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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.

New Hire for Elk County Community Foundation

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Brandi Mast

Associate Director, Elk County CF

Brandi was born and raised in Kansas. She graduated from Andover Central High School and received her Bachelor of Science Degree in Family Life and Community Services from Kansas State
University. She went on to earn a Master of Education degree in Counseling from Wichita State University. She is also a certified yoga instructor, teaching free weekly yoga classes in Elk County.
Brandi has worked for non-profit organizations in a variety of capacities for most of her career including Big Brothers Big Sisters of Sedgwick County and Girl Scouts of Kansas Heartland. She is
passionate about improving the lives of those around her and making her piece of the world a better place.

Brandi currently lives with her husband and two daughters on a cattle ranch near Fall River, Kansas. In her spare time, she enjoys helping take care of the animals on the ranch, fishing, gardening,
working in her flower beds, riding horses and spending as much time as possible outdoors. When the Kansas weather doesn’t cooperate for outdoor activities, she enjoys baking and riding her spin bike indoors.

Brandi is thrilled to embark in her new role as Associate Director of the Elk County Community Foundation. She hopes to make a lasting impact on her community by furthering the already amazing work that the foundation has accomplished.

New Hire for Central Kansas Community Foundation

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Melissa Schreiber

Program Officer for Grants, CKCF

Melissa Schreiber recently joined Central Kansas Community Foundation as the Program Officer for Grants. Most recently, serving as the Program Manager for the Harvey County Drug-Free
Youth Coalition overseeing a federal grant, community relationship building, and sustainability, as well as many years in consumer and commercial banking.

She is a long-time Newton and Harvey County resident, a 1993 Graduate of Newton High School, and a 1997 Graduate of Wichita State University with a Bachelor of Finance with an
emphasis in Marketing. Melissa is passionate about community building and servant leadership. She serves on many community boards, is Co-Chair of the Healthy Harvey Coalition, Harvey County Interagency Coordination Council, an organization focused on early education, Tobacco Free Harvey, and a member of the Newton Lions Club and Newton Area Chamber of Commerce. She has served on the USD 373 Board of Education for four years, three years as Vice President, and is currently President of the Board.

Melissa is very excited to be part of the Central Kansas Community Foundation and help communities thrive.

New Hire for Central Kansas Community Foundation

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Carrie Herman, Central Kansas Community Foundation Executive Director

Carrie Herman has been the Executive Director at the Kansas Learning Center for Health in Halstead since July 2016. Prior to that she spent almost nine years at Asbury Park (now known as Paramount Community Living) where she was most recently the Vice President of Operations.

A 1993 graduate of Halstead High School and a 1997 graduate of Pittsburg State University with a Bachelor in Business Administration, emphasis in Marketing, Carrie completed the LeadingAge Kansas Center for Leadership Program in 2012 and was a coach on the Design Team for the class of 2015. After receiving her certification in 2013 to be an Adult Care Home/Assisted Living Operator, Carrie went on to obtain her Adult Care Home Administrator license in February 2016.

Carrie enjoys getting involved in the community and is currently serving on the Harvey County Department on Aging Advisory Council, NetWork Kansas E-Commerce Committee, Healthy Harvey Coalition (Secretary), Harvey County D-FY Coalition, Halstead Chamber of Commerce (Secretary), and the Newton Lions Club (Past President). In addition, Carrie served almost eight years on the Central Kansas Community Foundation board. Carrie resides in Halstead with her husband Clint and two sons, Cole and Connor.

Carrie will serve as the CKCF Executive Director in support of the expansive staffing opportunity made possible by grant funding.

