THE BEGINNING OF THE COMMUNITY FOUNDATION
 
Mayor Gerry Montgomery initiated the Community Foundation of West Kentucky in 1996 as the Paducah Area Community Foundation. Mayor Montgomery felt that Western Kentucky needed an organization like a community foundation to perpetuate charitable giving for decades to come.

The first few years were years of formation. Great care was given to properly structure the organization, to recruit the proper type of community leaders and to implement policies and procedures conducive to accomplish the objectives of a viable community foundation.

The first donations to the Paducah Area Community Foundation came from the local banking institutions and newly recruited board members. Their visionary gifts allowed the organization to begin operation in late 1998.

The Board of Directors decided to change the name from the Paducah Area Community Foundation to the Community Foundation of West Kentucky in 2000. This decision was made in order to assist the nonprofits expand their services throughout the region. Thus, the decision was made and adopted in 2000.

The Community Foundation continued to grow in assets and the number of funds it administered. In 2001, there were approximately 24 funds within the Community Foundation and assets were $730,000 with grants totaling $65,000.

In late 2001, the Community Foundation asked Tony Watkins, who was professional fundraising consultant, to assist them and to formulate a strategy for growth. That growth has come through the dedication and support of the Board of Directors that followed the strategy and used their influence that allowed the Community Foundation to grow in the total number of funds placed with the organization and its overall assets.

Currently, the Community Foundation of West Kentucky has over 75 funds, three affiliates in Graves County, KY, Madisonville/Hopkins County, KY and Massac County, IL, and over $10 million in assets. Last year over $1.075,000 in grants  were disbursed back into the communities we serve.

The Community Foundation has established endowment funds for such organizations as the Western Baptist Hospital, Lourdes Hospital, Easter Seals, The Paducah Bank Community Fund, Paducah Cooperative Ministry, the Museum of American Quilters, the Paxton Media Group and the United Way of Paducah/McCracken County. The Foundation also administers church endowments and several endowed scholarship funds including the John E Robinson Memorial Scholarship, the USEC Scholarship Fund and the Pennies for the Future Scholarship. New scholarship funds are being developed and funded by bequests totaling more than $3.4 million.

The Community Foundation is in receipt of several wills written to the benefit of the Community Foundation upon their execution and estate plans established estimated to be valued at approximately $20 million. 

INFORMATION ABOUT US

Frequently Asked Questions

The Community Foundation of West Kentucky, Inc. was created by the community for the long-term benefit of the community. It is not a charity supporting its own programs, but rather a vehicle supporting a variety of charitable initiatives as diverse as the interests and needs of those who live in the McCracken, Graves, Calloway, Marshall and Hopkins Counties of West Kentucky. However, grants may be made to qualified charities within the geographical United States. International grants are prohibitive.

The Community Foundation accepts and receives gifts for the community’s endowment. It is the income from this endowment that is returned to the community each year in the form of grants. In essence, each contribution is a legacy to future generations because the income is distributed year-after-year for generations to come.

What is the Community Foundation of West Kentucky?
The Community Foundation is a granting organization that funds other non-profits’ programs and services as well as scholarships for area students.

The Community Foundation is a “collection” of permanent endowments designed to meet all a donor’s individualized charitable goals through one simple vehicle.

What is a permanent endowment?
In general, contributions made to the Community Foundation are not spent -- they are invested for growth. Five percent of a fund’s assets, averaged over 16 rolling quarters, are available for spending. As the corpus grows, so too does the amount available to spend, disburse or grant.

What is a non-permanent or temporary fund?
By agreement, both principal and income may be expended.

What are the Community Foundation’s assets?
The Community Foundation’s assets are valued at approximately $10 million. The Community Foundation currently has over $20 million designated to its endowment funds through bequests and estate plans yet to be realized.

Where/how is the money invested?
The Community Foundation currently works through the trust departments of Paducah Bank and USBANK under the direction of an Investment Committee appointed by the Board of Directors. Investments are pooled with income spread to each fund proportionately. Performance is reviewed quarterly.

Who may the Community Foundation grant money to?
501(c)(3) Non-profits. Tax exempt schools, churches, and governmental entities.

How much does the Community Foundation give away each year?
Grant disbursement from the Community Foundation has had tremendous growth over the past four years. The Community Foundation surpassed granting more than $1 million in 2007, our 10th year in existence.

How does the Community Foundation secure operating funds?
From fees charged to funds. The fees range from ½ of 1% to 1% of a fund’s assets computed annually, but no less than $100 per year, per fund. The Community Foundation’s expenses to asset ratio is less than 1.4% .The Community Foundation does receive some donations directed toward underwriting the operating budget.

Is the Community Foundation in competition with other non-profits?
No, we are a resource for them. We hold nearly all the endowment funds for the area’s non-profits, we work with them to develop their assets, and make grants to their institutions.

How does the Community Foundation differ from a private foundation?
We derive our assets from many donors rather than a single source, we have broad charitable purposes, are demographically diverse with a non-compensated Board of Directors. Because we are a public charity, we receive more favorable tax treatment, do not pay excise taxes on income, and have more flexibility in our operating ability.

