Marketing Flyers by Community Foundation of Northeast Iowa

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Overview

About Your Community Foundation Helping donors do good work… forever.

The Community Foundation of Northeast Iowa is a nonprofit, community

Community foundations

corporation created by and for the people of Northeast Iowa.

provide a simple, powerful,

We are here to help our donors make a positive impact on their community.

and highly personal

Three special features of community foundations One: personalized service. We make giving easy and effective, accepting a wide variety of gifts and providing donors a number of charitable options. You can contribute cash, stocks, property, and bequests. You may establish a fund in your name or in the name of a loved one. In most cases, your gift qualifies for maximum tax advantage under federal law. Two: local expertise. Our professional staff has an in-depth understanding of the issues, opportunities, and resources that shape our community. They monitor all areas of community need — including human services, education, the environment, healthcare, the arts, and economic development. We can help you learn more about local organizations and programs that make a difference in areas you care about most. Three: community leadership. We invest in the long term and bring people and organizations together, convening diverse voices to address local issues and opportunities. Our business is building community.

approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. You can give cash, appreciated stocks, real estate, or other assets. Most charitable gifts qualify for maximum tax advantage under federal law. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact the Community Foundation today.

Confirmed in Compliance with National Standards for U.S. Community Foundations

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Donor Advantages

Advantages of Donating through a Fund with the Community Foundation Reliability: After successfully meeting the needs of hundreds of donors just like you for many years, the Community Foundation has earned a record of service for reliability and dependability. Strategic Philanthropic Services: The Community Foundation’s extensive expertise about the nonprofit community and issues of concern to donors is at your fingertips. Flexiblity: Funds can be created in any name you choose, for virtually any charitable purpose you choose. With so many charitable options available through the Community Foundation, we are able to tailor solutions that meet your specific needs, vision and objectives. Simplicity: Funds can be established with one simple document that requires very little time to prepare. Charitable funds at the Community Foundation range in size from $5,000 to millions of dollars. Tax Benefits: As a 501(c)(3) nonprofit charitable organization, the Community Foundation will maximize the tax benefits to the full extent allowed, saving on income tax and estate tax, as well as educing or eliminating capital gains taxes. By donating to endowment funds you may also be eligible for a 20% tax credit. Investment Security: The Community Foundation’s highly experienced board members and financial advisors oversee an investment strategy designed to maximize total return within acceptable risk tolerances, relieving you of investment responsibility and worry. Donor Services: Our staff is always ready to answer questions and concerns, ensuring prompt attention to your needs. Legacy: With the Community Foundaton, you can build lasting testaments to your names, your families and the causes you hold dear--from generation to generation. A named fund can memorialize or honor loved ones and create a legacy in their names or yours. Or, you may choose to give anonymously. The Community Foundation will respect your wishes.

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COMMUNITY FOUNDATION

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

Confirmed in Compliance with National Standards for U.S. Community Foundations

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One tiny seed

Planting a seed today will grow giving forever.

will provide

Foundation today, you are planting a seed that will grow over

shade for generations to come.

By establishing an endowment fund at the Community time, providing necessary resources for future generations.

You donâ&#x20AC;&#x2122;t need a green thumb. If you cultivate the community by giving a gift today of $25,000 and never add another cent to the fund (although, just think of what additional gifts could do), in 25 years you will have provided $46,172 in grants and the endowment will be valued at $69,257.* And you donâ&#x20AC;&#x2122;t even have to worry about pulling the weeds.

Consider planting a seed. There will always be a need for shade.

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* assumes 8.5% growth in the market and grants of 4% annually

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Tools for giving

A personal legacy of giving Endowment

What is endowment? When you create a charitable fund through the

The power of endowment

Community Foundation of Northeast Iowa, you have the opportunity to ben-

A half century ago, Paul Cesarz made a choice that continues to benefit his community today. He created an endowed fund in 1952 with $150,000 in assets. The fund immediately began earning income and distributing grants to causes important to him. Fifty years later and 35 years after Paul’s death, the Cesarz Fund had grown to $1,066,003. And in that 50th year, it generated more than $50,000 in grants, supporting a range of community needs — a park renovation, a museum exhibit, cancer research, and more. Because Paul chose to endow his gift, he has enabled more than $1.1 million in grants to go to his community — almost eight times the impact he would have made by giving the original gift to charity all at once. And though Paul has passed away, the fund in his name will go on supporting his community, leaving a lasting legacy.

efit the community forever with a permanent endowment. Your gift is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift, and all future earnings from your gift, is a permanent source of community capital, helping do good work today and in the future.

Legacy and stability. Donors who endow their gifts can make a

difference in their community during their lifetime and, at the same time, provide a gift that lasts forever. Grants will continue to be made in the name of the fund you establish so that your charitable wishes are preserved, even if an organization receiving grants ceases to exist in the future. Leaders of a nonprofit organization may also look to the Community Foundation to hold their organization’s endowment because they know that having a constant source of funding helps them respond to emergency needs as well as plan for the future and sustain the good work they do.

Expert help. When donors or nonprofit organizations work through

the Community Foundation to achieve their charitable goals, they benefit from the expertise of experienced local staff, community leadership, and investment management.

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IDEAS for giving

Deciding to give A guide to personalizing your philanthropy

Many people come to a point in their lives where they feel inclined to give back. They do so for a number of reasons, all very personal to them. What motivates you? Perhaps you feel strongly about a cause. Perhaps an organization has touched your life or the lives of loved ones. Maybe you want to create a legacy and set an example that inspires others to give. Or your giving is a way to get your family together and pass along your values to younger generations. For as many motivations as there are to give, there are ways of giving. The key to having a rewarding giving experience is finding the best fit—for your charitable priorities, financial goals, and personal preferences. This checklist is designed to help you and your professional advisor determine the custom giving solution that’s right for you. What are your charitable priorities? Charitable interests. You may have a single charitable interest—an important cause or organization. Or you may have several, or a desire to explore new community needs and opportunities as they arise. Note the charitable interests that you’d like to pursue. o Hometown community o Arts o Retirement community o Education o Alma mater o Health and human services o Faith organization o Youth o Environment o Other

There are as many ways of giving as there are motivations to give.

Impact. What kind of impact do you hope to make with your charitable gift? o Solve specific, current, critical needs o Help the largest number of people possible o Make a significant difference in the lives of a few o Construct buildings that will endure for generations o Support operations of nonprofit organizations o Address long-term, systemic social issues o Other Knowledge. Would you like more information in any of the following areas? o Establishing a philanthropic plan o Understanding community needs and opportunities o Evaluating charitable giving options o Starting or operating a private foundation o Starting a Donor Advised Fund or Supporting Organization at a community foundation o Evaluating nonprofit effectiveness o Measuring impact of charitable gifts

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Deciding to give

Perpetuity. Should your gift last forever? You can endow your gift so that only the income is spent and the principal becomes a growing source of community capital. Or, you can choose to spend all of your charitable assets. What is your preferred timetable? o Give all direct gifts with no endowment o Give some direct gifts with no endowment, endow some gifts o Give only endowed gifts What are your financial goals? Assets and taxes. Most large gifts present the opportunity for significant tax deductions. Some people choose to give during high-income years to defray their taxes with deductions. You may wish to donate appreciated securities or real estate to avoid taxes on the sale of these assets. And, charitable bequests can play a role in estate planning for your heirs. Your professional advisor can help you assess the financial and tax implications of giving the following kinds of assets: o Cash o Retirement savings o Appreciated securities o Closely held stock and business assets o Real estate o Life insurance o Fine art o Other asset Transitions. Major life events often drive changes to an estate plan and prompt charitable gifts. Which of the following transitions might be relevant? o Selling a business o Change in marital status for you or your heirs o Retirement or estate planning o Receiving an inheritance o Birth or coming of age of children or grandchildren o Death of a loved one

The key to having a rewarding giving experience is finding the best fit—for your charitable priorities, financial goals, and personal preferences.

Timing. Maybe you would like to start giving now, so you can get involved or potentially see the results of your gift. Or perhaps you’d like to give through your estate. Most philanthropists do a combination of these. What is your timing preference? o Give all gifts during lifetime o Gift some lifetime gifts; some after death o Give all gifts after death Income. Some people choose to give in a way that provides them—or a loved one—a stream of income for life. Your professional advisor can help you select a giving vehicle that suits your time horizons, tolerance of risk, and income requirements. What kind of income would you like your estate to provide? o Predictable lifetime income for you and your spouse o Predictable lifetime income for you or your spouse o Maximum lifetime income for you and your spouse o Maximum lifetime income for you or your spouse o Provide income to a charity during your lifetime

Deciding to give

What are your personal preferences? Recognition. Some people like a tasteful level of recognition for their good work. It attracts attention to their cause, generates awareness, and may inspire others to give. Some people prefer anonymity. What level of recognition do you prefer? o Lasting recognition (name on a fund, foundation, building, or permanent structure) o Public recognition (name in public announcement or media coverage) o Simple recognition (personal thank you and name listed in annual report or newsletter) o Anonymity Control. Is ultimate control over assets you give to charity important to you? Some people aren’t comfortable without it. Others are glad to let go, once they’ve made some guiding decisions. Determining the range that’s comfortable for you will help your advisor recommend appropriate giving vehicles. Less control

More control

Unrestricted Fund

Private Foundation

Field of Interest Fund

Designated Gift/Fund

Donor Advised Fund

Broad gift Gift to a specific Gift to benefit Gift fund for for community; cause; community a specific donor-recommended community foundation awards organization grantmaking foundation grants awards grants

Supporting Organization

Some benefits Independent of private board awards foundation grants with community foundation support

Involvement. Do you want to play an active role in your giving, selecting recipients of your gift for years to come? Would you like to involve your children or grandchildren? Or would you prefer to make one-time gifts with no future demands on your time? o No personal involvement o Current personal involvement o Lifetime personal involvement o Future personal involvement through children o Future personal involvement through grandchildren Personalized service. Many very busy but charitable people choose to receive personalized services—assessment of community needs, administration of their philanthropy, investment management—that allow them to focus on the more rewarding aspects of giving. What are the services you would find helpful? o Local community needs assessment o Research into national or global issues o Due diligence of selected organizations o Planned giving assistance o Gift origination assistance o Grant administration o Investment management o Facilitation of family meetings and charitable activities o Bookkeeping o Tax reporting

Deciding to give

Giving options Major options for giving entail varying costs and benefits. Your professional advisor can help you review options for custom giving solutions—based on your timing preferences, your giving focus, and other variables.

Direct Gift

Donor Advised Fund

Supporting Organization

Private Foundation

Involvement and control

You give a gift directly to a public charity. Control is limited to initial gift decision.

You give to a public charity— e.g., a community foundation. You recommend grants to qualified nonprofit groups, subject to approval by the public charity’s board of directors.

You work together with a public charity—e.g., a community foundation—to appoint board. This board typically controls investments and grantmaking.

You appoint a board, which controls investments and grantmaking.

Tax status

Public charity

Private charity

Tax deductions

Up to 50% on cash, up to 30% on appreciated stock, up to 30% on real estate and closely held stock.

Up to 30% on cash, up to 20% on appreciated stock, up to 20% on real estate and closely held stock.

Grantmaking support

Your decision is based on your own research and intuition.

In the case of a community foundation gift, professional staff is available to help identify and assess grantees, provide input on community needs, and verify nonprofit status.

You must arrange and support your own grantmaking and monitoring structure. Some community foundations offer grantmaking services to private foundations.

Startup costs

None

N/A

Costs kept to a minimum through collaboration with community foundation.

Several thousand dollars for legal and accounting expenses and filing fees.

Effective gift size

Any gift size is appropriate

Thousands of dollars

Typically millions of dollars

Administrative requirements

N/A

Donor has no administrative requirements. Administration is pooled and an annual fee is charged. Community foundation handles reporting.

Costs are kept to a minimum through collaboration with community foundation. Annual 990 tax form must be filed.

Several thousand dollars for legal and accounting expenses and filing fees. Annual 990 tax form must be filed.

Items to consider

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COMMUNITY FOUNDATION

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

ÂŠ 2006 COF & CFA.

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Philanthropy Profile

Your gifts, your legacy

As one of our new partners in philanthropy, you join a rich tradition of giving.

With your charitable gifts, you convey your values, beliefs and convictions. Your personal heritage takes on an essential role in enriching and shaping the community we share. You become the change you want to seeâ&#x20AC;Ś for today, and for future generations. Because every gift you give to the Community Foundation becomes part of your personal legacy in this community, one of our essential roles is recording your history, your preferences, and your hopes for the future. Please take a few minutes to consider, articulate and share your charitable interests and motivations with us. Thank you for being part of our rich tradition.

Name

Address

Date of birth

City State Zip

Phone MOBILE Email

spouse name

children names

parents names

siblings names

Business affiliations

Professional advisors

Charitable and faith affiliations

Alma mater

How did you hear about us?

Why did you decide to give to us?

Who or what inspired your charitable values?

What would you like to be remembered for?

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Philanthropy Profile

higher priority

lower priority

Objective. What I hope to accomplish with my charitable fund. 1

To support organizations I know and trust (e.g., Red Cross or American Cancer Society)

To support causes that matter to me (e.g., adult literacy or performing arts)

To effect social change in a field of interest (e.g., education or environment)

IDENTIFy IDENTIFy

IDENTIFy

Interest. Where I hope to have an impact. 1

arts and culture

alma mater IDENTIFy

special interest 3

IDENTIFy

community development 1

faith organization

education

IDENTIFy

environment 1

favorite charity IDENTIFy

health

human service

Motivation. Why I am motivated to give. 1

I want to support the organizations that have been important in my life 1

I want to give back to the community that has contributed to my success

I want to share my good fortune with others who are less fortunate 1

I want to help address social problems

I want to improve the quality of life in this community

I want to achieve maximum social impact and change

An important part of our mission is honoring the legacy of our donors. With your permission, we would like to archive a photograph of your choice as part of your donor file. Whether it’s a studio portrait or a favorite snapshot, we may use it in the future to share the story of your life and your gift. o I’m happy to share a photo for your files.

o I’d rather not share a photo at this time.

signature date

Focus on Community

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developing Community Progress depends on community. From families to neighborhoods to regions to nations, communities are born of connections between people. Communities that connect and balance the needs of people, business, and the environment create social, economic, and ecological value… which translates to community development, growth, and sustainability.

For centuries, Americans have been developing communities. For Native Americans, nations and confederations defined community. For early American settlers, geography and the European concept of land ownership defined community. With the advent of industrialization, community development in the United States surged ahead, growing centers of production and commerce in cities across the nation. After World War II, outward growth from cities spawned suburbs and propagated highways. In many locales, sprawling growth continues to surround a declining urban core. Today, countless communities are losing businesses and jobs to the economics of globalization. The resulting separation and polarization threaten the very connections essential to sustainable growth and development. Restoring and creating connections between neighbors, businesses, and communities are core principles of community development. Everyone has a role to play.

“ Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.” World Commission on Environment and Development 1983

“ In every deliberation, we must consider the impact of our decisions on the next seven generations.” Great Law of the Iroquois Circa 1142

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Fast facts on Community development Evidence Community development is characterized by physical boundaries defined through custom, income, education,

or cultural affiliation; residents have access to social, political, and economic resources; institutions (faith, community, associations, nonprofits, and businesses) contribute to governance and quality of life; citizens openly participate in the social, cultural, and political offerings of the neighborhood; social and political organization results from the larger city, state, and national political structure.1

Barriers Community development barriers include racial and ethnic bias; underdeveloped community assets and resources;

low levels of social organization and political participation. Social and economic functions of a community remain absent within the broader city or regional contexts.2 Owner-occupied housing When residents own the homes they live in, people are more committed to their neighborhood,

families are less transient, and neighborhoods are more stable. Between 1990 and 2000, a period that included the longest sustained economic expansion in the nation’s history, U.S. housing stock experienced a net increase of 13.3 percent from 99.2 million units to 112.3 million units. The national homeownership rate as of the 2000 Census was 66.2 percent, up from 64.2 percent in 1990.3 Crime rates The level of reported crimes in a community is a strong indicator of economic distress and lack of community

cohesion. Communities with high crime rates experience population flight and further community destabilization. In 2000, the violent crime rate in the United States was 52 per 10,000 residents; the average total crime rate in the U.S. was 427 per 10,000 residents.4 Credit discrimination A recent study linking interest rates charged by lenders with statistics about the race, income

and neighborhood of the borrowers reveals a high degree of racial bias in lending practices. Even after controlling for borrower income, loan amount and other similar borrower traits, disparities are significant. Nationally, AfricanAmericans were 2.7 times and Latinos 1.4 times more likely than whites to receive a high-cost loan when refinancing.5 Voter registration Ten years after the National Voter Registration Act was adopted, voter registration and turnout numbers

among lower-income Americans have declined, perpetuating the two-tiered electorate that Congress intended to help eliminate. Since 1995, voter registration applications from public assistance agencies nationwide have declined by 59.6 percent, while applications from all other sources have increased by 22 percent. While approximately 85 percent of people in households with incomes of over $75,000 are registered to vote, that figure drops to 59 percent for those in the lowest income brackets.6 Development From 1982 to 1997, the United States (minus Alaska) lost 24.8 million acres to development. During

the same time, U.S. per capita land consumption (the amount of developed land per resident) grew by 16 percent. Developed land in the U.S. is growing more than twice as fast as per capita land consumption.7 In the U.S., 70 percent of prime or unique farmland is now in the path of rapid development.8 Smart growth Research shows that by concentrating development in areas with existing services, smart growth

increases property values while decreasing municipal costs. It creates more affordable housing and safer neighborhoods while attracting businesses and supporting local economies. By enhancing the land and existing assets, smart growth improves transportation flow, supports the environment and contributes to the health of all people.9 In neighborhoods, cities and states, committed individuals and organizations work together to build community. Gifts from concerned philanthropists help restore neighborhoods, foster investment, engage citizens, promote home ownership and overcome barriers to growth.

Anglin, Roland V. and Susanna C. Montezemolo. “Supporting the Community Development Movement: The Achievements and Challenges of Intermediary Organizations.” U.S. Department of Housing and Urban Development, 2004. 2ibid. 3U.S. Department of Housing and Urban Development. U.S. Housing Market Conditions Summary: “2000 Census Results: Housing Trends 1990-2000.” www.huduser.org/periodicals/ ushmc/summer2001/summary-2.html 4“Listening and Learning,” John S. and James L. Knight Foundation, 2004. 5Association of Community Organizations for Reform Now (ACORN). “The High Cost of Credit: Disparities in High-Priced Refinance Loans to Minority Homeowners in 125 American Cities,” September 27, 2005. 6Project Vote. Members of Congress Urge Justice Department to Enforce Decade-Old Voter Registration Law, 2005. www.projectvote.org. 7 U.S. Department of Agriculture. 2000. Summary Report: 1997 National Resources Inventory (revised December 2000), Natural Resources Conservation Service, Washington, DC, and Statistical Laboratory, Iowa State University, Ames, Iowa, 89 pages. 8American Farmland Trust. 9Curran, Deborah, “A Case for Smart Growth,” West Coast Environmental Law, 2003 www. wcel.org/issues/urban/sbg/case.pdf . 1

Focus on Community

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ENRICHING Education Democracy depends on education. Along with its radical, democratic principles of government of, by and for the people, the United States of America in the late 18th century pioneered the concept of public education. One hundred years later, the movement toward free common schools supported by taxation was beginning to take hold. By the mid 20th century, the Supreme Court of the United States affirmed that education was essential in a democratic society.

Today’s students, educators, parents, and business leaders know the importance of

“ It is required in the performance

education. Workforce development, economic growth, capital investment, and long-

of our most

term sustainability all depend on an educated population. Good education makes for

basic public responsibilities, even

good citizens and good communities.

service in the armed forces. It

Many also know the signs of struggling schools. Overcrowding, underfunding, declining enrollment, school consolidations, faculty cutbacks, language barriers, student violence, student poverty, and absentee parents are common. Community impacts may be less obvious, but they are profound: difficulty attracting employers, high crime rates, culture voids, and worst of all, immeasurable losses in human potential.

is the very foundation of good citizenship. In these days, it is doubtful that any child may reasonably be expected to succeed in life if he is denied the opportunity of an education.”

Fortunately, everyone can play a role in strengthening education, enriching lives, and

Chief Justice Earl Warren

building a stronger community.

Brown v. Board of Education 1954

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Fast facts on education High school dropouts In the wealthiest country in the world, only about 70 percent of public high school seniors graduate.1 Economic impact In 2002, the U.S. Department of Education found that Americans who dropped out of high school earned about

25 percent less than those earning high school diplomas. During their lifetime, college graduates make an average of $900,000 more than high school graduates.2 Space and supplies Out of K-12 teachers who use textbooks in the classroom, one in six reports that he or she does not have

enough books for every child in class.3 A quarter of public school facilities are below adequate condition. Nearly 10 percent have a quarter more students enrolled than building capacity permits.4 Literacy Students are struggling to make the grade, especially when it comes to reading. Results of the 2002 National

Assessment of Educational Progress (NAEP) placed 25 percent of eighth-graders and 26 percent of 12th-graders at a “below basic” reading level. Parents’ ability to read to their children and otherwise participate in their education is severely reduced by illiteracy. In 1990, more than 20 percent of adults in the U.S. were at the lowest level of literacy.5 Subject-specific achievement The Program for International Student Assessment reports that, in mathematics literacy and

problem solving, American 15-year-olds performed below the average student in 29 industrialized countries.6

College readiness SAT scores are widely used to assess student preparedness for college. For the 1999-2000 school year, the

national average score was 1019, with a perfect score being 1600. Among 26 communities surveyed in the U.S., students in communities with an average household income of over $45,000 in 1999 scored an average of 1043 on the SAT. Communities with an average income under $35,000 had an average score of 863. Lower SAT scores are also strongly correlated with households headed by single parents, and communities with great eligibility for free and reduced-price lunches.7 Student poverty Sixteen percent of children in the United States live in poverty.8 Many attend poor schools, which are more

likely to have an unstable, under-qualified teaching staff, including teachers who are uncertified or teaching a subject outside of their own field of study.9 According to a survey of 26 U.S. communities, there is a strong correlation between regions with the greatest eligibility for free and reduced-price lunches and low student test scores in third-grade reading and math—standard benchmarks for a child’s future academic performance.10 Barriers Students are facing significant barriers in the classroom. More than 2.1 million public school students

in the United States have limited English proficiency.11 Crime—and the fear of crime—presents another obstacle to learning. In 2001, about two million nonfatal crimes made victims of students aged 12 to 18 years.12 Students also face physical barriers. During the 1988-1989 school year, 112 students out of 1,000 were enrolled in special education. Ten years later, the ratio was 130 to 1,000.13 Racial segregation is a significant barrier, with large numbers of students of color living in markedly underserved areas. On the average, schools in the United States are considered highly segregated, according to analysts.14 Across the country, caring individuals and organizations have found new ways to boost literacy, improve academic achievement, and increase access to higher education. Educational needs remain great—but with these needs come opportunities to lift up future generations.

Manhattan Institute for Policy Research. “Education Working Paper: Public High School Graduation and College Readiness Rates in the United States,” 2003. 2Massinga, R. and P. Pecora, 2004, “Providing Better Opportunities for Older Children in the Child Welfare System,” The Future of Children, Vol. 14, No. 1, 2004. 3National Education Association and Association of American Publishers 2002. 4U.S. Department of Education, 2000. 5 “Listening and Learning,” John S. and James L. Knight Foundation, 2004. 6National Center for Education Statistics, U.S. Department of Education, 2003. 7“Listening and Learning,” John S. and James L. Knight Foundation, 2004. 8ibid. 9Orfield,Gary and Chungmei Lee. “Why Segregation Matters: Poverty and Educational Inequality,” Harvard University, 2005. 10“Listening and Learning,” John S. and James L. Knight Foundation, 2004. 11U.S. Department of Education, 2003. 12ibid. 13U.S. Department of Education, 2002. 14“Listening and Learning,” John S. and James L. Knight Foundation, 2004. 1

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Focus on Community

Protecting environment Life depends on life. Fresh air, clean water, natural habitats, vegetation and agriculture are essential to healthy ecosystems. When nature’s balance is disrupted, life can be snuffed out. The Industrial Revolution, a burgeoning human population, and the widespread use of fossil fuels tipped nature’s balance in the last century. The success or failure of efforts to restore that balance will define the next century.

