The Art of Lasting Philanthropy

The National Community Foundation Environment  Over 700 Community Foundations throughout the United States  Giving in 2006, $3.6 billion; over $44.5 billion in assets  Since 1990, total grants have increased 334%*  Since 1990, total assets have increased 350%* *constant dollars

The Community Foundation of New Jersey  One-on-one donor consultation; philanthropic strategy and legacy  Over $180 million in professionally managed charitable assets  Over 800 funds established by families, businesses, foundations, and agencies  Since 2000, $90 million in grants  Localized around geographic areas for impact

Localization  New Jersey is a complicated charitable environment  Creation of affiliates to bring together local constituents  Anchor points for distinct regions of the state with common challenges and opportunities  Monmouth County, Greater Morris County, Newark

Localization

 Donor Advised Funds – flexibility in timing and recipients  Business Advised Funds – from business equity to community equity  Field of Interest Funds – specific program, cause or community  Community Action Funds – unrestricted, timeless, responsive  Scholarship Funds – cross generational educational opportunities  Designated Agency Funds – perpetual support of specific agency  Agency Endowment Funds – current and future needs of nonprofit Giving Vehicles

Agency Endowment Funds  Established by nonprofits to meet current and future needs  Professionally managed in a pool designed for long-term charitable purpose  Agency is freed to focus on their good works  128 Agency Endowment Funds valued at $23.5 million  122 Designated Funds valued at $26.4 million

 Cash  Securities – beneficial tax treatment; pre-IPO, closely held stock  Real estate  Retirement plan beneficiaries  Charitable Lead Trusts  Life insurance, life insurance beneficiaries  Bequests  Life income plans – Charitable Gift Annuities Charitable Assets

Life Income Plans – Charitable Gift Annuities  Enables donors to convert assets to income stream and give back  Upfront tax deduction based on donation amount and donor age  Lifetime annuity to donor  Upon death, remaining principle to designated agency  23 NJ nonprofits benefiting from CFNJ Charitable Gift Annuities

A woman, age 80, owns securities worth $100,000, which she bought for $10,000 many years ago and which pay a total cash dividend of $1,000 per year. By transferring her shares to the Community Foundation into its Charitable Gift Annuity Program she increases her current income to a guaranteed $8,000, based on current rates, and postpones federal and state capital gains taxes. In addition, she receives a charitable contribution deduction at the time of her gift. She can choose to have her charitable goals live on through a named fund or can designate any New Jersey charity to receive the benefit of her gift after her passing. Life Income Plans – Charitable Gift Annuities

Public Policy Work  Advocacy for New Jersey’s charitable community  High tax rates in New Jersey are encouraging high net worth families and their giving to leave the state  Absence of charitable deductions on state income tax does not foster an environment for giving  Community Foundation is working to reverse these trends

Q u e s t i o n s

The Art of Lasting Philanthropy