How can the Community Foundation assist a private foundation?
The Community Foundation can be of assistance to private foundations in meeting the annual grant requirements. A private foundation may create funds at the Community Foundation to hold the required annual distribution they need to make. An example could be that a project at another nonprofit that is selected to receive the distribution is not ready to receive the private foundation grant in time to meet its pay-out requirement. These funds can be distributed to the other nonprofit when it is ready to proceed, without reducing the support available to our community  and eliminate the payment of unnecessary excise taxes.

Also, the Community Foundation can partner with the private foundation and create a new fund to address new and ever-changing initiatives to better our region.

Who establishes funds in a community foundation?

What kind of funds may be established?

To whom do the fund assets belong and under whose control is the distribution of funds?
Fund contributions become an asset of the Community Foundation and, as such, are under the control of the Board of Directors. The Community Foundation is organized for charitable purposes and should not be confused with a trust department in a bank or an investment service. Fund distributions receive Board approval and, except in extraordinary circumstances, the principal of a permanently endowed fund is not invaded.

How can I obtain financial information?
An independent audit is conducted annually, and the 2007 audit is being completed. Currently, Dennis Driver, a local CPA whose main focus is non-profit agency compliance is our auditor. The IRS Form 990, audited financial statements, and specific investment management details are available upon request. Excluding specific donor information, the financial records for the Community Foundation of West Kentucky, Inc. are open.
 

FOUNDATION PROFILES

DONOR ADVISED FUNDS:

Mary Helen Wegmann is not a native of Paducah, yet she has left her mark and an eternal gift to our community. Mary Helen grew up in Aurora, Missouri, then moved to Cleveland, Ohio where she lived for thirty years.

While in Cleveland she realized how important Community Foundations are in the developmental enhancement of education, art, culture and the social services.

John and Vivian Williams established the first named fund within the Community Foundation as an Unrestricted Fund. The Williams want to have an active role in support of their local community. When John and Vivian began discussing their charitable goals, one of their primary considerations was how to create a long-term method of giving back to the area which they worked and raised their family.

By establishing a permanent endowment fund, they have accomplished their charitable goal of supporting their community today and for generations to come.
Learn more about unrestricted funds

The Paxton Media group is a fifth generation, family-owned media company, founded in 1896 and based in Paducah. PMG publishes 32 daily newspapers including The Paducah Sun and the Madisonville Messenger. Paxton Media Group also owns WPSD-TV, the NBC affiliate in Paducah, and publishes numerous weekly and specialized publications in the markets it serves.

The PMG gift is a named fund in the Community Foundation and is unrestricted which may be used at the discretion of the Board of Directors. This fund can serve the ever-changing charitable needs in Paducah not only today, but in years to come. Learn more about unrestricted funds

What began in 1963 with a group of interested people to form a “little theatre group” has grown into a regional attraction. The mission of the Market House Theatre is to provide a “hands on experience” in the arts for all people of our region regardless of age, ethnicity, or income levels.

MHT believes in the power of arts education. The Theatre continues to expand its role as a major provider of theatre arts education to the school systems of our region. Statistics have confirmed that young people involved in the arts score 50 points higher on verbal tests and 44 points higher on math tests. Theatre arts programs out perform sports programs in teaching collaboration, instilling self-awareness, increasing self-esteem, building pro-civic and pro-social values, and reducing discipline problems.

Through this endowment fund you can help ensure MHT’s ability to provide quality programs for the next generations of children and adults. Giving to this endowment fund provides a positive and permanent way to increase their capacity and to perpetuate their deep commitment to theatre arts education. Learn more about non-profit funds

The Paducah McCracken County Senior Citizens Center is dedicated to providing the senior citizens of Paducah and McCracken County with services that allow them to maintain their independence and dignity. The Center provides programs specifically designed for the homebound seniors, so that they may remain in their homes and live independently. More active seniors enjoy the opportunity to socialize, learn, and generally enjoy their leisure time. The Center also serves meals, provides exercise classes, day trips, and volunteer opportunities through the Retired and Senior Volunteer Program (RSVP).

This endowment fund established in 2000 provides funds to be used for the perpetual support of programs and services to meet the changing needs of the senior citizens today and tomorrow. Your support through this endowed giving option will ensure continuity of assistance for the elderly of Paducah and McCracken County. Learn more about designated funds

The River Heritage Museum is an educational institution created to stimulate and educate visitors about the history and future of the region encompassing the Ohio, Tennessee, Mississippi and Cumberland Rivers. Learn more about designated funds.

The Museum combines the best aspects of a learning center with those of a more traditional museum. Through its hands-on, interactive exhibits, the museum will focus on the need to protect and develop our rivers while introducing young people to career opportunities in river-related industries.

Early in its development stages, the River Heritage Museum felt it important to start an endowment in order to build permanent resources to meet future needs of maintenance and operation of the facility. A gift to the RHM Endowment Fund will help ensure their ability to teach the next generation about the wonders of our rivers.

Bonnie Schrock
VP, Western Baptist