DEEP IN THE
HE ART of GIVING
™
C O M M U N I T I E S F O U N D AT I O N of T E X A S
COMMUNITIES FOUNDATION of TE X A S is one of more than 700 community foundations in the United States. A community foundation is a tax-exempt public charity serving all those who are interested in improving the quality of life in their region and beyond. Individuals, families, businesses and organizations can create funds through a community foundation to support charities and nonprofits working to meet local and national challenges. Children pictured here play at Klyde Warren Park, a project funded in part from funds at Communities Foundation of Texas (CFT).
Table of C O N T E N T S : Why give? Seven ways we make giving easier Types of funds Ways to establish a fund Benefits of a donor-advised fund
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Services for fund holders Donor stories Comparison of donor-advised funds and private foundations
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Nor th Texas GIVING DAY
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An annual event presented by CFT, North Texas Giving Day is the nation’s largest online giving event. It is dedicated to raising money for North Texas nonprofits. Bonus funds are provided by CFT and other local foundations, corporations and individuals. During the 2014 event, $26.3 million was raised for 1,580 North Texas nonprofits, bringing the six-year total to $86 million. The event at CFT’s headquarters features donation stations and nonprofit performers, such as dancers from Dallas Black Dance Theatre (pictured).
WH Y G IV E? Our depth of resources, charitable expertise, proven history and commitment to the community enable us to amplify your giving. We connect donors to the causes that move them, empower businesses to do good, strengthen nonprofits and foster an ever-expanding culture of giving with a heart as big as the great state we call home.
deep H I S T O R Y With more than 60 years of experience as a steward of charitable funds, Communities Foundation of Texas is a respected philanthropic leader not only in Texas, but across the nation.
deep T R U S T Whether you establish a fund with a current or a future gift (such as a bequest), our expert staff will manage your fund, steward its successful growth and ensure your charitable intent is met.
deep C O M P A S S I O N Charitable funds at Communities Foundation of Texas are a perfect way for you and your family or business to make life better for others. These funds create a lasting legacy. They are a wonderful way to give back to the community in a significant manner and can be permanent if you wish.
deep K N O W L E D G E Working with both donors and nonprofits and awarding more than 5,000 grants per year, we have deep knowledge of the North Texas community. Our breadth of community knowledge comes from regularly assessing 3,000 nonprofits, advising on giving and volunteering, focusing on special issues, and convening leaders to learn about and solve pressing issues.
deep C O M M I T M E N T Every donor’s charitable goals, personal passions and tax planning needs are unique. Our expert philanthropy staff will help you develop a giving approach that fulfills your vision and suits your financial situation while having the greatest possible impact on the community.
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Cause -Minded CONVERS ATIONS
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CFT holds many speaker series, seminars and other events that can help donors find and connect with causes that move them, and stay informed about key issues. Pictured, a student listens to a panel discussing education at a Cause-Minded Conversation, which is part of an informal and educational event series held at CFT that brings together nonprofit leaders and key stakeholders to discuss important topics impacting our community.
SE V EN WAY S
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we make giving easier
S T R E A M L I N E D Process
We handle all paperwork and administrative details associated with managing charitable assets and granting money to the nonprofits you care about.
F L E X I B L E Timing
You are eligible for a tax deduction when you make a contribution to CFT, and then you can take the time needed to make grants that produce the greatest impact.
T R A C K Gifts
Through CFT online, you can quickly review and track gifts to your fund and grants to nonprofits you support.
T R U E to your M I S S I O N
Should a nonprofit go out of business or radically change its mission, we can help redirect your fund’s grants to follow your original goals.
F O L L O W your C H A R I T A B L E I N T E N T
Similarly, if the needs behind a cause you support change, we can help identify another area of interest.
I N V E S T M E N T Advantages
With larger assets than most nonprofits, we participate in some of the best investment opportunities. We also can handle gifts of more complex, noncash assets.
T R U S T W O R T H Y Stewardship
Trust your charitable legacy to an organization that is fiscally responsible, knowledgeable and dedicated to ensuring that all funds continue to make a positive impact for as long as you wish.
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T Y PES OF FUNDS
at Communities Foundation of Texas
D O N O R - A D V I S E D Funds Donor-advised funds are established by individuals and families who wish to participate actively in the grantmaking process. You establish a donor-advised fund with a gift of $10,000 to $100 million or more. Then you can recommend grants from that fund to the charitable projects or organizations you want to support. It is easy to give to multiple nonprofits through a donor-advised fund, either locally or wherever your interests may lead.
