County Conservation Directors Association


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County Conservation Directors Association

  1. 1. Creating Lasting Legacies Through Charitable Giving Wade A. Den Hartog, MBA Director of Affiliates & Charitable Partners
  2. 2. Today’s Outline • Introduction to a Community Foundation • Transfer of Wealth • Endow Iowa Tax Credit Program • Fund Types • Gift Types • Questions?
  3. 3. Introduction to a Community Foundation
  4. 4. Community Foundation Basics • A Community Foundation is a neutral charitable organization. Our focus is community wide and our mission is to be a partner in philanthropy • Three Pillars of our Work • Community Investment (Grantmaking) • Community Leadership (Bringing together leaders to address community issues) • A Vehicle for Charitable Giving
  5. 5. Community Foundation of Greater Des Moines • Established in 1969 by a group of community minded individuals • Currently manages over $285 million for the benefit of the Greater Des Moines area and our statewide partners • 30 county affiliates across the state through the County Endowment Fund Program • Our focus is to partner with affiliates as they work to establish funds that will sustain their communities as a vibrant place to live, work and play
  6. 6. Iowa Host Community Foundations Community Foundation of Greater Des Moines Community Foundation of Greater Dubuque Community Foundation of Johnson County Community Foundation of Northeast Iowa Community Foundation of the Great River Bend Fort Dodge Community Foundation and United Way Greater Cedar Rapids Community Foundation Greater Poweshiek Community Foundation Omaha Community Foundation Pottawattamie County Community Foundation Siouxland Community Foundation South Central Iowa Community Foundation
  7. 7. Transfer of Wealth
  8. 8. Over 80% of people will give to a charitable organization in their lifetime but Just 8% of people will leave a charitable organization in their will or bequest
  9. 9. Transfer of Wealth • In 2004, the Community Vitality Center conducted a study on the transfer of wealth • They analyzed the probate records by county and demographic trends • Study produced projections for the transfer of wealth in each of Iowa’s 99 counties from 2000 – 2050 • They estimate these numbers are lower than what will actually occur, in a large part due to the increase in the value of farmland
  10. 10. How much wealth is being transferred?  Annually State of Iowa $4.9 billion Pocahontas County $34.2 million  Over the 50-year time period State of Iowa $531 billion Pocahontas County $2.9 billion Some communities in the state our seeing many residents (especially the younger generation) leaving rural Iowa and moving to urban areas.
  11. 11. YEAR 1 YEAR 15 YEAR 25 YEAR 50 Establish a Named Fund $9,000 in cumulative grants and services $19,000 in cumulative grants and services $66,000 in cumulative grants and services $10,000 gift $16,000 balance $23,000 balance $57,000 balance 2 TIMES 6+ TIMES Initial gift has been invested: 1 TIME LOOKING AHEAD One gift, many generations assumes 4.5% annual payout and 8.5% rate of return
  12. 12. Endow Iowa Tax Credit Program • Encourages Iowa Taxpayers to Contribute to Endowment Funds at Qualified Community Foundations • Gifts to an Endow Iowa Fund are eligible for a 25% state income tax credit, in addition to the federal deduction. • Iowa Charitable Purpose (scholarships, agency endowments, donor advised funds, etc.) • There are $6 million tax credits available in 2013 • No more than 5% spending/granting policy
  13. 13. Who can Benefit from Endow Iowa • Donors who wish to be charitable to Iowa non-profits • Donors with a taxable event • Inheritance, sale of business, influx of income • Example Less tax benefits: Net federal tax savings $1,000 - $396 Endow Iowa Tax Credit -$250 Net Cost of Gift $354
  14. 14. Fund Types • Donor Advised Funds • Designated Funds • Agency Funds • Field of Interest Funds *All of these fund types can be Endow Iowa qualified
  15. 15. Gift Types • Cash • Appreciated Securities • Gifts of Grain • Gifts of Farmland • Gifts of Real Estate • IRA Charitable Rollover (for donors 70 ½ years or older) *All of these gift types can qualify for Endow Iowa tax credits
  16. 16. Questions? Wade A. Den Hartog, MBA Director of Affiliates & Charitable Partners (515) 244-0020