The year is winding down! Where did 2024 go? 

The team at the community foundation is here to help you navigate your charitable giving priorities all year round, and especially during the giving season when we know many of you are beginning to turn your attention to tax planning and ensuring that you’ll meet your charitable goals before the end of December.

Here’s what’s trending: 

–Year-end is fast approaching! We’re providing three important tips to consider as you evaluate where you stand with your charitable giving goals for 2024 and review your tax situation with your advisors. Whether you’ve already established a fund at the community foundation or are considering it, we look forward to hearing from you.

–The community foundation is our region’s trusted source for all things philanthropy. We are honored to serve you and your family as you pursue the charitable endeavors that mean the most to you. Learn how our team helps structure your giving in ways that respect your desire for trust in the impact your dollars can make.

–Charitable giving is important to couples whether or not they have children. Discover how the community foundation can help you serve your clients’ charitable intentions to support our community across generations in situations where heirs will be involved and in situations where there are no heirs. We’re here for everyone!

Wishing you all the best for a safe and happy Thanksgiving!

With Gratitude,
Angie Tatro, CEO

A trio of tips to wrap up 2024

Year-end is closing in, and it’s easy to get overwhelmed by all the advice floating around about what to do before December 31. We’re making it super easy for you! Here are three reminders that typically are among the most important for year-end charitable giving.

–Give stock. Evaluate your highly-appreciated stock positions and use these assets to give to your fund at the community foundation, coordinating with your tax and financial advisors to optimize your 2024 goals. Appreciated assets generally are far better charitable gifts than cash because you not only can take advantage of the income tax deduction, but also you can avoid capital gains tax.

–Use your donor-advised fund. Consider deploying a “bundling” or “bunching” technique by making a gift to your donor-advised fund at the community foundation this calendar year that allows you to leverate itemized deductions (the standard deduction is very high, at least at the moment), and then use your donor-advised fund over the next few years to support your favorite charities.

–Explore a QCD. If you are age 70 ½ or older, you absolutely must consider making a Qualified Charitable Distribution (“QCD”) to a designated or field-of-interest fund at the community foundation. Each spouse can give up to $105,000 in 2024, and the distributions will satisfy your RMDs if you’ve also reached that age. Contact the community foundation right away to learn why the QCD is so powerful. Note that your donor-advised fund is not an eligible recipient, but there are lots of other ways you can leverage this tax-savvy giving opportunity.

November is the time to set things in motion so you don’t get caught up in the year-end rush. Reach out to the community foundation team today! We are here for you!

Fostering trust and making a difference

Many people are not aware of the extent to which America’s charitable organizations help improve quality of life in our communities. From social services to the arts, virtually every aspect of our lives is touched by the work of nonprofits. Indeed, the gifts Americans give to charity every year total more than $557 billion and provide critical support for nearly 1.5 million organizations that are helping communities thrive.

Research shows that trust continues to be an important factor in charitable giving. Unfortunately, high levels of trust sometimes can be hard to achieve; 73% of donors surveyed said they felt that it is very important to trust a charity before giving, but only 19% say they highly trust charities.

So what should you do if you know you want to support a particular organization but you’ve not quite yet gained a level of trust to go “all in?” Or what if you want to support an overall area of community need but you’re not sure which organizations are best aligned with the results you want your charitable gifts to achieve? Or what if you’re fairly certain you know the specific organizations that are addressing your areas of interest right now, but you’re concerned that this “fit” might change over time as needs shift and charities evolve?

The community foundation can help in situations like these and many others like them. Here are three examples:

–If you’ve established a donor-advised fund at the community foundation to organize your giving, lean on the team at the community foundation for insights into which charities are best suited to achieve your goals for impact at any given time. Our team stays up to date on local charities, their priorities, and their programs and staff. We can provide information and insights to help you make informed decisions.

–If you’re committed to supporting a specific charity but you’d rather not give the money outright, you could consider setting up a designated fund at the community foundation to make distributions to the charity according to parameters you set. Because the charity receives the money in increments every year, charitable dollars remaining in the fund are protected from the charity’s creditors if the charity were to fall on hard times.

–If you’d like the community foundation to help out even more, you might consider establishing a field-of-interest fund so that the community foundation team can deploy its expertise in selecting charities that are best suited from year to year to achieve your goals for community impact.

–To ensure that the mission of the community foundation itself stays strong and that dollars will flow to support critical community needs for generations, you can establish an unrestricted fund at the community foundation. You can add to the unrestricted fund during your lifetime, such as through gifts of appreciated stock, and you can also include a gift to the fund in your estate plan through your will or an IRA beneficiary designation.

