Community Foundation of Washington County
The Power of Philanthropy
IT MAKES GOOD SENSE
What is the history of our Community Foundation?
Community Foundations History
• The first Community Foundation was started 100 years ago in Cleveland, Ohio.
Community Foundations History
• The first Community Foundation was started 100 years ago in Cleveland, Ohio.
• It pooled the charitable resources of Cleveland’s philanthropists, into a single, great, and permanent endowment for the betterment of the city.
Community Foundations History
• The first Community Foundation was started 100 years ago in Cleveland, Ohio.
• It pooled the charitable resources of Cleveland’s philanthropists, into a single, great, and permanent endowment for the betterment of the city.
• Community leaders would then forever distribute the interest from that fund to charitable purposes benefitting the inhabitants of Cleveland.
• This original foundation spawned a global movement.
• Some 1,700 community foundations now exist worldwide.
Community Foundations History
• This original foundation spawned a global movement.
• Some 1,700 community foundations now exist worldwide.
• Today, there are more than 700 community foundations in the United States which collectively manage more than $48 billion in assets and distribute some $4.5 billion a year to community needs.
Community Foundations History
• Fifty years after the creation of the Cleveland Foundation the Davenport Area Foundation was established.
• The mission of the DAF was to improve the quality of life in the Davenport area.
Community FoundationsHistory
• Fifty years after the creation of the Cleveland Foundation the Davenport Area Foundation was established.
• The mission of the DAF was to improve the quality of life in the Davenport area.
Community FoundationsHistory
• In 1994, the Davenport Area Foundation was renamed “The Community Foundation of the Great River Bend.”
• The new name reflected CFGRB’s growing presence as a regional resource for both charitable giving and civic engagement.
• As the CFGRB has approached it’s 50th anniversary, there is no longer one pooled fund. Instead CFGRB has more than 850 distinct charitable funds, totaling over $93.4 million in assets.
Community Foundations History
• As the CFGRB has approached it’s 50th anniversary, there is no longer one pooled fund. Instead CFGRB has more than 850 distinct charitable funds, totaling over $93.4 million in assets.
• Today, these funds stretch beyond Davenport and are located in its 13 affiliate community foundations that serve 17 counties in two states.
Community Foundations History
• As the CFGRB has approached it’s 50th anniversary, there is no longer one pooled fund. Instead CFGRB has more than 850 distinct charitable funds, totaling over $93.4 million in assets.
• Today, these funds stretch beyond Davenport and are located in its 13 affiliate community foundations that serve 17 counties in two states.
• The CFGRB is a Qualified Community Foundation, operating in compliance with the National Standards for Community Foundations as set forth by the Council on Foundations.
Community Foundations History
The CFGRBGeographic Area
• The Community Foundation of Washington County was formed in 2006 as an affiliate of the CFGRB, serving the charitable needs of Washington County.
Community Foundations History
• The Community Foundation of Washington County was formed in 2006 as an affiliate of the CFGRB, serving the charitable needs of Washington County.
• Because of our affiliation with CFGRB, the Community Foundation of Washington County (CFWC) also operates as a Qualified Community Foundation.
Community Foundations History
• The Community Foundation of Washington County was formed in 2006 as an affiliate of the CFGRB, serving the charitable needs of Washington County.
• Because of our affiliation with CFGRB, the Community Foundation of Washington County (CFWC) also operates as a Qualified Community Foundation.
• The CFWC is now one of 130 Community Foundations in Iowa.
Community Foundations History
IT MAKES GOOD SENSE
What does the Community Foundation of Washington County do?
• 1. Grantmaker. We support a wide range of community needs -- education, health, human services and more.
The CFWC serves as . . .
• 1. Grantmaker. We support a wide range of community needs -- education, health, human services and more.
• 2. Community Leaders and Conveners. We act as community catalysts focusing on long-term endowment building and sustainability.
The CFWC serves as . . .
