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

IT MAKES GOOD SENSE

Why do organizations partner with a Community Foundation?

Focus on mission

Grow endowments

Insure sustainability

Take advantage of Endow Iowa Tax Credit

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

• 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

Our business is building the local community

#3. Community Leader/ Convener

IT MAKES GOOD SENSE

Iowa CommunitiesGrowing Endowments in

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 $1,000

Tax Credit: $2,500 $ 250

Federal Deduction: $3,500 $ 250

Total Tax Savings: $6,000 $ 500

Total Cost of Gift: $4,000 $ 500

*Based on 35% marginal federal tax rate

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

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.

• 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!

Work with you to grow the organization’s endowment

Strategize the work

Organize a committee

Develop a brochure or case statement

Inventory current collateral

Identify & prioritize potential donors

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

What can we expect as an Endowment partner?

IT MAKES GOOD SENSE

Questions & Comments