The community foundation is unique in its structure as a perpetual institution governed by an independent board of directors. Our mission is to improve the quality of life in our region across generations by connecting donors to the causes they care about and leading on critical community issues. We’re honored to work alongside you and your family as you build trust with the charitable organizations that are making a difference for everyone who lives and works in the community we love.

Generational impact, with or without children

At the community foundation, we’re honored to work with our donors and fund holders to achieve a wide range of charitable giving priorities often involving multiple charitable giving vehicles. It’s not uncommon, for example, for an individual’s or couple’s “portfolio” of philanthropy with the community foundation to look something like this:

–A donor-advised fund to make it easy to donate appreciated stock and organize annual giving to favorite charities.

–A designated fund to support the mission of a particular charity over the long term, especially because when one spouse reaches the age of 70 ½, the designated fund can receive tax-savvy Qualified Charitable Distributions from IRAs.

–A beneficiary designation on an IRA to leave those assets to an unrestricted fund at the community foundation, avoiding both income tax and estate tax, so that the fund can support the community foundation’s mission in perpetuity.

What’s more, many people don’t realize that a mix of charitable giving vehicles works well to achieve your charitable goals whether or not you have children. For example, if you have children, you can work with the community foundation to explore naming them as successor advisors on your donor-advised fund to carry on your philanthropic priorities beyond your lifetime. If you don’t have children, your donor-advised fund can roll into your designated fund or unrestricted fund following your death.

Changing demographics are becoming a catalyst for the community foundation’s increased role in many estate plans. For example, not having children is becoming more common, both among millennials and older people. According to a study conducted by the Pew Research Center, 20% of U.S. adults age 50 and older hadn’t had children. In addition, children of affluent parents tend to move away, which means that many parents embrace the notion that working with the community foundation can help children maintain ties to their childhood community even across generations.

Indeed, many couples who don’t have children and couples who do have children feel a strong sense of peace of mind knowing that the community foundation will be involved with their charitable legacy long after their lifetimes, whether through advising children and grandchildren or administering charitable bequests for maximum community impact. The community foundation always has its finger on the pulse of our region’s greatest needs and the nonprofits that are meeting those needs at any given point in time, whether right now or decades in the future.

Please reach out to the team at the community foundation to learn more about how we can help you leave a legacy across generations, whether or not you have children. We’re here to help!

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.

Funds for year-end, gifts from your IRA, and assets you can give to your fund

Hello from the community foundation!

We’re honored to work with so many of you as you support the charitable causes that mean the most to you and your family. If you’ve not yet established a fund at the community foundation, please reach out! We’d love to help you structure a charitable giving plan that’s just right for you, including a donor-advised fund, legacy gift, field-of-interest fund, or all of the above and more. Our goal is to help you make a difference in the ways that mean the most to you.

Here’s what’s trending:

–We’re so glad to see that field-of-interest funds and designated funds are gaining popularity. A field-of-interest fund allows you to support a specific charitable cause by leveraging the community foundation’s expertise. A designated fund allows you to support a favorite charity or charities over time. Best of all, if you’re over the age of 70 ½, both of these funds are eligible recipients of Qualified Charitable Distributions (QCDs) from your IRA, up to $105,000 a year. Reach out to learn more about field-of-interest funds, designated funds, and QCDs.

–Many Americans hold a significant portion of their net worth in one or more IRAs. Have you thoroughly considered all of the ways your IRA can help you meet your charitable giving goals, both during your lifetime and through a legacy? Giving to charity from an IRA is one of the most tax-savvy moves you can make. Reach out to the community foundation team to learn more.

–It’s that time of year! You may be starting to review your tax projections to determine an ideal level of charitable giving at the end of 2024. Before you start writing checks, stop to consider the many types of assets that frequently make even better gifts to your fund at the community foundation. Our team can help you and your advisors identify the best assets for year-end giving.

Finally, and most importantly, our hearts go out to the millions of people affected by Hurricane Helene. Community foundations in the affected areas and across the country are making it as easy as possible to donate to relief efforts. Please contact the team at the community foundation to learn more about how you can help swiftly and most effectively.

–Angie Tatro, CKCF CEO

Field-of-interest and designated funds could be your year-end friends

As you’re looking ahead to year-end giving, you’re likely thinking about transferring cash, or ideally appreciated stock, to your donor-advised fund so that you can maximize tax benefits and support the charities you love. And absolutely, a donor-advised fund can be a fabulous component of your overall charitable giving portfolio.

Think beyond donor-advised funds, though, especially at year-end. The community foundation offers a wide variety of funds to meet your charitable giving goals and also help you maximize your tax and financial planning efforts.

Two excellent fund types that are sometimes overlooked are designated funds and field-of-interest funds.

