1. Community Foundation of Washington County The Power of Philanthropy

2. IT MAKES GOOD SENSE What is a Community Foundation?

3. 1. Grantmakers. They support a wide range of community needs- education, health, human services and more. 2. Local Giving Vehicles. They establish and hold numerous funds for a variety of charitable purposes. 3. Community Leaders and Conveners. They act as community catalysts focusing on long-term endowment building and sustainability. Community Foundations Are…

4. Monitor all community needs… arts & culture, economic development, health, environment, education and more! Direct grants and resources to appropriate areas Re-direct funds as community needs change Knowledge of community issues, opportunities, and resources Gather information and track local agencies and programs Making a difference where it is needed most in the local community #1. Grantmaker

5. Educate donors about charitable giving vehicles Customize giving approaches to match personal interests and tax planning needs as a partner with professional advisors Share knowledge on community needs Offer involvement in recommending uses of a gift Provide the option to give anonymously Help people create personal legacies via named funds #2. Giving Vehicle

6. #2. Giving Vehicle cont…. Unrestricted Fund Designated Fund Agency Endowment Field of Interest Fund Donor Advised Fund

7. Act as a community catalyst Support high impact opportunities Governed by leaders with strong ties to the community Foster development of new organizations and programs Build endowments to ensure grants are available to support the community Their business is building the local community #3. Community Leader/ Convener

8. IT MAKES GOOD SENSE Iowa Communities Growing Endowments in

9. 6+ TIMES One gift, many generations YEAR 15 $95,000 in cumulative grants and services $164,000 balance YEAR 25 $193,000 in cumulative grants and services $234,000 balance assumes 4.5% annual payout and 8.5% rate of return Initial gift has been invested: 1 TIME 2 TIMES YEAR 50 $662,000 in cumulative grants and services $570,000 balance YEAR 1 Establish a Named Fund $100,000 gift LOOKING AHEAD

10. Surprising wealth transfer in 50 years $41 trillion in United States $531 billion in Iowa through probate estates alone $6.1 billion in Washington County $ 274,425 per probated estate in Iowa… $314,186 per probated estate in Washington County.

11. Many gifts, many generations If 5% of estates transfer to endowment funds… A Washington County Example YEAR 10 $45.2 million charitable gifts $10.9 million total grants $53.3 million community endowment YEAR 50 $304 million charitable gifts $646,.6 million total grants $783 million community endowment What could be accomplished in your community…

12. IT MAKES GOOD SENSE Tax Credit The Endow Iowa

13. Endow Iowa? WHAT IS Encourages Iowa Taxpayers to Contribute to Endowment Funds at Qualified Community Foundations Permanent Endowment Fund Has to be held at and receipted by the Community Foundation Iowa Charitable Purpose (scholarships, agency endowments, donor advised funds, etc.) No more than 5% spending/granting policy

14. Endow Iowa? WHAT IS THEN donors can be eligible for... 25% state tax credit for contribution- in addition to normal federal charitable deduction Limits each year per taxpayer (up to $227,590) statewide (approx $4.5 million in 2011) Tax credit paperwork has to be completed Awarded on a first come-first served basis Tax Credit Letter/# sent by IDED once awarded Can be carried forward up to 5 years

15. Surprising wealth transfer in next 50 years $41 trillion in United States $531 billion in in Iowa through probate estates alone $XXX billion in [County] $XXX,XXX per probated estate Endow Iowa Tax Credit Example With Endow Iowa, donations to community foundation endowments cost donors less. For example, a $10,000 gift could cost just $4,000. Gift: $10,000 Tax Credit: $2,500 Federal Deduction: $3,500 Total Tax Savings: $6,000 Total Cost of Gift: $4,000 *Based on 35% marginal federal tax rate Calculate for yourself and see the charitable impact at http://www.iowacommunityfoundations.org/resources.aspx

16. 6+ TIMES nonprofits YEAR 15 $9,000 in cumulative grants and services $16,000 balance YEAR 25 $19,000 in cumulative grants and services $23,000 balance assumes 4.5% annual payout and 8.5% rate of return Initial gift has been invested: 1 TIME 2 TIMES YEAR 50 $66,000 in cumulative grants and services $57,000 balance YEAR 1 Establish a Named Fund $10,000 gift The Impact to

17. Surprising wealth transfer in next 50 years $41 trillion in United States $531 billion in in Iowa through probate estates alone $XXX billion in [County] $XXX,XXX per probated estate YearCredits Awarded in $s Contributions Leveraged by Credits # of CFs/Affiliates Having Donors Who Received Credits 2010 (through 3.15.11) $3,426,512$13,918,14971 2009 $1,977,869$9,889,34478 2008 $3,155,395$15,839,70268 2007 $2,000,000$10,099,984 51 2006 $2,000,000$10,503,85030 2005 $2,000,000$10,000,00023 2004 $1,003,773$5,103,0007 TOTAL ‘04-‘10$15,563,549$75,354,029Average per/year= 47

18. Surprising wealth transfer in next 50 years $41 trillion in United States $531 billion in in Iowa through probate estates alone $XXX billion in [County] $XXX,XXX per probated estate Donation Amount 2010200920082007200620052004Total $1000 or less 14521069129765642421383 3,803 $1001 - $30,000 44338648531917718193 1,954 $30,001 - $100,000 36346945363710 239 $100,000 + 4015302018 13 115 Total Donations 1,9711,5041,8811,0406554491997,834

19. Surprising wealth transfer in next 50 years $41 trillion in United States $531 billion in in Iowa through probate estates alone $XXX billion in [County] $XXX,XXX per probated estate Endow Iowa… Proven Results! In 2010, approx $3.4 million leveraged $13.9 million in giving. (processed by 3.15.11) 125 contributions were from businesses. 27% of donations were for donations less than $30,000. Awarded to donors to approximately 71 different community foundations/affiliates. Since inception, more than $75 million leveraged through 7,834 separate donations… and its growing!

20. In 2005…. Approximately 13 community foundations operating within National Standards for US Community Foundations Estimated $206 million in total assets What has this all done for Iowa? In 2011…. Approximately 130 community foundations/affiliates operating within National Standards for US Community Foundations Estimated $523 million in total assets… growth of $317 million since 2005!

21. IT MAKES GOOD SENSE Questions & Comments

22. Thank you. Angie Dethlefs-Trettin, Executive Director- Iowa Council of Foundations www.IowaCouncilofFoundations.org www.IowaCommunityFoundations.org