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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 Vehiclecont….
Unrestricted Fund
Designated Fund
Agency Endowment
Field of Interest Fund
Donor Advised
Fund
• 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
Their business is building the local community
#3. Community Leader/ Convener
IT MAKES GOOD SENSE
Iowa CommunitiesGrowing Endowments in
6+ TIMES
One gift, many generations
YEAR 15
$95,000 in cumulative grants and services
$164,000 balance
YEAR 25
$193,000 in cumulative grants and services
$234,000 balance
assumes 4.5% annual payout and 8.5% rate of return
Initial gift has been invested: 1 TIME 2 TIMES
YEAR 50
$662,000 in cumulative grants and services
$570,000 balance
YEAR 1
Establish a Named Fund
$100,000 gift
LOOKING AHEAD
Surprising wealth transfer in 50 years
$41 trillion in United States
$531 billion in Iowa through probate estates alone
$6.1 billion in Washington County
$ 274,425 per probated estate in Iowa… $314,186 per probated estate in Washington County.
Many gifts, many generations
If 5% of estates transfer to endowment funds…A Washington County Example
YEAR 10
$45.2 million charitable gifts
$10.9 milliontotal grants
$53.3 million community endowment
YEAR 50
$304 million charitable gifts
$646,.6 milliontotal grants
$783 million community endowment
What could be accomplished in your community…
IT MAKES GOOD SENSE
Tax CreditThe 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
Tax Credit: $2,500
Federal Deduction: $3,500
Total Tax Savings: $6,000
Total Cost of Gift: $4,000
*Based on 35% marginal federal tax rate
Calculate for yourself and see the charitable impact at http://www.iowacommunityfoundations.org/resources.aspx
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
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
Year Credits Awarded in $s
Contributions Leveraged by Credits
# of CFs/AffiliatesHaving Donors Who
Received Credits
2010 (through 3.15.11) $3,426,512 $13,918,149 712009 $1,977,869 $9,889,344 782008 $3,155,395 $15,839,702 682007 $2,000,000 $10,099,984 512006 $2,000,000 $10,503,850 302005 $2,000,000 $10,000,000 232004 $1,003,773 $5,103,000 7TOTAL ‘04-‘10 $15,563,549 $75,354,029 Average per/year= 47
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
Donation Amount
2010 2009 2008 2007 2006 2005 2004 Total
$1000 or less
1452 1069 1297 656 424 213 83 3,803
$1001 - $30,000
443 386 485 319 177 181 93 1,954
$30,001 - $100,000
36 34 69 45 36 37 10 239
$100,000 +
40 15 30 20 18 18 13 115
Total Donations
1,971 1,504 1,881 1,040 655 449 199 7,834
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 3.15.11)
• 125 contributions were from businesses.
• 27% of donations were for donations less than
$30,000.
• 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!
In 2005….
• Approximately 13 community foundations operating within National Standards for US Community Foundations
• Estimated $206 million in total assets
What has this all done for Iowa?
In 2011….
• Approximately 130 community foundations/affiliates operating within National Standards for US Community Foundations
• Estimated $523 million in total assets… growth of $317 million since 2005!
IT MAKES GOOD SENSE
Questions & Comments
Thank you.
Angie Dethlefs-Trettin, Executive Director- Iowa Council of Foundations
www.IowaCouncilofFoundations.org
www.IowaCommunityFoundations.org