B U S I N E S S - A D V I S E D Funds When you create a business-advised fund, we can support your company’s goals with a full spectrum of services, including grantmaking, due diligence, site visits and community updates. Business-advised fund holders qualify for membership in Entrepreneurs For North Texas (EFNT), CFT’s program that makes it easy for companies to do good through philanthropy, service and networking.
D E S I G N A T E D Funds Establishing a designated fund allows you to support the good work of a specific organization that has touched your life. Because we handle the details of managing the fund, the nonprofit organization’s staff can stay focused on its mission.
S C H O L A R S H I P Funds Scholarship funds can be structured to benefit students at any education level or institution. A scholarship fund can also be created to honor a loved one.
A G E N C Y Funds Nonprofit organizations establish funds with us to grow assets to meet both current and future needs. They look to our board of trustees for strong investment oversight services and ask our staff to manage all of the administrative details. It frees the nonprofit to focus on what it does best in the community.
F I E L D O F I N T E R E S T Funds Field of interest funds are often established to support particular interest areas, specific program initiatives, causes or geographic areas. At your request, use of the funds by CFT is restricted to a particular area of interest. You give the financial resources and the general field to support, and we select the grantees through our thorough due diligence, application and review process.
U N R E S T R I C T E D Funds Unrestricted funds are established when donors give to the foundation and entrust CFT to use the money in ways that strengthen our local community.
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Donor Spotlight: THE P OP OLO FA MILY Communities Foundation of Texas donor-advised fund holder Chris Popolo, pictured with her daughter Kit. Chris and her husband Joe are committed to involving their children in their family’s philanthropy.
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WE ARE MORE than just a financial partner. We’re a hub for philanthropy, a champion of nonprofits, a gathering place and a catalyst for positive change in the community. We provide community initiatives like North Texas Giving Day and Cause-Minded Conversations at our headquarters in Dallas. In addition, our headquarters is available for our donors and partners to host meetings and small gatherings.
We can work with you. INDIVIDUAL S • Leverage our assets and investment expertise to grow your charitable dollars • Create a personal giving plan with the help of our knowledgeable staff • Use our community knowledge and specialized tools to further your philanthropic goals
BUSINESSES • Work with our experts to create a charitable program that complements your business goals • Outsource the work of your corporate foundation to us • Join Entrepreneurs For North Texas (EFNT) to build your employee culture and business success through philanthropy, volunteering and networking
P R I VAT E F O U N DAT I O N S • Outsource your nonprofit vetting to our philanthropic services team • When you need more time to make thoughtful grants at year-end, let us help you • Convert to a donor-advised fund at CFT, reducing expenses and realizing greater tax deductions for gifts into your fund
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Ways to
ES TA B L ISH A FUND What to Give You can establish a fund at Communities Foundation of Texas by donating current or deferred assets. In addition to cash and marketable securities (stocks, bonds and shares of mutual funds), we work with our donors and their professional advisors to facilitate the contribution of complex assets, such as those listed below.
C L O S E L Y H E L D and R E S T R I C T E D S T O C K Contributing closely held or restricted stock can be a cost-effective way to maximize philanthropic options while minimizing tax liability.
O I L , G A S and M I N E R A L R I G H T S Oil and gas assets or mineral rights can be given to CFT for your charitable fund.
G I F T S of L I F E I N S U R A N C E Your fund at CFT can be named as a beneficiary or contingent beneficiary of a life insurance policy. Alternatively, a life insurance policy that is no longer needed may be contributed during a donor’s lifetime.
B U S IN E S S /PA R T N ER S H IP IN T ER E S T S A donor can contribute a whole or partial interest in an investment or business.
R E A L E S TATE A gift of real estate may be a principal residence or vacation home, a farm, a commercial building, a subdivision lot or unimproved land.
RETIREMENT PL AN ASSETS Your fund at CFT can be named as a beneficiary or contingent beneficiary of a retirement plan such as an IRA or 401(k).
TA N G IB L E PER S O N A L PRO PER T Y Examples of tangible personal property include rare books, furniture and artwork, which can be liquidated to support your favorite charities.