Big environmental issues start at the ground level—in our homes, at our businesses

“ In the long and tortuous evolution

and farms, on our streets, among our families, and within our native wildlife. Individuals

of the human race on this planet

can spark change, starting positive trends and letting them grow to improve quality of

a stage has been reached when,

life for every person, plant and animal.

through the rapid acceleration

Around the world, the ecosystems that recharge and cleanse the earth are in jeopardy. While people have taken pains to identify and protect individually threatened species, each component of an ecosystem is connected. When an invader species is introduced, or a native species eliminated, a destructive chain reaction takes place. Damage to any part of the environment threatens the entire system. Preserving habitats—and the resources we harvest from those habitats—requires a holistic approach. Everyone can help.

of science and technology, man has acquired the power to transform his environment in countless ways and on an unprecedented scale.” United Nations Conference on the Human Environment Stockholm 1972

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Fast facts on the environment Energy use Americans represent less than 5 percent of the world’s population but consume nearly 25 percent of the world’s

energy.1 Much of this energy comes from non-renewable, toxin-emitting fossil fuels. The U.S. Energy Information Agency estimates that energy from renewable sources makes up just 6.4 percent of that consumed in the United States.2

Water use Only 1 percent of the earth’s water is available for drinking. Another 2 percent of fresh water is frozen. The rest is

salt water, polluted, or otherwise unfit for drinking. In 1990 alone, industries released 197 million pounds of toxic chemicals into waterways.3 Experts say the pollution can remain in groundwater for several thousand years.4 Deforestation Close to 50 percent of the world’s forest area has vanished in the last century. Each year, a cumulative forested

area the size of New England disappears.5

Habitat destruction Many habitats that help the earth cleanse itself are being destroyed. Riparian habitat, for example, is the

vegetation and other life at a river’s edge that help purify water, reduce erosion, and hold off floods. The U.S. Fish and Wildlife service estimates 70 percent of this habitat in the U.S. has been lost or altered. American wetlands are also disappearing. Wetlands the combined size of California, Nevada and Oregon have been filled, dredged or converted into channels. A third of the world’s freshwater fish are endangered, vulnerable or extinct.6 Habitats are also charged with pollution. Toxins intensify as they move through the food chain, preventing animal reproduction, hindering embryo development and causing stillbirths. They make bird eggs brittle and less likely to hatch. Every animal or plant that disappears from an ecosystem means a loss of food source or predator for other members of the system. Waste and recycling The United States leads in this area, recycling 24 percent of its waste in 1995. Switzerland and Japan

follow at 23 percent and 20 percent.7 The U.S., however, also leads the industrialized world in generating waste. Each day in 2003, Americans produced 4.5 pounds of waste per person, up from 3.7 pounds in 1980 and 2.7 pounds in 1960. Canadians produce 3.75 pounds per person per day, and people in the Netherlands produce 3 pounds each per day. Though the number of landfills in the U.S. is decreasing, these dumping sites are growing larger than ever.8 Emissions The U.S. is responsible for 23 percent of the world’s emissions of carbon dioxide, the primary greenhouse gas

that contributes to global warming.9 In 2003, U.S. greenhouse gas emissions were 13.4 percent higher than in 1990.10 Global warming has implications beyond rising temperatures. Scientists say it alters traditional weather patterns, increasing the number and severity of droughts and floods. Rising sea levels may seep into near-coastal water sources, contaminating the drinking supplies of major metropolitan centers. Global warming may alter the delicate balance of plant and animal habitats, starting a domino effect of extinction and impact on human lives.11 Human health Air pollution, absorbed through the skin or intestines or inhaled into the lungs, has been linked to human health

risks. According to the Environmental Protection Agency, over half of the U.S. population live in areas exceeding national ambient air quality standards for ozone, nitrogen dioxide, sulfur dioxide, and particulates. In recent years, the number of people with asthma—now accounting for 5 percent to 10 percent of the U.S. population—has increased greatly, as has the number of asthma-related deaths. In the last 20 years, the number of people hospitalized for asthma has increased by half, and asthma deaths number 5,000 per year.12 Pollution is strongly linked to lung cancer and heart disease, according to a 16-year study of 500,000 people from a cross-section of cities across the U.S. and Puerto Rico.13 Depletion of the ozone layer by greenhouse gas emissions has also led to increased cases of skin cancer. Each year, more than 9,000 people in the U.S. die of skin cancer, and an estimated one million new cases are diagnosed.14 In everyday behaviors and choices, each person has an opportunity to improve the natural environment. Philanthropists, like policymakers and thought-leaders, have a special role to play—employing science to uncover environmental threats, spread awareness, and mobilize communities toward sustainable lifestyles and ways of doing business.

United Nations Statistical Office, 1995. 2Feder, Barnaby J. “A Different Era for the Alternative Energy Business,” The New York Times, May 29, 2004. American Water Works Association. 25 Facts About Water, 2005. 4The Fresh Water Society. Water facts, 2003. http://www.freshwater.org/water_facts. html. 5World Resources Institute, 1997. 6National Wild and Scenic Rivers System. 7Environmental Protection Agency. 8U.S. Environmental Protection Agency. 9WorldWatch Institute, 1998. 10U.S. Department of Energy, 2003. 11Pacific Institute, 2003. 12National Center for Health Statistics, 1998. 13C. Arden Pope III, et al. “Lung Cancer, Cardiopulmonary Mortality, and Long-term Exposure to Fine Particulate Air Pollution,” The Journal of the American Medical Association, 2002. 14 American Journal of Nursing, 2000. 1 3

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Safeguarding Health Peace and security depend on the health of all people. Disease in one corner of the world threatens people in all corners of the world. Safeguarding health is fundamental to working for the common good. By promoting wellness, preventing illness and harm, and treating injury and disease, communities protect their most valuable asset: human life.

Good health is perhaps the most valued quality of life. In the past century, human health has improved dramatically. Life expectancy in the United States has soared— from age 42 in 1900 to age 75 in 2000. The development of antibiotics, vaccines for common infectious diseases, and surgical remedies have extended and improved countless lives. During the same era, new threats to human health have emerged. Highly resistant strains of bacteria evolve as fast as new antibiotics are developed. Chronic immune deficiencies compromise the quality and length of life. Pervasive environmental hazards and commercial farming practices pose new risks to millions of people. Persistent poverty and hunger prevail in many parts of the world. In the United States, inconsistent access to healthcare results in disturbing disparities between rich and poor. Basic health protection, prevention and treatment are essential to human life and

“ The enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition.” World Health Organization Constitution

dignity. Providing help to one benefits all.

Confirmed in Compliance with National Standards for U.S. Community Foundations

Fast facts on health Immunizations Nearly 81 percent of American babies get all recommended vaccinations before age 3, exceeding the national goal of 80 percent. Several life-threatening diseases, including measles, rubella and polio, no longer occur naturally in the United States. As long as vaccine-preventable diseases circulate in the world, however, a decline in immunization could leave American children vulnerable to infection.1 Physical activity About one-fourth (26 percent) of adults engage in vigorous physical activity three or more times per week, while 59 percent do not exercise at all.2 Overweight and obesity Nearly two-thirds (64 percent) of American adults over age 19 are overweight. Nearly half are obese. About 15 percent of children and youth ages 6 to 19 are overweight.3 Overweight adolescents show an alarming increase in the incidence of Type 2 diabetes, and have a 70 percent chance of becoming overweight or obese adults.4 Tobacco Cigarette smoking is the leading cause of preventable deaths in the United States, accounting for about one in five deaths each year. An estimated 22.5 percent of all adults in the United States smoke cigarettes.5 Environmental quality Nearly 1.7 million children ages one to five have enough lead in their blood to harm their cognitive development. Lead poisoning is preventable.6 Access to healthcare In 2002, 15.2 percent of Americans were uninsured. Statistically, they are more likely to experience poor health and die early, with related costs totaling $65 to $130 billion annually. The uninsured are diagnosed at later disease stages, get less therapeutic care, are sicker when hospitalized and more likely to die during their stay.7 The United States ranked 28th in the world in infant mortality in 1998. African Americans experience 14.1 deaths for every 1,000 live births, more than twice the national average (6.9 per 1,000).8 More than one-third of children in poverty without health insurance have unmet medical needs.9 Substance abuse In 2003, almost 8.6 million (34.3 percent) youths aged 12 to 17 had used alcohol in the past year.10 About 38 percent of young adults aged 18 to 22 used illicit drugs in the past year.11 Responsible sexual behavior In 2001, 85 percent of U.S. adolescents in grades 9-12 abstained from sexual activity or used condoms.12 Healthy People 2010 target is 95 percent. Mental health Approximately 20 percent of the U.S. population is affected by mental illness during a given year; no one is immune. Of all mental illnesses, depression is the most common disorder. More than 19 million adults in the United States suffer from depression. Major depression is the leading cause of disability and is the cause of more than two thirds of suicides each year. In 1997, only 23 percent of adults diagnosed with depression received treatment.13 Injury and violence In 1995, the cost of injury and violence in the United States was estimated at more than $224 billion per year. These costs include direct medical care and rehabilitation as well as productivity losses to the nation’s workforce. The total societal cost of motor vehicle crashes alone exceeds $150 billion annually. In 1997, 32,436 individuals died from firearm injuries; of this number, 42 percent were victims of homicide. In 1997, homicide was the third leading cause of death for children aged 5 to 14 years, an increasing trend in childhood violent deaths.14 In every community, people come together to help those affected by abuse, violence, illness and injury. Private philanthropy supports programs to improve the lives of others by promoting wellness, providing testing, finding cures for disease, and building clinics for those in need.

Anita Manning. “Immunization rate exceeds federal goals.” USA Today, July 26, 2005. 2Summary Health Statistics for U.S. Adults: National Health Interview Survey, 2003, table 29. 3National Center for Health Statistics. Overweight Prevalence 1999-2002. 4Torgan, Carol, Ph.D. NIH: Word on Health, “Child Obesity on the Rise,” June 2005. 5National Center For Chronic Disease Prevention and Health Promotion; Adult Cigarette Smoking in the United States: Current Estimates Fact Sheet, May 2004. 6Centers for Disease Control and Prevention, 1990-1994. 7 U.S. Department of Health and Human Services, National Healthcare Disparities Report, 2004. 8National Center for Health Statistics (NCHS), 2000. 9Cohen RA, Bloom B. Trends in health insurance and access to medical care for children under age 19 years: United States, 19982003. Advance data from vital and health statistics; no. 355. National Center of Health Statistics, 2005. 10U.S. Department of Health and Human Services, “Closing the Health Gap”: Reducing Health Disparities Affecting African-Americans. 11U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration, http://oas.samhsa.gov/2k5/College/college.cfm. 12Center for Disease Control and Prevention. Youth Risk Behavior Survey, 1997. 13www.healthypeople.gov/Document/HTML/uih/uih_4.htm. 14ibid. 1

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Serving People People depend on people. Throughout history, across cultures, around the world, people have reached out to help improve the lives of others. From providing essential sustenance and protection… to offering community support and understanding… to advocating for human rights and freedom… people around the world contribute to the welfare of others. In so doing, they often experience unexpected enrichment of their own.

Societies are defined by how people care for one another. While basic human needs

“ As long as there is hunger,

vary little, how people meet their own needs—and those of the young, the old, and

disease and lack of

the weak—identifies their values, their culture, their sense of community. Economist

opportunities for education,

Manfred Max-Need defines nine basic human needs: subsistence, protection, affection,

shelter and employment, as

understanding, participation, leisure and creativity, identity, and freedom.

long as there is oppression

Communities come together to meet those needs and provide essential services. They establish neighborhoods, organizations, and associations. They build schools, temples, and hospitals. They provide food, clothing, and shelter. Sadly, human service needs almost always exceed resources. From helping people in crisis… to building homes… to tackling the root causes of poverty… much needs to be done. Every contribution makes a difference.

in the world, there can be neither lasting peace nor significant development.” Javier Pérez de Cuéllar Secretary General of the United Nations 1988

Confirmed in Compliance with National Standards for U.S. Community Foundations

Fast facts on Human services Subsistence (food, clothing, shelter, work) In 2003, children under the age of 18 accounted for 39 percent of the homeless population; 42 percent of these children were under the age of five.1 A recent study of 27 U.S. cities found that in 2004, 23 percent of all requests for emergency shelter went unmet due to lack of resources; 32 percent of emergency shelter requests from families were denied.2 In 2005, the average number of unemployed people in the U.S. at any given time was 7.6 million.3 Protection (safety, security, healthcare) In 2003, 6.9 million people were in the probation, parole, prison or jail corrections system, three times more than in 1980.4 In early 2005, 41.7 million persons of all ages (14.4 percent) were without health insurance, 52.4 million (18.0 percent) had been uninsured for at least part of the year, and 29.5 million (10.2 percent) had been uninsured for more than a year.5 Affection (family, friendships, community) In first marriages, 45 percent to 50 percent end in divorce; in second marriages, 60 percent to 67 percent end in divorce; in third marriages, 70 percent to 73 percent end in divorce.6 In 1970 there were 3.4 million single mothers in the United States; now there are nearly 10 million. From the 1930s to 1990s, first children born to or conceived by an unmarried woman rose from 18 to 53 percent.7 Understanding (education, libraries, forums) Results of the 2002 National Assessment of Educational Progress (NAEP) placed 25 percent of eighth-graders and 26 percent of 12th-graders at a “below basic” reading level. Parents’ ability to help with their children’s education is severely reduced by illiteracy. In 1990, more than 20 percent of adults in the U.S. were at the lowest level of literacy.8 Participation (neighborhoods, churches, clubs) Half (50.2 percent) of all Americans make up 140 million “religious adherents” claimed by 149 religious bodies in the U.S.9 The five largest categories are: Protestant, with 66 million adherents in 222,000 congregations; Catholic, with 62 million adherents in nearly 22,000 congregations; Jewish, with 6 million adherents in 3,727 congregations; Mormon, with 4 million adherents in 12,000 congregations; Muslim, with 1.6 million adherents in over 1,000 congregations.10 Leisure and creativity (arts, recreation, nature, studios, festivals, celebrations) Nearly one-third of adults attend one or more jazz, classical music, opera, musical, play or ballet performances each year.11 About one quarter of adults said they visited an art museum or art gallery. Combined, 39 percent of adults, or 81 million people, attended these types of events.12 From 1990 to 2001, the number of “active” outdoors enthusiasts (those who participated at least 15 days per year in at least one rigorous physical activity) declined from 15.8 million to 15.3 million.13 Identity (language, culture, faith) According to interim population projections of the U.S. Census Bureau, the complexion of the United States will change from a fair-skinned majority of 70 percent in 2000 to a 50/50 distribution of white and non-white people by 2050. Hispanic and Asian populations may double, while black populations may increase by 71 percent. Freedom (self-sufficiency, equal rights, opportunity) The number of people in poverty (37 million) increased the fourth consecutive year for 2004, with the poverty rate rising by 1.1 million, from 12.5 to 12.7 percent.14 At the heart of all giving is the desire to touch a life. Whether it’s feeding a hungry child, sheltering a homeless man, leading a family out of poverty or helping a teen in crisis—touching the life of another human being—and making a difference—fulfills a universal human need to connect, to help and to serve.

National Law Center on Homelessness and Poverty, 2004. 2NCH Fact Sheet #2, National Coalition for the Homeless, June 2005. 3U.S. Department of Labor Bureau of Labor Statistics, October 2005. 4Bureau of Justice Statistics Strategic Plan FY 2005-2008. 5National Center for Health Statistics. Health Insurance Coverage: Estimates from the National Health Interview Survey, January-March 2005. 6Jennifer Baker, Forest Institute of Professional Psychology. 7National Vital Statistics Reports From the Centers For Disease Control And Prevention, Volume 48, Number 16. 8National Center for Education Statistics. National Assessment of Educational Progress (NAEP), 2002. 9Glenmary Research Center. Religious Congregations Membership Study 2000. 10ibid. 11National Endowment of the Arts, 2002 Survey of Public Participation in the Arts. 12ibid. 13American Sports Data, Inc., “The Great Outdoors Revolution: New Lifestyle or State of Mind?,” 2002. 14www.census.gov/hhes/ www/income/income04/prs05asc.html. 1

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Supporting Arts Civilization depends on art. The human experience is uncovered, understood and recorded through artistic expression. From the potential unlocked in a young child’s mind to the lessons imparted from generations past, the arts serve to define us as individuals, connect us as a community, and advance us as a people.

The arts help us understand our past, comprehend our present, and anticipate our

“ Art is a nation’s most

future. Widely valued for their role in developing wisdom and vision in the citizens of

precious heritage. For it is

a democracy, the arts help sustain and enrich American society.

in our works of art that we

Forty years after the establishment of the National Foundation on the Arts and Humanities, public funding for the arts is in jeopardy. Without funding, arts falter. Despite the essential role that music plays in brain development, music education programs die for lack of support. Despite research that shows arts contribute to qualitative reasoning and abstract problem solving, few see the connection between diminishing art resources and falling math scores. From music for young children to museums building distinctive collections, opportunities to support and sustain the arts abound. Help is needed.

reveal to ourselves, and to others, the inner vision which guides us as a nation. And where there is no vision, the people perish.” Lyndon B. Johnson On the National Foundation on the Arts and Humanities Act 1965

Confirmed in Compliance with National Standards for U.S. Community Foundations

Fast facts on the arts Boosting economies The arts create jobs, increase the local tax base, boost tourism, spur growth in related businesses

(hotels, restaurants, printing, etc.) and improve the overall quality of life for our cities and towns. On a national level, nonprofit arts institutions and organizations generate an estimated $37 billion in economic activity and return $3.4 billion in federal income taxes to the U.S. Treasury each year.1 “Even in the most successful new economy regions, civic leaders are beginning to take stock of artistic and cultural assets, recognizing that they are essential to quality of life, which is, in turn, necessary to sustain growth in the new economy.”2 The nonprofit arts industry in the U.S. generates $134 billion in economic activity annually, including $53.2 billion in spending by arts organizations and $80.8 billion in event-related spending by audiences.3 Academic achievement Students who report consistent high levels of involvement in instrumental music over the middle

and high school years show significantly higher levels of mathematics proficiency by grade 12 regardless of students’ socio-economic status. Differences increase over time.4 After eight months of keyboard lessons, preschoolers showed a 46 percent boost in their spatial reasoning IQ.5 A study of 237 second grade children receiving piano keyboard training scored 27 percent higher on proportional math and fractions tests than children who used only math software.6 Positive alternatives Secondary school students who participated in band or orchestra reported the lowest lifetime and

current use of all substances (alcohol, tobacco, illicit drugs).7

Cultural identity Art articulates the culture of a community. In the U.S., jazz, rap and hip hop have emerged as powerful

voices of marginalized communities. Works created with the explicit purpose of changing attitudes and bringing about social change (e.g., Uncle Tom’s Cabin, The Grapes of Wrath, The Invisible Man) can galvanize people into recognizing the contrast between what is and what could be.8 Growth of empathy The arts draw individuals into the experiences of people vastly different from them and cultures vastly

different from their own. These experiences can make them more receptive to unfamiliar people, attitudes, and cultures.9 Shared discourse Art promotes community discussion, encourages public debate and reinforces shared values.

Masterpieces—those defining works that endure from generation to generation—help preserve cultures, advance understanding and connect generations.10 Creating community Democracies need citizens who can think for themselves. Art helps individuals develop independent

thought and creativity. The universal nature of art and music helps citizens see themselves not simply as residents of a region, but as human beings connected to all other human beings by ties of recognition and concern.11 Arts funding Federal arts funding is complemented by state arts appropriations. In 2004, state level expenditures were

$273.7 million, a 23 percent decline from $354.5 million in 2003. State arts budgets experienced cuts as high as 80 percent in 2003.12

For generations, patrons of arts, music and culture have helped open eyes, touch spirits, enrich souls, connect people, create understanding, and overcome differences. Lifetime gifts and legacies keep the arts alive—supporting artists, promoting culture, and improving communities.

1American Arts Alliance Fact Sheet, October 1996. 2National Governors Association Issue Brief. “The role of the Arts in economic development.” June 25, 2001. 3Americans for the Arts. “Arts & Economic Prosperity: The Economic Impact of Nonprofit Arts Organizations and Their Audiences.” Washington, D.C.: Americans for the Arts, 2005. 4Catterall, James S., Richard Chapleau, and John Iwanaga. “Involvement in the Arts and Human Development: General Involvement and Intensive Involvement in Music and Theater Arts.” Los Angeles, CA: The Imagination Project at UCLA Graduate School of Education and Information Studies, 1999. 5Rauscher, Shaw, Levine, Ky and Wright. “Music and Spatial Task Performance: A Causal Relationship,” University of California, Irvine, 1994. 6Graziano, Amy, Matthew Peterson, and Gordon Shaw. “Enhanced learning of proportional math through music training and spatial-temporal training.” Neurological Research 21 (March 1999). 7Texas Commission on Drug and Alcohol Abuse Report. Reported in Houston Chronicle, January 1998. 8Kevin F. McCarthy et al. “Gifts of the Muse: Reframing the Debate About the Benefits of the Arts,” Rand Research in the Arts, 2004. 9ibid. 10ibid. 11ibid. 12National Endowment for the Arts. “How the United States Funds the Arts,” October 2004. 1

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If your company is looking for a better way to give, you should know about us. The Community Foundation can help you gain a higher return on your investment in charity.

Confirmed in Compliance with National Standards for U.S. Community Foundations

Charitable decisions can be challenging. Business leaders often feel overwhelmed by the number of requests for donations they receive… and unsure of just how much of a difference their charitable contributions are making. Fortunately, there’s a smart solution. When your business makes a gift of cash, appreciated stock, or other assets to the Community Foundation, we can establish a Donor Advised Fund in your company’s name. Your team can then work with our professional grantmaking staff to suggest ongoing uses for your gift — targeting the issues you care about most. Approved grant awards are issued to charities in the name of your fund. Plus, your company receives immediate tax benefits in the year your gift is made. It’s a simple, powerful, and highly effective approach to corporate giving.

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TOOLS for Giving

Charitable Funds Great giving options. Choose the one that’s right for you.

Donor Advised Funds. You can have ongoing involvement in the use of your gift. You work with our professional staff,

identifying ways to use dollars from the donor advised fund you establish to address the issues and needs you care about most. Your recommendations are submitted to our local board for approval; we then distribute grant dollars. Unrestricted Funds. Your gift can address ever-changing community needs — including future needs that often cannot be

anticipated at the time your gift is made. We evaluate all aspects of community well-being — arts and culture; economic development; education; environment; health and human services; neighborhood revitalization; and more. The flexibility of your unrestricted gift enables the Community Foundation to respond to the community’s most pressing needs, today and tomorrow. Field of Interest Funds. You can target your gift to address needs in an important area of community life. Arts. Aging. At-risk

youth. You identify your personal interest area when making your gift; our board awards grants to community organizations and programs that are making a difference in the area you select. Scholarships. You can invest your gift in our community’s future and show students you care, all with the guidance and personal

services of the Community Foundation. You determine the criteria students must meet to receive the scholarship you establish. With your assistance, students achieve their academic and career-oriented goals — from preschool to postgraduate work. Designated Funds. You can direct your gift to a specific nonprofit organization or purpose.

Help provide ongoing funding for a senior center, museum, or virtually any nonprofit charitable organization. Nonprofit organizations can use a designated fund through the Community Foundation to build their endowment and enhance their ability to accept large and complex gifts. Organizational Endowment Funds. These funds are established by nonprofit organizations to provide income to them. We

handle all administrative and investment responsibilities, freeing the organization to pursue its charitable mission.

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

A personal approach to giving Donor Advised Fund

Opening a Donor Advised Fund through the Community Foundation of Northeast Iowa allows you to make a gift to the Community Foundation, then remain actively involved in suggesting uses for your gift. How it works

•

You make a gift to the Community Foundation — you can give cash, appreciated stocks, real estate, or other assets.

•

We set up a special fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

•

You receive tax benefits in the year your gift is made.

•

You recommend uses for the fund — working with our staff to support the causes and organizations you care about most.

•

Your recommendations are presented to the Community Foundation board for approval.

•

We handle all the administrative details and issue grants to charities in the name of the fund you establish (if you prefer, grants can be made anonymously).

•

Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift — and all future earnings from your gift — is a permanent source of community capital, helping to do good work forever.

A personal connection When Alex Dorado retired, he wanted a way to give more to his community. “I’ve lived here my whole life, and now that I have more time and resources, I can give back to a number of causes and organizations that are very special to me,” he says. Alex and his financial advisor met with their community foundation to discuss ways Alex might increase the impact of his giving and gain maximum tax advantage. Alex chose to establish a Donor Advised Fund in his family’s name. He now meets with the community foundation’s professional program staff to recommend grants in the areas he cares about most. “Last year, based on my recommendations, the fund bought uniforms for an after-school sports league and supported an adult literacy program,” reports Alex. “This is a great way to stay involved and use what I have to make a difference in the community I love.”

Confirmed in Compliance with National Standards for U.S. Community Foundations

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If you take charitable giving personally, you should know about us. Your community foundation can help you stay involved in the good works your gift makes possible.

Confirmed in Compliance with National Standards for U.S. Community Foundations

Set up a special fund. When you make a gift of cash, appreciated stock, or other assets to the Community Foundation of Northeast Iowa, we can establish a Donor Advised Fund in your name. You receive immediate tax benefits in the year your gift is made.

Make a personal connection. You can work with our professional grant-making staff to suggest ongoing uses for your fund â&#x20AC;&#x201D; targeting the issues you care about most. Grant awards are issued to charities in the name of your fund (or anonymously if you prefer). Itâ&#x20AC;&#x2122;s a simple, powerful, and highly personal approach to giving.

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IDEAS for Giving

Creating a family tradition Helping your children experience the joy of giving.

Claire and Edward Wheeler want to teach their children and grandchildren some valuable lessons about life. Claire and Ed both retired four years ago with three goals in mind: spend six months a year at their oceanfront condominium, enjoy their family, and find ways to contribute to their hometown.

Community foundations provide a simple, powerful, and highly personal approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. You

Ed spent 40 years on the road in sales management. Claire, after raising three boys in a busy household, worked part-time for 19 years. Throughout their married lives, the Wheelers responded generously to community projects; their names can be found on small plaques all over town commemorating gifts for children’s programs and the arts. Their house is paid for, and so is the condo. Ed’s pension provides ample income to support their lifestyle. They also have a substantial portfolio, built in part on Claire’s persis-tence in investing nearly all of her part-time wages in the stock market. The Wheelers often reflect on how different the younger generation is. Their “pretty typical kids” aren’t strongly attracted to charitable giving. Although Claire has always urged their grandchildren to set aside some birthday money for church or community donations, their adult children go along only halfheartedly. A platform for long-term generosity. A few months ago, Claire and Ed updated their wills. At the suggestion of their attorney, they met with their community foundation to discuss a Donor Advised Fund. With the advice of a tax accountant, the Wheeler Family Fund was set up with a gift of $90,000 using appreciated stock.

can give cash, appreciated stocks, real estate, or other assets, and can receive maximum charitable and tax benefits. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact your local community foundation.

(Continued on reverse)

Confirmed in Compliance with National Standards for U.S. Community Foundations

The benefits

Community foundations… can help families establish a lasting legacy by creating a permanent charitable fund in their names.

A Donor Advised Fund provides the Wheelers immediate tax benefits, and allows their entire family to stay involved in suggesting grant awards that are made possible by this fund.

To announce the Wheeler Family Fund, Claire and Ed held a backyard family celebration. They unveiled their plan and invited family members to contribute ideas for how their fund might help the community, both now and in the future. The memorable day was a blend of enthusiasm, a few tears, and a large dose of family pride. Among the suggestions was one offered by granddaughter Heather Wheeler: “What can we do to help kids in wheelchairs?” Professional advice and assistance. Using input on the family’s interests, the community foundation staff developed a list of worthy community projects. As Claire and Ed reviewed the list of projects that met their criteria, they discovered plans for a new child development program... designed specially for wheelchair-bound children. With the help of the community foundation’s professional grantmaking staff, the Wheeler family recommended four first-year, supporting grant awards: a summer camp for the arts (which had been attended by four of the Wheelers’ grandchildren), a children’s music program at their church, a local organization dedicated to children’s advocacy, and the new program for kids in wheelchairs. The grant awards were approved by the community foundation’s board of trustees and awarded in the name of the Wheeler Family Fund. A date has already been circled on the family calendar for a get-together in a few months to pick new beneficiaries and discuss how the Wheelers’ adult children can contribute to the Wheeler Family Fund... ensuring its continued growth, and adding another generation to the legacy of Wheeler family community commitment. There’s so much more we’d like you to know. The Community Foundation of Northeast Iowa provides personalized service and a variety of giving vehicles. We welcome the opportunity to work with you and your advisor to fulfill your unique charitable objectives. This story represents a composite illustration drawn from the actual stories of many of the thousands of people who give through their community foundations.

