That’s where Cornwall Community Foundation comes in. They offer a simple, flexible, and impactful way to give back locally. In this guest post, we hear from Tamara Sherston-Baker, as she explains community foundations can help your clients achieve their philanthropic goals, while easing the admin and decision-making!
Words by Tamara Sherston-Baker, Development Director, Cornwall Community Foundation
When clients express a desire to “give something back” to their local community, the conversation often moves beyond simple charity donations. They’re looking for meaningful, strategic philanthropy that creates lasting impact whilst offering tax advantages and administrative simplicity. This is where community foundations become invaluable partners for professional advisers.
The community foundation advantage
Community foundations offer a compelling alternative to traditional charitable trusts. Rather than navigating the complexities of Charity Commission registration, trustee appointments, and ongoing compliance obligations, clients can establish named funds that operate with the flexibility of a private foundation but the efficiency of professional management.
Cornwall Community Foundation, like its counterparts across the UK, provides local expertise connecting donors with causes that matter in their communities. They understand the specific needs of Cornwall—from supporting young people in rural areas to addressing coastal community challenges—enabling truly targeted charitable giving.
Why professional advisers are choosing community foundations
The administrative burden of running a charitable trust has never been greater. Trustees face increasing responsibilities around investment management, regulatory compliance, and due diligence. For many clients, particularly those with busy professional lives, this creates a significant barrier to charitable giving.
Community foundations remove these obstacles whilst maintaining donor control. Clients can choose their fund’s focus, select recipients, and remain as involved as they wish in grant-making decisions. The foundation handles everything else—from investment management to regulatory reporting.
Practical solutions for common client scenarios
Legacy planning: Clients uncertain about which specific charities might exist in decades to come can leave a legacy that adapts to changing community needs whilst respecting their original intentions.
Memorial funds: Families seeking to honour loved ones can create tribute funds immediately, without the complexity of establishing new charities during emotionally difficult times.
Corporate social responsibility: Businesses can demonstrate genuine community commitment through donations or funds that support local causes, enhancing their reputation whilst achieving tax efficiency.
Dormant trust transfers: Existing charitable trusts struggling with beneficiary identification or disproportionate administrative costs can transfer to community foundations, revitalising their charitable purpose.
Tax efficiency
Community foundations maximise tax advantages. As registered charities, they can claim Gift Aid on donations, turning every £10,000 into £12,500 at no extra cost to the donor. They can also accept shares, property, and other assets tax-efficiently.
For inheritance tax planning, charitable legacies to community foundations qualify for the reduced 36% IHT rate when 10% or more of the net estate is left to charity. This creates a win-win scenario where charitable giving increases what beneficiaries receive.
Local knowledge, professional expertise
What sets community foundations apart is their deep understanding of local need combined with professional grant-making expertise. They receive hundreds of funding applications annually, developing sophisticated due diligence processes that ensure donations have maximum impact.
This local knowledge proves invaluable for clients who want to make a difference but lack detailed understanding of community needs. The foundation can identify projects that align with donors’ interests whilst addressing genuine local priorities.
Flexibility for changing times
Unlike fixed charitable trusts, community foundation funds can adapt. Clients can modify their focus areas, respond to emerging needs, or adjust their involvement level over time. This flexibility proves particularly valuable for younger donors building their philanthropic approach or older clients whose circumstances change.
Building stronger client relationships
Professional advisers consistently report that introducing clients to community foundations strengthens their advisory relationships. By facilitating meaningful charitable giving that exceeds client expectations, advisers demonstrate their commitment to clients’ broader goals beyond pure financial planning.
The partnership model works particularly well. Advisers retain their client relationships whilst community foundations provide specialist philanthropy expertise. Clients benefit from both professional financial advice and expert charitable giving guidance.
Getting started is straightforward. Community foundations work closely with professional advisers to structure funds appropriately for each client’s circumstances. They provide template documentation, handle legal requirements, and offer ongoing support throughout the relationship.
For clients interested in exploring charitable giving options, an initial conversation with the local community foundation can illuminate possibilities they hadn’t considered. Many discover that strategic philanthropy is more accessible and rewarding than they imagined.
The growing movement
Community foundations represent a growing movement towards more strategic, locally-focused philanthropy. As former Bank of England Governor Mark Carney noted, they’re “helping to deliver a more inclusive capitalism, one in which individual virtue and collective prosperity can flourish.”
For professional advisers, partnering with community foundations offers a way to add genuine value for clients whilst supporting the communities where they live and work. It’s partnership for purpose—and it’s transforming how people think about charitable giving.
If you would like to learn more about how Cornwall Community Foundation can support your client’s philanthropic aims, contact tamara@cornwallfoundation.com
https://cornwallcommunityfoundation.com/ways-to-give/professional-advisors/