• 1. Grantmaker. We support a wide range of community needs -- education, health, human services and more.
• 2. Community Leaders and Conveners. We act as community catalysts focusing on long-term endowment building and sustainability.
• 3. Local Giving Vehicle. We establish and hold numerous funds for a variety of charitable purposes.
The CFWC serves as . . .
We offer many types of funds.
Unrestricted Fund
Designated Fund
Agency Endowment
Field of Interest Fund
Donor Advised
Fund
Some of our local partners:
HACAP Endowment
Highland Community School District
John and Phyllis Jackson Music Scholarship
Leo and Martha Hall Endowment
Wellman Parkside Activities Center
Kalona Historical Village
Washington Iowa Betterment Association
Dean Hasty Fund for the Washington County Humane Society
Dean Hasty Endowment for Camp R.E.E.C.E
Claude and Mary Greiner Family Scholarship
IT MAKES GOOD SENSE
Why do organizations and individuals partner with a Community Foundation?
• Roots in the community
IT MAKES GOOD SENSE
Why do organizations and individuals partner with a Community Foundation?
• Roots in the community• Personalized giving
IT MAKES GOOD SENSE
Why do organizations and individuals partner with a Community Foundation?
• Roots in the community• Personalized giving• Accepts wide variety of
assets
IT MAKES GOOD SENSE
Why do organizations and individuals partner with a Community Foundation?
• Roots in the community• Personalized giving• Accepts wide variety of
assets• Many professional advisors
IT MAKES GOOD SENSE
Why do organizations and individuals partner with a Community Foundation?
• Roots in the community• Personalized giving• Accepts wide variety of
assets• Many professional advisors• Maximize gift dollars
IT MAKES GOOD SENSE
Why do organizations and individuals partner with a Community Foundation?
• Roots in the community• Personalized giving• Accepts wide variety of
assets• Many professional advisors• Maximize gift dollars• Build legacies
IT MAKES GOOD SENSE
Why do organizations and individuals partner with a Community Foundation?
• Roots in the community• Personalized giving• Accepts wide variety of
assets• Many professional advisors• Maximize gift dollars• Build legacies• Maximum tax advantages
IT MAKES GOOD SENSE
• Fund Facts:• $1,000 minimum• At $10,000 distributions
may begin• 4.5%, 20 quarter average• Annual distributions each
spring• 1% annual support charge• .5% annual investment fee
6+ TIMES
nonprofits
YEAR 15
$9,000 in cumulative grants and services
$16,000 balance
YEAR 25
$19,000 in cumulative grants and services
$23,000 balance
assumes 4.5% annual payout and 8.5% rate of return
Initial gift has been invested: 1 TIME 2 TIMES
YEAR 50
$66,000 in cumulative grants and services
$57,000 balance
YEAR 1
Establish a Named Fund
$10,000 gift
The Impact to
IT MAKES GOOD SENSE
Endow Iowa State Tax Credit
Endow Iowa?WHAT IS
• A State Tax Credit provided to Iowa tax payers who donate to permanent endowed funds at a qualified Iowa Community Foundation
Endow Iowa?WHAT IS
• A State Tax Credit provided to Iowa tax payers who donate to permanent endowed funds at a qualified Iowa Community Foundation
• Encourages Iowa Taxpayers to invest in their communities by contributing to endowment funds at Qualified Community Foundations
Endow Iowa?WHAT IS
• A State Tax Credit provided to Iowa tax payers who donate to permanent endowed funds at a qualified Iowa Community Foundation
• Encourages Iowa Taxpayers to invest in their communities by contributing to endowment funds at Qualified Community Foundations
• The tax credit is equal to 25% of the amount of the donation. (This is in addition to the regular federal charitable deduction.)
Endow Iowa?WHAT IS
• The gift must be used for a charitable purpose in Iowa. (scholarships, agency endowments, donor advised funds, etc.)