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IDEAS for Giving

Giving back and staying involved Meeting a variety of personal charitable interests.

John Green is a successful business executive who worked his way up the corporate ladder. For John and his wife, Evelyn, finding ways to help others in their community has been a way of life. For the last several years, they have volunteered in the local Big Brothers and Big Sisters program. They also contribute their time and money to a local organization that helps homeless and disadvantaged people build skills to enter the job market.

Community foundations provide a simple, powerful, and highly personal approach to giving. We offer a variety of giving tools to help people achieve

During the past year, John’s company grew significantly, and he expects to receive a sizable bonus in late December. As John and Evelyn began their year-end tax planning,their accountant suggested that they consider increasing their charitable contributions this year. He knows that “giving back” is an important piece of the Greens’ lives, and it will help reduce taxes in this year of high income. John and Evelyn agreed with the advice, but expressed concern about not having much time to consider which community organizations to support with their gift. They also had misgivings about donating a large sum of money to one charity. “If we give it this year, they may expect as much or more in years to come,” John said. The Greens’ accountant encouraged them to consider using their community foundation as a flexible vehicle that will allow them to fulfill their varied charitable interests.

their charitable goals. You can give cash, appreciated stocks, real estate, or other assets, and can receive maximum charitable and tax benefits. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact your local community foundation.

Personalized giving. After meeting with their community foundation’s professional program staff to discuss giving choices, the Greens elected to establish a Donor Advised Fund in the name of their family. This will allow them to stay actively involved in suggesting uses for their fund for years to come, while providing an immediate tax deduction in the year their gift is made. The Greens can recommend distributions from their fund to their favorite charities. They can even involve their son and daughter in the distribution process, actively sharing their community values with their children. (Continued ON REVERSE) Confirmed in Compliance with National Standards for U.S. Community Foundations

The benefits

Community foundations… provide personalized service to support each donor’s unique charitable interests and financial circumstances.

A Donor Advised Fund provides the Greens immediate tax benefits and allows them to stay involved in suggesting grants that are made possible by their fund.

Fostering community. Through their community foundation, John and Evelyn Green found a way to extend their personal commitment to the people in their community, and to act on their charitable interests in a very meaningful way during their lifetimes. Each year, the Greens will meet with community foundation staff to recommend uses of their fund. They can take advantage of the community foundation’s knowledge of local needs and resources to find the charitable organizations and projects that best match their interests. For instance, one year they might suggest a grant to the local Big Brothers and Big Sisters organization, which is a cause they have always supported. The next year they may choose to support other organizations suggested by their community foundation that match their interests, such as helping to start up an after-school children’s program, or contributing to a career development resource center for low-income families. Tax benefits. Because the community foundation is a public charity, it offers the Greens the highest level of tax benefits for charitable giving. The Greens can match high-income years with high charitable tax deductions that generate long-term community benefits. In addition, the Greens can add to their Donor Advised Fund any time they wish, and integrate future contributions within their overall financial and estate planning framework. There’s so much more we’d like you to know. The Community Foundation of Northeast Iowa provides personalized service and a variety of giving vehicles. We welcome the opportunity to work with you and your advisor to fulfill your unique charitable objectives. This story represents a composite illustration drawn from the actual stories of many of the thousands of people who give through their community foundations.

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TOOLS for Giving

Gaining a higher return on your company’s charitable investments Donor Advised Fund

Opening a Donor Advised Fund allows your company to make a gift to the

A better approach

Community Foundation, then remain actively involved in suggesting uses for

TRI, a company with a tradition of giving back, receives many requests for donations. In the past, company president Anthony Hall found it hard to decide which appeals to respond to... and even harder to know if his company’s charitable gifts made a difference.

your gift.

How it works •

Your company makes a gift to the Community Foundation — you can give cash, appreciated stocks, real estate, or other assets

•

We set up a special fund in your company’s name.

•

Your company receives tax benefits in the year your gift is made.

•

You (or a team of employees) can recommend uses for the fund — working with our professional staff to support the causes and organizations you care about most.

•

Your recommendations are presented to the Community Foundation board for approval.

•

We handle all the administrative details and issue grants to charities in the name of the fund you establish (if you prefer, grants can be made anonymously).

•

Three years ago, the company established a Donor Advised Fund at their local community foundation. Each year, partners add a percentage of profits to the fund. A team of employees from TRI meets with the community foundation to review local needs and recommend grants. Anthony says, “Our company is able to do much more through our community foundation.”

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IDEAS for Giving

Helping companies do good things for people Providing the means to meet community needs.

Tagline Associates Inc. occupies the entire second floor of a modern office building on a busy city thoroughfare. This 20-year-old enterprise has earned its reputation as a good employer, good neighbor, and successful business. From its inception as a one-man firm to its current status as a regional leader with 100 employees, Tagline has already built a rich heritage as a community benefactor. “We always try to keep

Community foundations provide a simple, powerful, and highly personal approach to giving.

the door open here to good causes,” according to Richard Tagg, company founder

We offer a variety of giving

and CEO.

tools to help businesses achieve their charitable goals. You can give cash,

The generosity of Tagline Associates takes many forms: pro bono work; giftsin-kind; hours of volunteer effort by company associates; and, of course, cash donations. Although the company takes pride in its generosity, it has never found a way to be consistent with its donations. When the firm suffers a low-earnings year, for example, even favorite charities are turned away.

appreciated stocks, real

Last year was a very good year for Tagline, resulting in a bounty of funds available for charitable donations. At the firm’s annual retreat, employees asked if there might be a better, more consistent way to respond to the needs of their community... in good times and bad.

For more information and

Setting goals and expectations. A committee of Tagline executives and associates was formed to investigate options and establish some basic guidelines for the company’s giving program:

financial advisor or contact

•

Simple. Tagline employees should not have to devote long hours to charitable giving; the process must be smooth and efficient.

•

Flexible. Tagline should be able to give a variety of assets and recommend grants several times during the year.

•

Effective. Charitable giving should be targeted to where it is needed most in the community.

estate, or other assets, and can receive maximum charitable and tax benefits. ideas on ways to integrate your financial planning with charitable giving, ask your your local community foundation.

In addition, there should be opportunities for business tax deductions; and capital gains tax avoidance on gifts of stock. (continued ON REVERSE)

Confirmed in Compliance with National Standards for U.S. Community Foundations

The benefits

A community foundation is… a simple way to fulfill multiple charitable interests. Businesses can give through us to have an impact on a number of nonprofit organizations.

A Donor Advised Fund provides the executives and employees of Tagline Associates a simple, flexible, and effective method for funding grant awards to meet critical local needs.

Setting things in motion. After discussing various giving options, the committee took a closer look at two choices: establishing a private foundation or a Donor Advised Fund at their community foundation. The choice was made after meeting with Tagline’s attorney and professionals from their community foundation. After two brief working sessions, The Tagline Fund was established. The community foundation’s staff created a list of potential grant recipients in six categories of community need identified by Tagline’s committee. Tagline’s associates reduced the choices to recommendations. Soon the first grants from The Tagline Fund were on their way to local charities. The company plans to grow The Tagline Fund through periodic gifts to their community foundation. The fund will provide an ongoing vehicle to support community needs in good times and bad, flexibility to change priorities from year to year, and enhanced pride for company employees — who take charitable giving personally.

There’s so much more we’d like you to know. The Community Foundation provides personalized service and a variety of giving vehicles. We welcome the opportunity to work with you and your advisor to fulfill your unique charitable objectives. This story represents a composite illustration drawn from the actual stories of many of the thousands of people who give through their community

Donor Advised Funds vs. Private Foundations

Donor Advised Fund at the Community Foundation

r. oo

COMMUNITY FOUNDATION

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

How is a Donor Advised Fund easier to start than my own Private Foundation?

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Private Foundation

Faster Start-up

Donor Advised Funds can be established in one day at the Community Foundation

Usually requires a month or more to establish and qualify for tax exempt status

Less Assets Needed

Donor Advised Funds are equally appropriate for any size asset gift

Typically established only with substantial assets

More Tax deductions on cash gifts

Deductible up to 50% of Adjusted Gross Income (AGI)

Deductible up to 30% of AGI

More Tax deductions on securities, stock or real estate

Full fair market value deduction up to 30% of AGI when given to a Donor Advised Fund at the Community Foundation

Full market value deduction for securities and stock up to 20% of AGI. Real estate generally deducted at basis not full fair market value.

No Excise Tax

No excise tax

Up to 2% annually on net investment income

No Penalty Tax

No penalty tax

May be imposed for excess business holdings or self-dealing

No Required Pay Out

No annual payout required. Can accumulate income toward a large project or grant

Required to expend 5% of asset value annually, regardless of investment annual earnings

Automatically covered by the Community Foundation Donor Advised Funds are covered by the Community Foundationâ&#x20AC;&#x2122;s liability and other insurance policies

Must apply for incorporation and tax exemption status Any Directors and Officersâ&#x20AC;&#x2122; insurance, employee bonding and other insurance must be separately purchased

More Privacy

Anonymity can be maintained, if desired

Required public disclosure

Less Administration Costs

The Community Foundation handles all financial and administrative matters including investments/accounting, annual tax return, and annual independent audit

Trustees must perform, contract, or hire staff for these services

Assistance with Grantmaking

Community Foundation staff provides assistance in each step of grantmaking

May need to obtain expert advice for effective grantmaking with accountability and reporting

No Seperate Corporate Filings No Insurance costs

Easy Grant Distribution

No Start-Up Costs

The Community Foundation can identify potential recipients, investigate applicants, make grant payments and monitor grantee performance No start up costs; annual administrative fees are generally less than 1.5% of market value (includes all investment fees, audit, and staff support.)

Trustees must perform, contract or hire staff for these purposes

Start-up requires attorney and accountant fees; ongoing administrative fees are typically greater than 1.5% of fund balance

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f you take charitable giving personally, you should know about us. The Community Foundation of Northeast Iowa can help you stay involved in the good works your giving makes possible. With a gift of cash, appreciated stock, or other assets, you can establish a Donor Advised Fund in your name. You receive immediate tax benefits, and can then work with our professional grantmakers to target the issues you care about most. It’s a simple, powerful, and highly personal approach to giving… for people who take their charitable giving personally. Talk to us. We can show you how a local Donor Advised Fund can help you achieve your personal and financial goals… if you take your giving personally.

Donor Advised Fund Itâ&#x20AC;&#x2122;s a simple, rewarding, and highly personal approach to giving. You make a gift to the community foundation, then remain actively involved in suggesting uses for your gift. You may choose to involve your family, including children or grandchildren, in this process. If youâ&#x20AC;&#x2122;d like, they may also carry on your philanthropic work for years to come.

425 Cedar Street, Suite 310 P.O. Box 1176 Waterloo, Ia 50704-1176 (319) 287-9106 - fax (319) 287-5015

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Reap the rewards

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ince 1992, people like you have given billions of dollars to charity through Donor Advised Funds. What’s the reward? Maybe it’s the ability to give one gift and get one deduction at year-end, then direct grants to the causes you care about. More likely it’s the ability to change children’s lives, support public art, save the whales, care for seniors, plant trees, build clinics, buy library books, or improve lives in countless other ways. With a Donor Advised Fund at Community Foundation of Northeast Iowa, you can do any or all of the above. Talk to us. We can show you how a local Donor Advised Fund can help you achieve your personal and financial goals… and help you reap rewards beyond measure.

425 Cedar Street, Suite 310, P.O. Box 1176 Waterloo, Iowa 50704-1176 phone: (319) 287-9106 | fax: (319) 287-5015

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Experience ultimate luxury 11-TFG

fter you’ve taken care of your family, fully funded your retirement, and experienced life’s finer pleasures, what’s left to achieve? Some say the ultimate luxury is being able to improve the lives of others. With a Donor Advised Fund at the Community Foundation of Northeast Iowa, you can help support the arts, promote education, protect the environment, nurture families, and so much more. Talk to us. We can show you how a local Donor Advised Fund can help you achieve your personal and financial goals… and make the ultimate difference in the lives of others.

425 Cedar Street, Suite 310, P.O. Box 1176 Waterloo, Iowa 50704-1176 phone: (319) 287-9106 | fax: (319) 287-5015

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

Meeting ever-changing community needs Unrestricted Fund

When you establish an Unrestricted Fund with the Community Foundation, your gift addresses a broad range of local needs — including future needs that often cannot be anticipated at the time your gift is made. We evaluate all aspects of community well-being: arts and culture, economic development, education, environment, health and human services, neighborhood revitalization, and more. The flexibility of your unrestricted gift enables the Community Foundation to respond to the community’s most pressing needs, today and tomorrow. How it works •

You make an unrestricted gift to the Community Foundation during your lifetime or through a bequest in your will. You can give cash, appreciated stocks, real estate, or other assets.

•

We set up a special fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

•

You receive tax benefits in the year your gift is made.

•

Our staff determines the areas of community need that would be most impacted by grants from your gift.

•

Our board issues grants in the name of the fund you establish (if you prefer, grants can be made anonymously).

•

We handle all the administrative details.

•

425 Cedar Street, Suite 310 - P.O. Box 1176 - Waterloo, IA 50704-1176 Phone: (319) 287-9106 Fax: (319) 287-5015

A lasting legacy Peggy and Ed Gibb always made giving to their community a personal priority. In meetings with their professional advisor, they began to consider including a bequest that would benefit their local community. “Peggy and I care a lot about this town,” says Ed. “We wanted to give in a way that would continually help the people who live here.” After considering their options, the Gibbs decided to establish an unrestricted fund with their local community foundation. The Gibb Community Fund would take effect after they both passed away, leaving a portion of their estate to charity. “By establishing an unrestricted fund, we were able to keep our gift from becoming outdated. Community needs change, so we wanted to make sure our gift wasn’t too narrowly focused,” says Peggy. “Because it’s endowed at the community foundation, our gift will make a difference forever,” Ed says. “It will grow over time and become a more and more valuable asset for our community. This is exactly the legacy Peggy and I want to leave.”

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TOOLS for Giving

Connecting personal values to high-impact opportunities Field of Interest Fund

By establishing a Field of Interest Fund with Community Foundation, you can target your gift to address needs in an important area of community life. Arts. AIDS. Aging. At-risk youth. Our board awards grants to community organizations and programs that are making a difference in the area you select. Your gift stays flexible enough to meet community needs in your interest area — even as they change over time. How it works •

You identify an area of personal interest as broad or narrow as you wish.

•

You make a gift to the Community Foundation during your lifetime or through a bequest in your will. You can give cash, appreciated stocks, real estate, or other assets.

•

We set up a special fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

•

You receive tax benefits in the year your gift is made.

•

Our staff evaluates needs in your area of interest that would be most impacted by grants from your gift.

•

Our board issues grants in the name of the fund you establish (if you prefer, grants can be made anonymously).

•

We handle all the administrative details.

•

A personal mission unforgotten When they lost their adult daughter, Susan, to cancer, the Perez family received hundreds of contributions from people throughout the community. Susan had been a high school teacher, so many of the contributions came from fellow teachers and from parents of the students whose lives she had touched. “Susan cared so deeply about her work,” says Mrs. Perez, “and we wanted to use the money to continue in that spirit of helping children through their education.” The Perez family spoke with their local community foundation and decided to establish the Susan L. Perez Education Fund, a Field of Interest Fund that memorializes their daughter by supporting local educators and students. “We chose to begin this kind of fund because education is so dynamic,” says Mr. Perez. “We realize that we aren’t always aware of what our school system needs and how it works, and we wanted to be sure that, even years from now, grants made in Susan’s name make sense for our community.”

Confirmed in Compliance with National Standards for U.S. Community Foundations

Field of Interest Fund

More benefits Ten reasons people choose to give through the Community Foundations one We are a local organization with deep roots in the community.

While you direct the Field of Interest Fund you establish from its creation, the maintenance is left up to us. Our staff continually monitors changing community needs so that you can be sure grants made in the name of the fund make the most impact in your field of interest and create your personal legacy of giving. You can add any amount to the Field of Interest Fund you establish at any time â&#x20AC;&#x201D; and so can others who share your interests in community. If you endow your gift, it becomes a permanent community funding resource.

two Our professional program staff has broad expertise regarding community issues and needs. three We provide highly personalized service tailored to each individualâ&#x20AC;&#x2122;s charitable and financial interests. four Our funds help people invest in the causes they care about most.

The Community Foundation of Northeast Iowa provides a simple, powerful, and highly personal approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. You can make a gift of cash, stocks, bonds, real estate, or other assets to the Community Foundation. Most charitable gifts qualify for maximum tax advantage under federal law. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact the Community Foundation at (319) 298-9106.

five We accept a wide variety of assets, and can facilitate even the most complex forms of giving. six We partner with professional advisors to create highly effective approaches to charitable giving. seven We offer maximum tax advantage for most gifts under federal law. eight We multiply the impact of gift dollars by pooling them with other gifts and grants. nine We build endowment funds that benefit the community forever and help create personal legacies. ten We are a community leader, convening agencies and coordinating resources to create positive change.

425 Cedar Street, Suite 310 - P.O. Box 1176 - Waterloo, IA 50704-1176 Phone: (319) 287-9106 Fax: (319) 287-5015

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TOOLS for Giving

Investing in deserving students Scholarships

In creating a Scholarship Fund at the Community Foundation of Northeast

Valuing education

Iowa, you invest in your community’s future and show students you care. The

A couple years into a comfortable retirement, Mr. and Mrs. DiAngelo, both former teachers, realized how much they missed making a difference in the lives of students.

Community Foundation provides the expertise to help you meet your personal goals and awards scholarships to deserving students. Your gift can help students — from preschool to postgraduate — achieve their lifetime dreams.

How it works •

You make a gift to the Community Foundation — you can give cash, appreciated stocks, real estate, or other assets.

•

We set up a scholarship fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

•

You receive tax benefits in the year your gift is made.

•

Our staff helps you to determine eligibility requirements for the scholarship you establish — whether they are based on a student’s field of study, academic achievements, extracurricular activities, financial need, background, or geography.

•

We handle all the administrative details — and award scholarships to deserving students in the name of the fund you establish.

•

You receive updates on the impact your gift is making in our community.

•

“For both of us, education was not only a profession — it was a calling,” says John DiAngelo. Looking for a way to stay involved, the DiAngelos started a Scholarship with their community foundation. They wanted Scholarships made in their name to benefit students interested in becoming teachers. “The community foundation helped us create our legacy. It’s a wonderful feeling to let students know we still care,” says John. “The community foundation does all the administrative work involved in determining the most deserving students,” says Rose DiAngelo. Over the past three years, The DiAngelo Education Fund has provided six Scholarships to the next generation of teachers.

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

Helping local organizations endure and grow Designated Funds

support the good work of a specific nonprofit organization. Because it’s given

A source of strength and stability

through the Community Foundation, your gift provides the organization you select

Three times a week, Wendell

not only funding, but planned giving and investment management services, and

homebound senior citizens as a

Establishing a Designated Fund with the Community Foundation allows you to

the power of endowment.

Pittman delivers meals to volunteer for Meals for Seniors. While the organization has benefited from volunteerism and

How it works

community recognition for over

•

You identify an organization that you wish to benefit.

on small donations and lacked a

•

You make a gift to the Community Foundation — you can give cash, appreciated stocks, real estate, or other assets.

“Our organization needed more

•

We set up a special fund in your name or in the name of the nonprofit organization you choose.

•

You receive tax benefits in the year your gift is made.

•

Our board issues grants to the designated nonprofit organization.

•

We handle all the administrative details, including managing specific qualifications that you may establish for grant disbursements.

•

You receive updates on the impact the fund is making.

•

a decade, it depended largely more predictable funding source. reliable funding, but we had trouble accepting large or complex gifts,” says Mary Lynch, Meals for Seniors’ executive director. After talking with Mary and with his financial advisor, Wendell decided to begin a Designated Fund with his local community foundation. He donated a piece of rental property that was becoming a bother in his retirement. The community foundation immediately sold the property and established the Meals for Seniors Fund. Thanks to this fund, other donors can contribute assets of a variety of types and sizes. “We’re thrilled to be working with our community foundation,” says Mary. “Meals for Seniors would not have been able to do this on its own.”

Confirmed in Compliance with National Standards for U.S. Community Foundations

Designated Fund

Ten reasons people choose to give through community foundations

More benefits A Designated Fund provides you a wonderful way to give back to one or more specific organizations that have touched your life. Your gift provides more

one We are a local organization with deep roots in the community.

than just funding — your favorite organization will benefit from the Community Foundation’s investment stewardship and ability to manage endowment funds. Because the Community Foundation handles the details, the nonprofit organiza-

two Our professional program staff has broad expertise regarding community issues and needs.

three We provide highly personalized service tailored to each individual’s charitable and financial interests.

tion’s staff is freed up to focus on its mission. And, the Community Foundation can facilitate even the most complex forms of giving, such as planned gifts or gifts of appreciated stock or real estate. You can add to the fund at any time. If the organization you select ceases to exist or changes in mission, the fund can be redirected so that it continues to address your charitable intent.

four Our funds help people invest in the causes they care about most.

five We accept a wide variety of assets, and can facilitate even the most complex forms of giving.

six We partner with professional advisors to create highly effective approaches to charitable giving.

seven

The Community Foundation of Northeast Iowa provides a simple, powerful, and highly personal approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. You can make a gift of cash, stocks, bonds, real estate, or other assets to your community foundation. Most charitable gifts qualify for maximum tax advantage under federal law. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact the Community Foundation today at (319) 287-9106.

We offer maximum tax advantage for most gifts under federal law.

eight We multiply the impact of gift dollars by pooling them with other gifts and grants.

nine We build endowment funds that benefit the community forever and help create personal legacies.

ten We are a community leader, convening agencies and coordinating resources to create positive change.

425 Cedar Street, Suite 310 - P.O. Box 1176 - Waterloo, IA 50704-1176 Phone: (319) 287-9106 Fax: (319) -287-5015

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TOOLS FOR GIVING

Endowing your nonprofit organization Designated Fund

Establishing a Designated Fund or agency endowment at the Community Foundation is a simple and efficient way to build an income for your nonprofit organization. Our experienced staff can help you develop planned giving programs and assist with investment management and administrative details. How it works Your board determines how much you would like to invest long-term.

•

Your organization works with our professional staff to complete a fund agreement.

•

We set up a special fund in the name of your nonprofit organization.

•

Your nonprofit organization receives regular statements on the fund.

•

You can add to the fund at any time.

•

We handle all the administrative details —‑including investment management and help to specify grant disbursements —‑so that your organization puts assets where they’re needed.

•

Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift, and all future earnings from your gift, is a permanent source of community capital, helping to do good work forever.

MUNI OM .

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Example: Developing permanence Dress to Work helps lowincome individuals transition out of underemployment by providing career training, mentoring, and professional attire. Like many nonprofits, it struggles to cover operating expenses. Over the years, several of its volunteers have offered to contribute gifts of appreciated stock or real estate, but Dress to Work did not have the ability or expertise to accept those types of gifts. Executive Director Jenny Pike says, “We simply didn’t have the sophistication to handle some kinds of gifts. It was so frustrating to turn away willing donors.” As a result of establishing the Dress to Work Designated Fund at its local community foundation, the organization has added the ability to accept large and complex gifts. Plus, it was able to develop a planned giving program and a permanent endowment, providing a regular stream of support and leaving the management and reporting to the community foundation.

Winneshiek County

Affiliate of the Community Foundation of NE IA

Administrative Office - PO Box 1176, Waterloo, IA 50704 319.287.9106 phone - 319.287.5015 fax - www.winneshiekccf.org web

Confirmed in Compliance with National Standards for U.S. Community Foundations

Designated Fund — For Your Nonprofit Organization

Ten reasons people choose to give through community foundations one We are a local organization with deep roots in the community.

two Our professional program staff has broad expertise regarding community issues and needs.

three We provide highly personalized service tailored to each individual’s charitable and financial interests.

four Our funds help people invest in the causes they care about most.

More benefits A Designated Fund is a safe and simple way for your nonprofit organization to establish an endowment. Your donors can be sure that the endowed fund’s principal will not be spent and can grow over time, providing a source of lasting support. And the Community Foundation’s economies of scale provide your organization the benefits of a diverse investment portfolio and low investment fees that typically come only with very large funds. Your organization’s regular donors can leave a bequest through the Community Foundation to benefit your organization forever and create a personal legacy. The Community Foundation can facilitate even the most complex planned gifts or gifts of appreciated stock or real estate. We handle investment management and the administrative responsibilities related to endowment so that your organization’s staff and volunteer hours are concentrated on fulfilling your mission. 25% Endow Iowa tax credit Because your agency fund would be permanently endowed at the Winneshiek County Community Foundation, a qualified community foundation, donations to your fund would be eligible for a 25% Endow Iowa tax credit, in addition to the normal federal deductions for charitable giving.

five We accept a wide variety of assets, and can facilitate even the most complex forms of giving.

six We partner with professional advisors to create highly effective approaches to charitable giving.

The Winneshiek County Community Foundation, an affiliate of the Community Foundation of Northeast Iowa, provides a simple, powerful, and highly personal approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. We can accept gifts of cash, stocks, bonds, real estate, or other assets. Most charitable gifts qualify for maximum tax advantage under federal law. For more information, contact our administrative office oday at (319) 287-9106.

seven We offer maximum tax advantage for most gifts under federal law.

eight We multiply the impact of gift dollars by pooling them with other gifts and grants.

We are a community leader, convening agencies and coordinating resources to create positive change.

oo d

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ten

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We build endowment funds that benefit the community forever and help create personal legacies.

nine

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Winneshiek County

Affiliate of the Community Foundation of NE IA

Administrative Office - PO Box 1176, Waterloo, IA 50704 319.287.9106 phone - 319.287.5015 fax - www.winneshiekccf.org web

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TOOLS FOR GIVING

Endowing your nonprofit organization Designated Fund

•

Your organization works with our professional staff to complete a fund agreement.

