Author: ckcfadmin

2024 Scholarship Season a Success!

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What a successful scholarship season! CKCF and affiliates together granted $111,150 to 100 students from 58 competitive scholarship funds in the 2024 scholarship cycle. El Dorado Community Foundation had the largest amount of scholarships awarded at $28,200, and Halstead Community Foundation came in close behind, granting $21,900 and they also had the most open competitive scholarships this 2024 cycle and 16 scholarship recipients.

With the rising costs of education and other living expenses, scholarships are a vital component in educating the youth in our communities. It is not too late to speak with us about taking the first steps in establishing your own scholarship or adding your donation to an existing fund.

Did you know that scholarships & educational funds make up nearly 23% of funds held by CKCF? Your generosity makes a world of difference as you will see in the note below.

“My name is Quinn Houseman, I am a graduate of El Dorado High School, and I plan to major in Mechanical Engineering at Wichita State University in the fall. I am writing to express my heartfelt gratitude upon being selected as a recipient of the George Trimble Special Need Fund for the Fall 2024 semester. Your generous support is not only seen as a financial aid, but as inspiration and encouragement to further my studies. This scholarship has significantly eased my financial burden and has allowed me to explore the capabilities of my education. Thank you once again for your generosity and investment in my future. I am truly honored.”

Thank you!

Donor Connection – July.2024

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Tax laws up in the air, philanthropy personalities, and forward-worthy reading material

Hello from the community foundation!

In this issue, we’re covering topics that tend to be popular as we head into the second half of the year. The summer months are a great time to regroup with your family about your charitable giving plans and also ensure that you’re coordinating with your advisors to accomplish key estate and financial planning priorities before the year-end rush is upon us.

–Election years are interesting for many reasons! For philanthropists and their advisors, election years can be tricky because it’s impossible to predict what might happen with the tax laws. That’s certainly the case in 2024. The community foundation can help you and your advisors navigate various approaches to charitable strategies, even when the tax laws themselves are up in the air.

–Whether you’ve been involved in philanthropy for many years or you’re just starting out on your charitable giving journey, you’ve likely noticed that there are many, many ways to support the causes you love. The community foundation can help you evaluate various giving vehicles based on your own “charitable giving personality type.”

–The team at the community foundation wants to help you help your advisors stay up-to-date on legal and tax developments that might impact the charitable giving components in your estate and financial plan. We’re happy to offer tips and reading material to share with your attorneys, accountants, and financial advisors, and our team is always available to join a discussion.

Whether you’ve already established a donor-advised or other type of fund at the community foundation, arranged for a bequest to the community foundation, or are currently evaluating whether to work with the community foundation, we are here for you! Please reach out anytime to review your charitable plans. We’re here to help you make a difference in our region and support local nonprofits that are working every day to improve the quality of life for so many people. Thank you for the opportunity to work together!

–Angie Tatro, CKCF CEO

Up in the air: Charitable planning in a shifting tax landscape

It’s an election year, which means you may have more questions than answers as you work with your advisors to build out your financial and estate plans. In particular, the looming sunset of key provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 has created a tremendous amount of ambiguity.

For many taxpayers, the potential sunset of the TCJA’s higher estate tax exemption is top of mind. Unless Congress intervenes, the exemption is set to fall after December 31, 2025 from roughly $27 million per couple to approximately $14 million per couple (depending on inflation adjustments).

No one has a crystal ball, and it is impossible at this point to know whether or when you should implement planning strategies to address potential changes in the law. Nevertheless, if you are among those who would be affected by the estate tax exemption’s precipitous drop, it’s important to know that charitable strategies can fit nicely into a gifting plan that would help offset the sunset’s impact.

If you’re a business owner, for example, you could explore launching a gifting program now to transfer shares of the business not only to your heirs to take advantage of the higher exemption, but also to a donor-advised or other fund at the community foundation. With these gifts, you could reduce the value of your taxable estate while also executing a business transition and philanthropy plan that aligns with your overall intentions regardless of the tax laws.

Along those lines, some families may decide to lean into annual exclusion gifts ($18,000 per gifting spouse per recipient in 2024) to family members and other individuals to reduce taxable estates without eating into the lifetime gift and estate tax exemptions.

If you’re considering ramping up your annual exclusion gifts, you might consider adopting a parallel strategy for charitable gifts. Gifts to charities are deductible for gift and estate tax purposes (as well as for income tax purposes) and therefore will also reduce the value of your taxable estate without using your exemption. Some philanthropists report that they like the idea of making annual exclusion gifts to family members, and, while they’re at it, making stock gifts of an equal amount into a donor-advised fund at the community foundation.

Given the uncertainty about what might happen with the estate tax exemption, some people are updating their estate plans to increase a bequest to a donor-advised or other fund at the community foundation. This would help blunt the impact of estate taxes, and the bequest can be adjusted during lifetime as planning goals and estate tax laws evolve.

The community foundation is here for you! Our team is happy to help you navigate the opportunities and pitfalls presented by potential changes in the tax law. It is our pleasure to work with you and your family to maximize your charitable goals.

Philanthropy: It’s not one size fits all

Charitable giving traditions are a big part of many peoples’ lives. The ways philanthropic values translate into action and behavior, however, vary widely from person to person. And that’s a good thing! When you align your charitable giving activities with your own personality and the ways you like to do good, you’ll enjoy it a lot more and as a result, you’ll be more likely to get even more involved with your favorite causes.

Indeed, your choice of the causes you support may be based on personal experiences or even how you view your character. You may also find that philanthropy fosters personal growth and self-discovery. Some people find that getting involved in the community creates opportunities for networking and building relationships based on shared values and goals.