When you set up a field-of-interest fund at the community foundation, you’re setting aside charitable dollars for a specific charitable purpose. For example, you might decide to set up a field-of-interest to support research for rare diseases, to support organizations that assist homeless families in getting back on their feet, to enable art museums to acquire works that celebrate the region’s diversity, and so on. With a field-of-interest fund, you’re leaning on the knowledgeable team at the community foundation to distribute grants to achieve your wishes. As is the case with a donor-advised fund, you’ll choose a name for your fund, whether you wish to use your own name (e.g., Samuels Family Fund or Samuels Family Fund for the Arts), maintain anonymity (e.g., Maryville Fund for the Arts), or something else altogether (e.g., Bettering Our World Fund).

A designated fund is a good choice if you know you want to support a particular charity or charities for multiple years. This is useful so that the distributions can be spread out over time to help with the charity or charities’ cash flow planning, which allows you to potentially benefit from a larger charitable tax deduction in the year you establish the fund if, for example, your tax rates are higher than usual in that particular year. Your designated fund document allows you to specify the charities to receive distributions according to a spending policy you select.

Last but not least, if you are over the age of 70 ½, pay particular attention to designated funds and field-of-interest funds as year end approaches because these two types of funds, unlike donor-advised funds, can receive “Qualified Charitable Distributions” from IRAs–up to $105,000 per person in 2024!

As always, thank you for the opportunity to work together!

Your IRA is a force for good

It probably would not surprise you to learn that over 42% of Americans own an IRA. In many cases, IRAs–especially for people who have rolled over one or more employer retirement plans–represent a significant portion of a household’s net worth. When it comes to charitable planning, IRAs should never be ignored. Indeed, your IRA may offer some of the best opportunities to support the causes you care about.

For starters, no matter what your age, consider the benefits of changing the beneficiary designation on your IRA to name your fund at the community foundation as the recipient of all or a portion of the account. This is an easy, tax-effective way to leave a bequest to support the causes you care about. The community foundation can help you structure the terms of your fund to match your intended charitable legacy. For example, you can make arrangements for your children to serve as advisors on the fund to recommend grants to particular areas of interest, or the community foundation itself could deploy the money to support the community’s areas of greatest need or even the support foundation’s own mission-based operations.

The reason an IRA beneficiary designation is such an ideal form of charitable bequest is because of the tax advantages. Dollars flowing to the community foundation from an IRA upon your death are not subject to estate tax. In addition, as a public charity, the community foundation does not pay income taxes on the IRA assets it receives. By contrast, if you were to name your children as beneficiaries of the IRA, those IRA distributions to the children are subject to income tax, which can be hefty given the tax treatment of inherited IRAs. Plus, the IRA assets would be included in your estate for estate tax purposes.

Exploring ways to give your IRA to charity can also serve as a helpful reminder to review all of your beneficiary designations. Although they may appear to be innocuous and may even be easy to overlook, those beneficiary designation forms actually represent critical components of your estate plan. To understand this, you need look no further than the cautionary tale of a Procter & Gamble employee who died in 2015, leaving behind a retirement plan. Way back in 1987, the employee had named his girlfriend as the beneficiary of his retirement plan. Despite their relationship ending, the employee never updated the beneficiary designation. By the time the employee died, the retirement plan, which had grown to nearly $1 million, passed via the beneficiary designation to the 1980s ex-girlfriend.

Finally, if you have reached the age of 70 ½, you can make what’s known as a Qualified Charitable Distribution (“QCD”) from your IRA directly to certain charities, including a designated fund or a field-of-interest fund at the community foundation–up to $105,000 per year per spouse. You won’t pay income tax on the distribution and, happily, if you’ve reached the age for Required Minimum Distributions, your QCDs count toward those distributions.

The upshot? Next time you review your financial and estate plan with your advisor, take a close look at your IRAs. If you intend to leave a charitable legacy, or if you’d like to support your favorite organizations during your retirement years, your IRA may be your best bet to make a big difference in the causes you care about.

Variety is the spice of … giving

If you’ve been working with the community foundation for a while, you certainly know that it’s easy to make a contribution to your fund. And by now, you likely know not to automatically reach for your checkbook! The team at the community foundation is happy to work with you and your tax advisors to review the options for types of gifts. Here’s food for thought:

Marketable securities

Gifts of long-term appreciated stock to a donor-advised or other type of fund at the community foundation is always one of the most tax-savvy ways to support favorite charitable causes because capital gains tax can be avoided. Gifts of publicly-traded stock, for example, are easy to transfer to a fund. The community foundation team provides transfer instructions to make the process simple.

