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

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