That’s why it’s important to acknowledge that not everyone likes to “do good” in exactly the same way. To figure out what mix of charitable activities might best suit your personality, consider reflecting on whether you tend toward an ”investor,” “connector” or “activator” profile.

Here’s what it might look like to be an “investor” type of philanthropist:

  • You like to get involved in community activities where you can act independently, rather than scheduling dedicated time.
  • You may feel that you often have more money than time.
  • You’re happy to write a check or purchase a product that supports a cause.

If you tend toward the “connector” type, this may describe your preferences:

  • You like community activities where you can collaborate with friends and family.
  • You enjoy the opportunity to meet people who care about a variety of causes, not necessarily a specific charity.
  • You like attending charities’ fundraising events, and you might even regularly promote your favorite causes on social media.

If you’re an “activator” type, here’s what that could look like:

  • Your philanthropic passion lies with one or two specific causes.
  • You like the idea of playing a small part in “changing the world” and impacting a single issue that could potentially benefit society on a broad scale.
  • You might enjoy serving on charities’ boards of directors.

Whatever your personality type, the community foundation can help! Whether it’s setting up a donor-advised fund to organize your giving, working with you and your advisors to establish a legacy bequest, or getting your family and friends involved in site visits to favorite charities, we’re here for you!

Summer reading that’s worth a forward

Every week, the team at the community foundation works with a wide range of charitably-minded individuals and families who are either already working with the community foundation or are considering establishing a donor-advised or other type of fund to organize their giving. We also talk with attorneys, accountants, and financial advisors as they work alongside charitably-minded clients. Indeed, many advisors are telling us that they’re taking advantage of summer’s slower pace to get a jump on 2024 tax planning and estate plan updates.

As you work with your advisors over the next few months, be sure to let them know that the community foundation can serve as the hub of your family’s philanthropy by administering a wide range of charitable giving vehicles, including:

  • Donor-advised funds, which are frequently a better fit for your family than a private foundation
  • Field-of-interest funds and designated funds, which enable you to support specific causes and organizations and, if you are 70 ½ or older, can receive a tax-savvy “Qualified Charitable Distribution” from your IRA
  • Bequests and other legacy gifts to help ensure that the causes you’ve supported during your lifetime can continue to benefit from your generosity for years to come
  • Unrestricted gifts to support the community foundation’s work to grow philanthropy and improve the quality of life in our region across generations, especially as community needs evolve

Along these lines, some of you have requested that we provide a reading list to pass along to your advisors to help them stay up-to-date on legal and tax issues impacting charitable giving. Here are a few suggestions you could forward to your advisors:

  • For advisors working with clients who support higher education, it’s important to stay on top of the tax treatment of NIL collectives. The team at the community foundation is happy to talk with your advisors about what’s going on here and how they can follow best practices.
  • It’s becoming more and more popular for philanthropists to explore giving cryptocurrency to charitable causes. Encourage your advisors to reach out to the team at the community foundation as they encounter this issue with clients.
  • A focus on donor intent is especially important as cautionary tales emerge in case law. The community foundation is committed to helping advisors help their clients achieve charitable goals. Our knowledgeable staff and independent board of directors are dedicated to carrying out donors’ philanthropic wishes.

As always, please let us know if you’d like our team to be part of a conversation with your advisors. We welcome the opportunity to serve as the go-to charitable giving resource as you build a comprehensive financial and estate plan that includes philanthropy.

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation. 

Donor Connection – June.24

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Hello from the community foundation!

We can hardly believe the year is nearly halfway over. It’s been such a pleasure to talk with so many donors and fund holders about all the ways you are pursuing your charitable giving plans for 2024. We’re equally inspired by those of you who have reached out to learn more about getting involved with the community foundation by setting up a donor-advised fund, field-of-interest fund, endowment fund, or bequest to align with your charitable priorities.

In this issue, we’re covering a few topics that we think are especially appropriate for summertime.

–Midyear is a wonderful time to check in on a quick punch list of “need-to-know” charitable giving tips. We’ve selected six items that every charitably-minded person really ought to be aware of, whether for purposes of current giving or future giving. You can scan our list of six items in six minutes or less!

–Summer is a great time to dive into deeper reading, while at the same time take a big picture look at industries and issues. We’re doing just that–with philanthropy. Check out our recommendations for studies and articles about the global role of philanthropy and how it hits home through the work of the community foundation.

–It’s not summer without sports! Fittingly, we’re sharing three ways to look at philanthropy as a team effort and perhaps inspire you to add an even bigger dose of collaboration to your charitable giving efforts. Supporting the community, like many worthwhile activities, is better when it’s done together.

Thank you for the opportunity to serve you and other donors and fund holders who care about our community and strive to invest in both present and future needs of our region. We are committed to growing philanthropic resources to improve the quality of life across generations.

With Gratitude,
Angie Tatro, CEO CKCF

Six for the summer: Mid-year reminders about charitable giving

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Welcome to summer! We’ve put together six tips to keep in mind as you plan your charitable giving for the coming months, years, and even decades. As always, the team at the community foundation is happy to be a resource!

Donate appreciated stock to your fund at the community foundation.

Yes, yes, we absolutely understand how easy it is to write a check when you want to boost your donor-advised or other type of fund at the community foundation. If you can remember to pause before you pull out your pen, though, it really does pay off to consider whether appreciated stock would be a better way to add to your charitable giving account. When you give shares of long-term appreciated stock, you can be eligible for a charitable tax deduction at the fair market value of the shares. Then, when the community foundation sells the shares and adds the proceeds to your fund, the fund–a 501(c)(3) charity–is not hit with capital gains tax. By contrast, if you were to sell those shares and give to your fund from the proceeds, you’d have a lot less cash to work with. Please reach out to the community foundation anytime to learn more about how easy it is to take advantage of this tax-savvy giving technique.