As is the case with a cash gift, the community foundation will provide a receipt for tax purposes, and the gift of stock will be valued at the shares’ fair market value on the date of transfer. When the community foundation sells the shares, the proceeds flow into your fund without any reduction for capital gains taxes. This is because the community foundation is a 501(c)(3) charitable organization and therefore does not pay income tax. That would not have been the case, however, if you had sold the stock first and then transferred the proceeds to your fund; you would owe capital gains tax on the sale. Especially in cases where you have held the stock a long time and it’s gone up significantly in value, the capital gains hit can be big.

Closely-held business interests

The community foundation team is happy to work with you and your advisors to explore how you might give shares of a closely-held business to a fund at the community foundation. Not only will transfers be eligible for a charitable deduction during the year of transfer (and at fair market value if the shares are held for more than one year), but also these gifts could potentially reduce income tax burdens triggered upon a future sale of the business. Be sure to talk with our team well before any potential sale is in the works; otherwise, you could lose out on tax benefits. Gifts of closely-held business interests are powerful but can be tricky to administer.

QCDs from IRAs

As always, keep in mind that the Qualified Charitable Distribution (“QCD”) is a very smart way to support charitable causes. If you are over 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 are subject to the rules for Required Minimum Distributions (RMDs), QCDs count toward those RMDs. That means you avoid income tax on the funds distributed to charity. Plus, keep in mind that leaving your IRA to your fund through a beneficiary designation is a very tax savvy move, so be sure to discuss this option with our team and your tax advisors.

Real estate

You can give a tax-deductible gift of real estate, such as farmland or commercial property, to your fund in a variety of ways. An outright gift is always an option; lifetime gifts of real estate held for more than one year are deductible for income tax purposes at 100% of the fair market value of the property on the date of the gift, which also avoids capital gains tax and reduces the value of your taxable estate. Other ways to give real estate include a bargain sale or a transfer to a charitable remainder trust which produces lifetime income for you and your family.

Life insurance

Don’t overlook life insurance as an effective charitable giving tool, whether by naming your fund at the community foundation as the beneficiary or, in the case of whole life policies, naming the fund as beneficiary and transferring the policy itself. If you transfer a policy, you may be able to make annual, tax-deductible contributions to the community foundation to cover the premiums.

Other “alternative” assets

The community foundation is happy to discuss your options for giving other non-cash assets to your fund at the community foundation, including oil and gas interests, negotiable instruments, cryptocurrency, artwork, and collectibles.

We look forward to working with you to explore all the options!

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. 

Hello from the community foundation!

Thank you for the opportunity to work together! Already we are hearing from many donors and fund holders about your year-end giving plans. We couldn’t be happier that so many of you are planning ahead to be sure you have plenty of time to accomplish your charitable goals for 2024. Of course, we’re happy to help put things together right up until the end of December, but it’s really nice to have plenty of time to ensure that charitable, tax, and estate planning objectives are all considered. This is especially important if you’re just getting started working with the community foundation or are considering doing so this year. We’re ready to talk when you are!

In this issue, we’re covering three topics that have popped up several times recently in conversations.

–With potential tax law changes on the horizon, many people are taking a closer look at how the standard deduction might impact their charitable planning for the next few years. Learn how the community foundation can help you and your advisors work through various scenarios for organizing your giving so you don’t leave dollars on the table either for yourself or your favorite charities.

–Many people are involved with charities both as donors and as board members. If you’re one of them, you might have the opportunity to learn about different types of endowments–both the kind of endowment that a charity itself establishes as well as the kind of endowment that you as a private donor might establish for the charity. The community foundation can help with both.

–Giving to charity makes people happy. That certainly does not come as a surprise to most people who incorporate philanthropy into their lives, but you might be interested to learn how the research on these positive emotions connects to the charitable giving tools available through the community foundation. Lots of reasons to smile!

As always, we look forward to hearing from you! Thank you for everything you do for the community we all love.

With Gratitude,

Angie Tatro, CKCF CEO

Standard deduction planning: Avoid leaving dollars behind

One of many items on the legislative “watch list,” especially in light of the upcoming elections, is the standard deduction. Without intervening legislation, in 2026 the standard deduction for individual taxpayers younger than age 65 is scheduled to drop from $14,600 to $8,300.

While this may spell higher taxes for some taxpayers, the news could be positive for charitable giving. You’ll recall that the Tax Cuts and Jobs Act of 2017 increased the standard deduction significantly. As a result, only 9% of taxpayers itemized deductions in 2020 compared with 31% in 2017. Although certainly not the only factor motivating charitable giving, tax incentives do play a role in donors’ decision-making about whether, when, and how much to give. Indeed, statistics recently released by the National Bureau of Economic Research indicated that the increased standard deduction resulted in $20 billion fewer charitable donations in 2018 alone.