•

We set up a special fund in the name of your nonprofit organization.

•

Your nonprofit organization receives regular statements on the fund.

•

You can add to the fund at any time.

•

We handle all the administrative details —‑including investment management and help to specify grant disbursements —‑so that your organization puts assets where they’re needed.

•

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of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

425 Cedar Street, Suite 310 - PO Box 1176 - Waterloo, IA 50704 319.287.9106 phone - 319.287.5015 fax - www.cfneia.org web

Confirmed in Compliance with National Standards for U.S. Community Foundations

Designated Fund — For Your Nonprofit Organization

Ten reasons people choose to give through community foundations one We are a local organization with deep roots in the community.

two Our professional program staff has broad expertise regarding community issues and needs.

three We provide highly personalized service tailored to each individual’s charitable and financial interests.

four Our funds help people invest in the causes they care about most.

More benefits A Designated Fund is a safe and simple way for your nonprofit organization to establish an endowment. Your donors can be sure that the endowed fund’s principal will not be spent and can grow over time, providing a source of lasting support. And the Community Foundation’s economies of scale provide your organization the benefits of a diverse investment portfolio and low investment fees that typically come only with very large funds. Your organization’s regular donors can leave a bequest through the Community Foundation to benefit your organization forever and create a personal legacy. The Community Foundation can facilitate even the most complex planned gifts or gifts of appreciated stock or real estate. We handle investment management and the administrative responsibilities related to endowment so that your organization’s staff and volunteer hours are concentrated on fulfilling your mission. 25% Endow Iowa tax credit Because your agency fund would be permanently endowed at the Community Foundation of Northeast Iowa, a qualified community foundation, donations to your fund would be eligible for a 25% Endow Iowa tax credit, in addition to the normal federal deductions for charitable giving.

five We accept a wide variety of assets, and can facilitate even the most complex forms of giving.

six We partner with professional advisors to create highly effective approaches to charitable giving.

The Community Foundation of Northeast Iowa provides a simple, powerful, and highly personal approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. We can accept gifts of cash, stocks, bonds, real estate, or other assets. Most charitable gifts qualify for maximum tax advantage under federal law. For more information, contact the Community Foundation today at (319) 287-9106.

seven We offer maximum tax advantage for most gifts under federal law.

eight We multiply the impact of gift dollars by pooling them with other gifts and grants.

We are a community leader, convening agencies and coordinating resources to create positive change.

oo d

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ten

MUNI OM

We build endowment funds that benefit the community forever and help create personal legacies.

nine

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of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

425 Cedar Street, Suite 310 - PO Box 1176 - Waterloo, IA 50704 319.287.9106 phone - 319.287.5015 fax - www.cfneia.org web

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ÂŠ 2003 COF & CFA

TOOLS for Giving

Charitable Instruments A variety of giving methods tailored to your unique situation.

Outright Gift. You can make a gift of cash, stocks, bonds, real estate, or other assets to your community foundation. Your charitable gift qualifies for tax advantage under federal law.

You receive personalized service

Bequest by Will. You can designate a gift or portion of your estate to your community foundation and, in some cases, receive a substantial reduction in federal gift and estate taxes.

Each individual, family, or organization we work with has unique charitable interestsâ&#x20AC;Ś and unique financial circumstances. We help you make the most of both, so you receive the greatest return on your community investment.

Charitable Gift Annuity. You can make a gift of cash or property to the Community Foundation now, get immediate tax benefits, and ensure that you or a loved one receive fixed quarterly or annual income payments for life. Charitable Remainder Trust. You can place cash or property in a trust that pays annual income to you (or another named beneficiary) for life. After your death, the remainder of the trust transfers to the Community Foundation and is placed into a charitable fund you have selected. You receive income tax benefits the year you establish your trust. Charitable Lead Trust. You can place cash or property into a trust that pays a fixed amount to the Community Foundation for the number of years you select. Once this period ends, the assets held by the trust are transferred to the beneficiaries you name. In some cases, you receive a substantial reduction in federal gift and estate taxes.

425 Cedar Street, Suite 310 - P.O. Box 1176 - Waterloo, IA 50704-1176 Phone: (319) 287-9106 Fax: (319) 287-5015

Confirmed in Compliance with National Standards for U.S. Community Foundations

TOOLS for Giving

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Turning stock market gains into community investment Gift of Appreciated Stock

Everybody wins when you make a gift of appreciated stock to the Community Foundation of Northeast Iowa. Your gains are put to good use. Your gift of stock is reinvested in your community, and it qualifies for an immediate tax deduction based on the full fair market value. How it works •

You make a gift of appreciated stock to the Community Foundation.

•

Your gift can be placed into any of our charitable funds. For example, you can use your gift to create a Donor Advised Fund in your name, in the name of your family or business, or in honor of any person or organization you choose. You can then stay involved in recommending uses of the fund.

•

Your gift qualifies for a tax deduction based on the full market value of your stock; you avoid the capital gains tax that would otherwise arise from the sale of this stock.

•

We handle all the administrative details.

•

Generating a return for your community “Our stock returns provided the means for giving to our community,” say Joanne and Gerald Johnson. That’s why they joined the many people who choose to contribute appreciated stock to open a Donor Advised Fund. Last year, The Johnson Fund supported a local family outreach program, a homeless shelter, and a local theatre group. “Some of our charities are too small to accept direct stock gifts,” says Joanne. “Giving through the community foundation eliminates that barrier.” The Johnsons receive a tax deduction on the full market value of their appreciated stock, while avoiding the capital gains tax that would otherwise arise from sale of this stock. Gerald says, “It’s a simple, satisfying way to give.”

Confirmed in Compliance with National Standards for U.S. Community Foundations

TOOLS for Giving

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A charitable gift unearthed Gift of Real Estate

Making a charitable gift of real estate through the Community Foundation

Real charitable value

can help you turn your property gains into community good. The value of your

Sandra and Cliff Stewart owned a summer home and had no heirs interested in inheriting it. At first, the Stewarts planned to sell the home and give the proceeds to charity. But after talking with their local community foundation, they realized that giving the home directly to the foundation would create the biggest, most effective gift, while providing the greatest benefits to them as donors.

real estate may exceed that of any other asset you own. With the help of the Community Foundation, you can use it to fulfill your charitable interests and receive financial and tax benefits. How it works •

You identify real estate property that you would like to give; an appraisal will help you establish its estimated market value.

•

We assess the real estate for compliance with our acceptance policies and gather appropriate documentation.

•

Your gift can be placed in any of our charitable funds. For example, you can use your gift to create a Donor Advised Fund in your name, in the name of your family or business, or in honor of any person or organization you choose. You can then stay involved in recommending uses of the fund.

•

Your gift qualifies for a tax deduction based on its full market value; you avoid the capital gains tax that would otherwise arise from the sale of the property.

•

With gifts of real estate, your property gains translate into community impact, so you get a more rewarding return on a major asset.

•

We handle all the administrative details.

•

“It was a great option — we could give our house to charity through the foundation and start any type of fund, not to mention the tax benefits,” says Sandra. The Stewarts learned they could also retain use of the home for their lifetime. “This way,” Cliff explains, “we can spend our summers enjoying the home for the rest of our lives. And after our lifetime, the community foundation will use the proceeds to make grants from the Sandra and Cliff Stewart Fund.”

Confirmed in Compliance with National Standards for U.S. Community Foundations

Gift of Real Estate

Ten reasons people choose to give through the Community Foundation one We are a local organization with deep roots in the community. two Our professional program staff has broad expertise regarding community issues and needs. three We provide highly personalized service tailored to each individualâ&#x20AC;&#x2122;s charitable and financial interests. four Our funds help people invest in the causes they care about most. five We accept a wide variety of assets, and can facilitate even the most complex forms of giving. six We partner with professional advisors to create highly effective approaches to charitable giving. seven We offer maximum tax advantage for most gifts under federal law. eight We multiply the impact of gift dollars by pooling them with other gifts and grants. nine We build endowment funds that benefit the community forever and help create personal legacies. ten We are a community leader, convening agencies and coordinating resources to create positive change.

More benefits A gift of real estate releases potential that has been tied up for years, enables you to make a bigger charitable difference than you may have thought possible, helps you avoid estate taxes, and minimizes or eliminates burden placed on your heirs. Charitable gifts of real estate range from personal residences and vacation homes to rental properties, farmland, and commercially developed land. You may choose to give real estate outright and receive an immediate tax deduction or retain the use of the property during your lifetime and make a planned gift to the Community Foundation. You may also choose to convert real estate into a stream of income for the rest of your life by establishing a Charitable Remainder Trust or Charitable Gift Annuity with the Community Foundation. Doing this lets you transform a low-yield asset into a higher-yield, income-producing asset and claim a tax deduction for the charitable portion of the gift. The Community Foundation of Northeast Iowa provides a simple, powerful, and highly personal approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. You can make a gift of cash, stocks, bonds, real estate, or other assets to your community foundation. Most charitable gifts qualify for maximum tax advantage under federal law. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact the Community Foundation.

TOOLS for Giving

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Community as your beneficiary Gift of Life Insurance

Life insurance provides a simple way for you to give a significant gift to charity,

A gift that pays

with tax benefits that you can enjoy during your lifetime.

When his two daughters were young, Zachary Ding bought a life insurance policy to provide

How it works:

for his family in the event of his

•

You make your local community foundation the owner and irrevocable beneficiary of your life insurance policy — you can either give a paid-up policy or continue to pay premiums.

have changed. “My daughters

You receive a tax deduction for the approximate cost or fair market value, whichever is less. If the policy is paid up, you may receive an immediate tax deduction. If it is not, you can claim continuing tax deductions on premium payments you make directly or through gifts to the community foundation.

become fairly comfortable

•

• •

•

Upon your death, we set up a special fund in your name, in the name of your family, or in honor of any person or organization you choose. Our professional program staff considers your charitable wishes and determines the community needs that would be most impacted by grants from your gift. Our board issues grants in the name of the fund you establish (if you prefer, your awards can be made anonymously).

death. Now, he’s 65, and things are both grown and doing very well for themselves, and over the years, my wife and I have — she will no longer need the death benefit from my policy,” says Zachary. The Dings support and volunteer for a youth mentoring program as well as their local museum. “We’ve always planned to leave something for important community organiza-tions when we pass,” says Zachary. After talking with their financial planner, Zachary decided to give his life insurance policy to his local community foundation. “After giving my policy, I received a significant

•

We handle all the administrative details.

tax deduction,” says Zachary.

•

so long that we could choose

“We had owned the policy for to stop paying the premiums and maintain a sizable death benefit.” The Ding Fund will be established with the proceeds from the insurance policy to benefit youth development and other community organizations.

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

A legacy of giving Bequest by Will

Including a charitable bequest in your will is a simple way to make a lasting gift

The gift of a lifetime

to your community. When you make this gift through the Community Foundation of

Irene Hoover and her husband owned a bakery and enjoyed a great deal of success and prominence in their hometown. After her husband passed away two years ago, Irene decided it was time for her to update her will. Part of her plan was to give something back to the community the Hoovers had loved as both residents and business owners. “Not only did Jim and I love our town, but we felt as though we owed it a lot for the success of our business,” says Irene. With the help of her professional advisor, Irene revised her will to include an inheritance for the Hoovers’ college-age niece, with the remainder creating the Hoover Bakery Fund, a field of interest fund designed to support community development efforts. Because it will be endowed, her gift will provide a growing source of community funding for festivals, neighborhood revitalization, publicly accessible artwork, and other community improvements. “I like knowing that when I’m gone, our legacy will be one of helping others strengthen our community,” says Irene.

Northeast Iowa, we establish a special fund that benefits the community forever and becomes your personal legacy of giving. How it works •

You include the Community Foundation in your will as a bequest; we can help you or your attorney with recommended language.

•

You determine the type of fund you would like to establish with your gift.

•

Upon your death, we set up a special fund in your name, in the name of your family, or in honor of any person or organization you choose.

•

Your charitable gift is excluded from your assets for estate tax purposes.

•

Our professional staff considers your charitable wishes and determines the areas of community need that would be most impacted by grants from your gift.

•

Our board issues grants in the name of the fund you establish (if you prefer, grants can be made anonymously).

•

We handle all the administrative details.

•

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

Income for today, a gift for tomorrow Charitable Gift Annuity

Giving through a Charitable Gift Annuity allows you to arrange a generous gift to

A caring, careful gift

your community, while providing yourself a new income source you can count on

Angela Kline was always active in her community — generous with both her time and money. After she retired and began living on a fixed income, she worried that continuing to give would sacrifice her financial security. “There are some causes I wish I could still support, mostly focused on women and girls in our community,” said Angela. “But my investments are paying less than I had planned.” Her friend Carmen, a CPA, told Angela that she might consider establishing a Charitable Gift Annuity through her local community foundation. “This is a good choice for Angela,” says Carmen. “She is a very caring, generous person, but she also needs to feel financially secure.” By giving through her community foundation, Angela receives a fixed annuity payment that adds up to more than her former investment income. Plus, upon her death, her gift will create the Kline Fund for Women and Girls.

for the rest of your life. How it works •

You make a gift to the Community Foundation — you can give cash, appreciated stocks, real estate, or other assets.

•

We set up a contract with you that combines immediate annuity payments with a deferred charitable gift.

•

You receive a stream of income that is fixed, regardless of market conditions.

•

You also receive an immediate tax deduction for the charitable portion of your gift.

•

Upon your death, we set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

•

We handle all the administrative details — issuing annuity payments to you during your lifetime and, afterward, issuing annual grant awards to charities in the name of the fund.

•

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

Planning for the future. For you and your community. Charitable Remainder Trust

Giving through a Charitable Remainder Trust allows you to receive income for the

A gift that pays

rest of your life, knowing that whatever remains will benefit your community.

James Assad was retired and in his late seventies. The stocks he owned had high market values, but they paid limited dividends. In addition to increasing his personal income, James was interested in giving to the community in which he had lived his entire life, so he decided to transfer the securities to a Charitable Remainder Trust that eventually would create a fund with his local community foundation. “The income I receive from the trust is more than what I was collecting in annual dividends — by thousands of dollars. If I would have sold the stocks, I’d have paid a fortune in capital gains tax,” says James. James also receives an immediate charitable deduction and pays less tax on the trust distributions. “Plus,” he says, “I know that when I pass, I’ve done something good.” In time, James’ gift will create the Assad Family Unrestricted Fund to address ever-changing community needs.

How it works •

You transfer cash, appreciated stocks, real estate, or other assets into a trust.

•

You receive an immediate charitable tax deduction for the charitable portion of your trust.

•

The trust pays you or a beneficiary you designate regular income payments.

•

Upon the beneficiary’s death or after a defined period of years, the remaining assets in the trust transfer to the Community Foundation.

•

We set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

•

We handle all the administrative details after the fund is established, issuing grant awards to charities in the name of the fund.

•

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

Giving back to community and your loved ones Charitable Lead Trust

A Charitable Lead Trust helps you build a charitable fund with the Community Foundation during the trust’s term. When the trust terminates, the remaining assets are transferred to you or your heirs, often with significant transfer-tax savings. How it works •

You transfer cash, appreciated stocks, real estate, or other assets into an irrevocable charitable trust.

•

We set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

•

Your Charitable Lead Trust pays the Community Foundation an annual amount to build a charitable fund. You designate the trust to exist for a specified number of years or until your death.

•

You also designate your family or anyone you choose as the final beneficiary of your trust.

•

If you choose, you can stay involved in the good works your gift makes possible — working with our professional program staff to support the causes and agencies you care about most.

•

We handle all the administrative details, issuing grant awards to charities in the name of the fund you establish (if you prefer, grants can be made anonymously).

•

A lifetime gift for two Annette Bernack wanted to create a fund to support her favorite charitable interests for years to come. At the same time, she wanted to provide an inheritance for her daughter in a way that created the least tax burden. “My attorney told me that creating a Charitable Lead Trust and designating my community foundation as a beneficiary would allow me to give to the community now and provide for my daughter later,” says Annette. Using a regular distribution from the trust, Annette has already begun to build a fund at her community foundation, which is, in turn, making grants to her community in areas important to her. The trust will continue to build the Bernack Family Fund until her death, after which the rest of the trust will transfer to Annette’s daughter. “By giving through a Charitable Lead Trust,” says Annette, “I am doing more for both my daughter and the community… and my estate will owe less in taxes.”

Confirmed in Compliance with National Standards for U.S. Community Foundations

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IDEAS for Giving

Connecting to the community Making a lifelong dream come true.

Mark and Susan Smith are enjoying their retirement. They have been astute investors throughout their lives, and want to plan their estate wisely. The Smiths’ assets — mostly stocks, bonds, and mutual funds — have grown substantially, and they now feel comfortable making decisions to fulfill their charitable goals and financial interests. Giving a gift back to the community where they raised their family is a lifelong

Community foundations provide a simple, powerful, and highly personal approach to giving.

dream. In addition, the Smiths want to preserve a substantial portion of their wealth

We offer a variety of giving

for their three children by limiting gift and estate taxes.

tools to help people achieve their charitable goals. You

The Smiths’ estate advisor suggested establishing a charitable trust, and designating their community foundation as the vehicle for all of the Smiths’ charitable giving — because it provides a simple, powerful way to fulfill their multiple charitable interests. Mark and Susan Smith took $1 million in appreciated stocks and zero coupon bonds and established a Charitable Lead Trust. During their lifetime, the trust will pay an annual fixed annuity of $75,000 to their community foundation. After the Smiths die, the trust terminates and transfers its assets to the Smiths’ children, tax free. Minimizing taxes. If the Smiths had made an outright gift to their children, the entire

$1 million would have been considered a taxable transfer for gift tax purposes. However, because the Charitable Lead Trust pays a guaranteed amount of income to their community foundation, the Smiths are able to claim a charitable gift tax deduction in the year the trust is created. This provides substantial gift tax benefits. In addition, the Smiths are able to avoid capital gains and income taxes on appreciated assets since the transfer is made directly to a charitable trust.

Since the transfer of assets is complete when the trust is created, no portion of the trust is included in either of the Smith’s estates. (Continued on reverse)

Confirmed in Compliance with National Standards for U.S. Community Foundations

Family and charitable benefits Compare the benefits of a community foundation Charitable Lead Trust with what would happen if the Smiths chose a conventional investment and estate distribution plan. Assumptions: (1) Conventional investment and estate distribution plan assumes an ordinary income yield of 6% on $1 million for 15 years. Charitable Lead Trust assumes a non-grantor charitable lead trust that has capital appreciation of 3%, an ordinary income yield of 6%, and pays out 7.5% per year on $1 million for 15 years. (2) The estate tax calculation assumes the Smiths die at age 85 (the end of 15 years) and use any remaining Unified Gift and Estate Tax Credit to offset tax attributable to other estate assets. (3) To provide parity between the two scenarios, the Gift Tax Adjustment compensates the estate for the amount of gift tax that was avoided when the Charitable Lead Trust was created.

A community foundation provides personalized donor service to support each donor’s unique charitable interests and financial circumstances.

Market value of stocks and bonds Taxable gift Gross amount to heirs at the end of 15 years (1) Less: Federal estate tax @ 50% (2) Less: Gift tax adjustment @ 50% (3) Net amount to heirs Plus: Amount to charity Total family and charitable benefit

Conventional Investment/ Distribution

Charitable Lead Trust

$1,000,000

$300,000

$2,396,558

$1,440,414

($1,198,279)

($0)

($150,000)

$1,198,279

$1,290,414

$1,125,000

$1,198,279

$2,415,414

(Example calculation — for illustration only)

Family and charitable benefits. The Charitable Lead Trust provides the opportunity to do more than the Smiths ever imagined. By avoiding gift, capital gains, income, and estate taxes, they are actually able to preserve more of their estate’s value for their children while giving more than $1 million to their community (assuming the Smiths live another 15 years). Better yet, the Smiths are actively involved in the use of their gift during their lifetimes. The Smiths established the Mark and Susan Smith Charitable Fund with their community foundation. As a Donor Advised Fund, it enables them to suggest grant recipients who can benefit from this fund. In addition, the community foundation can recommend worthy local organizations for grants addressing the Smiths’ special areas of interest. There’s so much more we’d like you to know. Your community foundation provides personalized service and a variety of giving vehicles. We welcome the opportunity to work with you and your advisor to fulfill your unique charitable objectives. This story represents a composite illustration drawn from the actual stories of many of the thousands of people who give through their community foundations.

Want to receive an additional 25% tax credit? 02-TI

How can Endow Iowa help you? amount of gift

$10,000

Endow Iowa tax credit

$2,500 *

net federal deduction

$10,000 **

federal tax rate

35.0% ***

federal tax savings

$3,500 ****

total tax savings

$6,000

net cost of gift

$4,000 *****

* ** *** **** *****

Endow Iowa legislation offers taxpayers the opportunity to apply for a 25% tax credit on their state taxes in addition to the normal federal charitable income tax deductions.

25% of the charitable gift made to a permanently endowed fund at a community foundation The entire amount of the gift is deductible on federal taxes. Individual marginal tax rates vary. Assumes that individual taxpayer utilizes Schedule A (itemized deductions on their federal return) Gift appreciated securities and your cost of gift would be even less.

Approximately $4 million in tax credits are set aside each year to distribute on a first come, first served basis to those who make a gift to a permanently endowed fund at a qualified community foundation, like the Community Foundation of Northeast Iowa. Note: Maximum $100,000 tax credit per tax payer, per year.

Contact the Community Foundation at (319) 287-9106 or visit www.cfneia.org for more information about this incentive to build endowments for the long-term benefit of our great communities.

Confirmed in Compliance with National Standards for U.S. Community Foundations

Want to receive an additional 25% tax credit? 02-TI

How can Endow Iowa help you? amount of gift

$10,000

Endow Iowa tax credit

$2,500 *

net federal deduction

$10,000 **

federal tax rate

35.0% ***

federal tax savings

$3,500 ****

total tax savings

$6,000

net cost of gift

$4,000 *****

* ** *** **** *****

Endow Iowa legislation offers taxpayers the opportunity to apply for a 25% tax credit on their state taxes in addition to the normal federal charitable income tax deductions.

Approximately $4 million in tax credits have been set aside to distribute on a first come, first served basis to those who make a gift to a permanently endowed fund at a qualified community foundation, like the Cerro Gordo County Community Foundation. Note: Maximum $100,000 tax credit per tax payer, per year.

Contact the Community Foundation at (319) 287-9106 or visit www.cfneia.org/CerroGordo for more information about this incentive to build endowments for the long-term benefit of our great communities.

r. ve

COMMUNITY FOUNDATION Cerro Gordo County

Affiliate of the Community Foundation of NE IA

Confirmed in Compliance with National Standards for U.S. Community Foundations

Want to receive an additional 25% tax credit? 02-TI

How can Endow Iowa help you? amount of gift

$10,000

Endow Iowa tax credit

$2,500 *

net federal deduction

$10,000 **

federal tax rate

35.0% ***

federal tax savings

$3,500 ****

total tax savings

$6,000

net cost of gift

$4,000 *****

* ** *** **** *****

Endow Iowa legislation offers taxpayers the opportunity to apply for a 25% tax credit on their state taxes in addition to the normal federal charitable income tax deductions.

Approximately $4 million in tax credits have been set aside to distribute on a first come, first served basis to those who make a gift to a permanently endowed fund at a qualified community foundation, like the Winneshiek County Community Foundation. Note: Maximum $100,000 tax credit per tax payer, per year.

Contact the Community Foundation at (319) 287-9106 or visit www.winneshiekccf.org for more information about this incentive to build endowments for the long-term benefit of our great communities.

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COMMUNITY FOUNDATION Winneshiek County

Affiliate of the Community Foundation of NE IA

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS for Giving

Added benefits of giving Significant tax advantages available through Endow Iowa

Net after-tax cost of establishing a fund with the Community Foundation* cash gift

$100,000

federal/state tax savings

- $40,000 **

Endow Iowa tax credit

- $20,000 ***

cost of gift

$40,000

These are approximate number for illustration only. All donors should consult with their tax advisors to review their individual circumstances. ** assuming maximum tax bracket *** before federal tax effect

Endow Iowa provides tax incentives to donors to endowed funds at qualified community foundations, like the Community Foundation of Northeast Iowa. Donors who make eligible gifts can take a 20% tax credit in addition to the normal state and federal charitable deductions for charitable gifts. The Iowa legislature has authorized a total of approximately $3.2 million per year in tax credits.

Note: Net cost could be even lower if capital gain taxes and/or alternative minimum taxes are avoided.

The charitable gift must be made: •

to a permanent endowment fund, which can be a designated fund, donor advised fund, unrestricted fund, or a scholarship fund.

•

to a qualified community foundation. The Community Foundation of Northeast Iowa is a qualified as meeting National Standards for U.S. community foundations.

•

for the benefit of one or more Iowa charitable causes.

•

by individuals, corporations, or financial institutions.

425 Cedar Street, Suite 310 w PO Box 1176 w Waterloo, Iowa 50704 319.287.9106 phone 319.287.9105 fax www.cfneia.org web

Additional Information The tax credit is 20% of the gift amount and is limited to $100,000 per taxpayer, which is the maximum credit on a gift worth $500,000. Funds can be started at the Community Foundation for as little as $5,000. Qualifying gifts may be made to existing funds in any amount. Any excess credit not used in the authorized tax year may be carried forward for up to five years. The Community Foundation assists in the application process for the tax credits. The Iowa Department of Revenue will issue the tax credit letters to taxpayers. Eligible gifts qualify for credits on a first come, first served basis.

Confirmed in Compliance with National Standards for U.S. Community Foundations

Understanding the Endow Iowa 20% Tax Credit 04-TI

How can Endow Iowa help you? amount of gift Endow Iowa tax credit net federal and state deduction federal and state tax rate

$10,000 $2,000 * $10,000 ** 41.9% ***

federal and state tax savings

$4,200 ****

total tax savings

$6,200

* ** *** **** *****

20% of the charitable gift made to a permanently endowed fund at a community foundation - maximum gift of $500,000 per taxpayer The entire amount of the gift is deductible on both state and federal taxes. Individual marginal tax rates vary from 0% to 41.9%. assumes that individual taxpayer utilizes Schedule A (itemized deductions on their federal return) Gift appreciated securities and you could turn $1,800 into $10,000.

How does the Endow Iowa Tax Credit Program work?

