The Barrington Area Community Foundation recognizes that there is now virtually no way for local residents to leave bequests nor to make tax-deductible grants for the good of the community other than through the churches or by setting up a trust for that purpose. The Foundation will enable many donors, large and small, in the Barrington area, including organizations and businesses, to build a long-term endowment to support programs that fulfill unmet needs.

The Foundation operates as a public charity with tax-exempt 501 (c) 3 status and a federal tax-exempt number (36-4244673). It was chartered in 1998. It is non-sectarian and will remain independent of any other organization or entity. All directors and officers will be independent, serve without remuneration and have underwritten virtually all start-up costs and many continuing costs. The Foundation does not plan to have staff, but to recruit to the 25-member board candidates with experience to take on portions of what would otherwise be staff work. The objective is to keep expenses as close to one percent of assets as possible so that almost all donated funds will become endowment. Our annual budget is based on a maximum of one percent of net assets. We know of no local foundation that has taken this low cost of operation as an objective.

The community foundation is not a new concept but only eleven others exist in the Chicago area, approximately 30 state-wide. Community foundations nationwide account for only one percent of all foundations but attract two to three percent of all donations. One of the reasons for the growth of community foundations is the increasing sophistication of donors, who know that the cost of raising money and overhead expenses eat into their gifts.

By focusing on long-term endowment funds, the Foundation will be unique in Barrington. The Foundation solicits endowment, not annual, funds and will allow compounding to increase them. Money donated will not be spent—only 5% of the endowment averaged over the trailing 12 quarters.

The Foundation completed its first year, 1998, with $36,000 in endowments. As of the end of 2006, the endowment reached $2,235,467

The Grants of $5,000 were made in 2000, $7,500 in 2001, $10,000 in 2002, $15,500 in 2003, $31,500 in 2004, $45,000 in 2005, $65,000 in 2006 and $81,000 in 2007. Each recipient demonstrated it was reaching an unserved group of local citizens with a program that did not duplicate other community charities. All grants are audited and reported to the community. The Foundation will not grant to organizations that are largely tax-supported.

The Foundation will work with banks, trust companies, attorneys and financial planners, making available the experience of its directors without charge. Individuals are encouraged to set up permanent restricted or donor-advised endowments so long as they meet the standards of the Foundation.

The 2005 study by the Council on Foundations of community foundation financial management indicated that the average community foundation had a compound growth of resources under management of 3.88% over the past five years. The Barrington Area Community Foundation’s managed funds grew 7.95%.

The full 2006 audit, the Annual Report and the entire Form 990 are available for public review at our office at 421 N. Northwest Highway, Suite 201, Barrington, IL 60010.

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