Plan ahead for your business exit.

If you own all or part of a private business, keep in mind that charitable giving can factor into your eventual exit strategy. You could be sitting on substantial unrealized capital gains if the business has grown a lot over time. Upon a sale, capital gains tax will be triggered, reducing the proceeds you get to keep. No capital gains tax will apply, however, to the sale of the portion of the business owned by your donor-advised or other type of fund at the community foundation. Plus, you can be eligible for a charitable income tax deduction in the year of the transfer based on the fair market value of the shares–not the cost basis, as would be the case if you’d transferred the shares to a private foundation. Keep in mind that a strategy like this only works with careful planning, so be sure to contact the community foundation team well in advance of setting a plan in motion. We are happy to work with you and your advisors to help achieve your charitable and financial goals.

Start paying attention now to the estate tax exemption sunset. 

The estate tax exemption–the total amount a taxpayer can leave to family and other individuals during their life and at death before the hefty federal gift and estate tax kicks in–is scheduled to drop, rather precipitously, after December 25, 2025. For 2024, the estate tax exemption is $13.61 million per individual, or $27.22 million per married couple, an increase over 2023 thanks to adjustments for inflation. Later this year, the IRS will issue inflation adjustments for 2025. For 2026, without legislation to prevent it, the exemption is scheduled to fall back to 2017 levels, adjusted for inflation, which would roughly total $7 million per person. That is quite a drop! This means a lot more people–maybe including you–could be subject to estate tax in the not-too-distant future. The team at the community foundation is happy to work with you and your advisors to explore how charitable giving techniques can help you avoid estate tax and leave a legacy for the community, especially if you start planning now.

If you can take advantage of the QCD, do it.

A Qualified Charitable Distribution (“QCD”) is a very smart way to support charitable causes. If you are over the age of 70 ½, you can direct up to $105,000 from your IRA to certain charities, including a field-of-interest, designated, unrestricted, or scholarship fund at the community foundation. If you’re subject to the rules for Required Minimum Distributions (RMDs), QCDs count toward those RMDs. Through a QCD, you avoid income tax on the funds distributed to charity. Our team can work with you and your advisors to go over the rules for QCDs and evaluate whether the QCD is a good fit for you.

Review your IRA beneficiary designations. 

As you review your assets and how they are titled, perhaps in connection with an annual financial and estate plan review, pay close attention to tax-deferred retirement plans such as 401(k)s and IRAs. Typically, you’ll name your spouse as the primary beneficiary of these accounts to provide income following your death or to comply with legal requirements. But as you and your advisors evaluate whom to name as a secondary beneficiary of these tax-deferred accounts, don’t automatically default to naming your children or your revocable trust. You and your advisors may determine that naming a charity, such as your fund at the community foundation, is by far the most tax-efficient and streamlined way to make gifts to your favorite causes upon your death and establish a philanthropic legacy. A bequest like this avoids not only estate tax, but also income tax on the retirement plan distributions. That’s why non-retirement fund assets may be better-suited to pass to children and grandchildren.

Embrace a holistic approach to philanthropy.

When you work with the community foundation, charitable giving is easy, flexible, and rewarding. As the hub of your charitable giving, the community foundation offers a wide range of fund types, services, and ways for you and your family to get involved with the community you love. Many of our fund holders use a donor-advised fund to organize annual giving to charities. We can also help you establish a designated or field-of-interest fund to complement the function of your donor-advised fund. A designated fund allows you to support a specific charity over the long term, while a field-of-interest fund focuses your support on a particular area of community need by leveraging the community foundation’s expertise. We’d also be honored to work with you and your advisors to structure a bequest to the community foundation in your estate plan to support important causes, as well as the community foundation’s work, beyond your lifetime. We are here to help you make the most of your philanthropic intentions, and it is an honor to work together.

Philanthropy snapshot: A global priority with local impact 

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Summertime can mean vacations, travel, a slower (or at least different) pace, and time to reflect. This year, our team is thinking quite a bit about the significant role of philanthropy across the world and how that widespread enthusiasm drives so much energy for charitable giving right here at home.

If you’re spending time this summer reflecting, you might enjoy digging into a few of the sources we found thought-provoking,

–We really like this post from “across the pond” that analyzes why people give and synthesizes a variety of research studies and articles. Altruism, ego, social dynamics, and FOMO are just a few of the reasons people are motivated to give to charity. For a broad look at the role of philanthropy across the globe, you can check out Indiana University’s research.

–Every June, Giving USA releases its annual statistics on the state of charitable giving. We are looking forward to the 2024 report and digging into the numbers from 2023. Last year’s report showed that while individual giving was down, major gifts were ticking up. We’re curious to see what’s changed!

–Some say context is everything, and that may be why we always enjoy going back to the Smithsonian’s Giving in America exhibit and online resources. Even in its semi-archived and “under construction” format, the site is captivating; every time we revisit the site, something different catches our eye. (This time, we were struck by the side-by-side images from 2014’s Ice Bucket Challenge and the collection box from the early 1800s. And by the way, how can nine years have gone by since the Ice Bucket Challenge?)

–Coming full circle back to our local community, we’d love to draw your attention to what’s going on this summer at the community foundation. View our calendar of events HERE.

As always, the community foundation is here for you! We are honored to work with you and your family as you support the causes in our region that are most important to you. You are making a difference!

