Community Foundation of Washington County The Power of Philanthropy

IT MAKES GOOD SENSE What is a Community Foundation?

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…

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

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

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

IT MAKES GOOD SENSE Why do organizations partner with a Community Foundation? Focus on mission Grow endowments Insure sustainability Take advantage of Endow Iowa Tax Credit

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

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 Our business is building the local community #3. Community Leader/ Convener

IT MAKES GOOD SENSE Iowa Communities Growing Endowments in

IT MAKES GOOD SENSE Tax Credit The Endow Iowa

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

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

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 $1,000 Tax Credit: $2,500 $ 250 Federal Deduction: $3,500$ 250 Total Tax Savings: $6,000$ 500 Total Cost of Gift: $4,000$ 500 *Based on 35% marginal federal tax rate Calculate for yourself and see the charitable impact at

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 ) 125 contributions were from businesses. 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!

Work with you to grow the organization’s endowment Work with you to grow the organization’s endowment Strategize the work Organize a committee Develop a brochure or case statement Inventory current collateral Identify & prioritize potential donors Visit potential donors along with organization's board or committee members What can we expect as an Endowment partner?

IT MAKES GOOD SENSE Questions & Comments