The LFCC Educational Foundation Inc.

What is the purpose of the Foundation?

The LFCC Educational Foundation Inc. was established in 1978 to serve as a vehicle to raise private funds to support College initiatives and projects. Private support helps to ensure that the College can continue to provide exemplary services and support even in the face of state budget reductions. A Board of Directors, which includes civic and business leaders throughout the LFCC service area, governs the Foundation.

The following chart shows the percentages and funds raised in 2007 by project.[D]

The following chart reflects how the funds raised in 2007 have been used to date.[D]

Are donations to the Foundation tax deductible?

The Foundation is a tax-exempt 501(c)(3) organization and all gifts made to the foundation are tax deductible to the fullest extent allowed by law.

What is the Foundation’s federal tax identification number?

The Foundation’s tax identification number is 51-0247624.

What is the relationship between the College and Foundation?

The Foundation oversees and conducts all fundraising activities on behalf of the College. Because the Foundation exists solely to support and promote the College, all gifts to the Foundation directly benefit the College.

How can I learn more about the financial operations of the Foundation?

Look for detailed financial information about the LFCC Educational Foundation Inc. online at http://www.guidestar.org, the nation's leading source of information about nonprofit organizations. To view information on the Foundation, simply log on to http://www.guidestar.org and type "Lord Fairfax Community College" into the search window.

LFCC is a state school, so why do you need to raise private funds?

With the current fiscal demands on the Commonwealth, funding for higher education in Virginia is in a critical state. Only 59 percent of the College's operating budget was provided by the Commonwealth of Virginia in 2007-08. For more information about the College's budget, please visit the College fact sheet.

Why not raise student tuition to help with costs?

Although LFCC appears affordable, it is already beyond the means of many students and families in our community. In the past five years, LFCC tuition and fees have increased by 70 percent, driving the cost per credit hour from $40.32 in 1999 to $76.65 in 2007. With these tuition increases, students are already shouldering a significant portion of the burden required to make up for funding shortfalls.

Why should I give to LFCC?

LFCC is a major contributor to economic development in the College’s service area and must receive wider support to continue providing excellent and accessible educational opportunities to all community members. The College prepares students for the workforce with a wide range of degree and certificate programs and works with area employers to provide customized programs to meet workplace needs.

Can I receive a tax deduction for non-monetary donations to the Foundation?

Yes. Your donations of equipment or supplies to the Foundation are eligible for a tax deduction. Simply work with the Foundation to complete the “Nonmonetary Gift Donation Form,” which includes the fair-market value of your item(s). Once complete, the Foundation will send you a copy of the form, which you can use for documentation of your gift.

What are the assets of the LFCC Educational Foundation Inc.?

The Foundation has approximately $9 million in assets. Of that total, about 43 percent is in endowed funds — most of which are scholarship endowments. These endowments generate approximately $110,000 for LFCC to spend annually. For each increase of $1 million in endowment funds, at an annual interest rate of 5 percent, LFCC would receive $50,000 annually to address critical initiatives.

What are the potential tax and income benefits of giving to the Foundation?

You may benefit in several ways by donating to the Foundation. Please consult your attorney or financial advisor for more information, because these benefits apply in specific ways and may not be applicable to all gifts:

• Income savings through a charitable deduction for the value of the gift based on your tax rate
• Avoidance of capital gains tax on gifts of appreciated securities and/or property
• Life income for you and/or others through life income and planned gifts
• Elimination of federal estate tax on the value of a gift passing to the Foundation under a will or revocable trust

What is an endowment?

An endowment is similar to an interest-bearing “savings account” for the institution. The principal, or corpus, of the endowment is invested but never spent, thus ensuring that donors’ generosity will continue throughout the life of the College. Through investments, the endowment account generates interest income in perpetuity, which provides financial support for the area of the donor’s choosing. An endowment account can be established with a minimum gift of $35,000. Foundation endowments currently support a number of areas, including scholarships.

What is the difference between restricted and unrestricted funds?

Restricted gifts are designated for a specific purpose. A list of current restricted funds can be found here.

Unrestricted gifts are those for which a specific purpose has not been designated. Unrestricted funding is used where it is needed most. Please visit the top funding priorities page for more information.