Philanthropy: A team sport

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At first glance, you may think of charitable giving as mostly an individual act. Certainly, most of the time, the actual money or asset that constitutes the charitable donation comes from a single person, couple, or entity. Beyond that, though, it likely makes sense to think of charitable giving as a collaborative endeavor.

Here are three examples:

–Serving on the board of directors of a charitable organization is a rewarding activity for many people. And, many people complement their board service with financial support. Dialogue among board members, leveraging board members’ talents, and collective board oversight are important components of a well-run nonprofit organization. Charities are counting on board members’ objective voices in the boardroom, board members’ constructive questions, and the board’s dedication to ensuring that public trust in the charity is maintained.

–For many people, involving other family members in charitable giving is one of the most rewarding ways to instill philanthropic values and transfer these values across generations. Whether you’re teaching young children about the importance of helping people in need, or joining with siblings to develop a grant-making strategy for a family donor-advised fund at the community foundation, you’re experiencing the joy of working together to make a difference in the lives of others.

–Working with the community foundation is itself a collaborative activity. When you organize your giving through a donor-advised or other type of fund, you are working with multiple professionals on our team to help you plan your annual gifts, evaluate impact, structure tax-savvy contributions of appreciated stock, and so much more. Plus, the community foundation team often works alongside your attorney, accountant, and financial advisor to ensure that both your financial and community goals are top of mind.

Thank you for the opportunity to work together to make our region a better place for everyone, now and in the future. If you’re not yet working with the community foundation, we look forward to exploring the options! It would be an honor and pleasure to work alongside you and your family on your charitable giving journey.

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation. 

New Hire for Fredonia Area CF

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Kelly Azevedo
Fredonia Area Community Foundation,
Associate Director

Kelly Azevedo was born in Wichita and raised in California before moving to Fredonia in 2020. She holds a Bachelors in Business Management and Communications from Liberty University where she competed on the debate team. After ranking 4th nationally in her division for 3 years, Kelly transitioned to helping coach novice debaters and fell in love with teaching others how to succeed.

Kelly started her career in construction management and accounting working with firms around California where she lived to take care of aging grandparents. In 2009, she began working virtually for online businesses who needed structure and support but did not live locally.

For the past 15 years, Kelly has owned and managed a coaching and consulting business, working with hundreds of entrepreneurs from all over the world. Specializing in business systems, marketing and creating compelling stories, Kelly is excited to use her skills to share the message of the Community Foundation and grow its impact in Fredonia.

When she’s not working, Kelly is busy renovating her 120-year old home and training (or trying to!) her new dachshund puppy who loves Zoom calls and acting as the official office shredder of any paper that falls within his reach.

New Hire for Halstead CF

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Julienne Erwin
Halstead Community Foundation,
Associate Director

I’m excited to join the Central Kansas Community Foundation team as the Associate Director of the Halstead Community Foundation. With an MPA in non-profit management, I am passionate about serving in the non-profit sector. My volunteer experience includes volunteering at Children’s Home Society of Florida, North Florida Legal Services, city wide special events such as the Chef Sampler and Brewfest, 2-1-1 Big Bend, and as an AmeriCorp VISTA. A combined 8 years (volunteer and employment) at 2-1-1 Big Bend fueled my passion to help others and concreted my resolve to create positive change in my community and beyond. I recently relocated to Kansas to be closer to my immediate family and it is such a joy to begin serving the Halstead community. When you see my smiling face, please don’t hesitate to say hello. You never know what we might accomplish together!

Donor Connection – May.2024

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Keeping advisors informed, donor-advised fund do’s and don’ts, and creative ways to give to education

Greetings from the community foundation!

We are so grateful for the opportunity to work together!

Many of you have established funds at the community foundation to support the causes you love. Others are serving on boards of directors of local nonprofits. Some of you are involved in discussions with your family and your advisors about establishing a fund at the community foundation to fulfill your philanthropic goals.

Wherever you are in your charitable giving process, we are here to support you, including through articles and resources that can help you shape your philanthropy plan.

In this issue, we’re happy to share information about the following:

–The team at the community foundation can help you keep your advisors up-to-date on your charitable plans, including the funds you’ve established and your intentions to support your favorite charities’ campaigns. Reach out anytime if you’d like to review the various elements of your philanthropic activities. We will help you identify what your attorney, accountant, and financial advisor need to know.

–Donor-advised funds are one of many fund types you can establish at the community foundation to organize your giving. (Many families establish field-of-interest funds, designated funds, and unrestricted funds alongside their donor-advised fund to round out their philanthropy.) Review a few reminders about what your donor-advised fund can and can’t do.

–A scholarship fund isn’t the only way to achieve your charitable goals for funding education. Learn about how the community foundation can help you pursue areas of interest that support education in creative ways. You may be pleasantly surprised to discover the variety of options.

We look forward to continuing to serve you. If we’re not yet working together, we hope you’ll reach out with questions about the topics below or anything else that captures your attention and imagination in the world of philanthropy.

With gratitude,

Your community foundation

Charitable planning: Keep your advisors informed

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The team at the community foundation is honored to be your “go-to” resource for all components of your philanthropy. We enjoy talking regularly with individuals, families, and businesses about goals for charitable giving, tax strategies, ways to support favorite nonprofits, getting children and grandchildren involved in the community, leaving a legacy, and so much more. If you’ve already established a donor-advised fund, field-of-interest fund, designated fund or unrestricted fund at the community foundation, you know we’re always here to answer your questions.

What you might not know, though, is that the community foundation is also happy to help you keep your attorney, accountant, and financial advisor in the loop. We’d be happy to join you and your advisors at a meeting to discuss your charitable plans. We’re also happy to offer suggestions about which documents and information you’ll want to provide to your advisors.

