For good. For ever.SM

Louise created an Louise created an Unrestricted fund Unrestricted fund

with the Community with the Community Foundation because Foundation because she understood that she understood that

the needs of this the needs of this community might community might change in coming change in coming

years and relied on years and relied on the Foundation to the Foundation to respond to those respond to those

needs. needs.

Louise gave quietly throughout her lifetime. She Louise gave quietly throughout her lifetime. She cared deeply for those in need and wanted to cared deeply for those in need and wanted to

support charitable efforts with worthy missions.support charitable efforts with worthy missions.

Brett Bergstrom passed away Brett Bergstrom passed away in 1993 at the age of 20….in 1993 at the age of 20….

But his love for the environment But his love for the environment and Habitat for Humanity live on and Habitat for Humanity live on

through the fund his father through the fund his father created in his memory with the created in his memory with the

Community Foundation!Community Foundation!

Bud Nichols was a teacher. He was diagnosed with Bud Nichols was a teacher. He was diagnosed with pancreatic cancer in March 2002 and died on pancreatic cancer in March 2002 and died on

November 11th that year…November 11th that year…

The Nichols family established a scholarship fund The Nichols family established a scholarship fund with the Community Foundation so his memory with the Community Foundation so his memory will continue to live on with the experiences his will continue to live on with the experiences his

fund helps provide for students. fund helps provide for students.

Lowell J. Walker wanted to better his Lowell J. Walker wanted to better his community and leave an impact long community and leave an impact long after his death…after his death…

Through detailed Through detailed estate planning, estate planning, Lowell started a Lowell started a fund benefiting fund benefiting youth causes, youth causes,

donated a donated a building to his building to his

favorite charity, favorite charity, and created a and created a

fund to support fund to support upkeep of that upkeep of that building so it building so it

would never be a would never be a financial burden.financial burden.

tw ahis a community foundation?is a community foundation?

Our Mission

• Respond to the current and future charitable needs of Cerro Gordo County.

• Secure and serve as the custodian of endowment funds contributed by many donors.

• Create other mechanisms which will channel charitable money, goods and services to meet community needs.

The Community Foundation has The Community Foundation has three distinct features.three distinct features.

eet rht ow

o enpermanent endowment

broad, flexible purpose

personalized giving

o enpermanent endowmentpermanent endowment

feature

one

§ Invest and protect principal

§ Distribute earnings via grants

§ Build permanent community capital

§ Create donor legacies

George and Hallene are still making a difference-

You can too- for good… for ever!

Permanent Endowment

t owbroad flexible purposebroad flexible purpose

feature

two

Making a realreal impact on realreal people

Arts and CultureEconomic DevelopmentEducationEnvironment

HealthHuman ServicesHistoric PreservationNeighborhoods

› Support high-impact opportunities

› Bring organizations into existence

› Redirect funds as appropriate

› Monitor all community needs…

Broad, Flexible Purpose

eet rhpersonalized givingpersonalized giving

› Fulfill multiple charitable intents

› Gain maximum tax advantage

› Be involved in establishing a fund:

- Unrestricted

- Field of Interest

- Designated

- Advised

- Agency Endowment

- Scholarship Fund

feature

three Personalized Giving

› More than 750 funds

› Over $39 million in assets

› Over $30 million is permanently endowed

› More than $5 million in annual grants

› Cumulative grants of nearly

$29,000,000 since our inception in 1956

foundation

factsOur host foundation’s current vital statistics

Tom Porth (’06-’07 Board Chair), and Tom Porth (’06-’07 Board Chair), and

Mary Ann Burk (President and CEO)Mary Ann Burk (President and CEO)

Tools for giving.Tools for giving.

Why are we an

Affiliate

The Community Foundation of The Community Foundation of Northeast Iowa handles all of the Northeast Iowa handles all of the

administrative responsibilities of the administrative responsibilities of the affiliate fund. This includes accepting affiliate fund. This includes accepting

gifts, assisting with paperwork, handling gifts, assisting with paperwork, handling thank you letters, and promoting the fund thank you letters, and promoting the fund

through various publications and through various publications and initiatives.initiatives.

The affiliate fund has its The affiliate fund has its own Committee structure own Committee structure to make recommendations to make recommendations

for funding, etc. The for funding, etc. The affiliate fund is able to affiliate fund is able to

accept gifts of all types!accept gifts of all types!