New Hire for Newton & North Newton Community Foundations

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Greg Bontrager – Associate Director for Newton & North Newton Community Foundations
Greg is newly retired after 33 years teaching vocal music in the Goessel (KS) and the Buhler (KS) school districts.  Greg graduated with an Associate of Arts degree from Hesston College, a Bachelor of Arts in Music Education from Bethel College, and a Master of Music Education from Wichita State University. In the Summer of 2022, Greg was awarded the Harry Robert Wilson Life-Time Achievement Award at the State KCDA Convention.
He has been involved as an adjudicator and clinician for elementary, junior, and senior high school choirs, competitions, and festivals. Greg has served as the South Central District KMEA Choir Chairman, State KMEA Choir Chairman, and president of the Kansas Choral Directors Association. Greg is in his 17th year as the Kansas Mennonite Men’s Choir Director.
Greg’s family includes his wife, Melody, and kids – Shawn, Seth, Marissa & Nathan Murphy and Grandsons – James & Charlie Murphy!
Greg starts March 5th as our first Associate Director hired with the Patterson Family Foundation Staff Capacity Grant. He will be working with the Newton and North Newton Community Foundations.

 

New Hire for Hesston Community Foundation

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Kristie Diller – Hesston Community Foundation Associate Director

I was born and raised on a farm near Hillsboro, Kansas. After graduating from Hillsboro High School, I attended Bethel College. Since that time, I have worked in a variety of settings, including sales and property management. My most recent work has been at CKCF, as Program Director.

I am married to a Hesston native, Phil, and we live in Hesston. We have two sons, Colton, Freshman at Kansas State University and Hunter, Hesston High School junior. I enjoy the Colorado mountains, cooking/baking, being outdoors, shopping and spending time building relationships with family and friends.

I believe in the mission of Community Foundation work and am excited about facilitating philanthropic efforts with community partners and cultivating relationships in the community in which I live, as I begin as Associate Director for Hesston Community Foundation.

Kristie is transitioning from her role as Program Director to Hesston’s Associate Director effective April 1st.

 

Donor Connection March.2024

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Greetings from the community foundation!

We hope you are doing well and are looking forward to Spring!

At the community foundation, we’re hard at work supporting you and your charitable giving endeavors. We hope you know you can always count on us as a guide and resource for you, no matter your situation. Whether you established a fund at the community foundation years ago or you are currently in the process of exploring establishing a fund to organize your giving, we’re here as a resource for your philanthropy.

Here’s what’s coming up in this issue:

  • Getting into the habit of setting up regular contributions to your donor-advised fund helps your financial planning and also helps you support your favorite causes well into the future. We’re sharing tips and benefits to boost your philanthropic nest egg.
  • The team at the community foundation welcomes the opportunity to meet in person, or over Zoom if that is easier for you. Charitable giving is important and everyone’s approach to philanthropy is different. We take our relationships with fund holders seriously and we strive to understand and serve your unique charitable giving priorities. Personal service is what you can expect when you meet with our team.
  • Donor-advised funds are just one of many types of funds you can establish with the community foundation. Donor-advised funds are popular because of the flexibility they offer to help you support the important work of your favorite charities. Our team stays up-to-date on the latest donor-advised fund trends and developments, and we’ll keep you up-to-date too!

Thank you for the opportunity to work together! We are grateful!

Angie Tatro, CKCF CEO

Full circle: Grow your philanthropy through recurring gifts

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Developing a practice of regular contributions to your donor-advised fund at the community foundation not only allows you to systematically build a philanthropic nest egg for your annual giving to favorite charities, but also paves the way for your future legacy bequests. Whether your cadence of contributions is monthly, quarterly, semi-annually, or annually, the consistency delivers many benefits. For instance:

–As your donor-advised fund grows, it allows you to be nimble with your giving and meet the urgent needs of the community as they arise. For the community as a whole, this type of support and stability gives many nonprofit organizations’ leaders the peace of mind and security of knowing that important programs can continue through good times and bad.

–Recurring giving to your donor-advised fund also helps build ultimate capacity to ensure that your principles and dedication to altruistic endeavors endure long beyond your lifetime. Many fund holders at the community foundation have included provisions in their donor-advised fund documents to leave all or a portion of the donor-advised fund remaining at their death to an unrestricted or area of interest fund at the community foundation.

–Talking about your recurring support through the community foundation helps to create a giving culture within your family. Over time, your children and grandchildren will learn that philanthropy is an important family tradition and that charitable giving is a critical source of funding for programs that improve the quality of life for so many people in our region. Your donor-advised fund at the community foundation offers ongoing flexibility to fulfill your own charitable goals as well as the goals of the next generation.