The program provides state income tax credits to individuals, businesses, or financial institutions that donate money to a permanent endowment fund (e.g. Bosco System Endowment Fund) at a community foundation that meets national standards, like the Community Foundation of Northeast Iowa. The tax credit is for 20% of the amount of the donation, up to a maximum amount of $100,000 credit (for a $500,000 or higher donation). How much is available through the program?

The most recent legislation relating to Endow Iowa Tax Credits provides $2 million in tax credits each year plus an amount to be determined each year pursuant to Code 99F.11(3)(e)(3). For year 2008 the estimate is an additional $1.2 million in tax credits. If tax credits are used up for the current year, your application will be processed on a first-come first-serve basis for the following year. How does one apply for tax credits?

The Community Foundation has an application form they fill out and send to the donor to sign after the donor has made a gift to any permanent endowment fund at the Community Foundation (we currently have over 750 funds). This form is automatically sent to donors who make gifts of $250 or more. Donors must request the form from the Community Foundation for gifts under $250. Once the donor has received and signed the form, the donor sends the form in to the state. The Department of Economic Development will then notify the donor via letter of the tax credit award and the year in which their tax credit may be applied. A copy of that letter is sent to the Community Foundation. The actual tax credit benefit is realized when the donor submits their state income tax form, and claims the credit on their tax form for the tax year their credit has been approved by the Department of Economic Development. The letter from the Department of Economic Development can be used by the taxpayer as back-up documentation for their eligibility for the credit. Additional Information The Department of Economic Development has prepared Administrative Rules for the Endow Iowa Tax Credit Program. The Rules are available through the Iowa Administrative Code Web site at http://www2.legis.state.ia.us/IAC.html. The citation for the Tax Credit Rules is 261 Iowa Department of Economic Development, Chapter 47, Endow Iowa Tax Credits. Contact the Community Foundation at (319) 287-9106 for more information about this incentive to Confirmed in Compliance with National Standards for build endowments for the long-term benefit of our great communities.

U.S. Community Foundations

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Don’t miss this tax savings opportunity.

For a short time you may be eligible to roll a portion of your IRA over to charity without being assessed income or estate taxes.

The IRA Charitable Rollover passed by Congress, allows anyone 70½ or older to make an outright gift from their IRA of up to $100,000 a year to a qualified charity without first claiming it as income and being taxed. The Community Foundation of Northeast Iowa has the expertise and the resources to help make the most of the short window of opportunity provided by this legislation—now through December 31, 2011. And, creating a fund or adding to an existing fund at the Community Foundation enables you to turn this opportunity into long-term support of your favorite organizations or causes. Plus, a 25% Iowa state tax credit is available to those who make IRA charitable rollovers to community foundations that meet national standards—like the Community Foundation of Northeast Iowa. The gift must be made to a permanently endowed fund to be eligible for the tax credit. Learn how to put our resources to work with yours by calling the Community Foundation of Northeast Iowa at (319) 287-9106.

oo d

ve r.

Fo re

COMMUNITY FOUNDATION

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

Confirmed in Compliance with National Standards for U.S. Community Foundations

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For a short time, you can make the gift of a lifetime.

New temporary tax benefits allow qualified seniors to experience the joy of giving more during their lifetimes. You can give more for less. Through December 2009, Americans over age 70 1⁄2

no longer pay federal income tax on individual retirement account (IRA) funds given to charity up to $100,000 per person, per year. So your retirement funds can go farther than ever before. You can make a difference. The Community Foundation can help you connect to

Qualified charitable IRA transfers to your community foundation are tax-free— through December 31.

Confirmed in Compliance with National Standards for U.S. Community Foundations

the causes you care about most. You can support an existing fund or establish a new charitable fund in your name or the name of a loved one. Giving is one of life’s pleasures; we can help you enjoy it today. 20% Iowa state tax credit available. Those who make IRA charitable rollovers

to community foundations that meet national standards—like the Community Foundation of Northeast Iowa—receive not only a tax-free transfer, but are also eligible for a 20% Iowa state tax credit. The gift must be made to a permanently endowed fund to be eligible for the tax credit.

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The opportunity of a lifetime to give the gift of a lifetime. Qualified charitable IRA transfers to the Community Foundation are tax-free— through December 31.

Confirmed in Compliance with National Standards for U.S. Community Foundations

Estate and financial planners now have a new giving option to offer clients. Take advantage of tax-saving gifts to charity. Through December 31st, Americans

over age 70 1⁄2 can transfer up to $100,000 per year from an individual retirement account (IRA) into a charitable fund without first paying federal income tax on that gift. By making the gift now, future estate and income taxes can also be avoided. So your clients can give more for less. Get personalized service from the Community Foundation. We’ll work with you

to establish the best vehicle for your client’s gift. We can create a fund that meets ever-changing needs, addresses a personal cause or supports a specific agency—all in the name of your client. It’s a great way to help your clients experience the joy of giving during their lifetime.

20% Iowa state tax credit available. Those who make IRA charitable rollovers

CHARITABLE IRA WORKSHEET

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Is the Charitable IRA right for you? In 2008-2009, people age 70.5 and older can transfer up to $100,000 from IRAs to charity—without incurring income taxes today or estate tax in the future. Should you transfer IRA assets to the Community Foundation of Northeast Iowa and create a special fund? There are several good reasons to take advantage of this timely opportunity, but there are no easy answers. Use this worksheet to help identify your charitable options. The Community Foundation and your estate/tax advisor can help you choose the charitable solution that meets your personal, financial and charitable goals. Name Net Worth (attach a detailed balance sheet)

Total Retirement Assets

IRAs (included in above)

Estimated Annual Income

IRA/401(k) Distributions (included in above)

$ $

Estimated Itemized Deductions

Average Charitable Contributions (included in above)

Estate Plans

Potential Estate Value $ Distributions: Heirs

Charity

Other

Estate Taxes

If you answer yes to any of the following questions, you may want to consider transferring assets from your IRA to make a qualifying charitable distribution: o

1. Are you planning to leave a charitable legacy through your estate plan?

20% Iowa state tax credit available

o 2. Have you designated your favorite charity as beneficiary of retirement assets? o

3. Have your retirement savings and investment growth exceeded your expectations?

4. Are you subject to a charitable deduction limitation by giving more than 50 percent of your income to charity?

5. Do you take the standard deduction on your tax return and make annual gifts to your favorite charities?

6. Do you take the minimum distributions from your IRA but have adequate alternative sources of income?

7. If you take greater distributions from your retirement plans, does doing so affect the amount of Social Security benefits that are taxed? (If income is greater than $32,000 or $44,000, respectively, 50 percent or 85 percent of benefits are taxed.)

8. Do you have adjusted gross income above $150,500 ($75,250 for married filing separately), which causes a phase-out of itemized deductions and personal exemptions?

9. Is there a special cause that you care about?

o 10. Do you want to know your charitable gift will make the greatest impact?

Though the new legislation has created new charitable possibilities for IRAs, your estate and tax advisors must analyze your unique situation to determine alternative tax advantages with other assets and charitable giving options. You may avoid capital gains tax if you transfer appreciated stock, mutual funds or real estate to the Community Foundation. Gifts to Donor Advised Funds, Supporting Organizations and private foundations do not qualify for special charitable IRA transfers.

Those who make IRA charitable rollovers to community foundations that meet national standards— like the Community Foundation of Northeast Iowa— receive not only a taxfree transfer, but are also eligible for a 20% Iowa state tax credit. The gift must be made to a permanently endowed fund to be eligible for the tax credit.

Confirmed in Compliance with National Standards for U.S. Community Foundations

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CHARITABLE IRA WORKSHEET

Is the Charitable IRA right for you? People age 70½ and older can transfer up to $100,000 per year from IRAs to charity— without incurring income taxes today or estate tax in the future.

Should you transfer IRA assets to your community foundation and create a special fund? There are several good reasons to take advantage of this timely opportunity, but there are no easy answers. Use this worksheet to help identify your charitable options. The community foundation and your estate/tax advisor can help you choose the charitable solution that meets your personal, financial and charitable goals. NAME NET WORTH (attach a detailed balance sheet) Total Retirement Assets IRAs (included in above)

$ $ $

ESTIMATED ANNUAL INCOME IRA/401(k) Distributions (included in above)

$ $

ESTIMATED ITEMIZED DEDUCTIONS Average Charitable Contributions (included in above)

$ $

ESTATE PLANS Potential Estate Value Distributions Heirs Charity Other Estate Taxes

$ $ $ $ $

If you answer yes to any of the following questions, you may want to consider transferring assets from your IRA to make a qualifying charitable distribution:

□ □ □ □ □ □ □ □

1. Are you planning to leave a charitable legacy through your estate plan? 2. Have you designated your favorite charity as beneficiary of retirement assets? 3. Have your retirement savings and investment growth exceeded your expectations? 4. Are you subject to a charitable deduction limitation by giving more than 50 percent of your income to charity? 5. Do you take the standard deduction on your tax return and make annual gifts to your favorite charities? 6. Do you take the minimum distributions from your IRA but have adequate alternative sources of income? 7. If you take greater distributions from your retirement plans, does doing so affect the amount of Social Security benefits that are taxed? (If income is greater than $32,000 or $44,000, respectively, 50 percent or 85 percent of benefits are taxed.) 8. Do you have adjusted gross income above $159,950 ($79,975 for married filing separately), which causes a phase-out of itemized deductions and personal exemptions?

□ 9. □ 10.

Is there a special cause that you care about? Do you want to know that your charitable gift will make the greatest impact?

Though the new legislation has created new charitable possibilities for IRAs, your estate and tax advisors must analyze your unique situation to determine alternative tax advantages with other assets and charitable giving options. You may avoid capital gains tax if you transfer appreciated stock, mutual funds or real estate to your community foundation. Gifts to Donor Advised Funds, Supporting Organizations and private foundations do not qualify for special charitable IRA transfers.

[Insert logo here] [Insert address, phone and website]

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Plan Outside the Box: IRAs as Charitable Gifts Gifting IRA or Qualified Retirement Plan (QRP) assets to charity can be a smart and easy way to achieve a strong philanthropic impact. Q Why would you advise a client to use

an IRA or QRP to make a charitable gift at death?

It relieves a double tax burden. Unlike most assets, IRAs and QRPs are subject to both income and estate tax. If these assets are given to a beneficiary that is not tax exempt, as much as 70% of the asset may go to pay taxes. A charity is exempt from estate tax and income tax, so the charity keeps 100%. Since most clients don’t know this, when a client wants to include a charitable gift in an estate plan, I always ask about an IRA or QRP.

Q Do all IRAs and QRPs provide these tax savings when given to charity?

With the exception of the Roth IRA, which is not subject to income tax, all IRAs and QRPs will achieve double tax savings. This includes IRAs, 401(k), pension and profit sharing plans.

Q How does a client give these assets to charity at death?

The client fills out a beneficiary designation form provided by the IRA or QRP administrator. The client should not bequeath an IRA or QRP under his will or revocable trust.

Q Are there adverse consequences during the client’s lifetime if a charity is named beneficiary of an IRA or QRP?

Until 2003 there were, but not today. Under the old minimum distribution rules, if a charity was designated to receive any part of an IRA or QRP, you did not get the best income tax deferral during your lifetime.

Q Should clients who want to leave part

of an IRA or QRP to charity create two separate accounts, one for the charity and one for other beneficiaries?

We took that approach before the changes in the minimum distribution rules that I just mentioned, became effective on January 1, 2003, but it’s no longer necessary. Now we simply carve the charitable portion out of one account after death. However, the charitable portion must be paid out no later than September 30th of the year following the year of death if the IRA owner wants to allow the balance of the IRA to be paid to the non-charitable beneficiaries over their life expectancies.

Q One more question about gifting a

portion to charity: is it better to give a percentage or a dollar amount?

It’s up to the client. A dollar amount provides the charity with a fixed amount whether the account’s value increases or decreases between the time the charity is named a beneficiary and the client’s death. In contrast, with a gift of a percentage, the charity shares proportionately in the increase or decrease of the IRA’s or QRP’s value. Some advisors are comfortable with using a pecuniary dollar amount but the more conservative approach is to use a percentage or fractional share.

Q If there’s a surviving spouse, can a

married person leave all of an IRA or QRP to charity?

Yes, but first they must comply with both federal and state laws. Federal law, the Retirement Equity Act of 1984, applies to QRPs (but not IRAs). This law guarantees the surviving spouse a portion, perhaps all, of the plan benefit. The participant spouse can designate a different beneficiary if the other spouse consents. [continued]

Q What are the tax implications of leaving Endow Iowa provides a great incentive for giving and is a wonderful opportunity for your clients who have a desire to benefit the charitable causes of their communities. The tax credit is 20% of the gift amount and is limited to $100,000 per taxpayer, which is the maximum credit on a gift worth $500,000. A Fund can be established at the Community Foundation of Northeast Iowa for as little as $5,000. Gifts may be made to existing endowed funds in any amount.

Q What if a client wants to provide for the surviving spouse and then give what’s left to charity?

There are two basic ways to accomplish this. First, leave the IRA or QRP to your spouse and count on the spouse to leave it to the charity you wish when he or she dies. That’s the easiest and most straightforward, but with the most uncertain results. For greater certainty, leave the IRA or QRP to a trust — either a charitable remainder trust or a marital trust with charitable reminder. Both trusts allow the IRA owner to designate the charity that will receive the remainder of the trust. And both will benefit the spouse for the rest of the spouse’s life. The difference is how much the spouse will receive. The CRT has to be set up with a defined payout, either as an annuity or as a set percentage of current fair market value. With a marital trust with charitable remainder, the spouse must receive all income of the trust and could also receive discretionary principal distributions. The tax advantage of the CRT over the marital trust is to allow a tax free lump sum distribution from the IRA to the CRT shortly after death. This is because the charitable remainder trust is a tax-exempt trust. If the IRA pays into the charitable remainder trust immediately at death, there is no fiduciary income tax liability. If it’s a marital trust with charitable remainder, it’s less certain that you’d get that same tax treatment on the lump sum distribution.

an IRA or QRP in a charitable remainder trust to someone other than your spouse?

Charitable remainder trusts holding IRAs or QRPs are simply not as tax efficient for nonspousal beneficiaries. The estate tax treatment is not as good. When the charitable remainder trust benefits the spouse, there’s no estate tax in either spouse’s estate. When the trust benefits a nonspouse, for example a child, there is an estate tax based upon the present value of the child’s lifetime interest in the CRT. And that estate tax must be paid from other sources, not from the funds that go into the CRT itself. So it gets complicated on the estate tax return. From an income tax perspective, a charitable remainder trust for non-spouse beneficiaries also creates a mismatch between the taxable income that passes through the charitable remainder trust to the child and the income tax deduction for the federal estate tax paid on “income in respect of a decedent” that partially offsets the double tax on the IRA. That is, the non-spouse beneficiaries cannot use the deduction as efficiently to offset the IRA’s taxable income that flows through the charitable remainder trust as they could if the IRA passed directly to them.

Q Does it make sense to make charitable gifts from an IRA while living?

In some cases, a lifetime gift of an IRA can make sense. To make a lifetime gift of an IRA, funds must be withdrawn from the IRA and then be used to make the gift. For income tax purposes, the withdrawal must be included as income subject to tax. There is an income tax deduction for the charitable gift, but the deduction does not always totally offset the income that must be included. There’s proposed legislation to change this treatment, but that’s the law right now. Clients who want to make charitable gifts during their lifetimes don’t usually use assets that bring income into their tax return first.

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IDEAS for Giving

Your IRA: Taxes or Charity? Transfer IRA assets to charity tax-free by December 31, 2009.

Now in their 80s, Ken and Julia Ball have accumulated more than $1 million in their IRAs. At this age, they must receive distributions. Because they

20% Iowa state tax credit available

don’t need the money, the Balls opt to receive the minimum payout, which is heavily taxed. “We were going to keep doing things this way, and use

Those who make IRA

whatever was left over in our IRAs to make a gift to the art museum,” said

charitable rollovers to

Ken. “But we are missing the joy of giving back during our lifetime.”

community foundations that meet national standards—like

Their estate planning attorney recognized an opportunity. By transferring $100,000 from each of their IRAs to their local community foundation in 2008-2009, the Balls could establish a Designated Fund to support the museum without paying tax and do so during their lifetime. “We were so happy to find out that we could give a portion of our IRAs to charity without losing anything to taxes,” says Julia. “Plus, because we can do so right now, the art museum doesn’t have to wait until we’re gone to get a steady stream of income from our fund.” The art museum’s director was elated. She let the Balls know their fund will help the museum bring art into the lives of local people in this and future generations.

the Community Foundation of Northeast Iowa—receive not only a tax-free transfer, but are also eligible for a 20% Iowa state tax credit.

The gift must be made to a permanently endowed fund to be eligible for the tax credit.

The Community Foundation of Northeast Iowa provides personalized service and a variety of giving vehicles. We welcome the opportunity to work with you and your advisor to fulfill your unique charitable objectives.

Confirmed in Compliance with National Standards for U.S. Community Foundations

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TOOLS FOR GIVING

The opportunity of a lifetime to give the gift of a lifetime Tax-free Charitable IRA

this year— tax-free. A law, renacted for 2011 only, allows you to give more to

25% Iowa state tax credit available

charity and pay less in taxes.

Those who make IRA

Transfer up to $100,000 from your individual retirement account to charity

How it works •

•

Through December 31, 2011, you make a gift of up to $100,000 by transferring IRA assets to the Community Foundation. You must be 70.5 years old. If married, each spouse can transfer up to $100,000 from his or her IRA.

charitable rollovers to community foundations that meet national standards— like the Community Foundation of Northeast Iowa—receive not only a tax-free transfer, but are also eligible for a 25% Iowa state

Your gift can be placed into a charitable fund in your name, the name of your family, or in honor of any person or organization you choose. We handle all administrative details.

tax credit.

Your gift can be placed into an endowment that is invested and will grow over time. Grants addressing community needs will be made forever.

to be eligible for the tax

The gift must be made to a permanently endowed fund credit.

Choose a fund Unrestricted Fund—Address a broad range of current and future needs. The community foundation awards strategic grants to select projects and programs. Field of Interest Fund—Target your gifts to causes important to you. The community foundation awards grants to programs addressing your specific interest area. Designated Fund—Support the good work of a specific nonprofit organization with a source of income, plus planned giving and investment management services. Confirmed in Compliance with National Standards for U.S. Community Foundations

Charitable IRA

Ten reasons people choose to give through community foundations one We are a local organization with deep roots in the community.

two Our professional program staff has broad expertise regarding community issues and needs.

three We provide highly personalized service tailored to each individual’s charitable and financial interests.

four Our funds help people invest in the causes they care about most.

More benefits We can make your charitable IRA transfer easy, flexible and effective, helping you achieve your personal charitable goals and financial goals. We are happy to answer your questions and complete all required paperwork; or, if you prefer, we can consult with your financial advisor or estate planner to recommend a solution that’s right for you and your family. You can transfer excess retirement assets up to $100,000 in 2011, directly and easily to the Community Foundation. The transaction incurs no federal income tax, and the asset is no longer part of your estate for tax purposes. You can choose to give during your lifetime so that you (and your community) can see results sooner than if your gift had been made through the plan. Larger estates face confiscatory tax rates of up to 75 percent if IRA funds are left to a dependent or family member (other than a spouse). Any amounts left in an IRA when an individual dies may be taxed as income to the beneficiary and are also considered assets for the purpose of calculating that person’s estate tax liability. When you give your IRA to charity, your heirs are not burdened by the taxes associated with receiving your IRA upon your death. Instead, you can leave them other assets that have a more favorable tax treatment.

five We accept a wide variety of assets and can facilitate even the most complex forms of giving.

six We partner with professional advisors to create highly effective approaches to charitable giving.

seven We offer maximum tax advantage for most gifts under federal law.

The Community Foundation of Northeast Iowa provides a simple, powerful and highly personal approach to giving. We offer a variety of giving tools to help people achieve their charitable goals. You can make a gift of IRA, cash, stocks, bonds, real estate or other assets to your community foundation. Most charitable gifts qualify for maximum tax advantage under federal law. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact the Community Foundation.

eight We multiply the impact of gift dollars by pooling them with other gifts and grants.

nine We build endowment funds that benefit the community forever and help create personal legacies.

ten We are a community leader, convening agencies and coordinating resources to create positive change.

www.cfneia.org (319) 287-9106

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IDEAS for Giving

Making the gift of a lifetime Transfer a portion of your IRA to a favorite cause in 2009 —tax-free.

Carla Dunn has a passion for human services. As a retiree, she has given her time generously to several local organizations—delivering meals to the home-bound, leading new-member orientation at her church and answering calls for help at a crisis hotline.

20% Iowa state tax credit available Those who make IRA charitable rollovers to

Carla’s banker knew her charitable intentions, so when he heard that new charitable giving legislation allowed her to give IRA assets to charity, tax-free, he called her right away.

community foundations that

“I really don’t need my IRA for living expenses—plus, it’s taxed when I receive the required distributions,” said Carla. “Now, my IRA can be transferred to the community foundation to target the causes most dear to my heart. I’m delighted I can give 100 percent today and enjoy seeing the good works my gift makes possible during my lifetime.”

Northeast Iowa—receive not

Carla transferred $100,000 to the community foundation and established the Charles and Carla Dunn Human Services Fund, a Field of Interest Fund named for Carla and her late husband. Because the assets were transferred directly to charity, they were not included in Carla’s income for the year, and not taxed, leaving the full amount available to fulfill Carla’s charitable intentions. Next year, Carla is considering making another gift of $100,000 that can be added to the fund.

meet national standards—like the Community Foundation of

only a tax-free transfer, but are also eligible for a 20% Iowa state tax credit.

The gift must be made to a permanently endowed fund to be eligible for the tax credit.

“I had already named the community foundation as my IRA’s beneficiary, based on a recommendation from my tax accountant several years ago,” said Carla. “My retirement savings are more than I need, and a great deal of their worth would be lost if I gave them to my children as an inheritance. Instead, the community foundation will put them to work for me today helping people in this community.” There’s so much more we’d like you to know. Your community foundation provides personalized service and a variety of giving vehicles. We welcome the opportunity to work with you and your advisor to fulfill your unique charitable objectives.

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If you have clients who take charitable giving personally, they should know about us. Community foundations help people stay involved in the good works their gifts make possible.

Confirmed in Compliance with National Standards for U.S. Community Foundations

A special fund. When your clients make a gift of cash, appreciated stock, or other assets to the Community Foundation of Northeast Iowa, we can establish a Fund in their name. They receive immediate tax benefits in the year their gift is made.

A personal connection. Your

clients can work with our

professional grantmaking staff to suggest ongoing uses for their gift â&#x20AC;&#x201D; targeting the issues they care about most. Grant awards are issued to charities in the name of their fund (or anonymously if they prefer). Itâ&#x20AC;&#x2122;s a simple, powerful, and highly personal approach to giving.

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10 Reasons You

It’s good for society, it’s good for your clients, it’s good for your business, and it’s good for you.

Should Discuss

You’d be surprised how many of your clients are searching for a way to give back to society, to memorialize a loved one, or simply to do good.

Philanthropy With

Discussing philanthropy with your clients can be done unobtrusively, in a way that respects their privacy, values, and autonomy.

Your Clients

It expands the menu of services available to your clients, thereby increasing their level of satisfaction with you and your services.

It adds to your areas of expertise as a professional advisor.

It increases the potential for new referrals and thus opens the door to many new clients.

It marries your chosen profession with your desire to do something good for the world.

It helps address important social needs and helps make your community a healthier, more vibrant place to live—a real legacy for future generations.

It puts you in touch with a supportive network of new colleagues who are willing to share their time and expertise.

10.

It’s easy to do ...

Confirmed in Compliance with National Standards for U.S. Community Foundations

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Advisor Tools

Flexible charitable vehicles. Effective financial solutions. A professional advisor’s perspective.

Throughout his years as an attorney specializing in estate planning, Chris Christ has had the opportunity to introduce many people to their community foundation as a vehicle for philanthropy. “The community foundation is more global than a single-purpose charity,” says Chris. “It’s a neutral party, an impartial organization, established to improve and enrich the quality of life in the community.”

A valuable resource One of the advantages community foundations offer advisors is statewide access to technical resources and

Flexible giving. When donors establish a fund through the Community Foundation, they open the door to a very broad range of charitable options. The community foundation can manage virtually any type of gift for any charitable purpose, offering everyone the opportunity to make a lasting contribution that directly benefits their community. “Clients who voice interest in giving through a charitable trust or a private foundation accomplish many of the same objectives by using their community foundation as a vehicle,” Chris explains. “Clients get the advantage of good counsel regarding local needs and community resources. They can direct funds into their own areas of interest, and make recommendations for grants to charitable agencies of their choice.” One of the advantages of the community foundation is that it “offers the donor much more flexibility in the use of their charitable dollars than a direct gift to a charity,” Chris says. “Many charitable organizations encourage planned giving, but that organization is the sole beneficiary of the gift. With their community foundation, on the other hand, donors can name multiple beneficiaries.”

experienced planned giving professionals. “ Community foundations can provide information on specific types of charitable gifts, such as charitable remainder trusts,” says Chris Christ. “There are some subtleties within each instrument, and being able to work with their legal counsel has been very helpful.”

Personalized giving. Experienced and knowledgeable staff, who share a deep commitment to the well-being of the community, can help find the best charitable organizations to fit each donor’s interests, and help donors and their advisors structure a charitable fund to satisfy specific goals and financial objectives. Chris sees many donors use their community foundation as a means of giving during their lifetimes, and providing a charitable endow-ment after their deaths to support their charitable interests in perpetuity. “Giving through their community foundation is more personal,” says Chris. “There is a real identification with the idea of ‘giving back.’ I think people feel they are contributing more fully to the development of their community.” (continued ON REVERSE)

Confirmed in Compliance with National Standards for U.S. Community Foundations

Flexible charitable vehicles. Effective financial solutions.