Tools for Giving

› Unrestricted FundMeeting ever-changing community needs

› Field of Interest FundAddressing needs in an important area of community life: arts, education, environment…

› Designated FundDirecting gifts to specific agencies or purposes(e.g., scholarship)

› Donor Advised FundInvolving donors in the use of their gift

› Scholarship Fund Benefits students seeking higher education

for giving

tools Charitable Funds

You can create a named fundin any of these categories.

› Outright Gifts- Give cash, stocks, real estate or other assets

› Bequests- Designate a portion of an estate

› Charitable Gift Annuity- Annuity contract pays donor for life and charitable fund commences grants upon death

› Charitable Lead Trust- Trust pays the community foundation a fixed amount for a number of years and then assets go to beneficiary

› Charitable Remainder Trust- Trust pays beneficiary for life and then assets transfer to community foundation

› Life Estate Contract- Donor transfers home to the Community Foundation of Waterloo/Cedar Falls and Northeast Iowa and still enjoys living at home

› Retirement Plans- IRA’s, etc. By naming the Community Foundation as beneficiary of a retirement plan 100% stays in the community to benefit charities in the donors name.

› Insurance- Insurance policies can be named to the Community Foundation in total or even a portion. Many establish the Community Foundation as the owner and beneficiary during their lifetime.

for giving

tools Charitable Instruments

We accept a wide variety of assets.

LegislationIowa Legislation for

Community Foundations

Endow Iowa Tax Credits

●Donors to Affiliate Community Foundations are considered eligible for tax credit purposes if affiliated with a qualified Community Foundation.

●Donors receive tax credits if donations given to a Permanently Endowed Fund (fund max. 5% pay out) to a qualified Community Foundation. Donations must be to benefit Iowa charities.

●Currently $2 Million Tax credits available for year 2007 (credit awarded on first come first serve basis when application comes to state and is stamped- If 2006 credits used up, those stamped are first to get credit in 2007 etc.

●Beginning in 2008 credit should be approx. $3 million per year. Sunset clause for end of credit removed with this legislations- credits will continue unless new legislation formed to rescind.

Rollover Legislation

IRA Did You Know?

Individuals 70 ½ or older can transfer “tax free” up to

$100,000 to charity in tax year 2007

Payment must go directly from IRA to a charity

Amounts transferred to charity count toward IRA

mandatory distribution requirements

Not tax free to advised funds; cannot make to split interest

trusts (e.g. Charitable remainder trusts or Lead Trusts, or

Charitable Annuities)

Donors making up to $100,000 tax free Rollovers to

endowments at Community Foundations that meet National

Standards in year 2007 are also eligible for the 20% Iowa

State Tax Credit.

giving back

people Did You Know?

If you create an endowment worth

$25,000 today, in 25 years you will

have given this community $46,172

dollars in grants and your

endowment will be valued at

$69,257.Gift and grant values assume an 8.5% growth in the market and grants

of 4% annually.

Cerro Gordo County Cerro Gordo County Wealth TransferWealth Transfer

Total Annual Transfer of Wealth for the County

Cerro Gordo County

$83.9 million in wealth is transferred each year

What if 5% of the Wealth was Gifted Annually?

Cerro Gordo County

$83.9 million x 5% $4.2 million gifted

How could Cerro Gordo County use $4.2 million?

One Time Projects

• A fire truck costs $250,000

• Medical defibrillator for $2,500

• 1 mile of bike trail costs $100,000

• Playground equipment $15,000

• Ethanol feasibility study $35,000

How could Cerro Gordo County use $4.2 million?

Long Term Priorities

An endowment of $1 million will provide $50,000+ in annual spending for…

• Arts & Culture

• Community Development & Entrepreneurship

• Education & Youth

• Environment & Historic Preservation

• Health & Human Services

Assumes annual Endowment spending rate of 5%.

Grant Distribution Grant Distribution ProcessProcess

• Application process once per year with deadlines decided by our committee.

• Our committee reviews applications and makes our recommendations to the Community Foundation of Northeast Iowa.

• The Committee’s final recommendations are approved by the full Board of Directors of the Community Foundation of Northeast Iowa.

• Grantees are approved and notified by the Community Foundation of Northeast Iowa on our behalf.

grantsAwarding The Unrestricted

Distribution Process

Questions???Questions???

© 2002 Council on Foundations and Community Foundations of America

For good. For ever.SM