A community foundation invests the assets it holds, generating income which is distributed to bona fide charities and community organisations according to donors’ suggestions, areas of interest or through competitive grants made by the foundation itself.

For donors, community foundations offer a one-stop shop for contributing to a community they care about. For communities, they ensure informed, strategic, and sustained support for the third sector. For smaller nonprofits, new or emerging charities and community groups, they offer potential extra funding support from one place and for larger nonprofits, an opportunity to develop a passive income source by establishing their own endowment that is professionally managed.

Read more information on community foundations here [PDF] and here.

Today, at a time when not-for-profit organisations and donors are more stretched than ever, Bermuda has an unprecedented opportunity to build a sustainable source of support for its civic sector.

More than 1,800 community foundations operate successfully all over the world, with more than 800 in the US alone. They adapt to the needs of each community—and that is their strength. Additionally, a community foundation provides the environment for thoughtful and strategic philanthropy, unlike charitable giving, which tends to be short-term and transactional.

The Bermuda Foundation works directly with donors to understand their philanthropic vision and create a fund to support causes most important to them. Funds from different donors are then aggregated and managed to achieve greater returns. This makes it possible for smaller individual funds to enjoy the same economies of scale as a large foundation. Put simply, we:

• Work to understand your vision and provide expert advice.
• Create a fund that reflects your vision and sets forth your charitable wishes.
• Manage your fund’s assets and make gifts to your favourite causes!
• Promote giving from others to increase philanthropic dollars for Bermuda to leverage your investment.

Each year, investment income is distributed to the local community as directed the donor.

A board of governors administers the Bermuda Foundation. Board members are appointed by a nominating committee comprised of up to three members of the Foundation who solicit expressions of interest applications from the public via a self-nomination process. This process provides a transparent and robust governance model in which it would be extremely difficult for any individual or group to take control. Certain tasks are allocated to a range of support committees, but ultimately the board is responsible for the Foundation’s mission integrity and welfare. We are a transparent institution in terms of how we operate.

All board and committee members are volunteers and are unpaid for their work in these roles. However, there are costs (staff, salaries, rent, phone, postage, marketing, etc.) in operating the Foundation. The board strives to keep costs as low as possible: we deliberately run a “lean and mean” operation using some outsourced resources and economising on rent and other operational costs by sharing office space, technology, etc. To cover operating costs, Foundation donors are asked to consider making donations to the Bermuda Donation Endowment Fund.

In addition, fees assessed on the capital of the funds are donated to the Foundation each year and the Foundation charges fees for some donor services.

Anyone. Families, individuals, corporations, and other organisations can establish a fund at the Bermuda Foundation. Donors give because they share a common desire to give back to their community, whether it is a fund to tackle drug abuse, protect the environment, honour the memory of someone they love, support local arts organisations, or support any other important cause they care about.

• Expert investment advice and management.
• Access to cutting-edge research and information.
• High levels of accountability to ensure dollars are used wisely.
• Public relations and branding opportunities.
• Special invitations to roundtables, events, and other initiatives.
• View our policies [Doc, 90KB]

Each fund is separately monitored and accounted for. The capital of each fund is combined with all other funds to achieve economies of scale and invested as part of the whole.

The Bermuda Foundation has a specific Board Investment & Finance Committee whose main role is to manage the Foundation’s investments.

The administrative fee is typically 1–1.5 percent of the value of the fund. However, certain funds requiring a higher level of administration may be 2.5-5 percent of the value of the fund. See below for fee details by fund type and fund start-up contribution minimums by fund type.

Donor Fee Details.

The donor may specify which particular nonprofits (or, more generally, what charitable purposes) are to receive the annual distributions; or the donor may leave the gift “unrestricted,” allowing the Foundation to decide where the money is most needed each year. Many donors choose both; they specify a certain percentage of the distribution go to particular charities and leave the rest unrestricted. Some donors leave a specific sum (rather than a percentage of their estate) through the Foundation.

Distributions of approximately four percent from each fund are made on an annual basis. The Foundation makes distributions in accordance with instructions given by the donor when the fund was created. Where the fund is wholly or partially untagged, the Foundation decides where distributions are to be made. We have a Board Grants Distribution & Programmes Committee whose main role is to advise on these distributions.

Gift acknowledgment letters or credit card charge confirmations are produced for all gifts to or through the Foundation. Contributors are also listed in the Foundation’s Annual Update.

View our contribution acknowledgment section.