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Disaster Relief Fund

An effective response, regardless of where a natural disaster occurs, requires sustained involvement on behalf of donors, responding organizations and a myriad of other actors.  The bulk of disaster dollars are often allocated during the emergency humanitarian relief phase (with a focus on emergency food, shelter, water, sanitation and health care).  Emergency relief is vital.  Still, experts agree that disaster relief dollars are insufficient to meet the medium- and long-term needs of disaster-affected communities. 

 Community Foundation of Western Virginia, Inc. (d/b/a Foundation for Roanoke Valley and Martinsville Area Community Foundation) has established a Disaster Relief Fund in order to respond to  catastrophic events as they occur.

 How will the Disaster Relief Funds be used?

100% of all donations (except any online credit card processing fees) will be used to respond to the complete timeline of the disaster management effort: from immediate relief to recovery, and then to reconstruction and rebuilding.

Who will the funds support?

The Disaster Relief Fund will support nonprofit organizations and public entities that have a defined role in short-term and long-term recovery efforts by providing critical services to individuals, families and communities impacted by the disaster.  Each nonprofit or public entity who receives disaster relief funds will be carefully vetted by the Foundation to insure the most effective and efficient use of the monies raised.

How can I make a donation?

Donations can be made online here. Checks can be mailed to Martinsville Area Community Foundation at P.O. Box 1124, Martinsville, VA  24114. Please designate your gift for “Disaster Relief”.  Donor Advisors may also recommend a grant to the Disaster Relief Fund by submitting a Donor Advised Fund Grant Recommendation Form.  All gifts are tax-deductible.

Community Foundation vs. Private Foundation

Involves creation of a new organization, application for tax-exempt status, and expenditure of time and money. Execution of simple Fund Agreement is all that is required.
TAX BENEFITS Cash gift deduction is limited to 30% of adjusted gross income. Only the cost basis of certain types of appreciated property is deductible, and deduction is limited to 20% of adjusted gross income. Taxpayer can deduct up to 50% of adjusted gross income for cash gifts. Full market value of gifts of appreciated property is deductible up to 30% of adjusted gross income. (Consult your tax advisor concerning alternative minimum tax implications.)
ACCOUNTING AND TAX PREPARATION Detailed reporting required. No separate tax return to file, and assets are audited as part of the Foundation's annual audit.
EXCISE TAXES A 1-2% federal excise tax must be paid on net investment income. No excise tax to pay.
INVESTMENTS Certain types of investments prohibited, and the Foundation may not own more than 20% equity interest in a business. No federal investment requirements, and no equity concentration restrictions other than those established through prudent guidelines. (Information on the Foundation's investment policies, managers, consultants, fees and performance is available upon request.)
DISTRIBUTIONS Approximately 5% of net asset value must be paid out for charitable purposes annually. Currently, there is no minimum pay-out requirement.
ANONYMITY Names and addresses of contributors must be made available to the public. Donors' names are revealed only to the IRS.
PERPETUITY Over time, oversight will change and your wishes may be forgotten. Carrying out the donor's charitable intent is an important hallmark of community foundations.
STAFFING Any staffing must occur within federally mandated self-dealing rules. Professional staff can screen giving opportunities and stay abreast of community needs with maximum convenience and low cost.

Please always consult your professional advisor as the above information is not intended as legal or tax advice.

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