Frequently Asked Questions - The Summit Foundation

What is a community foundation?

A community foundation is a grantmaking public charity that raises money from the public (individuals, corporations, and other foundations) to provide grants. The Summit Foundation is a 501(c)(3) public charity as defined by the IRS. All donations are tax deductible to the full extent allowed by the IRS.

How does The Summit Foundation differ from a private foundation?

The Summit Foundation is a community foundation. A community foundation is a grantmaking, public charity dedicated to improving the lives of people in a defined local geographic area. It is supported by contributions of a broad-base of individuals, families, and organizations to support nonprofits that provide public benefit. A private foundation is usually funded from a single source, such as an individual, family, or corporation and does not solicit funds from the public. As a public charity, a community foundation provides established administrative and grantmaking structure as well as potential tax advantages versus creating a private foundation.

What does The Summit Foundation do?

Identifies community needs and mobilizes resources through grantmaking to address those needs
Provides donors flexible ways to establish funds that address their chosen causes
Invests funds entrusted to us to ensure long-term asset growth for future generation grantmaking
Facilitates communication and cooperation among local nonprofit agencies.

Is The Summit Foundation affiliated with the City of Summit?

We do not have a direct affiliation with the city. While The Summit Foundation has made grants to city agencies and managed some of the city’s non-tax fundraising efforts, the two entities are completely unrelated.

What about administrative overhead?

We charge each fund 1% of its net assets annually to cover investments management and overhead costs. All administrative work and grantmaking are done by volunteer trustees. We have no paid staff.

Why use The Summit Foundation rather than a broker-managed, donor-advised fund?

Our record of consistent and visible support for the community and reliable execution of donors’ wishes positions us as a trusted partner. Donors can work with The Summit Foundation to establish a donor-advised or named fund to support specific causes and learn more about local organizations that would benefit from their support.

Who determines how my donation is spent?

That depends on what form your donation takes. Donations to the unrestricted fund become part of a pool of funds that is invested and subsequently disbursed through a strategic grantmaking process to positively impact people’s lives. If you establish a new fund, grants can be awarded according to the criteria you specify, either by you, your chosen advisor, or by The Summit Foundation trustees.

How does The Summit Foundation manage its assets?

The Summit Foundation works with independent, registered investment advisors to provide sustained growth of foundation assets. Our investment committee is comprised of trustees with financial expertise who set asset allocation guidelines, oversee the performance of the investment managers, and report to the board.

Are general donations accepted?

Many local residents make individual donations to this fund each year. We also work with families and advisors to accept planned gifts such as bequests in a will or trust. Donate Now

How do I create a new fund?

Explore your charitable wishes and goals with us.