the power of philanthropy

Community Foundation of Washington County

The Power of Philanthropy

IT MAKES GOOD SENSE

What is the history of our Community Foundation?

Community Foundations History

• The first Community Foundation was started 100 years ago in Cleveland, Ohio.



• It pooled the charitable resources of Cleveland’s philanthropists, into a single, great, and permanent endowment for the betterment of the city.



• It pooled the charitable resources of Cleveland’s philanthropists, into a single, great, and permanent endowment for the betterment of the city.

• Community leaders would then forever distribute the interest from that fund to charitable purposes benefitting the inhabitants of Cleveland.

• This original foundation spawned a global movement.

• Some 1,700 community foundations now exist worldwide.


• This original foundation spawned a global movement.

• Some 1,700 community foundations now exist worldwide.

• Today, there are more than 700 community foundations in the United States which collectively manage more than $48 billion in assets and distribute some $4.5 billion a year to community needs.


• Fifty years after the creation of the Cleveland Foundation the Davenport Area Foundation was established.

• The mission of the DAF was to improve the quality of life in the Davenport area.

Community FoundationsHistory

• Fifty years after the creation of the Cleveland Foundation the Davenport Area Foundation was established.

• The mission of the DAF was to improve the quality of life in the Davenport area.

Community FoundationsHistory

• In 1994, the Davenport Area Foundation was renamed “The Community Foundation of the Great River Bend.”

• The new name reflected CFGRB’s growing presence as a regional resource for both charitable giving and civic engagement.

• As the CFGRB has approached it’s 50th anniversary, there is no longer one pooled fund. Instead CFGRB has more than 850 distinct charitable funds, totaling over $93.4 million in assets.



• Today, these funds stretch beyond Davenport and are located in its 13 affiliate community foundations that serve 17 counties in two states.



• Today, these funds stretch beyond Davenport and are located in its 13 affiliate community foundations that serve 17 counties in two states.

• The CFGRB is a Qualified Community Foundation, operating in compliance with the National Standards for Community Foundations as set forth by the Council on Foundations.


The CFGRBGeographic Area

• The Community Foundation of Washington County was formed in 2006 as an affiliate of the CFGRB, serving the charitable needs of Washington County.



• Because of our affiliation with CFGRB, the Community Foundation of Washington County (CFWC) also operates as a Qualified Community Foundation.



• Because of our affiliation with CFGRB, the Community Foundation of Washington County (CFWC) also operates as a Qualified Community Foundation.

• The CFWC is now one of 130 Community Foundations in Iowa.


IT MAKES GOOD SENSE

What does the Community Foundation of Washington County do?

• 1. Grantmaker. We support a wide range of community needs -- education, health, human services and more.

The CFWC serves as . . .


• 2. Community Leaders and Conveners. We act as community catalysts focusing on long-term endowment building and sustainability.



• 2. Community Leaders and Conveners. We act as community catalysts focusing on long-term endowment building and sustainability.

• 3. Local Giving Vehicle. We establish and hold numerous funds for a variety of charitable purposes.


We offer many types of funds.

Unrestricted Fund

Designated Fund

Agency Endowment

Field of Interest Fund

Donor Advised

Fund

Some of our local partners:

HACAP Endowment

Highland Community School District

John and Phyllis Jackson Music Scholarship

Leo and Martha Hall Endowment

Wellman Parkside Activities Center

Kalona Historical Village

Washington Iowa Betterment Association

Dean Hasty Fund for the Washington County Humane Society

Dean Hasty Endowment for Camp R.E.E.C.E

Claude and Mary Greiner Family Scholarship

IT MAKES GOOD SENSE

Why do organizations and individuals partner with a Community Foundation?