For example, it’s important to provide your attorney with information about your fund–or funds–at the community foundation and also provide copies of fund agreements and other documentation. This will help your attorney determine whether and how your fund could be incorporated into your estate plan. Your attorney also needs to be aware of beneficiary designations on retirement plans and IRAs; these vehicles are critical components of an overall estate plan and also are an excellent way to leave a tax-savvy bequest to your fund at the community foundation or other charity.

Next, your accountant will appreciate knowing about your fund at the community foundation, especially as you work together to evaluate the most effective assets to give to charitable causes each year. Your accountant, for instance, may suggest that you give a certain dollar value of appreciated stock to your donor-advised fund in a particular calendar year to maximize itemized deductions and give you the ability to support your favorite charitable causes for several consecutive years at the high levels you intend.

Finally, it’s important that your financial advisor understand your charitable intentions and be aware of the vehicles you’ve already established. Your financial advisor can keep an eye out for stock positions that are highly-appreciated, making them ideal gifts to fund your charitable intentions. Your financial advisor will be a key member of the planning team if you were to establish a charitable remainder trust, for example, with the community foundation. Not only is it important to determine which assets to use to fund the trust (highly-appreciated real estate, for example), but your financial advisor also will want to weigh in on the projected lifetime income stream from the trust to develop retirement projections that are as accurate as possible.

One of the many benefits of being a fund holder at the community foundation is your access to a team of professionals who are dedicated to carrying out your charitable wishes. Think of our team as a group of specialists who deeply understand both the tax and mission-based aspects of charitable giving vehicles–and who are enthusiastic about working alongside your legal, tax, and investment advisors to create a philanthropy plan that meets all of your goals.

Donor-advised fund do’s and don’ts

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A donor-advised fund is one of many types of funds you can establish at the community foundation. Field-of-interest funds, designated funds, unrestricted funds, and scholarship funds are also popular and can make a big difference in the community while also fulfilling your goals for tax and charitable planning.

If you’ve established a donor-advised fund at the community foundation, you know it’s useful because it allows you to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Then, you can recommend donations from the fund to your favorite charities to meet community needs as they emerge.

Your gifts to your donor-advised fund are tax deductible transfers to the community foundation, which is a charitable organization recognized under Internal Revenue Code Section 501(c)(3). The community foundation follows the Internal Revenue Service’s requirements that disbursements from your donor-advised fund meet certain important qualifications to preserve that charitable tax status–for everyone’s benefit. It’s a good idea to periodically review a few types of disbursements that don’t meet the IRS’s rules and therefore are not permissible donations from your donor-advised fund. For example:

–A donor-advised fund cannot be used explicitly to satisfy a personal pledge to a charitable organization, such as to a capital campaign. The team at the community foundation is happy to work with you to develop ways you can achieve your intentions to support your favorite organization’s fundraising goals. Please reach out if you are in this situation.

–Because donor-advised funds at the community foundation fall under a different (and more favorable) set of IRS rules than private foundations, a donor-advised fund is restricted from supporting a private family foundation. Please reach out to the community foundation team to learn more about this requirement. We’d love to explore how your donor-advised fund and your private family foundation can work together to achieve your charitable goals. Some fund holders even decide to close their private foundation and consolidate their giving with the community foundation to achieve greater impact, save on expenses, and achieve better tax results.

–A donor-advised fund can’t be used to buy tickets to fundraising events, such as galas and golf tournaments, where the cost of the ticket is not fully tax deductible. The reason for this is that the IRS views the taxpayer as receiving benefits from the event (food, drinks, swag), and this “private benefit” muddies the waters of tax deductibility. Even if a portion of the ticket is deductible according to the charity, it’s still not a permissible distribution from a donor-advised fund. Please reach out to the team at the community foundation if you’re asked to sponsor a charity’s fundraiser. We are happy to discuss solutions to achieve both your charitable goals and goals for getting involved with the event.

We look forward to hearing from you! As always, the community foundation team is honored to be your first call when you encounter a question about your donor-advised fund or any other charitable giving opportunity.

Getting creative: Three ways to support education

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It’s graduation season, and that means education may be on your mind! The community foundation can help you make a difference in the lives of young people by funding education. Certainly establishing a scholarship fund at the community foundation is one way to accomplish this goal. But that’s not the only way. Here are three ideas to consider as you explore ways to make an impact through education.

Establish a designated fund for educational institutions.

A designated fund provides support for specific organizations of your choice. So, for example, if you want to ensure that a particular college or university receives funding each year, you can set up a designated fund to accomplish this. For instance, if your family has supported the same local college for generations, you may want that support to continue. At the same time, you want to be sure that your funds are used effectively. This includes protecting your monetary support from the college’s creditors if the college finds itself in financial trouble. A designated fund at the community foundation could be the solution.

Establish a field-of-interest fund to support specific aspects of education.

Through a field-of-interest fund at the community foundation, you can establish parameters for grant making according to your wishes. If education is your priority, perhaps over the years you’ve supported a variety of local organizations that provide students with courses, tutoring, mentorship, and social services, ranging from grassroots charities to well-established trade schools and higher education institutions. Establishing a field-of-interest fund activates the community foundation’s expertise and research by delegating grant making decisions to the community foundation team. This helps donors like you ensure that their dollars will have the greatest impact.

Seek the advice of the community foundation for your donor-advised fund grant making.

