1. The power of giving together Securing Our Future

2. Surprising wealth transfer in next 50 years $53 trillion in United States $531 Billion in Iowa $??? Locally

3. Surprising wealth: Iowa $ 6.1 billion county-wide over 50 years$314,000 per household Washington County, Iowa Population: 21,529 (2006 Estimate U.S. Census)

4. For generations, people lived entire lives close to their birthplace Quad Cities wealth passed from generation to generation, but stayed in the Quad Cities Yesterday COMMUNITY WEALTH

5. Many of the next generation no longer live in our community Once the wealth leaves our community, it will never return Today COMMUNITY WEALTH

6. Three beneficiaries Taxes Community Heirs PASSING WEALTH FROM ONE GENERATION TO THE NEXT

7. Secure Our Future 5%5% Invest 5% of our wealth as a legacy for future generations INCREASING OUR COMMUNITY’S SHARE

8. Washington County $305 million in 50 years If just 5% is ENDOWED for future generations $38 million in 10 years #’s reflect Washington County Wealth Transfer Estimates $34.3 million at 50 years 5% GRANTED annually to future generations $2.1 million at 10 years

9. Washington County has a robust community endowment and a secure future; or, LOOKING AHEAD Two possible scenarios Much of Washington County’s wealth has been transferred to communities in California, Arizona, Texas and beyond.

10. 6+ TIMES One gift, many generations YEAR 15 $100,000 in cumulative grants and services $158,000 balance YEAR 25 $200,000 in cumulative grants and services $213,000 balance assumes 5% annual payout and 8.5% rate of return Initial gift has been invested: 1 TIME 2 TIMES YEAR 50 $625,000 in cumulative grants and services $455,000 balance YEAR 1 Establish your Family Fund $100,000 gift LOOKING AHEAD

11. Remember your heirs and tax obligations The plan: Securing Our Future Give to your community for good… forever

12. Home$150,000 Retirement assets$100,000 Savings and investments$100,000 Life insurance policies$50,000 Total$400,000 5% plan  $20,000 Janis MacLeish SECURING OUR FUTURE # of Years Fund Value Annual Grant Amount Total Grants Paid Out 10 $32,474$1,582$14,101 25 $48,074$2,342$43,537 50 $92,446$4,503$127,256

13. The Blakes Homes$500,000 Retirement assets$1,000,000 Savings and investments$500,000 Life insurance policies$500,000 Business$2,500,000 Total$5,000,000 5% plan  $250,000 SECURING OUR FUTURE # of Years Fund Value Annual Grant Amount Total Grants Paid Out 10 $324,735$15,818$141,010 25 $480,744$23,417$435,366 50 $924,459$45,030$1,272,564

14. Homes$300,000 Retirement assets$150,000 Savings and investments$ 150,000 Life insurance policies$50,000 Total$650,000 50% plan  $325,000 SECURING OUR FUTURE The Smiths # of Years Fund Value Annual Grant Amount Total Grants Paid Out 10 $487,103$23,726$211,515 25 $721,116$35,125$653,049 50 $1,386,689 $67,545$1,998,846

15. Gift of Retirement Assets $100,000 Income Tax Avoided$35,000 Net Cost of Gift to Heirs  $65,000 SECURING OUR FUTURE Don’t forget about taxes

16. Gift of Retirement Assets $100,000 Income Tax Avoided$35,000 Estate Tax Avoided $45,000 Net Cost of Gift to Heirs  $35,750 SECURING OUR FUTURE Don’t forget about taxes…

17. The payoff 1. Permanent legacy for donor 2. Source of pride for heirs 3. Stronger community for all SECURING OUR FUTURE

18. 1. Permanent legacy Endowed named fund Targeting causes you care about most Grants awarded in the name of your fund for generations to come SECURING OUR FUTURE

19. 2. Source of pride Give back to your community Model values for the next generation Honor family heritage SECURING OUR FUTURE

20. 3. Stronger community SECURING OUR FUTURE Enrich education · Safeguard health · Improve neighborhoods · Cultivate arts · Protect environment · Strengthen families Causes that move you

21. Charities that touch your life GIVE THROUGH YOUR COMMUNITY FOUNDATION Option to designate a local nonprofit through the Community Foundation of Washington County

22. Securing Our Future: options We accept a wide variety of assets. Outright Gifts Bequest by Will Beneficiary Designation Local Community Impact Fund Charitable Gift Annuity Charitable Remainder Trust Charitable Lead Trust Life Estate Contract GIVE THROUGH YOUR COMMUNITY FOUNDATION

23. Three easy giving strategies Give highly appreciated assets during your lifetime Give retirement assets through your estate Designate the Community Foundation as an insurance policy or retirement account beneficiary GIVE THROUGH YOUR COMMUNITY FOUNDATION

24. IRA $600,000 45% Federal Estate Tax on IRA($270,000) Balance as Income$330,000 35% Federal Income Tax Bracket (on $330,000)($115,500) Net Distributed to Heirs  $214,500 OR Leave $600,000 in a charitable fund for your children to direct for the benefit of the community. SECURING OUR FUTURE IRA’s in a Large Estate

25. First Child Endowed Fund $200,000 Annual Distribution $10,000 SECURING OUR FUTURE IRA’s in a Large Estate Second Child Endowed Fund $200,000 Annual Distribution $10,000 Third Child Endowed Fund $200,000 Annual Distribution $10,000 Family Endowed Fund Endowed Funds $600,000 Total Annual Distributions $30,000

26. SECURING OUR FUTURE IRA’s in a Large Estate Total Charitable Grants Made Balance of Endowed Fund Amount Available for Annual Granting Beginning0$600,000$30,000 Year 15$591,984$934,780$45,378 Year 50$3,383,906$2,630,344$127,687

27. Step 1: Discuss with Family Step 2: Sign Family Fund Agreement with CFGRB Step 3: Change IRA Beneficiary to Family Charitable Fund at CFWC Step 4: Accept Membership in the Legacy Society SECURING OUR FUTURE IRA’s in a Large Estate Four Easy Steps

28. Everyone can be a philanthropist

29. 1060 West Monroe St. Washington, IA 52353 Telephone: 319-653-2265