The team at the community foundation is happy to work with you and your advisors to determine the best way for you to make regular contributions to your fund, especially if your priority is to give highly-appreciated stock to take advantage of the opportunity to avoid income tax on capital gains.

We look forward to talking with you about how recurring donations to your existing donor-advised fund (or a new donor-advised fund if you’re considering it) might be a fit for you and your charitable plans.

Our door is open: What happens when you meet with the team

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At the community foundation, we are honored to work with generous individuals and families like so many of you who’ve established funds to support the causes you care about and the needs of our community both now and in the future. We’re also inspired by those of you who are getting to know the community foundation and considering establishing a donor-advised or other type of fund.

Wherever you are in the stages of your philanthropic planning, the team at the community foundation is here for you and considers our relationship to be personal. That’s why we welcome the opportunity to meet with our fund holders and prospective fund holders. Here are a few insights into what those meetings are all about.

You can expect personal, dedicated service. Unlike financial institutions’ donor-advised fund platforms where access to a dedicated donor services team can be rare, the staff at the local community foundation is here to help you every step of the way along your charitable giving journey. Our team is happy to meet with you one-on-one, and we are also happy to join a meeting with you and your legal, tax, or financial advisor to assess your current situation and determine the best charitable tax strategy for you. This includes evaluating the best assets to give to your fund or funds at the community foundation, including publicly-traded stock and even other noncash assets such as real estate or closely-held stock.

We care about your intentions for your fund. The team at the community foundation wants to understand the areas of interest that are a priority for you, whether that’s the arts, health care, social services, the environment, education, community development, or something else. We also want to understand the role you envision for the successor advisors you’ve named in the fund documentation, such as your children, who will make decisions about the fund when you are no longer living or able to manage the fund yourself.

We will help you establish additional funds to meet your goals. Sometimes when the team at the community foundation is working with a fund holder to understand the intentions for a donor-advised fund, we discover that it’s worth adding one or more additional funds to complement the donor-advised fund structure already in place. For example, some fund holders decide to also establish a designated fund for a particular nonprofit organization or an unrestricted fund to support the community foundation’s mission in perpetuity. Many times, fund holders decide to make recurring contributions over time to multiple funds at the community foundation to achieve their various philanthropy goals.

We make the paperwork a breeze. As you know if you’ve already established a donor-advised fund at the community foundation, the paperwork is straightforward and not at all cumbersome. As we’re exploring updating your existing donor-advised fund, setting up a new donor-advised fund, or adding additional types of funds to your portfolio, we’ll prepare simple documentation to capture your wishes, collect important contact information, and address your vision for your fund or funds both during and after your lifetime.

We’re always here to strategize about your giving options. As you periodically review your assets and financial situation with your advisors, keep an eye out for appreciated assets that could be ideal to give to your fund or funds at the community foundation because of the potential capital gains tax savings. The community foundation can work with you and your advisors on contributions of a wide variety of assets to help you achieve your tax and estate planning goals. We are happy to go over the appraisal and documentation requirements for gifts of nonmarketable assets such as closely-held stock and real estate.

We’ll let you know about educational opportunities and gatherings with other fund holders. During our meeting, we’ll share a calendar of upcoming events and ways you can learn more about the causes you care about and what’s going on in the community overall. Our team is here to help you stay up-to-date and on the various ways you can support the community by working with the community foundation and partnering with other fund holders.

Thank you for your commitment to philanthropy! If you’re already a fund holder, we are grateful that you’ve made the choice to organize your giving by working with the community foundation. If you’re considering getting started, we look forward to continuing the conversation! In either case, we look forward to seeing you soon!

News from Washington: An update on donor-advised funds

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In our last newsletter, we shared that our team is closely tracking the IRS’s proposed regulations concerning donor-advised funds, issued in November 2023. Certainly these regulations are just “proposed”; it is unclear whether and to what extent they will become final.