If you have established a donor-advised fund at the community foundation, you’ve likely used it over the years to support your alma mater and perhaps other educational institutions. The community foundation team would welcome the opportunity to help you think broadly about education, beyond simply four-year institutions. Community colleges, trade schools, vocational programs, and out-of-the-box learning experiences may be a better fit for some students. The community foundation can also help you identify charities that support teachers, classrooms, and school districts, all of which need resources to deliver the best possible education to students.

We look forward to helping you support education as a major area of charitable interest! And if there’s a graduation in your family this year, congratulations!

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation. 

New Hire for CKCF

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Erin Hein
Associate Director, Hillsboro CF

Erin was born and raised in Hillsboro, Kansas.  She graduated from Hillsboro High School and attended Tabor College.

She most recently served in a coordinator role where she wrote and managed grants, educated children and families on a variety of safety topics, and organized community events.  She is involved in several coalitions/boards including the Hillsboro Community Child Care Center Board where she serves as secretary.  She is passionate about working with local agencies and individuals to help make our community better.

Erin currently lives in Hillsboro with her husband and two daughters.  She enjoys attending the various activities that her children are involved in, and in her spare time, enjoys gardening and being outside.

A Call to Dream on Behalf of Our Communitites

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Article written by Rick McNary

“Our communities need us to dream for them.” Marcia Taylor-Trump

As I traveled to Howard down the undulating two-lane road sandwiched by sienna-colored prairie grasses of the Flint Hills, I reminisced about previous trips there. In my high school football days, I bounced along these same roads in big yellow buses from Rosalia when our Flint Hills Mustangs endured repeated beat-downs by the West Elk Patriots on the football field in Howard. My dad referred to their victories over us as shellackings. Later, as a parent, I followed my children in similar big yellow buses to their sporting events.

Howard sits in a breathtaking and unusual geographic transition from the southern tip of the vast rolling prairies of the Flint Hills as it segues into the Chautauqua Hills and the northern part of an ecosystem known as Cross Timbers. In his travels to the western frontier in the early 1830s, American writer Washington Irving characterized the Cross Timbers as “forests of cast iron.” The Cross Timbers, or Cast-Iron Forest, was a swath of blackjack and post oak trees that ran all the way south near Dallas. Early pioneers coming from the east found the Cross Timbers virtually impenetrable through the undergrowth and small, thick trees. A nearby Cross Timbers State Park has marked trails that wind through a forest with trees as old as President George Washington.

It had been nearly 20 years since I last shivered in the stadium in Howard watching my children at a brutally cold spring track meet where the howling north wind almost stopped hurdlers midstride. As each mile I traveled turned over one fond memory after another, I wondered what I would see upon arrival. Would it be like so many small towns that are slowly dying on the prairie as the last vestiges of hope depart when the senior class graduates? Would the iconic Toots Drive-In still dish out deliciousness? Would other businesses have replaced their windows with plywood and glaring No Trespassing signs?

A July 2023 report in the Wichita Eagle listed Elk County as the second poorest county in the state with a median income of $45,660, median home value of $72,455 and the highest poverty level of any county in the state at 16.2 percent. Would I find Howard a dying town in one of the most beautiful parts of the state?

Nope. Not even close.

Instead of finding the town barely surviving, I found it alive and thriving. Toots Drive-In is still there along with several new businesses, evidence of the vibrancy of a
vivacious populace.

I soon found the origin of inspiration for this small-town vibrancy in the banquet room of the restaurant, Sweet and Spicy. There, gathered around tables, were the energetic members of the Elk County Community Foundation (ECCF). Along with a delicious meal, I was served generous helpings of laughter, inspiration, hope and, once they found out I was a Flint Hills High School grad, a bit of good-natured ribbing. It felt like home.

I was delighted when I received notice from the Central Kansas Community Foundation (CKCF) that, as a board member, I had been selected to be the affiliate liaison to the ECCF. I called up their chair, Marcia Taylor-Trump, and she invited me to their noon meeting.

Their stellar reputation in the foundation world had already caught my attention because, as a CKCF board member on the appreciation committee, I had recently sent numerous handwritten thank you notes to donors in Elk County when they raised $97,000 for the Patterson Family Foundation (PFF) Matching Grant.

Neal Patterson was a native of rural Kansas having grown up near Anthony. He and his wife, Jeanne, were principals in Cerner Health and began investing philanthropically into rural communities in Kansas and Northwest Missouri through the PFF. After their passing, their children took over the helm and strived to help lift rural communities through health care, education, economic opportunity and beyond. One of their most successful initiatives was the $70,000 matching grant for rural community foundations of which ECCF has taken full advantage.

In a county with a population of only 2,441 souls, the ECCF made short work of not only raising the initial $70,000 but an additional $27,000 for a grand total of $97,000, which then turned into $167,000. Elk County tackled the PFF Matching Grant Challenge with the same intensity they used to tackle me in football games. All that money was then distributed to various nonprofits in the six communities that ECCF represents.

As I sat at the table listening to the banter of lively conversation as Marcia worked through the agenda, I was reminded of the power of community foundations, these grantmaking public charities dedicated to improving the lives of people in their communities. They turn seeming impossibilities into vibrant possibilities.

However, like any group, they are only as effective as the people who comprise the group. As I listened in that day, I understood this collection of dreamers and doers were the changemakers in Elk County. This was not a group who sat around just talking about dreams, instead, this was a group who learned how to both dream and do. Their energy was infectious and reminded me of Margaret Meads quote, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”

In her closing remarks, Marcia made one of the most compelling challenges for civic leadership I have ever heard: “We need to dream,” she said. “But more importantly, our communities need us to dream for them.”