Planned Gifts In addition to passing assets to loved ones, your will or trust can also be used to define your charitable legacy. We accept gifts through charitable trusts, charitable gift annuities, bequests, and honorary and memorial gifts. 810
Benefits of a
D ONOR-A DV ISED FUND Simple
Flexible
• Bring strategy and structure to giving
• Stay personally involved in grantmaking
• Use CFT staff to support your charitable giving goals
• Experience greater tax benefits and flexibility with fewer administrative burdens than setting up a private foundation
• Receive one tax receipt
• Invest with more than 950 other component funds and more than $1 billion in assets • Donate diverse types of assets
Expert Vetting
Easy to Open
• Leverage CFT community experts who review more than 3,000 nonprofit grants annually
• Talk with our staff to outline charitable interests and terms of your fund
• Benefit from due diligence conducted on nonprofits
• Select a name and investment option for your fund
• Use the Giving Guide, a resource for making gifts to local nonprofits for targeted projects
• Give a tax-deductible donation to the fund and begin granting to worthy nonprofits
NONPROFITS
DONOR-ADVISED FUNDS: HOW THE Y WORK
Receive grants and guidance from CFT
DONORS
Establish funds and recommend grants
CFT
Invest and grow funds Advise on charitable impact Provide due diligence on nonprofits
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Fund Spotlight: J OELLYN SMITH FUND FOR BRE A S T C ANCER SUPP ORT
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Joellyn Smith was always a strong proponent of helping those in need. After she passed away from breast cancer, her husband Dan approached us for guidance on how to honor her memory. Together we created the Joellyn Smith Fund for Breast Cancer Support and matched him with the Bridge Breast Network, which fit Dan’s vision to provide practical support to low-income uninsured women. Joellyn Smith always made philanthropy a priority in her life. Thanks to her loving family and support from Communities Foundation of Texas, she is still giving back today.
Ser vices for
FUND HOL DERS Our team specializes in providing grantmaking services to donors, external private foundations and corporate partners for various levels of philanthropic giving. Your charitable investment can be structured in the most financially prudent way, and we will ensure that it achieves great emotional and civic benefit.
Inspiration to define your cause Our Philanthropic Services team will work with your family or company to identify your giving style, passions and desired results. We can help you develop a charitable mission. Based on what is important to you, we highlight community issues and help you formulate strategies to respond to these needs. In addition, we provide ongoing evaluations of your strategic grants to ensure that your original intent is fulfilled.
Grantmaking expertise Through the grantmaking process, our team can manage the day-to-day activities of your charitable giving by providing a wide range of services that include, but are not limited to: • Determining if an organization is eligible for a charitable grant • Making or arranging site visits to explore agency capabilities • Preparing grant agreements • Collecting and evaluating grantee reports
Hub for Philanthropy CFT serves as a partner alongside donors, nonprofit organizations and businesses to make our community better. Fund holders are invited to take advantage of the following: • Cause-Minded Conversations are informal and educational events bringing together nonprofit leaders and key stakeholders to discuss important issues impacting our community. • Entrepreneurs For North Texas (EFNT) is a CFT program that facilitates community involvement and philanthropy for small and mid-size companies that want to make a beneficial impact in their communities in a way that’s good for their business. • GiveWisely is a series created for people coming into their own philanthropically and financially who want to develop a clear, thoughtful plan around their or their family’s giving that reflects their core values. • North Texas Giving Day is an annual online event that has pumped more than $86 million into the local nonprofit community since 2009, benefiting 1,580 organizations in 2014 alone. • The Giving Guide is a key tool for CFT donors and their families to use when making decisions on how to make an impact locally. • The CFT building is available for fund holders to host meetings and small gatherings.
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D ONOR Stories
THE GR ANVILLE C . AND GL ADYS H . MORTON FUND
Donor-Advised Fund Granville C. Morton, creator of Morton’s Potato Chips, gave to many causes throughout his life. Today, his granddaughter, Meredith Woodworth (pictured here), is continuing his legacy by advising on grants from The Granville C. and Gladys H. Morton Fund at CFT, which has granted $23 million since 1982. Woodworth recently recommended a grant to the Fellowship of Christian Athletes, whose mentors become life coaches to young athletes, teaching integrity, character, leadership and teamwork. “He wanted to make Dallas a better place,” Meredith said. The man who started out making snacks now nourishes countless lives through his generous legacy.
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ENCORE ENTERPRISES CHARITABLE FUND
BRIDGES SCHOL ARSHIP FUND
Scholarship Fund
Business-Advised Fund Thanks to philanthropic-minded leadership, commercial real estate investment firm Encore Enterprises has always been a company committed to giving. As an Entrepreneurs For North Texas (EFNT) Member Company, they have participated in numerous service projects, including Freedom Day (pictured above). They also opened a fund at CFT to help manage the logistics of their giving and leverage CFT’s resources and know-how. They use their fund to predominantly make charitable donations to US-based nonprofits and also to nonprofits focused on the South Asian community within Dallas and India.
