Community foundations are charities and therefore any gift by an individual is eligible for gift aid. Contributions towards costs in supporting individuals and companies can often be supported by the community foundation retaining between 4% and 12% of gift aid for their services.
Costs are competitive and typically much lower than the setting up of a private charitable trust. The variation in cost depends on the requirements of the donor. Community foundations offer more than basic transactional support and provide a variety of philanthropy support services: consultation, fund design, out-reach, grant-making expertise, monitoring, due diligence and reporting services.
Some donors with existing charitable trusts use community foundations for their grant-making services but gifts from trusts are not eligible for gift aid.
Endowment
Endowed (long-term) funds at community foundations typically require a £25,000 minimum to establish and have an annual fee that includes investment and administrative fees. Fees for endowed funds vary throughout the network but range anywhere from 0.5% to 2% annually. Some community foundations have an additional endowment set-up charge (one-off) which supports the community foundation's administrative endowment.
Flowthrough
Flowthrough (short term/ immediate impact) funds at community foundations typically require a £10,000 minimum to establish and are charged fees on a per grant basis - not on total investment. Fees vary throughout the network but range from 4% to 15%. Fees tend to be higher for flowthrough funds as these funds are generally spent down to £0 within 1-2 years and require a high amount of staff time in administration.
Expense on the sale of shares and property
When bankers, agents or others charge fees for liquidating stocks or other assets (such as property) that are made as gifts to a fund, these fees are passed through to the fund.