Special Library Levy Community Foundations Money Matters Special Library Levy Community Foundations

Iowa Community Foundations “Tax-exempt charitable organizations created by and for the people of our state’s diverse communities.” “To help Iowans make a positive, local impact by offering a variety of tools to help people achieve their charitable goals and do good work in their communities that lasts forever.”

Sources of Information Iowa Community Foundations, http://www.iowacommunityfoundations.org Iowa Department of Economic Development – Endow Iowa, http://www.iowalifechanging.com/endowiowa/

Why Community Foundations? Wanted to give people a way to give financially to their communities Concerns about transfer of wealth

One County Example Cerro Gordo County $245,000 transferred per average estate On average, Cerro Gordo County has 342 probated estates annually

Projections 2000 - 2049 Cerro Gordo County: $7.8 billion State of Iowa: $531 billion

Statewide Approximately 115 Community Foundation organizations Every part of the state is included

Benefits of Community Foundations Local organizations with deep roots in the community Personalized service tailored to each individual’s charitable and financial interests. Help people invest in the causes they care about Can accept a wide variety of assets, and can facilitate complex forms of giving. Maximum tax advantage under state and federal law Benefit the communities they serve and help create personal legacies. Provide the option to give anonymously

Benefits for the Library Vehicle for donations The library doesn’t have to go through the process and expense of establishing its own foundation Administrative services including funds management and reporting are handled for the library

Costs Most community foundations charge an administrative fee of between 1 - 2%

Community Foundation Funds Library may establish a number of funds within the foundation Each fund established has a designated purpose For each fund there is a written agreement which states the fund’s particular purpose, who makes decisions about the fund, how the funds are disbursed

Oversight by Community Foundation Community foundation is legally responsible for the funds and may request brief reports from the library to make sure the fund is being used in accord with the stated purpose

Steps Could the library benefit from establishing a fund within the community foundation? Discuss with library board Contact your local community foundation, http://www.iowacommunityfoundations.org