Community Foundation of Washington County

IT MAKES GOOD SENSE
What is a
Community Foundation?

Community
Foundations
Are…
• 1. Grantmakers. They support a wide range of community needs- education, health, human services and more.
• 2. Local Giving Vehicles. They establish and hold numerous funds for a variety of charitable purposes.
• 3. Community Leaders and Conveners. They act as community catalysts focusing on long-term endowment building and sustainability.

#1.
Grantmaker
• Monitor all community needs… arts & culture, economic development, health, environment, education and more!
• Direct grants and resources to appropriate areas
• Re-direct funds as community needs change
• Knowledge of community issues, opportunities, and resources
• Gather information and track local agencies and programs
Making a difference where it is needed most in the local community

#2.
Giving Vehicle
• Educate donors about charitable giving vehicles
• Customize giving approaches to match personal interests and tax planning needs as a partner with professional advisors
• Share knowledge on community needs
• Offer involvement in recommending uses of a gift
• Provide the option to give anonymously
• Help people create personal legacies via named funds

#2.
Giving Vehicle cont….
Unrestricted Fund
Designated Fund
Field of Interest Fund
Donor
Advised
Fund
Agency Endowment

IT MAKES GOOD SENSE
Why do organizations partner with a Community Foundation?
Focus on mission
Grow endowments
Insure sustainability
Take advantage of Endow Iowa
Tax Credit

YEAR 1
Establish a Named
Fund
$10,000 gift
YEAR 15
$9,000 in cumulative grants and services
$16,000 balance
YEAR 25
$19,000 in cumulative grants and services
$23,000 balance
YEAR 50
$66,000 in cumulative grants and services
$57,000 balance
Initial gift has been invested:
The Impact to nonprofits
1 TIME 2 TIMES 6+ TIMES assumes 4.5% annual payout and 8.5% rate of return

#3.
Community
Leader/
Convener
• Act as a community catalyst
• Support high impact opportunities
• Governed by leaders with strong ties to the community
• Foster development of new organizations and programs
• Build endowments to ensure grants are available to support the community
Our business is building the local community

IT MAKES GOOD SENSE
Growing Endowments in
Iowa Communities

IT MAKES GOOD SENSE
The Endow Iowa
Tax Credit

WHAT IS
Endow Iowa?
• Encourages Iowa Taxpayers to Contribute to
Endowment Funds at Qualified Community
Foundations
• Permanent Endowment Fund
• Has to be held at and receipted by the
Community Foundation
• Iowa Charitable Purpose
(scholarships, agency endowments, donor advised funds, etc.)
• No more than 5% spending/granting policy

WHAT IS
Endow Iowa?
THEN donors can be eligible for...
• 25% state tax credit for contribution- in addition to normal federal charitable deduction
• Limits each year
• per taxpayer (up to $227,590)
• statewide (approx $4.5 million in 2011)
• Tax credit paperwork has to be completed
• Awarded on a first come-first served basis
• Tax Credit Letter/# sent by IDED once awarded
• Can be carried forward up to 5 years

Endow Iowa Tax Credit Example cost donors less.
For example, a $10,000 gift could cost just $4,000.
Gift:
Tax Credit:
Total Cost of Gift:
$10,000
$2,500
Federal Deduction: $3,500
$41 trillion in United States
Total Tax Savings: $6,000
$4,000
$1,000
$ 250
$ 250
$ 500
$ 500
*Based on 35% marginal federal tax rate
$XXX billion in [County]
$XXX,XXX per probated estate http://www.iowacommunityfoundations.org/resources.aspx

• In 2010, approx $3.4 million leveraged $13.9 million in giving.
(processed by 3.15.11)
•
125 contributions were from businesses.
• Awarded to donors to approximately 71 different
• Since inception, more than $75 million leveraged
$531 billion in in Iowa through probate estates alone through 7,834 separate donations… and its growing!
$XXX billion in [County]
$XXX,XXX per probated estate

What can we expect as an
Endowment partner?
Work with you to grow the organization’s endowment
Strategize the work
Organize a committee
Develop a brochure or case statement
Inventory current collateral
Identify & prioritize potential donors
Visit potential donors along with organization's board or committee members

IT MAKES GOOD SENSE
Questions & Comments