Creative Giving
AUGUST 2010
Community Foundation of Northeast Iowa
www.cfneia.org
High earners can convert to Roth IRA in 2010 You may know that starting in 2010, individuals with income above $100,000 can now convert their traditional IRAs to Roth IRAs. Your clients who take advantage of this opportunity to create a source of tax-free income for their retirement years may pay significant tax when they make the conversion this year. Offsetting Roth IRA conversion taxable income by making a major charitable gift may be worth considering for communityminded individuals. Timing a charitable gift to coincide with a Roth conversion may allow them to remain in a lower tax bracket and receive a sizeable deduction—while establishing their philanthropic legacy. The Community Foundation of Northeast Iowa welcomes your questions and ideas on this opportunity to combine a smart tax strategy with community good. For example, your client may want to establish a Donor Advised
Fund this year and recommend grants to causes he or she cares about for years to come. You may know other clients who plan to make charitable gifts through their estate… but can now experience the joy of giving during their lifetime. The Community Foundation of Northeast Iowa can answer any questions you have about our services, the Roth IRA conversion, and helping your clients help the community. Call us at (319) 287-9106. Roth IRA Conversion Regular Income $200,000 Roth IRA Conversion 100,000 Normal Deductions (11,400) Charitable Deduction Exemptions (7,300) Taxable Income $281,300 Federal Taxes* $70,610
PLUS Charitable Gift $200,000 100,000 (11,400) (100,000) (7,300) $181,300 $39,008
*Does not reflect personal exemption phase out and itemized deduction limitation.
$232,516 awarded to Black Hawk County nonprofits The following nonprofit agencies serving Black Hawk County received a Spring 2010 discretionary grant from the Community Foundation: ARC of Cedar Valley ASPIRE-TRP, Inc. Association of Fundraising Professionals- NE Iowa Chapter Black Hawk County Sheriff’s Office Bosnian Cultural Foundation (KUD Kolo) Boys and Girls Club of Black Hawk County Cedar Valley Chamber Music Festival Cedar Valley Preschool and Child Care Center Children’s Cancer Connection Community United Child Care Centers, Inc. East Side Ministerial Alliance El Centro Latinoamericano Elk Run Preschool
For good. For ever.
Family Management Credit Counselors First Children’s Finance Friends of National Cattle Congress From the Heart 56% Hawkeye Community College Junior Achievement of Eastern Iowa, Inc. La Porte City Crosslines Food Closet Lutheran Services in Iowa, Inc. National Alliance on Mental Illness of Black Hawk County North Cedar Elementary School North Star Community Services Northeast Iowa Center for Independent Living Operation Threshold Price Laboratory School
Human Services
18%
Health
9% 10% & Development
7% Arts & Culture
Salvation Army Together for Youth/Allen Women’s Health UNI Student Association of Middle Level Educators University of Northern Iowa Foundation Volunteer Center of Cedar Valley Waterloo Community Playhouse Waterloo-Cedar Falls Symphony Orchestra Youth Sports Foundation of the Cedar Valley
Community Foundation of Northeast Iowa: Creative Giving, AUGUST 2010
PRESIDENT & CEO Mary Ann Burk
CHAIR OF THE BOARD
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Community Foundation of Northeast Iowa
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AUGUST 2010
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Creative Giving
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of Northeast Iowa Established in Waterloo/Cedar Falls in 1956
PO Box 1176 Waterloo, IA 50704
319.287.9106
www.cfneia.org
Chuck Shirey
PROFESSIONAL ADVISORY COMMIT TEE Mark Rolinger, Chair John Larsen
Counties We Serve
Theresa Hoffman Heather Gunderson Mike Rickert Robert “Bob” Smith David Sparks Roger Neumann Steve Weidner
Confirmed in Compliance with National Standards for U.S. Community Foundations.
Helping your clients help their community. w www.cfneia.org
Is giving through a community foundation right for your clients? Seven questions for estate and financial advisors: 1. Do I have clients who care deeply about their local community? 2. Do they give to more than one charitable cause? 3. Are they interested in creating a personal or family legacy in their community? 4. Are they considering the creation of a private foundation, but concerned about cost and administrative complexity? 5. Would they like to stay personally involved in the use of their gift dollars?
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COMMUNITY FOUNDATION
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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 their local community foundation. We’d be happy to help you make an introduction.
“A gift to the Community Foundation can take many different forms. It’s a highly flexible, very personal way to give.” ~ Mark Rolinger,
Attorney in Black Hawk County
Established in Waterloo/Cedar Falls in 1956
For more information about how we can help you help your clients, call us at (319) 287-9106 or visit www.cfneia.org.
For good. For ever.
Community Foundation of Northeast Iowa: Creative Giving, AUGUST 2010