stand up and make a new, visible act of leadership and service. This maybe a perfect time to create a charitable foundation and to use it as a platform to engage and support your community on behalf of your employees and members.
More Than a Charity
A foundation gives you more than a mechanism for distributing donations. The advantages include:
- It creates a public forum that can shine a light on specific community needs, and the leverage to gather donations from employees, members and other charitable organizations.
- Contributions to a properly set up foundation are tax-deductible. This can be crucial for certain community development or relief causes that don’t otherwise have a channel for tax-deductible contributions. For example, local small businesses affected by the pandemic or another catastrophe probably can’t get tax-deductible contributions directly—but your foundation could accept tax-deductible contributions and distribute them to these businesses.
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