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Simple English definitions for legal terms
community trust
Read a random definition: carryover
A quick definition of community trust:
Community trust: A community trust is a group of people who pool their money together to help fund projects in their community. These projects can be things like scholarships, environmental projects, preservation, and affordable housing. The community trust is set up as a special type of organization that allows for more efficient and tax-free management of the funds. The people who run the community trust are responsible for making sure the money is used for the right things and that it keeps generating income for a long time. The money usually comes from wealthy individuals who want to help their community. Sometimes it can be hard to decide which money belongs to the community trust and which belongs to other organizations or individuals. But as long as the community trust is following the rules, it can use the money to make a difference in the community.
A more thorough explanation:
A community trust is a type of organization that pools funds together to support projects in a community. These trusts are usually set up as non-profit organizations or trusts and are governed by a board of directors. The funds can be used for a variety of needs, such as scholarships, environmental projects, preservation, and affordable housing.
For example, a community trust might receive donations from wealthy individuals who want to support a specific cause in their community, such as building a new park or providing scholarships for local students. The trust would then manage these funds and distribute them to the appropriate projects.
In order to qualify as a community trust, the organization must follow federal and state guidelines. The funding sources for community trusts tend to come from wealthy individuals who prefer this organizational structure over a foundation. This is because community trusts are often more efficient and have tax benefits.
Overall, community trusts are a way for individuals to come together and support their community in a meaningful way. By pooling their resources, they can make a bigger impact than they would be able to on their own.