The community foundation is happy to work with you and your tax advisors to map out a charitable giving plan for the next few years to navigate anticipated changes in the law. For example, this year you could consider using a technique called “bunching” to make two years’ worth of gifts up front to your donor-advised fund to take advantage of the standard deduction while it is still high.

If you determine that bunching is right for you, naturally, cash is easy to give in a year of higher-than-expected income. So, for example, if you earn a large bonus this year, get a big increase in compensation, take a job buyout, or experience a significant liquidity event, your surplus income could make bunching ideal.

Most of the time, though, even when you deploy a bunching strategy, donating highly-appreciated marketable securities is a better choice than giving cash because it is extremely tax efficient. Stock given to a public charity, such as your donor-advised or other type of fund at the community foundation, typically is deductible at the asset’s fair market value. The community foundation, in turn, pays no capital gains tax on its sale of the asset, thereby generating more dollars to support your philanthropic interests than if you had sold the stock and given the proceeds to your fund.

You can think outside of the box, too, and explore other assets that make great gifts to your fund. As is the case with gifts of other long-term appreciated assets, a gift of real estate or closely-held stock avoids capital gains taxes and results in more money for your favorite causes than if you had sold the asset, taken the tax hit, and donated the proceeds.

The bottom line?  Now is a perfect time to look ahead at your charitable giving plans so that you don’t leave dollars behind. Your own financial situation, as well as the charities you support, will benefit from your careful planning. The community foundation is here to help!

Giving to others gives us lots of reasons to smile

The community foundation is honored to serve at the center of your philanthropy. Whether you’ve established a donor-advised or other type of fund, arranged for a bequest to a fund or to the community foundation itself, or both, our team strives to help you organize your giving to make it easy and convenient. If you’ve not yet established a fund or arranged for a bequest but are considering it, we look forward to continuing the conversation!

Charitable giving is important not only locally and nationally, but also internationally. Indeed, the World Giving Index 2024 Global Trends in Generosity reports that 4.3 billion people worldwide helped someone they didn’t know, volunteered time, or donated money to a good cause in the preceding month.

It’s no surprise that research indicates that giving to others actually puts donors in a good mood. This is especially the case, studies show, in three ways:

–The act of giving feels good in the moment

–People like having choices about their giving

–People like to see the results of their giving

We know this intuitively based on our own experiences. For instance, many of us enjoy picking out a birthday gift for a friend or family member and watching them open it.

The same good feelings translate to charitable giving. People enjoy working with the community foundation. Certainly one reason is because the community foundation activates the research’s three key factors:

–Feels good in the moment. The community foundation makes it easy to give cash, stock, or other assets to a type of fund that is the best fit for you, whether that’s a donor-advised fund, designated fund, field-of-interest fund, or unrestricted endowment fund. When you initiate the stock transfer, for example, it’s fun because the community foundation makes it easy. You know immediately that you’ve taken meaningful action.

–Offers choices. The community foundation’s tools are flexible to meet your charitable giving goals. We can help you set up an annual giving strategy, establish a bequest to your fund in your estate plan, and everything in between. Most of all, we want to help you support the causes that are most important to you, whether those are particular charities or broader areas of community need.

–Shows results. The community foundation has its finger on the pulse of our region’s priorities and how charitable giving can improve quality of life for everyone. Every day, we work with you and other families, individuals, and businesses to help you not only make a difference, but also actually see the difference you are making. From research and hands-on site visits, to networking with other donors and meeting with community leaders, our team will provide a wide range of opportunities for you to see first hand the results of your philanthropy.

We look forward to helping you incorporate charitable giving into your life in ways that help the community and make you happy!

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. 

Making a move, the kitchen sink, and getting more out of your giving

Greetings from the community foundation!

We hope summer is treating you well! If you’re already working with the community foundation to organize your giving and make an impact, thank you! If you have not yet established your donor-advised or other type of fund at the community foundation, we look forward to working together to explore the best options for you and your family.

It’s our pleasure to keep you up-to-date on issues and ideas that can help you make the most of your philanthropy. In this issue, we’re covering three strategies to help meet tax objectives, address community needs, and achieve your expectations for administrative simplicity.

–Unfortunately, many people (as well as their attorneys, accountants, and even financial advisors) are not aware that a donor-advised fund established at the community foundation is in most cases a far better fit for their clients than a donor-advised fund set up at a national financial institution. The community foundation offers much broader services, more personal attention, and deeper connections to the nonprofits whose work is essential to effecting positive community change.

–If you’re planning to leave your residence to your children in your estate plan, you might reconsider because they may not want it! The team at the community foundation can help you evaluate the various options for giving the family home to charity. You might be surprised by the possibilities.

–Building good habits is important in many areas of your life, and charitable giving is no exception. The community foundation is happy to offer tips and suggestions to make your philanthropic endeavors easier and more satisfying, which in turn makes it more fun to add regular giving into your routine.