The communities of Elk County are fortunate to have passionate citizens like the ECCF board dreaming on their behalf. And based on my past personal experiences on their football field, they will continue tackling the challenges with dedication, skill and intensity. And they will be victorious.

Donor Connection – April.2024

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The power of endowment gifts, treating your community like family, and the business of giving

Greetings from the community foundation!

We’re honored to work with you and so many other individuals, families, and businesses who’ve made charitable giving a priority and share our commitment to improving the quality of life for everyone in our region.

If you’ve already established a fund at the community foundation, thank you for the opportunity to be of service! If you’re considering whether to begin working with us, thank you for including the community foundation as you explore your options. We look forward to learning more about how we can help achieve your charitable objectives in ways that align with your financial and estate planning objectives.

In this issue, we’re covering three frequently-requested topics:

–Perhaps you’ve always been intrigued by the possibility of establishing an endowment to create a permanent source of philanthropic support for the community you love, but you thought the process might be difficult or daunting. When you work with the community foundation, it’s easy–and enjoyable–to structure your endowment as your gift to improve the quality of life for future generations.

–Thinking about the community when you’re updating your estate plan can help you leave a robust charitable legacy. Discover how the community foundation’s services and tools help giving become a family affair–and why you’re not alone if your community features prominently among your estate plan’s beneficiaries, right alongside your children and grandchildren.

–Working with the community foundation isn’t just for individuals and families. We also help facilitate corporate philanthropy for businesses of all sizes. Learn how the team at the community foundation can help your business give back to the community where your customers and employees live and work.

Four FAQs to help you establish an endowment

Many community-minded individuals have served on the boards of directors of charitable organizations in our region. If you’ve served on a charity’s board (or several!), you are no doubt familiar with the concept of an endowment. Many charities establish endowment funds and reserve funds at the community foundation to help ensure that their missions stay strong during economic downturns and periods of increased community need.

What you might be less familiar with, however, is an endowment fund established at the community foundation by an individual or family. Every year, the team at the community foundation works with people like you to establish endowment funds to support the needs of our region in perpetuity.

Here are answers to four frequently-asked questions about setting up an endowment fund.

Why does the community foundation offer endowment funds to individuals and families?

The community foundation serves as the hub of philanthropy for many families in our community. We connect donors like you to community needs you care about, and this includes offering the opportunity to make a charitable investment that supports a range of community needs now and in the decades ahead–needs that cannot be predicted. That’s the purpose of an endowment: to provide a steady stream of dollars, far into the future, to meet community needs as they arise.

How does an “endowment” work?

“Endowment” is the word often used to refer to a designated pool of assets that are invested by the community foundation and tracked separately such that a modest portion (usually based on a percentage) of the assets are distributed each year to charitable causes, and the rest of the assets remain invested to grow in perpetuity. This growth, in turn, helps the endowment provide even more support each year to the causes for which it was established. The community foundation team is experienced at managing the accounting, investment, and distribution aspects of endowment funds.

How can I stay involved with my endowment fund after it’s established?

First and foremost, you can name the endowment fund anything you want, such as the “Smith Family Endowment Fund,” or something more anonymous such as the “Endowment Fund for Our Future.” In addition, our team is happy to keep you informed about the positive change in the community that is occurring thanks to the distributions from the endowment fund you’ve established. We can continue to keep your children and grandchildren informed, too, beyond your lifetime. In this way, your legacy continues through the generations.

Who decides where the endowment distributions go each year?

The community foundation is itself a permanent institution. Our board and staff are committed to keeping a finger on the pulse of the region’s greatest needs and maintaining a deep knowledge of the charitable organizations that are meeting these needs every day. This is the community foundation’s mission in perpetuity. The community foundation’s team is made up of dedicated and knowledgeable professionals who understand our community and build ongoing personal relationships with the people working at the region’s charitable organizations. The community foundation team recommends distributions from your endowment, and our independent board of directors reviews and approves these distributions to ensure that they fulfill your charitable goals for establishing the endowment in the first place.

What does it take to establish an endowment fund?

Setting up an endowment fund is as easy as setting up any other type of fund at the community foundation. Our team will prepare simple paperwork capturing the name of the endowment fund and any areas of interest you’d like to support. Then, you can transfer cash—or, even better for tax purposes, you can transfer appreciated assets such as stock or real estate. You’ll be eligible for a charitable tax deduction in the year you make the transfer to establish the fund. You can make future transfers to your endowment fund each year, too, to achieve your tax and estate planning goals. Our team is also happy to work with you and your advisors to structure a bequest to your endowment fund following your death. We highly recommend considering a bequest in the form of a beneficiary designation on an IRA because of the multiple tax benefits. Related, if you are over 70 ½, making a “Qualified Charitable Distribution” from your IRA directly to your endowment fund is a very effective charitable planning tool to avoid income tax and also satisfy your Required Minimum Distribution if you’ve reached that age as well.

We look forward to working with you to support our community and your favorite charitable causes for generations to come!

Estate planning: Your kids … and your community

As you contemplate your legacy and adjust your estate plan over the years, it’s natural to focus on your children and family as the primary beneficiaries in your will and trust. If you’re like an increasing number of charitably-minded individuals, though, you might find that your perspectives about what exactly it means to leave a legacy are expanding beyond your next of kin. Your community is on your mind and in your heart, and you’re interested in ways you can support and improve the quality of life for people in the region we call home.