“ A gift to the community foundation can take many different forms. It’s a highly flexible, very personal way to give.” Chris Christ President Emeritus Vandervoort, Christ,

Tax benefits As a public charity, a community

foundation offers the highest level of tax benefits for charitable giving. Donors may give cash, stock, closely held securities, real estate, or personal property, and receive maximum tax benefits. Through planned giving that

integrates philanthropy with overall financial and estate planning, advisors can ensure that their clients receive full benefit from contributions, while supporting the local community and charities of their choice.

and

Fisher, PC

Responsible financial management. Gifts to the community foundation can become part of a lasting endowment. “For many people, the idea of endowment is attractive,” says Chris, “particularly when they feel assured of good stewardship and know there are provisions for responsible use of the funds.” Principal is expertly and responsibly managed in a balanced portfolio, and available income is used to fund projects according to donor wishes. Funds are invested with professional, well-known financial institutions, and performance is reviewed regularly. The foundation’s financial position is evaluated annually by an independent audit. These safeguards ensure that contributions will be preserved and earnings will be maximized over time. Faithful to donor intent. One of the major strengths of a community foundation, in Chris’ opinion, is its ability to provide a flexible vehicle for donors with multiple philanthropic interests. The foundation keeps in close contact with nonprofit agencies throughout the local area, and their broad perspective and local knowledge assure that grants will always be targeted where they can do the most good. “The leadership of the community foundation is well-trained and sensitive to seeing that the client’s needs and objectives are served,” Chris explains. “Their goal is to see to it that donors get into a fund or gift situation that meets their objectives.” For example, one of his clients was an elderly woman who lived quite frugally. When she began planning her estate with Chris, she had amassed over $1 million. As they talked, he learned that the people in her community meant a great deal to her, and she had several charitable interests — providing continuing support for her church, helping children, maintaining a strong, economically healthy city center, and preserving the historical society for her ethnic group. “Once she started talking about what she wanted to do, it was clear that our community foundation was the best resource [for her charitable bequests],” says Chris. “I was confident that her objectives would be met. We established an endowment for her church, and set up a designated fund to support the zoo, economic development in our city, and the local historical society.” There’s so much more we’d like you to know. Your community foundation can help you help your clients achieve their charitable giving goals. We welcome the opportunity to work with you.

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Advisor tools

Giving advice on charitable giving Professional advisors and community foundations working together for clients and community.

Professional advisors find themselves at the convergence point of two dramatic forces in society today: the enormous increase in personal wealth and the renewed concern for community. Despite recent setbacks in the stock market and our economy at large, the number of households with investable assets of $500,000 or more will rise from 11.2 million to 33.5 million from 1995 to 2005, respectively. At the same time, people from all economic backgrounds are giving back to community in record numbers. Community-based philanthropy is in the front ranks of this movement. In 2000, total annual gifts to community foundations increased to over $4 billion — a 13 percent increase since 1999. These trends are affecting professional advisor practices in two significant ways. First, advisors are incorporating charitable giving as an integral component in their financial and estate planning activities — including the question “do you have charitable giving interests?” is standard planning practice for many advisors today. Charitable giving advice is a value-adding element in an advisor’s portfolio and a service welcomed by clients who expect an integrated approach to their wealth management. Second, advisors are incorporating community foundations as trusted resources in delivering charitable giving knowledge and products to their clients. (continued ON REVERSE)

Here are ways that we can help The Community Foundation can support you and your clients at every step in the charitable giving process. We can help you: • Identify your clients’ charitable giving interests and motivations • Match personal charitable interests with tax planning needs • Create and implement charitable plans that are integrated into major business, personal and financial decisions • Facilitate complex forms of giving and execute technical giving instruments (such as charitable remainder trusts) • Provide information on community needs — and on the local agencies and programs that make a difference in the areas your clients care about most • Deliver grantmaking expertise and a range of administrative services related to charitable giving

Confirmed in Compliance with National Standards for U.S. Community Foundations

Giving advice on charitable giving

Think of the community foundation as your personal planned giving center

Community foundations have earned the trust of thousands of professional advisors throughout the United States. We work through advisors to enhance the service clients seek from you and your firm — always respecting and working within the relationship you have developed and lead with your clients.

“ Community

Community foundations can provide a single point of contact for all of an advisor’s charitable planning needs: we’re a convenient, professional resource that helps you do more for your clients.

Our motivation is simple: community foundations are nonprofit public corporations organized to help people give effectively to improve quality of life. Our business is community philanthropy. Everyone wins when we assist advisors who seek to help clients benefit themselves and their communities through effective charitable giving.

foundations are

Community foundations are a resource for advisors. Attorneys, CPAs, financial planners, brokers, insurance agents, and other professional advisors are turning to community foundations to help enrich the charitable giving strategies of their clients. Here’s why:

resources that enable

•

Community foundations are neutral experts with technical information on a range of planned giving options — from executing gifts of real estate, stock, or personal property to establishing donor advised funds or income-producing charitable annuities. Community foundations help advisors provide their clients with the best charitable giving strategies based on each client’s unique financial situation, tax status, and giving goals.

•

Community foundations have in-depth information on local needs and nonprofit organizations. When clients ask, “how can I make sure my charitable gifts will make a difference?,” many advisors turn to community foundations for information on the programs and agencies that are working effectively in the specific arenas interesting each client. Community foundations are in touch with local organizations and activities addressing the broad spectrum of community needs — ranging from the environment, arts, education, and economic development to special programs for youth, family, and seniors.

•

Community foundations serve as the vehicle for giving many advisors seek for their clients. For example, community foundations can establish Donor Advised Funds — the very popular mechanism through which a client can make a charitable gift and stay personally involved in suggesting uses for that gift over time. Community foundations are frequently named in bequests as stewards for estate assets that a client wishes to direct to address specific areas of community need in perpetuity. Giving through a community foundation also provides a client time and resources for evaluating potential grant recipients, as well as the ability to give to multiple charities with a single gift.

people to be charitable in a very personal way.” Estate Planning Attorney

There’s so much more we’d like you to know. The Community Foundation of Waterloo/Cedar Falls and Northeast Iowa can help you help your clients achieve their charitable giving goals. We welcome the opportunity to work with you.

05-PA

How can I recommend charity without recommending a charity? Talk to your clients about giving through the Community Foundation of Northeast Iowa.

Confirmed in Compliance with National Standards for U.S. Community Foundations

It’s a delicate dilemma. Estate planners, financial planners, and other professional advisors are often faced with a delicate dilemma: You want to discuss the many benefits of charitable giving with your clients, but you want to avoid recommending specific charitable causes or organizations.

Fortunately, there’s a simple solution. It’s your local community foundation. A community foundation is a single, trusted vehicle your clients can use to address the issues they care about most, while gaining maximum tax benefit under state and federal law. We offer a variety of giving options — including the ability to set up a charitable fund in your client’s name. It’s just one way we can help you help your clients achieve their charitable goals.

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Is giving through the 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? 6. Do they want to receive maximum tax benefit for their charitable contributions under federal law? 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 the Community Foundation. Weâ&#x20AC;&#x2122;d be happy to help you make an introduction.

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ADVISOR TOOLS

Listening for charitable opportunities Helping your clients achieve their charitable goals.

Philanthropy is a very personal decision. A professional advisor can help clients realize their charitable objectives by listening for charitable giving opportunities, explaining options, and suggesting solutions. Significant giving opportunities often arise when clients are making major business, personal, and financial decisions. Our staff can work with you and your client to recommend the best charitable solution.

Following are some typical scenarios: Year-end tax planning. Your client just earned a large bonus and wants to give a portion back to the community, but has no time to decide on the most deserving charities. Recommend establishing a Donor Advised Fund through the Community Foundation of Northeast Iowa for an immediate tax deduction, and the ability to stay involved in recommending uses for the gift for years to come. Preserving an estate. Estate planning identifies significant taxes going to the IRS, but your client wants to direct dollars for local benefit. The Community Foundation can work with you and your client to reduce his/her taxable estate through a charitable bequest or other planned gift. Your client’s gift will create a legacy of caring in the community that stays true to his/her charitable intent forever. (CONTINUED ON REVERSE)

Planning charitable giving Many clients want their professional advisors to help them plan charitable giving. The Community Foundation can work with you to answer these questions and help each client fulfill his/her charitable goals. • What are your client’s personal motivations for charitable giving? • What are your client’s charitable interests in the community? • What are your client’s priorities when focusing on a few areas may make the greatest impact? • What level of involvement does your client want to have in identifying charitable uses for his/her gift? • What type of giving instrument best fits your client’s financial situation and tax status?

Confirmed in Compliance with National Standards for U.S. Community Foundations

Listening for charitable opportunities

We’re a trusted resource. We work with advisors to enhance the services clients seek from you and your firm — always respecting and working within the relationships you have developed and lead with your clients.

hy should you talk W to your clients about charitable giving? Some advisors are reluctant to begin a charitable giving conversation with their client, and may be concerned about appearing to make a values judgment, especially if the client has not expressed charitable intentions. However, by not broaching the subject of charitable giving, a significant opportunity may be lost for your client and the community. In fact, many individuals expect their professional advisors to bring up the subject if appropriate... and assume charitable giving is not an option if the subject is not raised.

Retiring in comfort. Your client is concerned about running out of money during his/her lifetime, but has always been charitable. Recommend establishing a life income gift (such as a charitable remainder trust) at the Community Foundation that pays income potentially for life. Upon your client’s death, the gift can be distributed by the Community Foundation in accordance with his/her charitable interests. Establishing a private foundation. Your client is thinking about establishing a private foundation, but is looking for a simpler, more cost-efficient alternative. The Community Foundation can help you and your client analyze the pros and cons of creating a Donor Advised Fund, a supporting organization, or a private foundation. Closely held stock. Your client’s personal net worth is primarily tied up in a closely held company, but it’s important for him/her to give back to the community. Recommend establishing a Donor Advised Fund or planned gift; your client is eligible for a tax deduction measured by the fair market value of appreciated stock (less any planned gift value). Sale or disposition of highly appreciated stock. Your client has appreciated stock and wants to use a portion of the gains for charitable giving, but the identified charities are too small to accept direct stock gifts. Suggest establishing a fund at the Community Foundation with a gift of appreciated stock. Your client receives a tax deduction on the full market value, while avoiding the capital gains tax that would otherwise arise from sale of the stock. Your client can even be involved in recommending uses for the gift, including the organizations and programs he/she cares about most. Sale of a business. Your client owns highly appreciated stock in a company that is about to be acquired. The Community Foundation can work with you to suggest several ways to structure a charitable gift (including the use of planned giving techniques) to help your client reduce capital gains tax and maximize impact to the community. Strategic giving. Your client is passionate about helping meet a specific community need and wants to make a meaningful gift. You and your client can work with our grantmaking experts to understand community needs and programs and then direct gift dollars to make the greatest impact. Substantial IRA/401(k) assets. Your client wants to leave his/her estate to community and family, and has substantial assets in retirement accounts. The Community Foundation can help you and your client evaluate the most beneficial asset distribution to minimize taxes, giving more to his/her heirs and preserving charitable intent. There’s so much more we’d like you to know. The Community Foundation of Northeast Iowa can help you help your clients achieve their charitable giving goals. We welcome the opportunity to work with you.

(319) 287-9106 w www.cfneia.org

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Advisor Tools

Multiple benefits of charitable giving A professional advisor’s perspective.

clients, and in his work. It’s a subject that comes up naturally in conversations.

Connecting clients with community

“Once we’ve talked about their family and their objectives for the estate plan, I ask

“The challenge is to help

them to consider other things,” says Dirk. “Is there anything they would like to do for

clients realize their goal of

other family members? Is there a special bequest?”

contributing to the good of

As an attorney specializing in estate planning, Dirk Hoffius understands the multiple benefits of charitable giving. It’s an opportunity he always addresses with

the community,” says Dirk.

Many clients have never thought about making a substantial charitable gift, particularly those with smaller estates and little liquidity. They often struggle with determining what the right charity would be. Dirk encourages them to consider all the alternatives, and points out the unique value of community foundations. “What about doing something through our community foundation? It’s one resource that covers everything; one that allows you to give to every charitable organization you’re interested in.” A concern for quality of life. In years of working with clients, Dirk has found that “everyone is interested in philanthropy in their community because they care about the quality of life that surrounds them, their family, their peers, their customers, and their friends. People want to be asked what matters to them in society. They want to be encouraged in their vision of what they can achieve as community-minded individuals, and supported in their desire to contribute to what is good in their community.”

“There’s no way to learn about all the charities clients might be interested in. The community foundation has those connections in the community, and it doesn’t separate donors from their money,” says Dirk. “It’s a resource that enables people to be charitable in a very personal and meaningful way.”

(continued ON REVERSE)

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Multiple benefits of charitable giving

“ One of the most positive aspects of community foundations is the direct relationship between giving and grantmaking.”

A rewarding experience Dirk Hoffius believes working

with a local community foundation adds value to his client relationships. “It shows my interest in people and the community, that estate planners are not just out there to make money. My work with the community foundation also broadens my connections to the community at large, and allows me to become more involved.”

Dirk Hoffius Estate Planning Attorney/Partner Varnum, Riddering, Schmidt, & Howlett,

llc

Options in charitable giving. While many donors choose to endow a fund through a bequest, others choose lifetime planned giving vehicles to achieve their philanthropic goals. Whichever means they choose, their community foundation provides a direct link between personal giving and local grantmaking. Plus, gifts to the foundation can be permanent — part of a perpetual endowment that continues to grow. The income is used to support local charitable programs and projects according to the donor’s Multiple benefits of charitable wishes. “The community foundation giving enables donors to connect, and stay connected with their community,” says Dirk. “There’s a lot more personal satisfaction than putting a donation check in the mail. Donors want to feel they make a difference.” Reasons for giving. There are many different financial motives for charitable giving. Clients may have a highly appreciated stock portfolio or a few, large, non-liquid assets. They may want to avoid certain taxes, or seek to find a way to increase their spendable income. Some clients, when approached about charitable issues, may say something like, “My children are my charity.” However, when clients are assured they have enough for retirement and their children’s needs, their viewpoint often changes. They feel ready to “give back to the community.” For example, Dirk points out a couple he worked with who had carefully done estate and financial planning throughout their lives. They were at a point where they finally felt that everything had been taken care of, and they wanted to give something back to the community. Using highly appreciated securities that paid dividends of only $40,000 a year, they established a $2 million charitable gift annuity trust. Through the annuity, they receive a yearly income of $212,000 — substantially more than the annual dividend income they had been receiving. But, for the couple, establishing the trust meant much more than the annuity. “We’ve taken care of everyone else through our estate planning,” they said. “This charitable gift is for us.” Rewards of giving. Your local community foundation allows people to create a personal philanthropic fund suited to their needs and interests. As donors will attest, establishing a fund within their community foundation is a deeply rewarding experience. Another one of Dirk’s clients, for example, established a small fund at his local community foundation. When the client began to see and understand what the foundation was able to accomplish with this fund, he began to rethink his estate plan. His original intent was to bequest $200,000 to the community foundation and an additional $200,000 to another charitable organization. Dirk suggested that the client could instead make a substantial donation during his life by establishing a charitable trust, providing both maximum tax benefit and a lifetime income. According to Dirk, the client is “so excited about what he can do, he’s earmarked all $400,000 for his community foundation.” There’s so much more we’d like you to know. Your community foundation can help you help your clients achieve their charitable giving goals. We welcome the opportunity to work with you.

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Advisor Tool

Optimize Charitable Giving Helping clients find the perfect fit

What motivates people to give their hard-earned, carefully saved dollars? The inspiration may stem from a sense of gratitude or the influence of family or friends. It may arise from deeply held values or ideals, or more pragmatic financial objectives. The reasons for giving are varied, as are the things people hope to achieve. Some believe giving is a choice, others see it as a moral imperative. Some give gifts in a spirit of reciprocity, others give expecting nothing in return. Some are concerned with maximizing tax benefits, others want to optimize social change. To accomplish such divergent goals, people may give through their church, alma mater, hospital… social events or special campaigns… nonprofit organizations, charitable funds or foundations. They may give to alleviate immediate needs or foster long-term improvement. Some choose to construct new buildings, others to support human services. Some seek recognition, others are looking only for results. Fortunately, there are as many ways to give as there are motivations for giving. The Community Foundation offers great giving optionsField of Interest Funds: connecting personal values to high-impact opportunities Assessing needs, accepting and processing grant applications, researching solutions, recommending and awarding grants, documenting results, providing customized donor reports, donor recognition and legacy programs Unrestricted Funds: meeting ever-changing community needs Assessing all community needs and opportunities and services similar to Field of Interest Funds Scholarships: investing in deserving students, Soliciting and processing applications, selecting scholarship recipients, disbursing awards, monitoring student eligibility Supporting Organizations: high impact, high involvement, low hassle Administrative support, investment management, research, governance and grantmaking resources Donor Advised Funds: a personal approach to giving Donor services, investment management, grant recommendation and validation and grant processing Designated Funds: helping local organizations sustain and grow Complex gift acceptance, endowment management and annual disbursements

Recommending the best option As a professional advisor, you can help your clients select a giving option that aligns with their personal motivations, philanthropic objectives and financial goals. Over the past decade, the trend in lifetime giving has been the establishment of Donor Advised Funds. They offer immediate tax deductions and ongoing involvement in making charitable recommendations. While some donors may be attracted to the prestige of a private foundation, many value the full service support of a community foundation Donor Advised Fund. However, a client’s needs may change during different stages of his/her life. A family may want to direct most of its charitable giving to organizations they know, while an aging widow may be interested in establishing an endowment targeting a special area of social change. Retirees may want to give and volunteer, while a working professional might want to invest for the greatest impact.

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Optimize Charitable Giving

The art of gift planning Like matchmakers of old, professional advisors are called upon to listen closely, interpret carefully, and counsel wisely… always hoping to recommend a solution that will be the perfect fit. The profiles below show how different charitable solutions may suit the unique circumstances of individual donors. Most are available through the Community Foundation. Donor Profiles

Personal Motivation

Philanthropic Objective

Financial Goal

Charitable Interest

Giving Solution

Faithful servant

give back to God

fulfill obligation to support temple, church or faith organization

maximize this year’s deduction

support faith community operations and missions

Designated Fund in name of faith-based organization

Loyal patron

give back to the organizations that have contributed to my well-being and success

support alma mater and favorite charities

avoid capital gains, maximize this year’s deduction

help at-risk youth

Scholarship for deserving local youth

Grateful trader

show appreciation for financial success and be recognized for generosity

give back to community that has supported my business

avoid capital gains, create permanent legacy

support the future of my community

endowed Donor Advised Fund

Social giver

socialize with friends and peers at charity auctions, events and galas

support favorite charities

avoid capital gains, create lifetime income

provide operating support to local hospital, hospice, art museum and symphony

some direct gifts plus charitable gift annuity that becomes a named Unrestricted Fund

Family philanthropist

extend family legacy of giving to next generation

support causes important to family’s traditions and values

avoid capital gains, maximize this year’s deduction

variety of deserving causes

Supporting Organization or Donor Advised Fund

Selfless benefactor

improve the lives of others because it’s a moral imperative

support causes that align with personal goals and values

maximize the value of my gift

support food pantries and family centers in impoverished neighborhoods

Field of Interest Fund

Prudent investor

contribute to common good because it makes sense socially and financially

support the causes that do the most good through endowment

maximize the impact of my gift

increase opportunities for residents of my community

Unrestricted Fund

Donor profiles are based on The Seven Faces of Philanthropy by Russ Alan Prince and Karen Maru File. .

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Should your clients give through the Community Foundation? Estate and financial advisors can consider these three reasons.

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We help people connect to the causes they care about most. When your clients give through the Community Foundation, theyâ&#x20AC;Ś Receive personalized service. We work closely with you and your clients to develop a giving approach that matches their personal interests and tax planning needs. We can help integrate charitable giving within estate and financial plans, establish Donor Advised Funds named for your clients, facilitate anonymous giving, and assist with even the most complex gift instruments. Gain local expertise. Our professional program staff monitors all areas of community need â&#x20AC;&#x201D; including human services, education, the environment, healthcare, the arts, and economic development. We can help your clients learn more about local agencies and programs that make a difference in the areas they care about most. Support community leadership. We invest in the long term and bring people and organizations together, convening diverse voices to address local issues and opportunities. Our business is building community.

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Eliminate your clientâ&#x20AC;&#x2122;s headaches, hassles and stress with one simple phone call.

MUNI OM .

oo d

ve r.

Setting up and maintaining a private foundation can be a never-ending ordeal. If a private foundation is something that interests your client, you have a better answer. Working with your Community Foundation, your client can enjoy the benefits of having a foundation without all the aggravation. Your client supplies the passion and ideas. The Community Foundation supplies the expertise and infrastructure. And you get the credit for supplying the perfect solution.

DA T I

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

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ÂŠ 2004 COF & CFA.

IDEAS FOR GIVING

Creating custom solutions for giving Four scenarios

Whether your clients choose to start a private foundation or give through the community foundation, they often look to you for custom solutions. The scenarios that follow illustrate just four ways we can be your local giving partner.

For as many motivations as

Private foundation services: We offer a number of philanthropic, financial, and administrative services to increase the effectiveness of the private foundation experience.

there are to give,

Private foundation and donor advised fund: Many philanthropists choose to maintain their private foundations while establishing a donor advised fund at the community foundation. In doing so, they can earmark just a portion of their assets to suit a special interest.

of giving.

there are ways

Donor advised fund: Donor advised funds offer a simple, powerful, and highly personal approach to giving. While the community foundation retains the assets given in this way, donorsâ&#x20AC;&#x201D;and even successive generationsâ&#x20AC;&#x201D;can stay involved in recommending uses for the fund. Supporting organization: By choosing a supporting organization, donors retain a great deal of control and involvement. Yet, they receive valuable local expertise, personalized service, and tax benefits through affiliation with the community foundation. Following are donor scenarios; they are realistic composites of giving stories.

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IDEAS FOR GIVING

Private foundation services Professional, efficient administration

Fulfilling a dream for youth

When David Hobart took the helm of the family foundation, he had a clear vision for its future. As his parents’ legacy and dream, the foundation had been established to enhance educational opportunities for young people. For several years, he worked with a dedicated staff person to monitor investments, manage grantmaking, and handle administrative tasks. His two older brothers, now retired, served as trustees and often helped with operations. Still, David spent several hours every month tending to foundation affairs, balancing those tasks with running his business. Then, the balance started to shift. The veteran foundation staff person announced her retirement. The youngest Hobart daughter announced her engagement. The oldest Hobart brother announced his move to a warmer climate. With his own retirement just a few years away, David was looking for a way to make the foundation management easier. When he discussed the situation with his banker, she suggested a path he hadn’t considered: outsourcing grantmaking and administration to the local community foundation. She explained that the foundation would remain private, with the Hobarts as its trustees. The bank would retain management of Hobart Foundation investments. But the community foundation staff would contribute its expertise on community needs, coordinate quarterly grantmaking functions, and take over day-to-day bookkeeping and administrative tasks. Less than a month later, David was signing a contract with the community foundation to do just that. His support team included an education program officer who would issue requests for proposals, analyze grant applications, and summarize funding recommendations for Hobart Foundation trustees. A financial administrator would manage the books, write checks, and handle tax reporting. A donor relations officer would serve as the chief point of contact and relationship manager. With the community foundation’s online information system, David and his brothers will be able to monitor staff reports, make grant recommendations, track grant distributions, and check the grantmaking fund balance. The community foundation will take care of conference call or meeting arrangements, from the agenda to the minutes. Once a year, the community foundation will also manage the publication of an annual report. The Hobarts’ trusted investment advisor will retain management of the endowed assets. As David Hobart prepares to toast his staff person’s retirement, walk his daughter down the aisle, and plan a visit to his brother’s new home, he is comfortable knowing that Hobart Foundation affairs are in order. When he’s ready to pass the torch to the next generation, he plans to encourage his children to continue the arrangement… allowing the Hobart family to focus on the mission and work of the foundation: improving the lives of children. And fulfilling his parents’ dream.

By using community foundation services, the Hobart family will continue to make the meaningful, strategic decisions of the family foundation.

IDEAS FOR GIVING

Private foundation and donor advised fund Having it both ways

Foundation gives globally and locally

In a bustling town of 100,000, the Crane Foundation was a venerable community institution. Governed by the adult children of its founder and a visionary CEO, the organization awarded $5 million in grants every year to innovative projects across the United States. Projects in its own backyard, however, rarely fell within the scope of the foundation’s work. Mike Crandall, the foundation’s CEO, was faced with a challenge. Always careful to align every grant with the foundation’s important mission, Crandall and the Crane family also recognized pressing needs in their own community. Often, they would learn of a community need—a leaky roof at the shelter, or a school desperately in need of books—but they did not have the flexibility to respond. While their mission would justify local grants, opening the door in this way might flood them with requests that they weren’t prepared to meet. One foundation trustee, who also served on the community foundation board, proposed a solution. The Crane Foundation would make a one-time $500,000 grant to the community foundation. The community foundation, in turn, would establish a donor advised fund with these assets. The fund would give trustees a way to respond to personal requests and other local community needs. One of the best parts about the arrangement is the community foundation’s ability to afford anonymity. In some cases, the Crane family could choose to receive acknowledgement for the grants they recommended—for the purpose of drawing interest in the cause. In other cases, they could avoid creating unrealistic expectations about future gifts by choosing to make anonymous grant recommendations. The Crane family loved the idea and established a donor advised fund. They look forward to the portion of foundation board meetings set aside for recommending local grants. In the first five years, they awarded $125,000 in local grants, tackling a number of small but urgent community needs while preserving the fund principal. The donor advised fund allows the foundation to serve as a community leader and a good corporate citizen, and it supports the family’s connection to the local community. It’s one of the Crane Foundation’s most noteworthy innovations.

One of the best parts about the arrangement is the community foundation’s ability to afford anonymity.