If you routinely read financial publications, you may have seen articles about these proposed regulations and speculation about what they might mean for charitable planning. At this point, it is anyone’s guess! You can rest assured that the community foundation team is on top of the issues, and we will update all of our fund holders as more information becomes available. Indeed, you may have seen the news that the IRS has scheduled public hearings on the proposed donor-advised fund regulations, set for May 6, 2024, so it’s not likely we’ll hear anything definitive for several months.

In the meantime, you might enjoy reading up on donor-advised funds and the many ways they can help grow philanthropy. The Donor Advised Fund Research Collaborative’s recently-released study of donor-advised funds is full of statistics and insights about the popularity of donor-advised funds and how they help grow philanthropy.

We’ll keep you posted!

This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.  

Donor Connection – February.2024

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Greetings from the community foundation, and happy February!

In this month of Valentine’s Day, many fund holders at the community foundation are taking a moment to reflect on the causes they care about and the organizations in our community they love. Many people use their donor-advised fund at the community foundation to make gifts to charity to celebrate Valentine’s Day, which is a bigger holiday for giving than many people realize. Americans spend $26 billion on Valentine’s Day gifts ($2 billion on pets!), including sending 145 million cards and 250 million roses.

This month, we are reflecting on the ways you can show the love for the charities you care about the most.

  • Estate planning might feel like a burden on your to do list, but it’s actually one of the best ways you can show you care. Your loved ones, and the charities you care about, will appreciate your careful planning. And you’ll enjoy peace of mind knowing that you’ve got the documents in place to carry out your wishes, well before it’s needed. The community foundation is happy to work with you and your advisors to structure a charitable giving legacy plan to achieve your goals for caring about the community you love.
  • At the community foundation, we know that every gift matters. Whether you’ve established a donor-advised fund to carry out your annual giving to many different charities, or you’ve set up an unrestricted legacy fund to support our community’s greatest needs, you’ll be making a difference. The importance of every act of charity is a good reminder as you start implementing your charitable giving plans for 2024.
  • Fund holders and legacy donors at the community foundation are often surprised to learn how the community foundation’s team is involved in estate administration when a donor leaves a bequest. Our goal is to ensure that your charitable intentions are achieved, from structuring a bequest all the way through to the dollars flowing to the causes you care about the most.

The community foundation offers so many tools and services to help you support the causes you care about. We’re honored to work with so many dedicated fund holders, and we are excited to work with so many of you who are considering establishing a fund at the community foundation to pursue your own philanthropic passions.

Thank you for your partnership in improving the quality of life for everyone in our community.

Angie Tatro, CKCF CEO

Estate planning: One of the best ways to show you care 

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Money, mortality, and family relationships. Each of those topics alone can be tough for anyone to address head on, and when you combine them, it’s no wonder so many people put off setting up or updating their estate plans. Establishing a will, trust, and beneficiary designations forces a person to confront decisions about the ultimate division of their assets, and many people think estate planning is more expensive or more of a hassle than it really is.

But, getting your affairs in order–well before you need to due to age or illness–is truly a gift to your heirs. It’s extremely stressful for surviving spouses, children, and other loved ones to be faced with the emotional stress and workload of financial disorganization and uncertainty, on top of dealing with grief. Updating your estate plan also allows you to make arrangements for gifts upon your death to your favorite charities.

Many people choose to support their favorite charities in an estate plan through a beneficiary designation. As you work with your attorney and other advisors, be sure to review the beneficiary designations on your insurance policies and retirement plans. 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 and 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, 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.

Please reach out to the team at the community foundation as you work with your advisors on your estate plan. We can:

  • Review the many tax benefits of naming your fund at the community foundation as a beneficiary of your IRA or other tax-deferred retirement account
  • Provide bequest language for your will or trust, properly describing your fund using the correct legal terms
  • Provide language for a beneficiary designation, again properly describing your fund using the correct legal terms
  • Work with you to update the terms of your donor-advised fund so that your wishes are carried out following your death, whether that is naming specific charities to receive distributions or naming your children as successor advisors to your fund

We’ve all heard stories about the sad consequences of someone not having an estate plan, or even having out-of-date beneficiary designations. Estate planning documents, including wills, trusts, and beneficiary designations, often turn out to represent generous acts of clear distribution and conflict avoidance. An estate plan allows you to demonstrate how much you care about the people in your life as well as your charitable passions.