• Roots in the community

IT MAKES GOOD SENSE


• Roots in the community• Personalized giving

IT MAKES GOOD SENSE


• Roots in the community• Personalized giving• Accepts wide variety of

assets

IT MAKES GOOD SENSE



assets• Many professional advisors

IT MAKES GOOD SENSE



assets• Many professional advisors• Maximize gift dollars

IT MAKES GOOD SENSE



assets• Many professional advisors• Maximize gift dollars• Build legacies

IT MAKES GOOD SENSE



assets• Many professional advisors• Maximize gift dollars• Build legacies• Maximum tax advantages

IT MAKES GOOD SENSE

• Fund Facts:• $1,000 minimum• At $10,000 distributions

may begin• 4.5%, 20 quarter average• Annual distributions each

spring• 1% annual support charge• .5% annual investment fee

6+ TIMES

nonprofits

YEAR 15

$9,000 in cumulative grants and services

$16,000 balance

YEAR 25


$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


$57,000 balance

YEAR 1

Establish a Named Fund

$10,000 gift

The Impact to

IT MAKES GOOD SENSE

Endow Iowa State Tax Credit

Endow Iowa?WHAT IS

• A State Tax Credit provided to Iowa tax payers who donate to permanent endowed funds at a qualified Iowa Community Foundation

Endow Iowa?WHAT IS


• Encourages Iowa Taxpayers to invest in their communities by contributing to endowment funds at Qualified Community Foundations

Endow Iowa?WHAT IS


• Encourages Iowa Taxpayers to invest in their communities by contributing to endowment funds at Qualified Community Foundations

• The tax credit is equal to 25% of the amount of the donation. (This is in addition to the regular federal charitable deduction.)

Endow Iowa?WHAT IS

• The gift must be used for a charitable purpose in Iowa. (scholarships, agency endowments, donor advised funds, etc.)

Endow Iowa?WHAT IS


• The gift must be in a permanently endowed fund.

Endow Iowa?WHAT IS



• The gift must be held by a qualified Community Foundation.

Endow Iowa?WHAT IS



• The gift must be held by a qualified Community Foundation.

• Limits each year

• Per taxpayer (up to $300,000)

• Statewide ( $6 million in 2013)

Endow Iowa?WHAT IS

• Tax paperwork has to be completed.

Endow Iowa?WHAT IS


• Awarded on a first come-first served basis

Endow Iowa?WHAT IS


• Awarded on a first come-first served basis

• 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 $5,000.

Gift: $10,000 $1,000

Tax Credit: $2,500 $ 250

Federal Deduction: $2,500 $ 250

Total Tax Savings: $5,000 $ 500

Total Cost of Gift: $5,000 $ 500

*Based on 25% marginal federal tax rate

Calculate for yourself and see the charitable impact at http://www.iowacommunityfoundations.org/resources.aspx






Year Credits Awarded in $s

Contributions Leveraged by Credits

# of CFs/AffiliatesHaving Donors Who

Received Credits

2012 $4,642,943 $18,571,771 712011 $3,960,718 $16,939,797 782010 $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 30TOTAL ‘04-‘12 $24,166,210 $110,865,597 Average per/year= 64






Donation Amount

2012 2011 2010 2009 2008 2007 2006 Total

$1000 or less

1,391 1,849 1,452 1,069 1,297 656 424 8,138

$1001 - $30,000

533 663 443 386 485 319 177 3,006

$30,001 - $100,000

38 59 36 34 69 45 36 317

$100,000 +

28 25 40 15 30 20 18 176

Total Donations

1,990 2,596 1,971 1,504 1,881 1,040 655 11,637






Endow Iowa… Proven Results!

• In 2012, approximately $4.6 million leveraged $18.5

million in giving.

• 126 contributions were from businesses.

• Awarded to donors to approximately 71 different

community foundations/affiliates.

• Since inception, more than $110 million leveraged

through 12,285 separate donations… and its

growing!

Work with you to grow your organization’s endowment

Strategize the work

Assist in developing a brochure and donor materials

Give presentations to the organization and potential donors

Identify & prioritize potential donors

Visit potential donors along with organization's board or committee members

What can you expect as an Endowment partner?

IT MAKES GOOD SENSE

Questions & Comments

the power of philanthropy

Documents

community leaders

community needs

community foundationshistoryin

davenport area foundation

original foundation

inhabitants of cleveland

charitable purposes

charitable giving