2014 Okoboji Foundation Professional Advisor Forum

1. Live…Give…Better Together.
Community Foundation
of Greater Des Moines
Wade A. Den Hartog, Director of Affiliates & Charitable Partners
Joe Sorenson, Manager of Affiliate Relations

2. Presentation Outline
 Endow Iowa and IRA Rollover Updates
 Fund Illustrations
 Gift Illustrations
 Keep Iowa Growing

3. Endow Iowa and IRA Rollover

4. Endow Iowa
Then donors can be eligible for
• 25% tax credit for contribution – in addition to federal
deduction (can carry forward for up to 5 years)
• Limit each year, per taxpayer and also statewide
 $300,000 per taxpayer
• Tax credit paperwork submitted; awarded on a first
come-first served basis
As of 10/8/2014, $2,744,370 Endow Iowa tax credits remain

5. Endow Iowa
With Endow Iowa, donations to Community
Foundation endowments cost donors less.
$10,000
Less tax benefits:
Net federal tax savings -3,960
Endow Iowa Tax Credit -2,500
Net Cost of Gift $3,540
Note: Use appreciated assets subject to capital gains and the savings are even better!
Disclaimer: Information provided is general and educational in nature. It is not intended to be, and should
not be construed as, legal or tax advice. The Community Foundation does not provide legal or tax advice.
Consult an attorney or tax advisor regarding your specific legal or tax situation.

6. Charitable IRA Rollover
It MIGHT be back?!
• For Individuals 701/2 and older
• Can transfer up to $100K of IRA assets directly to
charity
• No charitable deduction but the money is not
realized as income for tax purposes
• Iowa Taxpayers can qualify for Endow Iowa tax
credits!

7. Fund and Gift Illustrations
1. Donor Advised Fund
2. Legacy Fund

8. DONOR ADVISED FUNDS
Donor
Advised
Fund

9. LEGACY FUNDS
1. Contribution made
through planned gift
(will /testamentary
instrument)
2. Deduct assets from
estate for purposes of
estate tax
3. Administration
(agreement easily
modified)
4. Investment
Legacy
Fund
5. Favorite Charities
(one or several)
Family Foundation
Fund
Community
Foundation’s Better
Together Fund

10. The Johnsons
A GIFT OF APPRECIATED
SECURITIES
• Ted and Marlene own 1,000
shares of stock
• They originally paid $10 per
share or $10,000 more than 11
years ago
• The fair market value today is
$37 per share or $37,000
• If they sell the stock, they’ll have
$27,000 in long-term capital
gain income
• If they are in the 20% LTGC
tax bracket, their bill equals
$27,000x.20=$5,400
• Their net amount after
selling the shares will be
$31,600

11. The Johnsons
CONTINUED
• If they instead give the stock to
charity, they bypass all $5,400
of capital gains tax
• Plus, they can deduct the fair
market value of their stock
$37,000 (up to 30% of their
adjusted gross income)
• In addition they get 25%
state tax credit
• They have a 5-year carry
forward, too

12. Keep Iowa Growing
Iowa’s Farmland Giving Program
…for the love of the land

13. Why?
Farmland is by far Iowa’s most valuable asset:
 Total number of farms 88,631
 Total amount of farmland 30.6 million acres
 Average farm size 345 acres
 Average dollar value per acre $8,716
 Aggregate value of Iowa farmland
is estimated at $267 billion

14. Why?
 The Community Foundation’s 30 affiliated county
community foundations, together with Polk County,
hold a combined 9.5 million acres of farmland.
 If Keep Iowa Growing captured only 1% of this
farmland, the value of assets held for charitable
causes would be an estimated $866 million.

15. Why Now?
 Less Debt. Iowa farmland without debt:
 1982 – 62%
 2012 – 78%
 Average age of farmland owners
 56% of Iowa farmland is owned by people over age 65
 30% of Iowa farmland is owned by people over age 75
 Compared to 12% in 1982
 Lack of succession planning and estate planning

16. Why Now?
 Protect Iowa’s Wealth
 The projected transfer of wealth in Iowa through
2049 is $198 billion
 Promote Charitable Giving
 During one of the largest transfers of wealth in
history, the Community Foundation must be
proactive and innovative to provide options to
channel this wealth to charitable causes.

17. Why the Community Foundation of Greater Des Moines?
We are uniquely positioned to offer benefits not available from
other charitable resources:
 Maximum tax benefits
 Endow Iowa tax credits
 An affiliate relationship in 30 counties throughout Iowa
 We are the “nonprofit’s nonprofit”
 Expert staff and Board to manage & market the program
 Offering donors flexibility and control in designing their
legacy

18. How It Works
Keep Iowa Growing provides a vehicle to keep land an
Iowa asset, keep land functional as farmland and
provide a lasting legacy to the community and Iowa.

19. Landowners Can…
 Make a gift of farmland in which the revenue benefits
the charity of their choice immediately.
Be flexible in making a gift of farmland but retaining a
life estate and an income stream for their lifetime.
Suggest a tenant farmer.
Establish a variety of fund types, such as a Donor
Advised Fund, Family Foundation Fund, Designated
Fund, Field of Interest Fund, Better Together
Endowment, or their County Community Foundation
Endowment.

20. What types of Gifts will be accepted through Keep
Iowa Growing?
 Outright gifts of farmland made during life
 Bequests
 Retained life interest
 For term of years
 For term of life donor
 For term of life of donor and spouse (“last-to-die”)

21. Outright Gift
Land stays in production

22. Retained Life Interest
Upon death of donor Land stays in production

23. Questions?