IDEAS FOR GIVING

Donor advised fund A simple, powerful, and highly personal approach to giving

Connecting across generations

The proud mother of four and grandmother of six, Carla Evans is a retired teacher, a community volunteer, and a world traveler. After her husband’s death five years ago, Carla received a significant life insurance benefit. She knew the sum far exceeded her needs for her lifetime, and that her children and grandchildren were not lacking in material wealth. They were lacking a reason to stay connected. Career and business successes had pulled them to all parts of the world. The onceclose family was so dispersed that Carla feared they would lose touch with their roots, their shared history, and with one another. She wanted these outstanding young people to know and experience the importance and value of family and community. Carla contacted her professional advisor to discuss the possibility of using $250,000 to start a family foundation. She learned that it would not be efficient to operate a full-fledged foundation of that size, but a promising alternative was available. By working with the community foundation, she could establish a permanent, endowed fund that would support the community forever and put her grandchildren in charge of recommending grants from the fund. During her lifetime, she would join the grandchildren in evaluating and choosing charitable options, and they would carry on this tradition after her death. The community foundation would handle all administrative tasks for the fund for a minimal fee. Carla was pleased to write a check to establish the Dale and Carla Evans Donor Advised Fund, honoring her late husband and naming the six grandchildren as donor advisors. Once a year, the Evans grandchildren gather. Sometimes, it’s at the community foundation. Sometimes, it’s at a beach house. Each brings one or two ideas for grants that would benefit their hometown or another place close at heart. The Evans grandchildren talk about community needs and opportunities, share their interests with one another, and build a tradition of working together on a project they care about. In the process, the grandchildren have become much closer, using their annual meeting as a reunion in which they catch up on one another’s lives. Carla considers the Evans Fund one of her greatest accomplishments. In establishing the fund, she preserved a portion of her assets to benefit future generations, honored the memory of her beloved husband, and created a reason for her grandchildren to stay connected. Through their work with the fund, her grandchildren have learned about the power of saving and investing, the importance of giving and sharing, and the value of family. On her 75th birthday, Carla’s grandchildren surprised her with a party and an unexpected gift: a contribution to the Evans Fund in her honor. They toasted her love, her generosity, and her legendary teaching skills. They pledged to continue the family tradition of giving, and pass the work of the Evans Fund on to their children someday. She had taught them well.

In establishing the fund, Carla preserved a portion of her assets to benefit future generations, honored the memory of her beloved husband, and created a reason for her grandchildren to stay connected.

IDEAS FOR GIVING

Supporting organization High impact, high involvement, low hassle Conservationist takes preservation seriously By the time Helen Shuman, 57, contemplated the sale of 100 acres of undeveloped but prime real estate, her future was secure. As a successful entrepreneur, she had built a flourishing chain of flower and gift shops. As a staunch conservationist, she had fought for years to preserve the green spaces and natural habitats she loved. When she learned that her prized 100 acres might become part of a regional airport, Helen had mixed feelings. She realized she was facing a $3 million windfall, and a $2.7 million capital gain. Helen was determined to make the best of it. She had never planned to sell the land and had adequate savings for retirement. So the savvy businesswoman asked her professional advisor about channeling the proceeds to charity rather than to taxes and her estate. Helen hoped the money could benefit the environment in some way, perhaps through a private foundation. With guidance from her advisor, Helen weighed her options. While she could deed her property to a private foundation, she would be able to deduct only its cost basis—not its fair market value. But Helen’s advisor told her about an option far more advantageous: deeding the property to a supporting organization with her local community foundation. The community foundation would handle the real estate sale, with all net proceeds funding the new “Shuman Foundation for the Environment.” She would be part of a board of trustees and help make grant decisions, but the community foundation would handle tax investments, reporting, bookkeeping and grantmaking, and correspondence. By deeding the property to the community foundation, Helen would be able to maximize her charitable tax deductions (fair market value, up to 30 percent of adjusted gross income for gifts to public charities) in the first year and carry the unused portions over to subsequent years. Future gifts to the Shuman Foundation for the Environment would qualify for the higher public charity deductions as well (gifts of real estate to private foundations are limited to cost basis, up to 20 percent of adjusted gross income). The choice was clear. Helen was pleased to learn she’d have instant access to expert environmental grantmakers and nonprofit organizations. She would supply passion and ideas for using her gift, but the grantmaking team would be available to share their experience, research, and due diligence. With their support, her job as board chair would be easier and more enjoyable. The community foundation also offered help in setting strategy, researching potential recipients, and even organizing meetings. (continued) Today Helen is chair of the Shuman Foundation for the Environment, a supporting organization that will benefit the environment for years to come. She stays involved at a level that is comfortable for her—applying the know-how she’s honed in the business world to do community good. By partnering with her community foundation, Helen was able to preserve her assets, conserve her time, and protect her beloved environment. Any conservationist would be proud.

Helen would be part of a board of trustees and help make grant decisions, but the community foundation would handle tax investments, reporting, bookkeeping and grantmaking, and

Supporting organization

Asset: appreciated real estate with an original cost of $300,000 Donorâ&#x20AC;&#x2122;s adjusted gross income: $500,000

Cash sale

Private foundation

Supporting organization

Basis of real estate

$3,000,000

$300,000

$3,000,000

Capital gain, if sold

$2,700,000

Charitable deduction n/a (first-year income tax deduction)

$100,000 (20% of adjusted gross income)

$150,000 (30% of adjusted gross income)

Maximum income tax deduction n/a (up to 5-year potential carry forward)

$300,000 (cost)

$3,000,000 (fair market value)

Capital gains tax

$405,000

n/a

Maximum tax savings from charitable deduction (@ 35%)

n/a

$105,000

$1,050,000

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Wealth Management Article

Terminating a private foundation Legal guidelines

With more than 1,000 private foundation startups in the United States every year, it’s not surprising that a significant number dissolve each year as well. Rather than simply granting all assets or incurring a termination tax, many private foundation boards choose to use assets to create a donor advised fund at a community foundation. A recent IRS ruling makes this shift easier than ever.

Background A private foundation is a distinct legal entity. As a nonprofit corporation or charitable trust created and governed by state law, it is exempt from most federal taxes under the Internal Revenue Code. In terminating a private foundation, steps must be taken to satisfy both state and federal requirements. Any family foundation considering termination should seek the assistance of expert legal counsel. State law issues Governed by the laws of the state in which it was established, a private foundation must be terminated in accordance with these laws. This involves two steps. First, the private foundation governing board must make a decision to terminate the foundation. This may involve filing revised Articles of Incorporation or passing a resolution. Second, the termination must be recognized and approved by the state. This may involve giving adequate notice to the state Attorney General, filing the required termination documents, petitioning a court for approval, and seeking tax waivers or clearance. Procedures vary state to state and will differ depending on whether the foundation is a corporation or a trust.

Expert counsel State attorneys general may provide information on their individual state requirements, but a foundation considering termination should seek the advice of expert counsel.

Federal law issues Three options allow a private foundation to terminate its status without paying the confiscatory termination tax imposed under Section 507 of the Internal Revenue Code. The private foundation may:

•

Distribute private foundation assets to existing public charities, including community foundations

•

Convert private foundation to a public charity

•

Transfer private foundation assets to another private foundation

Terminating a private foundation

Distribute private foundation assets to a qualified public charity Section 507(b)(1)(A) of the Internal Revenue Code The easiest way to terminate a private foundation is by distributing all of its assets to a public charity, such as a community foundation, that has been in existence for at least five years and is described in section 509(a)(1) of the Internal Revenue Code. Such a distribution automatically terminates the foundation’s status with the Internal Revenue Service, without the need to take additional action other than filing the foundation’s final Form 990-PF. Revenue Ruling 2003-13, a recent ruling from the Internal Revenue Service, confirms the ease of this form of termination. Revenue Ruling 2003-13 addresses the process for three less-common situations— terminating distributions by a private foundation to a section 509(a)(1) public charity that has not been in existence five years, distributions to a section 509(a)(2) public charity (an organization that gets most of its income from admissions or sales), and distributions to a section 509(a)(3) public charity (a supporting organization). The Revenue Ruling describes a process to follow in these situations, eliminating the need to secure a private letter ruling (PLR). Revenue Ruling 2003-13 also makes it easier than ever to use assets to create a community foundation donor advised fund. •

Private foundations distributing assets to a community foundation five years old or older need not notify the IRS.

•

With the advice of counsel, private foundations can give their assets to a newer community foundation by following the process laid out in the ruling.

•

Private foundations may not impose a material restriction or condition on the recipient charity’s use of the funds. It may define a specific charitable purpose or require acknowl-edgement of the gift, but the recipient’s governing body must be independent of the terminating foundation.

•

Ensuring that the recipient gains complete ownership and control of both the transferred assets and the income they produce is critical to avoiding characterizing restrictions as material.

•

Assets may be used, however, to create a donor advised fund, and the foundation’s board members may be named as advisors to the fund.

A wise investment* Phillip Lewis and Claudia Moore believe strongly in using their good fortune to strengthen the lives of others. Phillip, a successful real estate investor, and Claudia, a sought-after interior designer, built their fortune by purchasing and renovating houses and commercial buildings in urban neighborhoods. In anticipation of their 60th birthdays, they decided to use one of their properties to add to a private founda-tion established from the estate of Claudia’s parents. As they researched the implications of the real estate gift, they realized their tax deduction would be far greater with a donor advised fund at their community foundation. In addition, they realized they could eliminate the headaches and hassles of maintaining a private foundation by transferring these assets to the donor advised fund. Today, the Lewis Moore Fund is helping to build stronger neighborhoods by buying library books, planting trees and building playgrounds… creating a better community for everyone. *This article is not intended as legal advice or as constituting a legal opinion.

Terminating a private foundation

Convert private foundation to a public charity Section 507(b)(1)(B) The most common application of this rule is termination into a supporting organization, often in connection with a community foundation. â&#x20AC;˘

A supporting organization achieves its public charity status by operating to support or benefit a public charity. Rules are complex; competent counsel is a must. The community foundation (or supported organization) must maintain control of the supporting organization. For this reason, the community foundation names at least 51 percent of the supporting organizationâ&#x20AC;&#x2122;s board.

â&#x20AC;˘

This kind of termination takes at least five years. The process begins with a notice to the Internal Revenue Service that the private foundation is terminating into a public charity. The foundation then must continually meet all applicable requirements for public charity status for 60 months from the first day of a taxable year. It is customary to seek an advance ruling from the IRS that the foundation can be expected to successfully complete the termination process.

Transfer private foundation assets to another private foundation Section 507(b)(2) This allows a family to consolidate or divide existing private foundations. It can also be used to convert trust-form foundations into corporations. The general rule in the case of these transfers is that the recipient is given the attributes and characteristics of the transferor. For example, a person who was a substantial contributor of the transferor will continue to be a substantial contributor of the transferee.

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Less tax. More change. Do you have a client who wants to make change happen in their community? We can help.

Less tax. More Change. It is as simple as that. Endow Iowa Tax Credits offer donors to qualified Community Foundations the opportunity for a possible 20% Iowa tax credit on a gift to an endowment fund in addition to the normal charitable deduction. Help your clients make a lasting difference by donating to an endowed fund at the Community Foundation. It can result in less taxes for them and more change for their community. The Community Foundation of Northeast Iowa can help you help them reach their charitable giving goals. Call us today at (319) 287-9106 to learn how.

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Language Excerpts

Testamentary Gift Made Through Wills/Bequests Insert the following scenario to designate distribution of property to a specific fund(s) within the Community Foundation of Northeast Iowa.

Testamentary Gift Made Through Wills/Bequests to an Advised Fund I hereby give, devise, and bequeath the sum of

) or

percent

of the residue of my estate to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the Foundation). This gift shall be held by the Foundation as a separate component fund of the Foundation, which fund shall be known and identified as the

Name of Fund

(the “Fund”). The Fund shall be held and distributed

as follows: A. The Foundation may, in its discretion, accept additional contributions to the Fund from others. B. Income from the Fund shall be distributed for such charitable purposes as the Foundation shall determine to be advisable from time to time. C. The Foundation will make distributions from the total Income of the Fund in accord with the Foundation’s annual determination of its spending policy for the year and in accord with the Foundation’s bylaws. Income from the Fund may be distributed less often than annually whenever the Foundation determines temporary accumulation to be advisable or appropriate. D.

(Name(s) of Advisors)

shall have the right to submit to the

Foundation their recommendations with respect to distributions of income from the Fund. The recommendations made to the Foundation pursuant to this paragraph will be solely advisory, and the Foundation will not be legally bound by them. The Fund shall be administered in accordance with the Foundation’s guidelines applicable to advised funds.

Testamentary Gift Made Through Wills/Bequests to a Designated Beneficiary Fund I hereby give, devise, and bequeath the sum of

) or

percent of the residue of my estate to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the Foundation). This gift shall be held by the Foundation as a separate component, designated beneficiary fund of the Foundation, which fund shall be known and identified as the

Name of Fund

(the “Fund”).

The Fund shall be held and distributed as follows: A. The Foundation may, in its discretion, accept additional contributions to the Fund from others. B. Income from the Fund shall be distributed to

(Name(s) of Nonprofit organization(s) to receive income from Fund)

. The amount distributed to each such entity to be determined by the Foundation in its discretion from time to time. C. The Foundation will make distributions from the total Income of the Fund in accord with the Foundation’s annual determination of its spending policy for the year and in accord with the Foundation’s bylaws. Income from the Fund may be distributed less often than annually whenever the Foundation determines temporary accumulation to be advisable or appropriate. D. Consistent with the terms and provisions of the Foundation’s bylaws, should the Board of Trustees of the Foundation determine that it is not possible to utilize the income from the Fund as restricted, the Community Foundation shall utilize such income for the educational, benevolent, charitable or public purposes as the Board deems appropriate.

Testamentary Gift Made Through Wills/Bequests to an Existing Fund I hereby give, devise, and bequeath the sum of

) or

percent of the residue of my estate to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the Foundation). This gift shall be added to and become a part of the

Name of Fund

(the

“Fund”). (e.g. The General Unrestricted Fund; or The Charlotte and William Hinson Family Fund; or the Operations Fund; or the Youth Interest Fund etc.) The Fund is held as a separate component fund of the Foundation.

Testamentary Gift Made Through Wills/Bequests to a Field of Interest Fund I hereby give, devise, and bequeath the sum of

) or

percent of the residue of my estate to the to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the Foundation). This gift shall be held by the Foundation as a separate component, Field of Interest Fund of the Foundation, which fund shall be known and identified as the

Name of Fund

(the “Fund”). The Fund shall be held and distributed as follows: A. The Foundation may, in its discretion, accept additional contributions to the Fund from others. B. Income from the Fund shall be distributed for the purpose of

(Description of

Purpose; For example, to benefit agencies promoting the arts and cultural affairs in the Cedar Valley Area, the recipient of such grants and the amount thereof to be determined by the Foundation in its sole discretion from time to time) C. The Foundation will make distributions from the total Income of the Fund in accord with the Foundation’s annual determination of its spending policy for the year and in accord with the Foundation’s bylaws. Income from the Fund may be distributed less often than annually whenever the Foundation determines temporary accumulation to be advisable or appropriate. D. Consistent with the terms and provisions of the Foundation’s bylaws, should the Board of Trustees of the Foundation determine that it is not possible to utilize the income from the Fund as restricted, the Community Foundation shall utilize such income for the educational, benevolent, charitable or public purposes as the Board deems appropriate.

Testamentary Gift Made Through Wills/Bequest to an Unrestricted Fund I hereby give, devise, and bequeath the sum of

) or

percent of the residue of my estate to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the Foundation). This gift shall be held by the Foundation as a separate component, undesignated fund of the Foundation, which fund shall be known and identified as the Fund

Name of

(the “Fund”). The Fund shall be held and distributed as follows:

A. The Foundation may, in its discretion, accept additional contributions to the Fund from others. B. Income from the Fund shall be distributed for such charitable purposes as the Foundation shall determine to be advisable from time to time. C. The Foundation will make distributions from the total income of the Fund in accord with the Foundation’s annual determination of its spending policy for the year and in accord with the Foundation’s bylaws. Income from the Fund may be distributed less often than annually whenever the Foundation determines temporary accumulation to be advisable or appropriate.

r. ve

COMMUNITY FOUNDATION

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

Confirmed in Compliance with National Standards for U.S. Community Foundations

16-PA

Language Excerpts Testamentary Charitable Remainder Trust

Insert one of the following scenarios to designate distribution from a Charitable Remainder Trust to specific fund(s) within the Community Foundation of Northeast Iowa. To establish any of these funds, or to develop criteria associated with the establishment of a scholarship fund, please contact the Community Foundation at (319) 287-9106. We look forward to helping you help your clients.

Remainder Disposition to an Existing Fund Upon the death of the donor (donor’s spouse), the non-charitable interests in the trust shall terminate and the trustee shall distribute all of the assets, other than any amounts due to the donor’s spouse, to the Community Foundation of Northeast Iowa, tax ID# 42-6060414, to be added to and become a part of the (Name of Fund) (hereafter referred to as the FUND). The FUND is held as a separate component fund of the Community Foundation of Northeast Iowa

Remainder Disposition to Establish an Unrestricted Fund Upon the death of the donor (donor’s spouse), the non-charitable interests in the trust shall terminate and the trustee shall distribute all of the trust assets, other than any amounts due the donor’s spouse, to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the FOUNDATION), to be held as a separate component fund of the FOUNDATION, which shall be known and identified as the (Name of Fund) (hereafter referred to as the FUND). The Fund shall be held and distributed upon the following terms and conditions: •

The FOUNDATION may, in its discretion, accept additional contributions to the FUND from others.

•

Income from the FUND shall be distributed for such charitable purposes as the Foundation shall determine to be advisable from time to time.

•

The FOUNDATION will make distributions from the total income of the FUND in accord with the FOUNDATION’S annual determination of its spending policy and in accord with the FOUNDATION’S bylaws. Income from the FUND may be distributed less often than annually whenever the FOUNDATION determines temporary accumulation to be advisable or appropriate.

Remainder Disposition to Establish an Advised Fund Upon the death of the donor (donor’s spouse), the non-charitable interests in the trust shall terminate and the trustee shall distribute all of the trust assets, other than any amounts due the donor’s spouse, to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the FOUNDATION), to be held as a separate component fund of the FOUNDATION, which shall be known and designated as the (Name of Fund) (hereafter referred to as the FUND). The Fund shall be held and distributed upon the following terms and conditions: •

The FOUNDATION may, in its discretion, accept additional contributions to the FUND from others.

•

Income from the FUND shall be distributed for such charitable purposes as the FOUNDATION shall determine to be advisable from time to time.

•

(Name(s) of Advisors) shall have the right to submit to the FOUNDATION their recommendations with respect to distributions of income from the FUND. The recommendations made to the FOUNDATION pursuant to this paragraph will be solely advisory and the FOUNDATION will not be legally bound by them. The FUND shall be administered in accordance with the FOUNDATION’S guidelines applicable to advised funds.

Remainder Disposition to Establish a Field of Interest Fund Upon the death of the donor (donor’s spouse), the non-charitable interests in the trust shall terminate and the trustee shall distribute all of the trust assets, other than any amounts due the donor’s spouse, to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the FOUNDATION), to be held as a separate component fund of the FOUNDATION, which shall be known and designated as the (Name of Fund) (hereafter referred to as the FUND). The FUND shall be held and distributed upon the following terms and conditions: •

The FOUNDATION may, in its discretion, accept additional contributions to the FUND from others.

•

Income from the FUND shall be distributed for the purpose of (Description of Purpose; For example, to benefit agencies promoting the arts and cultural affairs in the Cedar Valley Area, the recipient of such grants and the amount thereof to be

determined by the FOUNDATION in its sole discretion from time to time) •

•

Consistent with the terms and provisions of the FOUNDATION’S bylaws, should the Board of Trustees of the FOUNDATION determine that it is not possible to utilize the income from the FUND as restricted, the FOUNDATION shall utilize such income for the educational, benevolent, charitable or public purposes as the Board deems appropriate.

Remainder Disposition to Establish a Designated Fund Upon the death of the donor (donor’s spouse), the non-charitable interests in the trust shall terminate and the trustee shall distribute all of the trust assets, other than any amounts due the donor’s spouse, to the Community Foundation of Northeast Iowa, tax ID# 42-6060414 (hereafter referred to as the FOUNDATION), to be held as a separate component fund of the FOUNDATION, which shall be known and designated as the (Name of Fund) (hereafter referred to as the FUND). The FUND shall be held and distributed upon the following terms and conditions: The FOUNDATION may, in its discretion, accept additional contributions to the FUND from others.

•

Income from the FUND shall be distributed to (Name(s) of Nonprofit organization(s) to receive income from the FUND) . The amount distributed to each such entity to be determined by the FOUNDATION in its discretion from time to time.

•

The FOUNDATION will make distributions from the total income of the FUND in accord with the FOUNDATION’s annual determination of its spending policy and in accord with the FOUNDATION’S bylaws. Income from the FUND may be distributed less often than annually whenever the FOUNDATION determines temporary accumulation to be advisable or appropriate.

•

COMMUNITY FOUNDATION

•

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

Confirmed in Compliance with National Standards for U.S. Community Foundations

A Guide to Using Community Foundation Tools

Release 1.0

National Marketing Action Team a Council on Foundations & Community Foundations of America collaboration promoting community foundations

Community Foundation Portfolio

Professional Advisor

Contents Licensing information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 CD-ROM at a glance

Part One: Ads and handouts

Step One: Preparing your community foundation’s outreach to professional advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Marketing plan Internal alignment PowerPoint ™ presentation Resource catalog Professional advisor questionnaire Database tool

Advisor ads/handouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Advisor Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tools for Giving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Step Two: Presenting to an audience of professional advisors . . . . . . . . . 4 PowerPoint presentation to advisors Advisor ads/handouts Advisor event planning checklist Advisor event invitation Advisor event agenda Advisor event evaluation form Advisor event follow-up letter Step Three: Presenting with professional advisors to their clients . . . . . . 5 PowerPoint presentation to advisor clients Client handouts Client event planning checklist Client event invitation Client event agenda Client event evaluation form Client event follow-up letter CD-ROM structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Part Two: Customizing and producing tools Editing your PowerPoint presentations . . . . . . . . . . . . . . . . . Customizing your PowerPoint presentations . . . . . . . . . . . . . Editing your tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Customizing your tools . . . . . . . . . . . . . . . . . . . . . . . . . . . Printing files at your local office . . . . . . . . . . . . . . . . . . . . . Placing ads in magazines, newspapers, and other publications Printing files at your local print vendor . . . . . . . . . . . . . . . . . Print quote request form . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . .

12 13 15 16 20 21 22 23

Portfolio evaluation Feedback form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

This NMAT project has been funded in part by the Council on Foundations’ Community Foundations Leadership Team, Community Foundations of America, Community Foundations R&D Incubator, Ford Foundation, W.K. Kellogg Foundation, Knight Foundation, Kresge Foundation, Lilly Endowment, C.S. Mott Foundation, Northwest Area Foundation and Packard Foundation. Special thanks to members of the League of California Community Foundations and community foundation members of the Council of Michigan Foundations for their contributions to the strategic direction, content and design of several items in this portfolio. The National Marketing Action Team (NMAT) is a joint effort of the Community Foundations Leadership Team of the Council on Foundations (the Council or COF) and Community Foundations of America (CFA). NMAT is charged with providing strategic leadership to increase and strengthen the national and local presence of community foundations by identifying key target audiences and implementing effective communications strategies, activities and programs. © 2002

Council on Foundations and Community Foundations of America

Community Foundation Portfolio

Professional Advisor

Licensing information Electronic files released on the Community Foundation Professional Advisor Portfolio CD-ROM (Release 1.0) are products of the National Marketing Action Team (“NMAT”) and are copyright 2002 by the Council on Foundations (“the Council or COF”) and Community Foundations of America (“CFA”). By installing, copying, downloading, accessing, or otherwise using this Product (as defined herein), you agree to be bound by the terms of this Software License Agreement (the “Agreement”). If you do not agree to the terms of this Agreement you may not access, use, transfer, or copy the Product, and you should promptly contact the Council or CFA for instructions to return the Product. 1. License. The Professional Advisor Portfolio CD-ROM files provided by NMAT to you with this Agreement contain computer software, which may also include “online” or electronic documentation and other printed materials (together called the “Product”). Upon your acceptance of the terms of this Agreement, NMAT, the Council and CFA hereby grant to you a non-exclusive license to use the Product in accordance with the terms and conditions of this Agreement. 2. Permitted Uses. Subject to the restrictions contained in this Agreement, you may make, install, and customize a reasonable amount of copies of the Product for your internal use. However, each full or partial copy of the Product you make must contain all trademark, copyright, and proprietary information notices contained in the original Product. Customization and editing of the Product is allowable, as long as alterations do not substantially change the meaning or intent of the messages communicated. The Product is for use solely by community foundations.

3. Prohibited Uses. Except as expressly authorized herein, you agree not to rent, lease, assign, transfer, modify, or merge the Product, in whole or in part, in any way prohibited by law. An entity that is not a community foundation shall not be permitted to use the Product. 4. Copyright; Trademarks. All title, copyright, and intellectual property rights in and to the Product, and the accompanying printed materials, are owned by the Council and CFA or its suppliers. All rights not expressly granted under this Agreement are reserved by the Council and CFA and its suppliers. 5. Term. Your license shall terminate immediately in the event that you fail to comply with any of the terms or conditions contained herein. The Limitations of Warranties and Liability set out in Section 6 below shall continue in force even after any termination. 6. Limitation of Warranty and Liability. The Council and CFA do not warrant that the Product is error-free. The Product is provided on an “as-is” basis, without any other warranties or conditions, expressed or implied. The entire risk as to the results and performance of the Product is assumed by you. Neither the Council nor CFA shall have any liability to you or any other person or entity for any indirect, incidental, special, or consequential damages whatsoever. As with any external communication, it is advisable for your legal counsel to review all materials prior to distribution or use. The Council and CFA’s maximum aggregate liability to you and that of NMAT’s dealers and suppliers shall be limited to the replacement of the Product.

-2-

7. Miscellaneous. This Agreement is the complete agreement among the parties and supercedes and replaces all prior negotiations and agreements with respect to the subject hereof. If any provision hereof is held to be unenforceable, this Agreement shall be construed without such provision. This Agreement shall be governed by and construed in accordance with the laws of the District of Columbia without regard to its conflict of law principles. This Agreement may be amended only by a written document executed by duly authorized representatives of both the Council and CFA.

THIRD-PARTY LICENSING AND COPYRIGHT INFORMATION Photos Photographs released on this CD-ROM are all royalty-free images, purchased for use solely in conjunction with the layouts and materials provided on this CD-ROM. They may not be shared, copied, resized, manipulated, or redistributed for any other purposes. Fonts As copyrighted material, fonts cannot be legally provided on this CD-ROM for distribution purposes. To purchase a copy of the fonts used in these layouts (News Gothic, Minion, and Minion Ornaments), please contact the manufacturer of these fonts, Adobe Systems Incorporated. To view fonts online and order/download them, visit www.adobe.com. Layout software Tools located in the “Production” folder have been created in QuarkXPress ® 4.10 (Macintosh), a common desktop publishing/ graphic design software program. Adobe, Acrobat and Illustrator are registered trademarks of Adobe Systems Inc. Microsoft, Windows and PowerPoint are trademarks and/or registered trademarks of Microsoft Corporation. Macintosh is a registered trademark of Apple Computer, Inc. All other trademarks are property of their respective owners.

