The Permanent Fund for Vermont’s Children is a Supporting Organization of the Vermont Community Foundation. It is a separate legal entity from the Vermont Community Foundation and has its own 501(c)(3) tax-exempt status from the Internal Revenue Service, has its own board of directors, and makes its own decisions about investments, spending policy, grantmaking, etc.
There are a number of benefits of a Supporting Organization: first, as a Supporting Organization under the umbrella of the Vermont Community Foundation, the Permanent Fund benefits from the tax treatment of a publicly supported charity and donations to the Permanent Fund receive the maximum possible charitable tax deduction.
Secondly, this arrangement offers significant cost efficiencies as the Vermont Community Foundation manages the Permanent Fund investments and handles all administrative tasks including processing grant payments, acknowledging donors, issuing regular financial reports, etc., which allows the Permanent Fund to focus its energy on its mission of promoting the well-being of Vermont children. And finally, as a supporting organization, the Permanent Fund benefits from collaboration with the Vermont Community Foundation, its philanthropic relationships and shared learning.