Big or small, every gift matters

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Simplicity, efficiency, and effectiveness have long been cornerstones of working with the community foundation to carry out charitable goals. Time and time again at the community foundation, we see how easily donors who’ve established a donor-advised or other type of fund are able to not only fulfill their big-picture charitable goals, but to act quickly to respond to critical needs in the community as they occur..

Indeed, the flexibility of working with the community foundation allows you to support the causes you love at a financial level that meets your charitable giving budget. Early in the year, many of our fund holders transfer highly-appreciated stock to their donor-advised fund, for example, at the community foundation so that they are prepared to activate their annual giving right away.

At every level of giving, philanthropy is a catalyst for improving quality of life. Indeed, anyone with a willingness to give can be a philanthropist. Whether you’re using your donor-advised fund to give $250 to a college or university, $2500 to a food bank, or $25,000 to an art museum’s endowment, you’re making a difference.

Consider that small donations from a large number of people can make a huge difference. This is especially true for responses to disasters and humanitarian tragedies. On the other end of the spectrum, very large donations to an organization can transform its ability to scale and serve a much greater population.

In so many ways, whether gifts are large or small or somewhere in between, philanthropy creates the margin of excellence that helps communities, families, and individuals thrive. The team at the community foundation is here to help you achieve satisfaction and impact with your giving at any level.

What happens when I leave a bequest to my fund at the community foundation? 

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Many donors and fund holders at the community foundation have updated their estate plans to leave a bequest to their donor-advised or other type of fund.

Some bequests take the form of a “specific bequest,” which means that the fund at the community foundation receives a specific amount of money from the donor’s probate estate or trust. For example, for a specific bequest, your advisor might include a provision in your will as follows:

I bequeath $15,000 to The Community Foundation (taxpayer ID number and/or mailing address), a tax exempt organization under Internal Revenue Code Section 501(c)(3), to be added to the [Name of Your Fund], a component fund of The Community Foundation, and I direct that this bequest become part of the Fund.

In these situations the community foundation will be ready to receive your bequest, typically as soon as the estate is settled.

In other situations, you may want to leave a bequest of a portion of the remainder of your estate after all specific bequests, expenses, and taxes have been paid. These types of bequests are called “residuary” bequests. The language can look something like this:

I leave all the rest and residue of my property, both real and personal, of whatever nature and wherever situated, and assets, including all real and personal property, tangible or intangible, to The Community Foundation (taxpayer ID number and/or mailing address), a tax exempt organization under Internal Revenue Code Section 501(c)(3), to be added to the [Name of Your Fund], a component fund of The Community Foundation, and I direct that this bequest become part of the Fund.

Because the amount of a residuary bequest cannot be determined until all of the assets in an estate have been identified and valued, and all expenses and taxes have been paid, the designated charity (in this example, your fund at the community foundation) will not receive the full amount of a residuary bequest until the estate is completely settled. Typically, however, the estate’s personal representative or trustee will make what is known as a “partial distribution” to the residuary beneficiary (or beneficiaries as the case may be), as soon as the personal representative has enough information about the assets and liabilities to confidently do so.

When you leave a residuary bequest to your fund at the community foundation, our team will be involved at various steps during the administration of your estate until final distribution. For example, the community foundation will receive regular communications about the estate related to assets, expenses, taxes, and periodic accountings. The community foundation will execute documents, such as receipts, related to distributions and other estate transactions.

The team at the community foundation looks forward to working with you and your advisors to establish bequests to fulfill your charitable legacies.

A quick note about what’s up at the IRS
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The team at the community foundation is closely tracking the IRS’s proposed regulations concerning donor-advised funds, issued in November 2023. Note that these regulations are just “proposed”; it is unclear whether and to what extent they will become final. The public comment period was recently extended, and the community foundation field as a whole is working to provide feedback to the IRS. You’ll hear from us when (and if) the proposed regulations go into effect with provisions that could impact your fund or your charitable giving.

This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.