Community Foundation Portfolio

Professional Advisor

Step One: Preparing your community foundationâ&#x20AC;&#x2122;s outreach to professional advisors 1. Marketing plan This strategic marketing plan offers step-by-step assistance in targeting professional advisors, developing relationships with them, tracking information and measuring success. It provides the big-picture approach, and guides you in use of the rest of the components of this portfolio.

4. Professional advisor questionnaire This document can be used with advisor contacts to gauge their current understanding and involvement with charitable giving and community foundations. Read this first

5. Database tool This database-starter contains an advisor profile template and a valuation spreadsheet. This tool assists community foundation staff in documenting professional advisor relationships and tracking client and advisor referrals.

2. Internal alignment PowerPoint presentation This presentation is designed to explain the value of developing partnerships with professional advisors to members of your community foundationâ&#x20AC;&#x2122;s board and staff. It provides team leaders a tool to communicate the basic information they need to embark on a professional advisor outreach and use their individual roles to advance this common goal. 3. Resource catalog This document is a guide to best practices and references to help community foundations build relationships with the professional advisor audience.

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Community Foundation Portfolio

Professional Advisor

Step Two: Presenting to an audience of professional advisors 1. PowerPoint presentation to advisors

3. Advisor event planning checklist

This presentation provides an introduction to community foundations and focuses on the benefits of professional advisor-community foundation relationships.

This checklist allows you to plan your advisor event without missing a detail. 4. Advisor event invitation This letter invites professional advisors to your seminar and is designed to inform them about the value and details of attending. This invitation must be customized with the details planned by your community foundation.

2. Advisor ads/handouts You can use this variety of promotional and educational materials with advisors as discussion starters, in advisor informational packets, and as handouts during presentations. These tools are described in more detail on pages 8 through 10.

5. Advisor event agenda This template internal agenda outlines your professional advisor seminar and is designed to assist you in the preparation and delivery of your seminar. 6. Advisor event evaluation form This form helps your community foundation collect seminar feedback from your advisor audience. 7. Advisor event follow-up letter This template letter helps your community foundation follow up with advisors who attended your event.

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Community Foundation Portfolio

Professional Advisor

Step Three: Presenting with professional advisors to their clients 1. PowerPoint presentation to advisor clients

5. Client event agenda

This presentation provides an introduction to community foundations and their unique features and benefits.

This template internal agenda outlines the seminar that your community foundation and professional advisor will present together. It is designed to assist your community foundation and professional advisor in the preparation and delivery of the seminar.

2. Client handouts You can use these educational materials with advisors and their clients. These tools are described in more detail on page 10.

6. Client event evaluation form This form helps your community foundation collect seminar feedback from your advisor client audience.

3. Client event planning checklist This checklist helps you to plan your client event without missing a detail.

7. Client event follow-up letter 4. Client event invitation

This template letter helps your community foundation follow up with the advisor clients who attended your event.

This letter invites the clients of professional advisors to a seminar, presented jointly by your community foundation and its professional advisor partner. It is designed to inform clients about the value and details of attending. This invitation must be customized with the details planned by your community foundation and its professional advisor partner. (Note: an alternate client invitation, available as a QuarkXPress (Macintosh) file is also available on this CD-ROM.)

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Community Foundation Portfolio

Professional Advisor

CD-ROM structure The chart at right lists all elements available on the Professional Advisor Portfolio CD-ROM. As the chart illustrates, the CD-ROM contains two main folders: a Foundations folder for viewing and printing .pdf files and Microsoft ® Office-based files; and a Production folder containing Macintosh-based QuarkXPress® files of the tools that your local graphic designer or print vendor can use for customization and print production. Before using the items included on the CD-ROM, please open and read the “readme.txt” file, which contains important Portfolio usage information and guidelines.

Foundations

Read me file Contains important Portfolio usage information File name: readme.txt

Professional Advisor Portfolio An electronic version of this document File name: PA guide.pdf

Step(s)

Marketing plan Internal alignment PowerPoint™ presentation Resource catalog Advisor questionnaire Database tool

Intended audience f staf CF

Preparing for outreach to advisors

s isor Adv

PAplan.doc PAinternal.ppt PAresource.pdf PAquest.doc PAdata.xls

– – – – --

1 1 1 1 1

x x x

PAlist.doc PAinvite.doc PAagenda.doc PAintro.ppt PAeval.doc PAlttr.doc

-----–

2 2 2 2 2 2

1advad.pdf 2advad.pdf 3advad.pdf

1advad.qxd 2advad.qxd 3advad.qxd

2 2 2

x x x

1advtool.pdf 2advtool.pdf 3advtool.pdf 4advtool.pdf

1advtool.qxd 2advtool.qxd 3advtool.qxd 4advtool.qxd

2 2 2 2

x x x x

1core.pdf 2core.pdf 3core.pdf

1core.qxd 2core.qxd 3core.qxd

2, 3 2, 3 2, 3

x x x

– A7envelope.qxd A7invite.qxd A7rsvp card.qxd – – – –

3 3

3 3 3 3

/ ors Don pects s o r p

x x

Advisor event materials Advisor planning checklist Advisor invitation Advisor agenda What is a Community Foundation? presentation (advisors) Advisor evaluation form Advisor follow-up letter

x x x x x

Advisor ads/handouts

Should your clients give through their community foundation? How can I recommend charity without recommending a charity? Is giving through a community foundation right for your clients?

Also on this CD-ROM

Production

Advisor Tools Giving advice on charitable giving Listening for charitable opportunities Flexible charitable vehicles. Effective financial solutions. Multiple benefits of charitable giving Tools for Giving About Our Community Foundation Charitable Funds Overview Charitable Instruments Overview

x x x

Advisor client event materials Macintosh Adobe Acrobat Reader 4.05a Enables users to view and print PDF files File name: Reader 4.05a Installer

Advisor client planning checklist Advisor client invitation

AClist.doc ACinvite.doc

Windows Adobe Acrobat Reader 4.05c Enables users to view and print PDF files File name: rs405eng.exe

Advisor client agenda What is a Community Foundation? presentation (advisor clients) Advisor client evaluation form Advisor client follow-up letter

ACagenda.doc ACintro.ppt ACeval.doc AClttr.doc

For technical assistance, please contact your local graphic design/production resource, or call (800) 727.2357.

-6-

x x x

Community Foundation Portfolio

Professional Advisor

Part One Ads and Handouts

Community Foundation Portfolio

Professional Advisor

Advisor ads/handouts These ads are designed to create awareness of the features and benefits of your community foundation and to reinforce your community foundation’s local relationships with professional advisors.

Audience • Professional advisors Suggested uses • Ads for placement in local advisor publications • As freestanding displays or message boards • As handouts when meeting with advisors

These ads should be customized with your local identity to be used in your promotional efforts as ads in local publications, as handouts for advisors, or as freestanding displays.

File name: 2advad.qxd (prints one side)

File name: 1advad.qxd (prints one side)

File name: 3advad.qxd (prints one side)

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Community Foundation Portfolio

Professional Advisor

Advisor Tools Estate planners, financial consultants, and other professional advisors are often asked to suggest the best vehicles for charitable giving. These tools are designed to help professional advisors understand the unique features of community foundations, and how community foundations can help advisors help their clients achieve personal charitable giving goals.

Audience • Professional advisors Suggested uses • Give to advisors when meeting with them individually or in small groups • Combine with other items to create an advisor portfolio • Use as discussion starters

Giving advice on charitable giving: This tool is designed to help professional advisors understand the benefits of working with community foundations. This piece clearly positions community foundations as a resource to help them talk with their clients. Listening for charitable opportunities: This document was developed to help professional advisors identify and talk about charitable giving opportunities with their clients.

File name: 1advtool.qxd (prints two sides)

File name: 2advtool.qxd (prints two sides)

File name: 3advtool.qxd (prints two sides)

File name: 4advtool.qxd (prints two sides)

Advisor stories: These two advisor stories are testimonials from professional advisors who have experienced the value of working with community foundations. These testimonials help position your community foundation as a collaborative resource with personalized donor services that enable clients to achieve charitable goals.

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Intended outcomes • Advisors begin to model peers who regularly introduce the subject of charitable giving • Advisors understand how the community foundation can satisfy both their needs and the needs of their clients • Advisors are better able to identify charitable opportunities for their clients

Community Foundation Portfolio

Professional Advisor

Tools for Giving Three core tools from the Tools for Giving series explain community foundation features and products in clear, concise, consistent language.

Audiences • Donors • Prospects (including community groups) • Professional advisors

About Our Community Foundation: This tool, which must be customized locally, describes facts and distinct benefits of your community foundation.

Suggested uses • Charitable gift discussion support • Mailing, with letter • Handout for prospective donors

Charitable Funds: Briefly describes four opportunities for donors to tailor their giving by contribution to an Unrestricted, Field of Interest, Designated, or Donor Advised Fund. Charitable Instruments: Highlights the most common giving methods accepted by community foundations — outright gifts, bequests, remainder trusts, and lead trusts.

File name: 1core.qxd (prints two sides)

File name: 2core.qxd (prints one side)

File name: 3core.qxd (prints one side)

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Intended outcomes • Educate advisors and donors about types of community foundation products • Help advisors and donors understand personal, flexible, donor services in a simple way • Help community foundation staff communicate the value of products clearly and consistently

Community Foundation Portfolio

Professional Advisor

Part Two Customizing and Producing Tools

Community Foundation Portfolio

Professional Advisor

Editing your PowerPoint presentations It is important that you deliver a presentation reflective of your community foundation and customized with local information and images.

Slides in the What is a Community Foundation? presentation featuring content that must remain intact in intent and meaning

While you may make minor edits to the entire presentation, there are certain sections that have been worded carefully by a committee representative of community foundations nationwide and validated nationally — these sections should not be modified in a way that changes meaning or intent. You may use these sections in their entirety, or elect not to use them in your presentation. If you have already designed a PowerPoint presentation, you may choose to insert content from this presentation into your current design.

Definition of a community foundation (Note: you may customize the mission statement, or second paragraph)

“Ten Reasons” section

“Three Features” section

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Community Foundation Portfolio

Professional Advisor

Customizing your PowerPoint presentations Personalize the presentation with local facts and pictures. Show pictures of your board and local examples of grants. Try to show images of people that might be recognized by your audience. Understand your audience. When planning for a presentation, try to find out in advance who will be in the audience and what their interests are. Then, tailor the presentation appropriately (e.g., if your audience is family oriented, discuss the ability to set up a fund and involve their children in recommending grants).

Leave time for discussion and questions. There is usually abundant information to share about your community foundation, but always leave time for audience discussion and questions. It keeps your audience engaged, shows that you’re interested in meeting their specific needs, and can help identify opportunities for follow-up with people who want more information. Be sure everyone in your audience understands how and where they can get more information. After the presentation, try to get feedback and engage in conversation with a few of the audience members, and have next steps in mind.

(Customize this slide with local data) • This chart helps illustrate all the areas of community need we supported last year. • It really begins to demonstrate our ability to address a broad range of issues and opportunities. • [Point out important numbers and examples]

Build a donor story database. In addition to customizing the slides with your local identity and information, document a series of local donor stories. Then share the two or three stories most relevant to the audience. Determine meeting logistics in advance. • Find out in advance the room size and setup, and to approximately how many people you will be presenting. Is the room big enough for the audience? Can seating be arranged differently to better engage the audience? • Find out how much time you will be given to make the presentation. If you only have 15 minutes, then present only a few slides that will be most relevant to the audience. Stick to the time allotted… it shows you are sensitive and respectful to the audience’s needs, and they may give you permission to extend the timeframe if they are interested in learning more.

Plan your technology needs and resources. • Will you present using an LCD projector or will you present from paper handouts? • If applicable, always identify and test the computer you will be using before you get to the presentation site. • If you make edits to the presentation on a computer different from the one you will be using for the presentation, know how you will save and transfer the PowerPoint file to another computer (the file size is too large to save to a regular floppy disk). • Have a backup plan in case technology fails (e.g., use paper handouts). Capture names and contact information. Create a sign-in sheet or collect business cards to keep track of people to whom you’ve presented and to build your database. Be sure to capture any key learnings or interests identified by an individual.

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• Each of these areas directly impacts quality of life for people throughout our community. Our community foundation is unique in our ability to impact so many diverse areas. Our donors’ past, present, and future gifts will allow us to continue to improve and make [our city/area] a wonderful place for our generation, our children, and our children’s children. That’s what we are all about. [click]

Helpful hint To view a PowerPoint script, pull down “View” menu, and select “Notes Pages.” To print, select “Notes Pages” in your print dialog box.

Community Foundation Portfolio

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Customizing your PowerPoint presentations At right are illustrations of the slides within the advisor and advisor client presentations that must be customized with your local community foundationâ&#x20AC;&#x2122;s information, identity, and/or statistics. In addition, you may choose to substitute your custom photography for the stock photography in the presentation. Insert your foundation logo/ positioning statement

Insert your community name and mission statement

Insert your foundation history/name

Insert your statistics/information

Insert photo/list of board members

Insert your grant award information and redraw pie chart

Insert your grant examples

Section begins â&#x20AC;&#x201D; create your own local donor stories in this section

Insert your logo, positioning statement and address

Helpful hints The customizable slides are the same in both the advisor presentation and the advisor client presentation. To save time, you can customize the slides in one of these presentations, then cut and paste them into the second presentation. Electronic slides should not be copy-intensive. Include only the important facts in short phrases; the presenter should expound upon and further clarify the points that appear on screen. Use the slides provided here as a guide for determining the length of headlines and copy points. Personalize your presentation with local facts and photos. Electronic art files: Use the .gif file format for your logo; use the .jpg file format for photographs. Plan ahead. What computer will be used for the presentation? Have you tested the presentation on this computer? Will you be using a projection device? Do you have printouts of the presentation â&#x20AC;&#x201D; a back-up plan in case of a technology glitch?

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Community Foundation Portfolio

Professional Advisor

Editing your tools It is important that you use tools reflective of your community foundation and customized with local information. While you may make minor edits to the tools, there are certain sections that have been worded carefully by a committee representative of community foundations nationwide and validated nationally — these sections should not be modified in a way that changes meaning or intent. You may use these sections in their entirety, or elect not to use them. If you have already designed tools, you may choose to insert content from these tools into your current design. You may make minor edits to the body content of the Tools for Giving sheets. You may not change the meaning or intent of the “Ten Reasons” listed on the reverse. You may use this layout as a template for creating your own tools.

You may not make any changes to the story content of the advisor stories. You may make minor edits to the Giving Advice on Charitable Giving document. You may use this layout as a template for insertion of your own advisor stories.

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You may change the photos within ads to more accurately reflect demographics in your area. You may not edit the heading and subheading of these ads. You may make minor edits to the supporting copy.

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Customizing your tools Production information Tools on the CD-ROM have been created in QuarkXPress速 (version 4.1, Macintosh), a common desktop publishing/ graphic design software program. In addition to needing access to this program, you will need two fonts in order to customize your tools: Minion and News Gothic. While licensing agreements prohibit the distribution of these fonts on this CD-ROM, most print vendors should own licensed copies of both fonts. If you need to purchase your own licensed copies of Minion and News Gothic for tool customization, contact Adobe Systems Incorporated (www.adobe.com).

Place your logo and contact information in this area, or attach a business card

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Community Foundation Portfolio

Professional Advisor

Customizing your tools Advisor client invitation As part of Step Three, you are given the option to customize, produce and mail out an invitation in one of two formats â&#x20AC;&#x201D; as a Microsoft Word letter-sized document, or as an invitation and envelope with a reply card insert (files are in QuarkXPress 4.1, Macintosh platform). Contact your local graphic design resource or print vendor to help you customize the QuarkXPress version.

A7 size invitation (outside front)

Reply card insert (front side)

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A7 size invitation (inside panel)

Reply card insert (back side)

Community Foundation Portfolio

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Customizing your tools Typography

News Gothic

Minion and Minion Ornaments

The typography chosen for the community foundation program consists of two typefaces: News Gothic and Minion.

News Gothic Regular ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

Minion Regular ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

At right are samples of the two typefaces. It is suggested that community foundations purchase these typefaces and use them in local materials to help establish visual consistency throughout all marketing materials.

News Gothic Oblique ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

Minion Italic ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

News Gothic Bold ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

Minion Semibold ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

News Gothic Bold Oblique ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

Minion Semibold Italic ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890

Both the News Gothic and Minion typefaces may be purchased by contacting the manufacturer/distributor, Adobe Systems Incorporated. To view fonts online and order/download fonts for both Macintosh and Windows, visit www.adobe.com. Licenses for both fonts can be purchased for about $200.

Minion Bold ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890 Minion Bold Italic ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz !@#$%^&*() 1234567890 Minion Ornaments

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Community Foundation Portfolio

Professional Advisor

Customizing your tools Considerations for producing your tools Print production options: making the right choice There are several options for producing print materials to meet your local needs and budget. You can print the tools at your office (laserjet or inkjet printer, copy machine) or use a local print vendor (lithographic/digital printer or copy center) to help you produce them. Electronic files of all of the tools have been included on the Portfolio CD-ROM. Choose your production formats and options based on the quantity you need, your community foundation’s budget, lead time available, and the image you want to portray. Use the table at right to help you decide which method is best for your community foundation.

How many do I need?

What is my budget?

How much time will it take to produce?

Print at your own office

1–100 copies

One day (usually black and white)

Print at copy center

100–500 copies

A few days

Use a local print vendor

500 copies +

$$$

One to two weeks

A few things to consider Use of color. Communications printed in color have a greater visual impact and therefore are more likely to be read. Color can also increase the readers’ ability to remember what they have read. Use of paper. Whether printing from your office laserjet or at your local print vendor, the paper used can have an impact on the perceived value of a piece. Heavier papers tend to increase the value (and also the cost). Make sure that the weight of the paper is not too heavy to run through a laser printer.

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Quantity. If you have materials printed at your local print vendor, consider printing enough for a full year; it’s more cost effective. Each time you get something printed, you are paying a “setup” charge, regardless of how many copies you print. When determining print quantities, be sure to add enough for your advisors to distribute to their clients.

Consistency. We suggest you mix and match tools to create customized packets for your various professional advisors. However, it’s a good idea to match printing methods and paper on all tools whenever possible for a consistent appearance.

Community Foundation Portfolio

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Printing files at your local office For your own viewing and small-quantity printing needs, the CD-ROM contains Adobe Portable Document Format files, commonly called .pdf files. These files are “read-only” and cannot be edited or customized, but you can attach a business card to printouts of the files, if you wish. Virtually any computer can open .pdf files using Adobe Acrobat ® Reader. Adobe Acrobat Reader 4.05 is included on the CD-ROM. Please follow the instructions at right to install this version of the software on your system. Once Adobe Acrobat Reader 4.05 has been successfully installed, you can open any .pdf file by double-clicking on its file name. Files can be viewed on screen at various sizes (percentages of enlargement), or printed using an inkjet or laserjet printer. Note for Windows users: If you are experiencing problems when printing an Adobe .pdf file (i.e., text running together without proper spacing), try selecting “print as image” in the print dialogue box.

Installing Adobe Acrobat Reader 4.05c Windows® 95/98/ME, Windows® 2000/XP 1. Insert the CD-ROM into your computer’s CD-ROM drive. 2. Go to “My Computer”; click on CD-ROM drive (usually the “D” or “E” drive). 3. Find the Acrobat Reader icon entitled “rs405eng.exe” to start the installation process. 4. Follow the on-screen instructions to install the program.

Installing Adobe Acrobat Reader 4.05a Macintosh® 1. Insert the CD-ROM into your computer’s CD-ROM drive. 2. Double-click on the CD-ROM icon. 3. Find the Acrobat Reader icon entitled “Reader Installer” to start the installation process. 4. Follow the on-screen instructions to install the program.

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Community Foundation Portfolio

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Placing ads in magazines, newspapers, and other publications The ads included on this CD-ROM are formatted to fit an 8 1⁄2" x 11" page, so that they match the size of all the other tools and can be printed out on laser printers using standard-sized paper. Since the trim sizes of magazines and other periodicals vary, the ads must be adjusted to accommodate the particular dimensions of each publication. This type of adjustment can be done by your graphic design resource; it is also a service offered by many print vendors.

Placing ads: production tips

1. Using the CD-ROM, open a .pdf file and print out a copy of the ad you want to run. This will show the advertising representative how the ad should look. 2. Send the following items to the publication’s advertising representative: – Photocopy of the page illustrating the ad you want to run — include the file name – The CD-ROM – A crisp, high-quality version of your community foundation’s logo. Provide either an electronic file (.tif or .eps art file) or camera-ready artwork – Your foundation’s contact information, which will be typeset by the publication 3. Explain that your logo should appear in the designated area, along with your contact information (see page 16). Request to review a proof with your logo and contact information in place. 4. Confirm placement, frequency, and price. 5. Ask the representative to return the CD-ROM to you when production is complete.

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Community Foundation Portfolio

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Printing files at your local print vendor Tips for working with your local print vendor The CD-ROM has been designed for you to use with the professional printer of your choice. After planning a tool usage strategy, follow the steps below to customize and produce materials for your community foundation. 1. Some of the external tools on this CD-ROM are designed for print production and are QuarkXPress (Macintosh) files that your local graphic designer or print vendor can help you customize and produce. Print out a copy of each tool you want to produce by using the .pdf files on the CD-ROM. Use these .pdf printouts to show your vendors what the tools look like. Note that some tools print on one side only, while others print on two sides. 2. Take the following items to your print vendor: – Printout of the pieces you want to produce – The CD-ROM – A crisp, high-quality version of your community foundation’s logo. Provide either an electronic file (.tif or .eps art file), or camera-ready artwork – Your foundation’s contact information, which can be typeset by your print vendor 3. Explain that your logo should appear in the designated area, along with your contact information. Request to review a proof with your logo and contact information in place. 4. Request a print quote following the procedure described in the box at right. 5. Tell the printer how many copies you need and when you need them.

Obtaining a print quote. Before printing a piece, it’s wise to obtain a quote. This requires a basic understanding of the variables that determine the cost of a print job (see next page). Quantity

Paper

An important note about fonts

Budget constraints may lead you to conclude that you should print fewer pieces for a lower print bill. However, you should always consider the unit cost. Printing a larger quantity lowers the unit cost. For example, if you print 1,000 pieces at a total cost of $1,000, the unit cost is $1 each. If you print 2,000 pieces, the total cost might increase to $1,500, while the unit cost is reduced to $0.75 each. This is because much of the cost of printing is in the initial setup of the job. You pay the same “setup fee” regardless of the number of pieces you print.

Paper choice can significantly affect the cost of the job. Your printer can help you choose the appropriate weight, grade, color, and finish options for each piece. Your printer understands how to specify paper if you communicate your budget and your intended usage of the piece. If you plan on running preprinted tools through your laser printer to “imprint” them with your logo at a later time, be sure to tell your vendor — he or she should specify a lasercompatible sheet.

The fonts used in all community foundation ads and tools are Minion and News Gothic. Because of font licensing restrictions, it is not possible to distribute fonts on this CD-ROM. Most print vendors should own or be able to obtain a licensed copy of these fonts, and can use them to customize and produce your tools.

Delivery dates

Inks The pieces on the CD-ROM may be printed in four-color, in two-color, or in black only. Your printer can compare prices for the same piece in both color and black only. It’s up to you to determine how much you are willing to spend for the added impact of color.

6. Ask the printer to return the CD-ROM with the finished product. - 22 -

Planning adequate time in the production schedule can save money. Some printers have rush charges for printing within a shorter-than-standard timeframe. One to two weeks is usually adequate for typical print projects, but check with your printer ahead of time.

If you wish to purchase your own licensed copy of these fonts to customize the tools, contact the manufacturer/distributor, Adobe Systems Incorporated. To view the fonts online and order/download them, visit www.adobe.com.

Community Foundation Portfolio

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Print quote request form Use this form as a guide for a conversation with your print vendor. Fill out all the information that you can; your printer can make recommendations where you are uncertain about the specifications.

Project name Quantity Number of inks Number of pages Size flat Size trimmed Paper stock(s) Binding Release date Delivery date Other

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Community Foundation Portfolio

Professional Advisor

Portfolio Evaluation Feedback Form

Community Foundation Portfolio

Professional Advisor

Feedback form Please use the form below to help us evaluate the Portfolio. We ask that each community foundation CEO fill out the form after having used the materials for three months. Please fax the form to the number listed at right. Your experiences and evaluation of the local tools will allow us to identify key learnings that will influence the development of future communications products.

FAXBACK INFORMATION Tracy Dunn Council on Foundations fax (202) 835.2732

1. Your community foundation name (for follow-up purposes):

tel (202) 467.0292

e-mail nmat@cof.org

6. How user-friendly did you find this portfolio of tools, in terms of the technology involved?

2. Overall, how well is the Portfolio working for your community foundation? Very well

Somewhat well

Not at all well

7. Were the following tools effective with the audiences listed in the matrix below? (Check all that apply.)

(If you answered Somewhat well or Not at all well, please explain your answer.)

3. After using these tools, do you have any suggestions for how they might be improved?

Staff/volunteer training

Professional Advisors

Current Donors

Potential Donors

PowerPoint presentations

□

Ads/handouts

□

Advisor Tools

□

Core marketing tools

□

8. Please rate the overall usefulness of each internal product: 4. Do you have any experiences to share about how you have used the tools effectively?

5. Do you have any suggestions (based on these tools) for the development of future communications products that would better meet your needs?

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Very useful

Somewhat useful

Not at all useful

Marketing plan

□

Resource catalog

□

Event planning materials

□

Other:

□

Community Foundation Portfolio Professional Advisor Release 1.0

The National Marketing Action Team (NMAT) is a joint effort of the Community Foundations Leadership Team of the Council on Foundations (the Council or COF) and Community Foundations of America (CFA). NMAT is charged with providing strategic leadership to increase and strengthen the national and local presence of community foundations by identifying key target audiences and implementing effective communications strategies, activities and programs.

ÂŠ 2002

Council on Foundations and Community Foundations of America

Adobe, Acrobat, Illustrator, and PostScript are registered trademarks of Adobe Systems Inc. Microsoft, PowerPoint, Windows, Word are trademarks and/or registered trademarks of Microsoft Corporation. Macintosh is a registered trademark of Apple Computer, Inc. Pantone is a registered trademark of Pantone, Inc. All other trademarks are property of their respective owners.