Creative Giving
MARCH 2010
Community Foundation of Northeast Iowa
www.cfneia.org
Establishing a Legacy Fund If you want to help your client serve the emerging needs of the community for decades, consider working with your local community foundation, the Community Foundation of Northeast Iowa. “The Community Foundation can guarantee a steady flow of giving in memory of your loved one, even as the level of your charitable giving changes over the years,” explains Becky Davis, a development officer with the Community Foundation of Western North Carolina. “This is because the principal is invested in perpetuity and the income supports the projects that serve a client’s interests in the community.” “Establishing a legacy fund through a community foundation increases the visibility and broadens the recognition of the person you are memorializing by granting support to a variety of projects throughout the community over time in your loved one’s name, versus being attached to one organization year after year,” suggests Hans Dekker, president of the Community Foundation of New Jersey.
Advantages of Working With the Community Foundation of Northeast Iowa
welfare, which allows the community foundation to match the donor’s interests to future community needs and services. The Community Foundation offers a variety of fund choices for a memorial gift: donor advised, field of interest, designated, customized or unrestricted funds that the foundation uses to support new or creative projects. It also administers the grants, ensures compliance with IRS regulations, and produces transparent fund statements. “This allows your clients to meet their objectives of doing good things in a loved ones name simply and efficiently,” says Burk.
Creating Meaningful Legacies A community foundation, like the Community Foundation of Northeast Iowa, can help design a legacy fund to serve a specific geographic region, community population, and/or changing needs of the community. A fund can have broad objectives - such as supporting the arts, environment, or education - or be tailored to support certain groups, such as battered women.
“Legacy funds can also be used to instill philanthropic values in future “The Community Foundation knows generations,” states Burk. One the needs of the community and which organizations are doing the most effective grandmother set up a portion of her work,” explains Mary Ann Burk, President/ legacy funds to support a specific organization and provided guidelines CEO of the Community Foundation of for family members to recommend Northeast Iowa. Endowments are meant grants from the rest of her funds. This to last forever - funding projects that provided a way for her family to honor support an evolving community - and her memory and allowed her to share her are managed by community leaders and experts, she explains. For example, rather philanthropic values even after death. than fund a local animal shelter with an People often put off estate planning undetermined future, a donor can create because they think there will be time to a fund to support the field of animal
For good. For ever.
Lawrence and Irene Bradley of the “The Lawrence J. and Irene M. Bradley Family Fund” on their wedding day. Lawrence and Irene have passed away, but their, and their family’s, legacy will live on as their fund will support the Rockwell City, Iowa, Meals on Wheels program in perpetuity.
do it later. One donor set up a legacy fund with the Arkansas CF when she received a diagnosis that she had six months to live. She expected to use her estate to fund it, but when her health improved she decided to fund her legacy immediately. Ten years later she continues to enjoy the impact of her gifts on the community.
Find Out More The Community Foundation of Northeast Iowa can answer any questions you have about our services and helping your clients help the community. Call us at (319) 287-9106. SOURCE: Some information provided by Joanne O’Connell, a freelance writer based in Brooklyn, New York. Copyright 2007, Council on Foundations. Used with permission.
Community Foundation of Northeast Iowa: Creative Giving, MARCH 2010
PRESIDENT & CEO
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Community Foundation of Northeast Iowa
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MARCH 2010
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Creative Giving
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of Northeast Iowa Established in Waterloo/Cedar Falls in 1956
PO Box 1176 Waterloo, IA 50704
319.287.9106
Mary Ann Burk
CHAIR OF THE BOARD
www.cfneia.org
Chuck Shirey
PROFESSIONAL ADVISORY COMMIT TEE Mark Rolinger, Chair John Larsen
Counties We Serve
Theresa Hoffman Heather Gunderson Mike Rickert Robert “Bob” Smith David Sparks Roger Neumann Steve Weidner
Confirmed in Compliance with National Standards for U.S. Community Foundations.
Helping your clients help their community. w www.cfneia.org
Is giving through a community foundation right for your clients? Seven questions for estate and financial advisors: 1. Do I have clients who care deeply about their local community? 2. Do they give to more than one charitable cause? 3. Are they interested in creating a personal or family legacy in their community? 4. Are they considering the creation of a private foundation, but concerned about cost and administrative complexity? 5. Would they like to stay personally involved in the use of their gift dollars?
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7. Do they place a priority on sound financial management of their contributions? If you answered yes to any of these questions, your clients would benefit from knowing more about their local community foundation. We’d be happy to help you make an introduction.
“A gift to the Community Foundation can take many different forms. It’s a highly flexible, very personal way to give.” ~ Mark Rolinger,
Attorney in Black Hawk County
Established in Waterloo/Cedar Falls in 1956
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6. Do they want to receive maximum tax benefit for their charitable contributions under federal law?
For more information about how we can help you help your clients, call us at (319) 287-9106 or visit www.cfneia.org.
For good. For ever.
Community Foundation of Northeast Iowa: Creative Giving, MARCH 2010