The Schwitter family sent their children to Bishop Lynch High School and loved the sense of community and top-notch education they received. Realizing that not every family can afford a private school education, they established the Bridges Scholarship Fund at CFT to provide the opportunity to students of average academic achievement and great financial need. The scholarship covers tuition, books and fees for the entire four years of private high school and is awarded to two 9th-graders every year. The Bridges Scholarship Fund also provides college scholarships to graduating seniors. To date, the Bridges Fund has granted over $2 million in scholarships.
W hat do you hold DEEP IN YOUR HE ART ? Some donors give because they have a vision of a brighter future, shaped by challenges they have overcome. Others are motivated by family members and friends who have inspired them. Many are moved by deep convictions, or by pure, profound compassion.
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Speak with us about opening a fund today, and we can work with you to translate your hopes, dreams and ideals into tangible results that transform communities.
PE ARL C . ANDERSON FUND
Desig nated Fund
MICHELLE & HOUS TON HALL FUND
Private Foundation Alternative The first major gift to the Communities Foundation of Texas came from Pearl C. Anderson, an AfricanAmerican grocer and physician’s widow. Growing up in rural Louisiana, Pearl was not allowed to go to the racially segregated school a few miles away, and there was no school for black children. When such a school was finally built, Pearl felt that she owed a debt to those who made it possible for her to get an education, and she vowed that she would one day pay it back. Her gift to the Communities Foundation of Texas kept her promise, and her fund is still changing lives today. The fund recently made a grant to the S.M. Wright Foundation’s Community Tutoring Center, where Ms. Betty Curl (pictured above) has been tutoring at-risk children for over 40 years.
It’s hard to overstate the effect Margarita De Necochea had on Calexico, California. An unceasing advocate for lower-income children and education, “Mrs. D” spearheaded the initiative to save the historic Carnegie Library, worked as a high school librarian to nurture the college dreams of thousands of students, and for decades actively supported San Diego State University. Mrs. De Necochea’s daughter, Michelle Hall (pictured above), wanted to honor her mother’s memory by continuing her generous tradition. Through the donor-advised fund she and her husband, Houston, established with CFT, Michelle is furthering many community projects that her mother would have supported. The Halls originally did this work through a private foundation but found that a CFT fund was more effective. “We converted our private foundation to a donor-advised fund at CFT. What a great alternative!”
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Comparison of
D ONOR-A DV ISED FUNDS PRIVATE FOUNDATIONS POINTS TO CONSIDER
DONOR-ADVISED FUND at CFT
PRIVATE FOUNDATION
LEG AL IDENTIT Y
Component fund at Communities Foundation of Texas
Separate nonprofit entity
TA X S TATUS
Public charity
Private charity
DONOR INVOLVEMENT
Donor recommends investment allocation and grants to nonprofits, which are approved by CFT
Donor appoints board which controls investments and grantmaking; subject to IRS requirements
PRIVAC Y
Donor may be anonymous
Asset and grant information is public
MINIMUM CONTRIBUTION
$10,000
Typically, several million dollars
ANNUAL CHARITABLE PAYOUT
Not applicable; no artificial timeline
At least 5% of assets
IRS REP ORTING
CFT handles collectively
Annual IRS Form 990 filed with required reporting schedules
LIABILIT Y and RISK INSUR ANCE
Provided by CFT
Purchased by the foundation
FIDUCIARY RESP ONSIBILIT Y
CFT fulfills
Board fulfills
TA X DEDUC TIONS I N CO M E TA X D E D U C T I O N S for C A S H G I F T S
Up to 50% of adjusted gross income
Up to 30% of adjusted gross income
I N CO M E TA X D E D U C T I O N S for A P P R EC I AT E D S TO C K G I F T S
Fair market value up to 30% of adjusted gross income
Fair market value up to 20% of adjusted gross income
I N CO M E TA X D E D U C T I O N S for R E A L E S TAT E and C LO S E LY H E L D S TO C K G I F T S
Fair market value up to 30% of adjusted gross income
Cost basis up to 20% of adjusted gross income
ADMINIS TR ATION AND G R ANTM AKING G R A N TM A K I N G
CFT assists donor in identification and vetting of nonprofits
Establishes and supports a grantmaking and monitoring structure
A D M I N I S T R AT I O N
Services provided by CFT
Accounting, investments and IRS filings handled by foundation
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and
TA X DEDUC TIONS S TA R T-U P CO S T
None
Varies with size and complexity
S E R V I C E and I N V E S TM E N T FE E S
Moderate
Varies with size and complexity
E XC I S E TA X E S
None
Subject to an excise tax of up to 2% net investment gain, including net capital gain and income
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