If you’re intrigued, you are not alone! Indeed, many philanthropic individuals are broadening their estate plan beneficiaries to prominently include their community or favorite cause, right alongside children and grandchildren. The team at the community foundation would be honored to discuss the ways we can help. Here are three options for funds you can establish with the community foundation to benefit our community in your overall philanthropy and estate plan:

Unrestricted fund

Major advantages of the community foundation include its perpetual structure, community-based governance, and commitment to addressing needs as they change. An unrestricted fund allows you and your family to provide support that evolves over time as priorities in the region shift. The community foundation’s mission is to thoroughly understand the community and improve lives within it. The community foundation’s board and professional staff conduct ongoing, extensive research about the needs of the community and the nonprofit programs that are addressing those needs. Establishing an unrestricted fund means you are investing in the community foundation to support programs that are addressing the community’s most pressing needs as well as needs that can’t be identified until the future.

Field-of-interest fund

A field of interest fund is an ideal way to target your giving to specific areas of community need (such as education, health, environment, or the arts). Your field of interest fund at the community foundation establishes parameters for grant making according to your wishes. The community foundation’s staff follows these parameters and uses its research and expertise to make grants that align with your intentions. Your fund can continue beyond your lifetime and for multiple generations, consistently providing grants to support your area of interest according to the terms you established when you first created the fund.

Designated fund

A designated fund at the community foundation can help you secure your favorite organization’s financial future so that its mission continues, uninterrupted, even in the face of challenges. You can set up multiple designated funds if you’d like to support more than one organization. You can even set up a designated fund to support a governmental unit, such as the parks department. A designated fund allows you to decide on the timing of the distributions from the fund, such as during the organization’s capital campaign or to support a specific program or initiative. You can serve as an advisor to the fund to recommend the timing and amount of grants to the supported organization, or you can appoint the board of directors of the community foundation to carry out this function according to your wishes.

And here’s a bonus! If you plan to give to an unrestricted fund, designated fund, or field-of-interest fund at the community foundation during your lifetime, and you’re over the age of 70 1/2, you can direct up to $105,000 each year from your IRA to the fund. This is called a “Qualified Charitable Distribution,” or “QCD.” Not only do QCD transfers count toward satisfying your Required Minimum Distributions if you’ve reached that age threshold, but you also avoid the income tax on those funds. Furthermore, the assets distributed through a QCD are no longer part of your estate upon your death, so you can avoid estate taxes, too.

In the business of giving

If you’re a business owner, odds are you already give back to your community. Like many charitably-minded people, your business likely sponsors events, makes in-kind donations, and donates cash to favorite organizations.

Many local business owners work with the community foundation to give back to the community where they built their businesses and developed lasting relationships with employees and customers.

The community foundation offers a variety of tools to help you build and grow your corporate philanthropy program, including:

  • Corporate foundation. Establishing a corporate donor-advised fund helps you organize your company’s giving in a convenient, 501(c)(3)-qualified structure.
  • Executive donor-advised fund. Offering this elevated employee benefit to your executive team can help activate your senior management’s community involvement.
  • Matching gifts. The community foundation can help guide your team in creating and administering a program that matches employees’ volunteer time and dollars.
  • Grant making administration and strategy. You and your colleagues likely receive dozens of requests each month from community organizations requesting sponsorships and monetary donations. The team at the community foundation can help you create and implement a strategy for responding to and evaluating those requests to align with your company’s goals for supporting and prioritizing causes.
  • Employee giving and disaster relief campaigns. The community foundation’s tools to receive and process donations can help you and your employees respond quickly and meaningfully to disasters and other urgent community needs.

The community foundation is glad to help you deepen your business’s impact and connection to your community, customers, and employees by creating a philanthropy plan that supports causes that align with the wide range of your objectives.

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation. 

New Hire for Florence Community Foundation

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Cal Pendergrass

Associate Director, Florence CF

Cal grew up in the small village of Mohawk NY and Graduated from Gregory B Jarvis Jr/Sr high school. Upon graduating High School Cal enlisted in the United States Army and was sent to Fort Knox Kentucky for One Station Unit Training to become an M1 Armor Crewmember. Cal deployed to Kosovo KFOR 4B for peacekeeping operation in 2004-2005, and again to Iraq in 2005-2006 in support of Operation Iraqi Freedom II. After returning to Germany Cal returned to Fort Knox KY to serve as a Tank Commander/Instructor for basic training Soldiers. Cal’s next duty station was in Fort Hood Texas where he deployed to Iraq again for the troop surge in 2008-2009. Cal was sent to Fort Carson Colorado in 2009 and deployed to Afghanistan in 2010-2011 in Support of Operation Enduring Freedom. Cal’s next duty station was Fort Polk Louisiana where he served as the Brigade Deployment Non-Commissioned Officer in the 162 nd Infantry Brigade (Tiger land). Cal moved to Fort Riley KS in 2014 and served as a Tank Commander with another rotation to the middle east. While at FT Riley he also served as a Platoon Sergeant, Protocol Events Coordinator, and capped off his time in the military as the 1st Infantry Division Barracks Program NCIOC.

Cal’s awards include:
Combat Action Badge, Meritorious Service Medal, 7 Army Commendation Medals, 6 Army Achievement Medals, Valorous Unit Award, 5 Army good Conduct Medals, National Defense Service Medal, Global War on Terrorism Service Medal, Global War on Terrorism Expeditionary Medal, Afghanistan Campaign medal with 2 campaign Stars, Iraq Medal with Campaign Star, 2 NCOES Ribbons, Army Service Ribbon, 5 Overseas Service Ribbons, Kosovo Campaign Medal with Bronze service star, 2 NATO medals.

Cal also received the Honorable order of Saint George Medallion for demonstrating outstanding leadership, and exceptional teamwork while serving in Armor and Cavalry units.

Cal is currently serving on the Florence Kansas City Council, and is a member of the Marion VFW, and Florence American Legion.