As always, it is our pleasure to work with you as you fulfill your charitable intentions. Every day, we are inspired by the generosity of our donors and fund holders. Thank you.

–Your community foundation

This may be your best move yet! 

If you’ve already established a donor-advised fund at the community foundation, you can understand why it’s become such a popular tool to organize your family’s giving and serve as a springboard for so many other ways to make a difference in our region.

Recently, we’ve talked with a lot of donors who work with the community foundation in a variety of ways, such as regularly contributing to a favorite organization’s endowment fund, supporting the community foundation’s operating endowment, making distributions from an IRA to a designated fund, or attending community foundation events to rally around important community priorities. Interestingly, we are discovering that some of these donors also have established a donor-advised fund at a national financial institution and in many cases did not realize that they could have set up their donor-advised fund at the community foundation.

It’s time to set the record straight!

For starters, the community foundation offers donor-advised fund holders the same tax and administrative benefits as a national financial institution, including:

• Online access to the donor-advised fund to view balances, contributions, and grants
• Simple process for requesting grants to favorite charities
• Streamlined tax reporting, often represented by just one letter to provide to an accountant at tax time, even when the donor-advised fund is used to support dozens of individual charities throughout the year
• All back-office administration, tax receipts, recordkeeping, and other requirements for the donor-advised fund’s 501(c)(3) status
• Favorable tax-deductibility of contributions to the fund

Unlike standard national financial institutions’ donor-advised funds, though, the community foundation offers high-level, customized services to its donor-advised fund holders, including:

• Concierge-level service by knowledgeable staff to structure estate gifts to charities and accept gifts of appreciated stock or complex assets such as real estate or closely-held stock
• In-house experts who have a finger on the pulse of community needs, the strengths of specific nonprofits, and how to structure grant making for the highest possible community benefit
• Opportunities to collaborate with other donors who care about similar issues and forums to tap into local and national subject matter experts
• Opportunities to go deep into specific issue areas, both through education and hands-on involvement
• Assistance with structuring and measuring the impact of grants
• Family philanthropy and corporate giving services to foster a well-rounded, holistic approach to philanthropy
• Administrative fees that are reinvested into the community foundation, itself a nonprofit, to help support operations, grow its mission, and help even more donors support the causes they care about
• Hands-on assistance from local experts who understand both local and distant needs, and welcome the opportunity to research and identify causes aligned with donors’ goals and priorities
• Staff members who live in the community they serve and often personally know the leaders and staff of grantee organizations and regularly hear about their needs first-hand

If you’ve established a donor-advised fund at a national financial institution, we’d love to chat about moving it over to the community foundation. At the community foundation, your hard-earned assets receive the attention they deserve as you and your family strive to make a difference in the causes you care about the most.

Not even the kitchen sink: Giving your house to charity is worth exploring

August is national Make-A-Will month and a great time to check in on key components of your estate plan. The reality, as we know, is that all property remaining at death has to go somewhere. And as heartbreaking as it may be for parents of grown children, it’s usually a mistake to assume that you should automatically leave the family home to children in your will or trust. Indeed, your children may not be nearly as attached to your things as you are, and the reality is that they may not want any of them–including the house.

But don’t let this get you down. When one door closes, another door opens. It may be time to explore giving your personal residence to charity. The community foundation can help!

Reach out anytime to discuss the possibilities with the community foundation team. As we begin the conversation, we’ll evaluate which type of gift format might be a good fit for your situation. For example:

• You can certainly deed your house to the community foundation outright. This might be a solid option if you are planning to sell the house in the near future to downsize or move to a retirement community. This is an especially good option if you do not need to rely on the sale proceeds to fund either your next move or your ongoing living expenses. And, if the total value of all your assets is in a range where you could be subject to estate tax, transferring your house to the community foundation takes the home’s value out of your estate, tax free, because of the charitable deduction. The community foundation will likely list the property shortly after you make the gift. Then, the proceeds from the sale will flow into your donor-advised or other type of fund to help you fulfill your charitable goals.
• If you’re hoping to get a little money from the sale of your residence, but you don’t need the full amount of its value, you can explore what’s known as a “bargain sale.” This transaction allows you to sell the property to the community foundation at a price below market value, allowing you to receive some income while still making a charitable contribution.
• Another option is to transfer your residence using a “charitable remainder trust.” You’d transfer title to the property to the trust, and the trust would provide you with income for the rest of your life (or a term of years). Any remaining value would flow to your fund at the community foundation to support the causes you care about. You’d also be eligible for an up front income tax deduction based on the present value of the amount projected to pass to your charitable fund in the future.

