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