Endow Iowa?WHAT IS
• The gift must be used for a charitable purpose in Iowa. (scholarships, agency endowments, donor advised funds, etc.)
• The gift must be in a permanently endowed fund.
Endow Iowa?WHAT IS
• The gift must be used for a charitable purpose in Iowa. (scholarships, agency endowments, donor advised funds, etc.)
• The gift must be in a permanently endowed fund.
• The gift must be held by a qualified Community Foundation.
Endow Iowa?WHAT IS
• The gift must be used for a charitable purpose in Iowa. (scholarships, agency endowments, donor advised funds, etc.)
• The gift must be in a permanently endowed fund.
• The gift must be held by a qualified Community Foundation.
• Limits each year
• Per taxpayer (up to $300,000)
• Statewide ( $6 million in 2013)
Endow Iowa?WHAT IS
• Tax paperwork has to be completed.
Endow Iowa?WHAT IS
• Tax paperwork has to be completed.
• Awarded on a first come-first served basis
Endow Iowa?WHAT IS
• Tax paperwork has to be completed.
• Awarded on a first come-first served basis
• Can be carried forward up to 5 years.
Surprising wealth transfer in next 50 years
$41 trillion in United States
$531 billion in in Iowa through probate estates alone
$XXX billion in [County]
$XXX,XXX per probated estate
Endow Iowa Tax Credit Example
With Endow Iowa, donations to community foundation endowments cost
donors less.
For example, a $10,000 gift could cost just $5,000.
Gift: $10,000 $1,000
Tax Credit: $2,500 $ 250
Federal Deduction: $2,500 $ 250
Total Tax Savings: $5,000 $ 500
Total Cost of Gift: $5,000 $ 500
*Based on 25% marginal federal tax rate
Calculate for yourself and see the charitable impact at http://www.iowacommunityfoundations.org/resources.aspx
Surprising wealth transfer in next 50 years
$41 trillion in United States
$531 billion in in Iowa through probate estates alone
$XXX billion in [County]
$XXX,XXX per probated estate
Year Credits Awarded in $s
Contributions Leveraged by Credits
# of CFs/AffiliatesHaving Donors Who
Received Credits
2012 $4,642,943 $18,571,771 712011 $3,960,718 $16,939,797 782010 $3,426,512 $13,918,149 712009 $1,977,869 $9,889,344 782008 $3,155,395 $15,839,702 682007 $2,000,000 $10,099,984 512006 $2,000,000 $10,503,850 30TOTAL ‘04-‘12 $24,166,210 $110,865,597 Average per/year= 64
Surprising wealth transfer in next 50 years
$41 trillion in United States
$531 billion in in Iowa through probate estates alone
$XXX billion in [County]
$XXX,XXX per probated estate
Donation Amount
2012 2011 2010 2009 2008 2007 2006 Total
$1000 or less
1,391 1,849 1,452 1,069 1,297 656 424 8,138
$1001 - $30,000
533 663 443 386 485 319 177 3,006
$30,001 - $100,000
38 59 36 34 69 45 36 317
$100,000 +
28 25 40 15 30 20 18 176
Total Donations
1,990 2,596 1,971 1,504 1,881 1,040 655 11,637
Surprising wealth transfer in next 50 years
$41 trillion in United States
$531 billion in in Iowa through probate estates alone
$XXX billion in [County]
$XXX,XXX per probated estate
Endow Iowa… Proven Results!
• In 2012, approximately $4.6 million leveraged $18.5
million in giving.
• 126 contributions were from businesses.
• Awarded to donors to approximately 71 different
community foundations/affiliates.
• Since inception, more than $110 million leveraged
through 12,285 separate donations… and its
growing!
Work with you to grow your organization’s endowment
Strategize the work
Assist in developing a brochure and donor materials
Give presentations to the organization and potential donors
Identify & prioritize potential donors
Visit potential donors along with organization's board or committee members
What can you expect as an Endowment partner?
IT MAKES GOOD SENSE
Questions & Comments