the power of giving together securing our future
TRANSCRIPT
Surprising wealth transfer in next 50 years
$53 trillion in United States
$531 Billion in Iowa
$??? Locally
Surprising wealth: Iowa
$ 6.1 billion county-wide over 50 years
$314,000 per household
Washington County, IowaPopulation: 21,529 (2006 Estimate U.S. Census)
• For generations, people lived entire livesclose to their birthplace
• Quad Cities wealth passed from generation to generation, but stayed in the Quad Cities
Yesterday
COMMUNITY WEALTH
• Many of the next generation no longerlive in our community
• Once the wealth leaves our community,it will never return
Today
COMMUNITY WEALTH
Secure Our Future
5%
Invest 5% of our wealth asa legacy for future generations
INCREASING OUR COMMUNITY’S SHARE
Washington County
$305 million in 50 years
If just 5% is ENDOWED for future generations
$38 million in 10 years
#’s reflect Washington County Wealth Transfer Estimates
$34.3 million at 50 years
5% GRANTED annually to future generations
$2.1 million at 10 years
Washington County has a robust community endowment and a secure future; or,
LOOKING AHEAD
Two possible scenarios
Much of Washington County’s wealth has been transferred to communities in California, Arizona, Texas and beyond.
6+ TIMES
One gift, many generations
YEAR 15
$100,000 in cumulative grants and services
$158,000 balance
YEAR 25
$200,000 in cumulative grants and services
$213,000 balance
assumes 5% annual payout and 8.5% rate of return
Initial gift has been invested: 1 TIME 2 TIMES
YEAR 50
$625,000 in cumulative grants and services
$455,000 balance
YEAR 1
Establish your Family Fund
$100,000 gift
LOOKING AHEAD
Remember your heirs and tax obligations
The plan: Securing Our Future
Give to your community for good… forever
Home $150,000
Retirement assets $100,000
Savings and investments$100,000
Life insurance policies $50,000
Total $400,000
5% plan $20,000
Janis MacLeish
SECURING OUR FUTURE
# of Years
Fund Value
Annual Grant
Amount
Total Grants
Paid Out
10 $32,474 $1,582 $14,101
25 $48,074 $2,342 $43,537
50 $92,446 $4,503 $127,256
The Blakes
Homes $500,000
Retirement assets $1,000,000
Savings and investments$500,000
Life insurance policies $500,000
Business $2,500,000
Total $5,000,000
5% plan $250,000
SECURING OUR FUTURE
# of Years
Fund Value
Annual Grant
Amount
Total Grants Paid
Out
10 $324,735 $15,818 $141,010
25 $480,744 $23,417 $435,366
50 $924,459 $45,030 $1,272,564
Homes $300,000
Retirement assets $150,000
Savings and investments $ 150,000
Life insurance policies $50,000
Total $650,000
50% plan $325,000
SECURING OUR FUTURE
The Smiths
# of Years
Fund Value
Annual Grant
Amount
Total Grants
Paid Out
10 $487,103 $23,726 $211,515
25 $721,116 $35,125 $653,049
50 $1,386,689 $67,545 $1,998,846
Gift of Retirement Assets $100,000
Income Tax Avoided $35,000
Net Cost of Gift to Heirs $65,000
SECURING OUR FUTURE
Don’t forget about taxes
Gift of Retirement Assets $100,000
Income Tax Avoided $35,000
Estate Tax Avoided $45,000
Net Cost of Gift to Heirs $35,750
SECURING OUR FUTURE
Don’t forget about taxes…
The payoff
1. Permanent legacy for donor
2. Source of pride for heirs
3. Stronger community for all
SECURING OUR FUTURE
1. Permanent legacy
Endowed named fund
Targeting causes you care about most
Grants awarded in the name of your fund for generations to come
SECURING OUR FUTURE
2. Source of pride
Give back to your community
Model values for the next generation
Honor family heritage
SECURING OUR FUTURE
3. Stronger community
SECURING OUR FUTURE
Enrich education · Safeguard health ·
Improve neighborhoods · Cultivate arts ·
Protect environment · Strengthen families
Causes that move you
Charities that touch your life
GIVE THROUGH YOUR COMMUNITY FOUNDATION
Option to designate a local nonprofit through the Community Foundation of Washington County
Securing Our Future: options
We accept a wide variety of assets.
Outright GiftsBequest by Will Beneficiary DesignationLocal Community Impact Fund Charitable Gift AnnuityCharitable Remainder TrustCharitable Lead TrustLife Estate Contract
GIVE THROUGH YOUR COMMUNITY FOUNDATION
Three easy giving strategies
Give highly appreciated assets during your lifetime
Give retirement assets throughyour estate
Designate the Community Foundation as an insurance policy or retirement account beneficiary
GIVE THROUGH YOUR COMMUNITY FOUNDATION
IRA $600,000
45% Federal Estate Tax on IRA ($270,000)
Balance as Income $330,000
35% Federal Income Tax Bracket (on $330,000) ($115,500)
Net Distributed to Heirs $214,500
OR Leave $600,000 in a charitable fund for your children to direct for the benefit of the community.
SECURING OUR FUTURE
IRA’s in a Large Estate
First Child
Endowed Fund $200,000
Annual
Distribution $10,000
SECURING OUR FUTURE
IRA’s in a Large Estate
Second Child
Endowed Fund $200,000
Annual
Distribution $10,000
Third Child
Endowed Fund $200,000
Annual
Distribution $10,000
Family Endowed Fund
Endowed Funds $600,000
Total Annual Distributions $30,000
SECURING OUR FUTURE
IRA’s in a Large Estate
Total Charitable Grants Made
Balance of Endowed Fund
Amount Available for Annual Granting
Beginning 0 $600,000 $30,000
Year 15 $591,984 $934,780 $45,378
Year 50 $3,383,906 $2,630,344 $127,687
Step 1: Discuss with Family
Step 2: Sign Family Fund Agreement with CFGRB
Step 3: Change IRA Beneficiary to Family Charitable Fund at CFWC
Step 4: Accept Membership in the Legacy Society
SECURING OUR FUTURE
IRA’s in a Large Estate
Four Easy Steps