Give With Purpose | How to Build a Corporate Charity Program

MARSHA POPE | President & CEO | Topeka Community Foundation

Social responsibility is a growing priority. As a result, more businesses of all sizes are exploring structured ways to make philanthropy part of their long-term strategy.

One of the most effective, flexible and tax-efficient pathways for doing this is establishing a charitable fund at the Topeka Community Foundation, or any community foundation. A charitable fund allows a company to plan, organize, measure and elevate its philanthropic impact.

BUSINESS ADVANTAGES

STRUCTURED, LONG-TERM GIVING
A charitable fund transforms giving from a reactive process to a strategic asset, providing a framework for corporate philanthropy. Businesses can design a giving program with continuity and focus. Advantages include:

• Consistent support for causes, year after year.

• Ability to quickly respond to community needs.

• Better-engaged employees through matching programs or grantmaking committees.

• Alignment of charitable giving with corporate mission and values.

STRONGER BRAND REPUTATION
A charitable fund positions businesses as a reliable, engaged community partner. The visibility of an ongoing philanthropic program enhances brand perception and gains the positive attention of the community.

SIMPLER ADMIN TASKS
Managing charitable giving can burden companies with administrative complexities: vetting nonprofits, verifying charitable status, processing grants, keeping records and staying compliant with IRS regulations. A fund offloads all of this to the foundation while allowing the business to remain meaningfully involved in decisions about where grant dollars go and how impact is achieved.

EMPLOYEE ENGAGEMENT
Charitable funds can become the centerpiece of corporate culture initiatives. Businesses can involve employees in volunteering, shaping grant priorities or reviewing grant applications. This strengthens morale and retention, especially among younger team members who place high value on purpose-driven employers.

HOW TO CREATE A FUND IN FIVE STEPS

STEP 1: IDENTIFY YOUR GOALS
The Topeka Community Foundation can assist in clarifying:

• What causes matter most to the company, leadership or employees?

• What geographic area is the company hoping to impact?

• What level of involvement does the business want in decision-making?

• Are there tax or timing considerations affecting the first gift?

STEP 2: SELECT YOUR FUND TYPE
The Topeka Community Foundation helps businesses match their objectives with the fund type that best meets the goals of their strategic focus. Options include:

• Donor-Advised Fund (DAF): Provides maximum flexibility. The business recommends grants over time while the foundation manages administration and compliance.

• Designated Fund: Supports a specific nonprofit or set of nonprofits chosen by the business.

• Field-of-Interest Fund: Targets a specific cause (e.g., STEM education, environmental sustainability), allowing the foundation to direct grants within that area.

• Scholarship Fund: Helps students pursue education and can be branded in the company’s name.

STEP 3: ESTABLISH A FUND AGREEMENT
Next, the business and the Topeka Community Foundation formalize a fund agreement. This document outlines:

• The fund’s name.

• The purpose of the fund.

• Roles and responsibilities.

• Investment options.

• Administrative procedures.

This agreement ensures IRS requirements are met and all gifts to the fund are tax deductible.

STEP 4: MAKE YOUR FIRST CONTRIBUTION
The business contributes assets to activate the fund. The Topeka Community Foundation invests the assets to grow philanthropic capital over time.

STEP 5: BEGIN GRANT MAKING
Once funded, the business can begin recommending grants or working with the Topeka Community Foundation to identify opportunities. Grants can be made on a schedule, through employee nomination programs or in response to urgent community needs.

TAX BENEFITS

Creating a charitable fund through a foundation offers several significant tax advantages for businesses.

IMMEDIATE TAX DEDUCTION
Businesses receive a deduction in the year assets are contributed to the fund, not when grants are made. This is especially valuable in years with unexpected profits or capital gains.

NO CAPITAL GAINS TAX
When appreciated securities or certain other assets are donated, the business avoids capital gains tax.

BETTER ACCOUNTING AND COMPLIANCE
Because the foundation manages all grantmaking and reporting, the business avoids the administrative costs and risk associated with running its own corporate foundation.

While tax advantages aren’t the sole motivation for giving, they make a compelling case for structuring philanthropy smartly.

BEST USES

Once a fund is established, businesses can use it in flexible ways.

COMMUNITY GRANTMAKING
The business recommends grants to nonprofit organizations aligned with its strategic philanthropic goals. This can occur on a rolling basis or through an annual giving cycle.

MATCHING EMPLOYEE DONATIONS
Companies can use their fund to match employee gifts. This encourages employee involvement and amplifies their generosity.

DISASTER OR CRISIS RESPONSE
Because assets are already in place, the company can respond quickly to emergencies, locally or globally, without budget reallocations.

WHY PARTNER WITH THE TOPEKA COMMUNITY FOUNDATION

Partnering with the Topeka Community Foundation, or any community foundation, offers benefits beyond administrative convenience.

LOCAL EXPERTISE AND COMMUNITY INSIGHT
The team at the Topeka Community Foundation is deeply connected to nonprofits, leaders and needs across the community and can help businesses understand where their dollars will be most effective.

DUE DILIGENCE AND COMPLIANCE
Vetting nonprofits, ensuring IRS compliance, processing grants and maintaining records become the responsibility of the community foundation, not the company.

STRATEGIC GUIDANCE
The community foundation team can help businesses clarify priorities, create impact frameworks, measure outcomes and build long-term giving strategies.

INVESTMENT MANAGEMENT
The community foundation invests charitable assets, giving them potential to grow tax free and increasing the pool of funds available for grants.

REPUTATION AND TRANSPARENCY
Fund management through a respected community foundation lends credibility and provides reporting tools that support transparency with employees, customers and stakeholders.

Philanthropy can be a strategic pathway to turn goodwill into lasting results. It brings structure to generosity, ensuring that contributions are managed responsibly, deployed efficiently and aligned with a company’s values and long-term vision.

Corporate philanthropy is about strengthening the community, deepening employee pride and leveraging leadership to build a legacy that can grow, adapt and continue creating impact well into the future.