If you’re interested in giving your residence to your fund at the community foundation, our team will work closely with you and your advisors to carefully evaluate the opportunities and walk through all of the steps in the process. For example, it’s important to look at factors such as valuation (which must be documented with a qualified appraisal), whether there’s a mortgage on the property that would make a gift more challenging, how long you’ve held the property and your cost basis, and ensuring that a sale is not already formally or informally in the works.

You’ve spent years making your house a home. We look forward to exploring the possibilities for extending the joy your personal residence brings to you and your family by transforming the property into a source for community benefit.

Inspiring good habits: Tips for better giving

The team at the community foundation is committed to sharing tips and insights that can help you get more satisfaction from your charitable giving and in turn make an even bigger difference in the causes you care about.

Here are three recommendations:

Strive for energetic effectiveness. Whether a gift to charity is $25, $2500, or $25 million, it’s cause for celebration. Philanthropic support of all shapes and sizes can make a difference. What’s even better, though, is to apply discipline to those dollars so that the strategy matches the enthusiasm. Certainly media-based philanthropy efforts are effective to raise the overall awareness about charitable giving, but awareness is just the beginning. At the community foundation, our team is dedicated to helping you apply your charitable passions to make a meaningful impact, especially by helping you address root causes with your giving, above and beyond providing immediate relief to those in need.

Give from the heart. A recent Rolling Stone article illustrates how philanthropy can shape leaders by instilling values of empathy and responsibility. The author shares a heartwarming perspective based on participating in charitable activities as a child to rally around a sister with Down Syndrome. This makes such an important point: When your philanthropic efforts mean a lot to you, you’re more likely to stay engaged for the long term, resulting in significant cumulative community return on your personal investments. It’s really inspiring to see charitable individuals view their contributions as part of their personal and professional development.

Get your kids involved. The community foundation is always striving to offer ways for fund holders to involve their children and grandchildren in charitable giving. This is really important in light of the decline in charitable giving, especially among younger generations, which is becoming a significant concern. We encourage you to explore the factors behind this trend and reach out to the community foundation to discuss potential solutions and ways you can help.

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’d love the opportunity to work together.

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. 

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. 

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. 

Happy New Year from the community foundation!

We hope your 2024 is off to a good start!

Many of you have been fund holders and fund advisors at the community foundation for years, and we are grateful. Some of you established a donor-advised fund, field-of-interest fund, scholarship fund, or unrestricted fund in 2023, and we’re so glad you did. Others of you are evaluating whether to start a fund at the community foundation in 2024. We are here to answer your questions, and we look forward to working together!

Here’s what we’re covering in this issue:

• As you build your charitable plans for 2024, remember that you can work with the community foundation to achieve your goals for supporting favorite charities with gifts this year and also establish plans to ensure that your support for these causes continues far into the future through tax-savvy “planned giving” techniques.
• Don’t leave your loved ones in the dark. As you compile lists of financial and personal information, be sure to include information about your donor-advised or other type of fund at the community foundation. Our team can help document your intentions.
• The new year brings new numbers! Be sure you’re up to date on the various IRS thresholds and inflation adjustments that could impact your charitable giving and tax planning through your fund or funds at the community foundation.

As always, please reach out anytime!

Angie Tatro, CEO

Planned giving pointers

As you’ve chatted over the years with the professionals working at your favorite nonprofits, you’ve likely heard the term “planned giving.” You may have even wondered what the term means–even if you have already structured so-called “planned gifts” to support your favorite charities!

Here are a few pointers to help break down the concept of planned giving, along with ways the community foundation can help you achieve your charitable goals.

It may help to think of “planned giving” in contrast to what’s sometimes called “current” or “annual” giving. For example, when you write a check (or, ideally, give highly-appreciated stock) to a charitable organization such as your fund at the community foundation, you’re transferring those funds right away in a relatively straightforward manner. You also may be making annual gifts to several charities, and from time to time you may also make gifts to a favorite charity’s endowment or reserve fund at the community foundation.

By contrast, a “planned gift” is more complex and forward-looking than current or annual support of your favorite charitable causes. Making structured future transfers to charity is often referred to as “planned giving” because, well, these gifts require planning. Here are examples of common “planned gifts”:

–A bequest in your will or trust allows you to name a charity, such as your fund at the community foundation, to receive a certain dollar amount, or a percentage of your estate, following your death. The team at the community foundation can work with you and your advisors to include a bequest in your estate plan using the proper bequest language.

–Beneficiary designations on life insurance policies, and especially on retirement plans, can be effective tools for making bequests. The team at the community foundation can work with you and your advisors to complete the paperwork required to properly designate your fund at the community foundation as the beneficiary of life insurance or IRA assets, including reviewing with you the many tax benefits of using retirement plans to fund your bequests.

