What is The Rhode Island Foundation?
We are the community foundation serving the state of Rhode Island. We are a collection of 950 (and growing) permanently-endowed charitable funds created by individuals, families, companies and organizations to benefit different charitable organizations and causes throughout Rhode Island and beyond.
How is the Foundation governed?
The Foundation is governed by 12 member Board of Directors made up of community leaders. Our directors serve for a maximum of two five-year terms and are either elected by their peers or in some cases, appointed by designated appointing authorities. (See About Us for more information.)
What types of charitable funds do you administer?
There are four basic fund types. Unrestricted funds are used for the most pressing needs of the day, as determined by the Foundation’s Board of Directors. Field-of-interest funds recommend a broad area of interest of the endowment’s creator (e.g. Pawtucket, children, environment, etc.) Designated funds are earmarked to benefit a particular nonprofit organization(s). Donor advised funds are funds in which the charitable individual (or his or her designees) reserves the right to recommend grants. (See Types of Funds for more information.)
How much does it cost to start a fund at the Foundation and what ongoing fees are there?
There is no cost for starting a fund at the Foundation. Our annual fee structure depends on the type of fund and ranges from .86% to 1.78%. We call this fee "Foundation support" because it contributes to the total operation of the Foundation, from stewardship to grantmaking to convening to policy work. (See Fees & Investments.)
Why do donors establish funds at the Foundation instead of giving directly to their favorite charities?
Some donors have a desire to provide ongoing support to a particular organization in perpetuity. Many feel more comfortable making those gifts through the Foundation because of our permanence, our professional investment management and our oversight role in making sure their wishes are met by the recipient organizations.
What is the minimum amount required to establish a fund at the Foundation?
It varies depending on the type of endowment. In most cases our minimum is $10,000. (See How to Give.)
How does the Foundation compare to the United Way?
The United Way raises money each year and distributes all that it collects to qualifying organizations (the charitable checkbook). The Foundation manages permanently endowed funds which, for the most part, distribute a portion of income in grants each year (the charitable savings account). Interestingly, The Rhode Island Foundation holds the Royal Little endowment that covers the United Way’s administrative costs, as well as numerous other funds that benefit the United Way.
Can I get my money back if I change my mind?
We welcome you to do so, but no. Gifts to the Foundation are irrevocable. The decision to partner with the Foundation is a serious one, and we always encourage prospective clients to discuss their intent with their financial or legal advisors.
Can I make a gift to the Foundation and retain income for myself or a family member?
Yes, we offer several opportunities to make "life income gifts," although they do not translate into a permanent endowment until fully realized. These include pooled income funds, charitable gift annuities, and charitable remainder trusts. We are happy to work with you and your financial advisors to determine which type of gift is right for you. (See Gifts that Give You Income.)
Do I need to come to your office to discuss establishing a fund?
No. We can talk with you on the phone or visit you in your home or office to discuss a possible gift or gift plan, if this is your preference.
Can I recommend gifts to charities outside of Rhode Island?
We allow grant distributions anywhere in the U.S., as long as recipients are nonprofit organizations qualified as 501(c)(3).
How long does it take to get a fund established?
Once decisions are made about the type of fund you want and the asset you wish to donate, necessary paperwork can be prepared in a matter of minutes.
Can my children or other family members get involved?
Yes, if you choose a donor advised fund, you may name co-advisors and successor advisors to continue to guide the fund both while you are involved and far into the future.