–Setting up a charitable trust, such a charitable remainder trust, is often an effective way for you to ensure that money will flow from your estate to a charity, such as your fund at the community foundation, in a way that meets both your philanthropic intentions and your financial goals (including retaining an income stream and triggering an up-front charitable income tax deduction). A charitable gift annuity is another type of “split interest” arrangement, whereby you can retain an income stream and designate a charitable beneficiary to receive a future gift. Charitable trusts are complex, and we’re here to walk you and your advisors through the process every step of the way.

Please contact the team at the community foundation. We’d love to work with you to set up planned gifts to support your favorite causes, as well as work together to ensure that you’ll meet your charitable goals for current giving in 2024.

Providing guidance for loved ones about your charitable giving

Whatever their age or health status, most people are aware that they need to document important financial and personal information for loved ones, just in case the unexpected occurs. We’ve all heard stories about someone’s family member who passed away and left little, if any, information about where to find bank accounts, passwords, estate planning documents, life insurance policies, and other information. No one wants to leave their loved ones in the lurch with scant information, but it’s often hard to get motivated to write it all down in one place.

The start of a new year is an excellent time to get organized and provide your next of kin or key advisors with the information they’d need to take care of your affairs if something were to happen to you. The list of “must haves” includes the obvious: Will, trust, power of attorney, birth certificate and marriage license, titles to cars and boats, deeds to property, car keys, bank accounts, investments and advisor contact information, life insurance policies and contact information for the agent, funeral wishes, and, critically, passcodes and passwords to devices and accounts.

What might not be obvious, though, is that you also ought to leave your loved ones with information about your charitable giving, including details about favorite charities you’ve supported over the years and information about your donor-advised or other type of fund (or funds) at the community foundation. In many instances, one member of a family has managed a family’s or a couple’s donor-advised fund, for example, while others have not been as involved in the mechanics. Be sure to include your funds at the community foundation on your list of key information, and include the community foundation’s contact information. You might also like to include a copy of your donor-advised fund agreement outlining successor advisors, as well as login credentials to the community foundation’s online fund portal.

The team at the community foundation is happy to help you put together documentation about your donor-advised fund and charitable wishes to include with the information you provide to your loved ones so they are not completely lost as they navigate how to carry out your philanthropic wishes. Even better, we’re happy to work with you anytime to show your family members exactly how your donor-advised or other type of fund works so that they are involved and participating with you in your philanthropic pursuits during your lifetime.

Making it easy for you to share the joy of giving, and also helping ensure that family members have the information they need, are top priorities at the community foundation. We are honored to work with you to help make your philanthropy easy, effective, and rewarding for everyone involved.

Clean slate: Tips for charitable giving in 2024

A new year is such a great time to plan and reboot. Cliche as it may be to talk about resolutions this time of year, it’s tough to deny that January represents a clean slate for “to do” lists, goals, and your overall mindset.

As you think about your 2024 charitable giving goals and priorities, here are a few items to consider:

You may have more capacity to give to charity.

The IRS issued inflation adjustments for important thresholds such as the standard deduction, Social Security cost-of-living adjustments, annual exclusion gifts, Required Minimum Distributions, Qualified Charitable Distributions, and levels of income for each tax bracket. Talk with your advisors about how these adjustments might impact your charitable giving goals–or even create opportunities for you to do more to support your favorite causes in 2024.

You may soon get a charitable deduction even if you do not itemize.

Many eyes are on the Charitable Act, which, if passed, would allow even non-itemizers to deduct certain charitable gifts on their income tax returns. This legislation has generated strong public support; 77% of Americans are reportedly in favor of the proposed “universal” charitable deduction.

You’ll likely still receive requests to fund disaster relief efforts.

Disaster giving is likely to remain high on the fundraising radar, meaning you will likely continue to get requests for donations to support disaster-related causes. As always, please reach out to the community foundation to strategize about effective deployment of your charitable dollars to help people who need it most in the wake of disasters and humanitarian crises.

This is a good time to review your estate plan without being rushed.

The beginning of the year is an excellent time to be sure your estate plan is in order. Many people scramble at the end of the year to execute tax planning transactions, which is understandable, but this often leaves little time for a thoughtful, strategic evaluation of the various components that make up a comprehensive estate plan, including financial planning, retirement planning, tax planning, investments and wealth management, business succession planning, planning for disability, evaluating wills and trusts as children get older and needs change, and, of course, charitable planning.

Reach out to the team at the community foundation as you and your advisors evaluate the steps you’d like to take in 2024. We’re here to help ensure that you achieve your charitable giving goals in the most tax-savvy and impact-minded way possible so that you can continue to help the causes you care about the most.

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