Passing the Hat 2.0:Charitable Giving

Goes Low Maintenance

Passing the Hat 2.0:Charitable Giving

Goes Low Maintenance

Presentation byRegina Q. Jahr, Executive Director

Black Hills Area Community Foundation

Passing the Hat 2.0: Charitable giving goes low maintenance

Today’s Webcast

Discuss options for philanthropic giving

Examine the differences between community foundations and family foundations

Explore Donor Advised Funds at community foundations

Review the benefits of philanthropic giving

Charity or Philanthropy?

Charity - Giving change

Philanthropy - Making change

Creating a vision for philanthropy

Who to involve:

Family– One or two generations– Future generations

Attorney

CPA

Business partner(s)

Financial Planners

Insurance advisor/agent

Community Foundation Executive

Becoming a philanthropist

Create your philanthropic legacy

Express values through giving

Generosity

Passion

Dedication

Types of Foundations

Company sponsored foundation

Operating foundation

Private independent foundation

Community foundation

Private Foundations

Endowment usually comes from a single source

- an individual

- a family, or

- a group of individuals

Scale = impact

Contributions to endowment limited as to tax deductibility

Annual reporting includes 990-PF filed with IRS and made available to the public

The Family Foundation: it’s a business

Intense upkeep and maintenance

Governed by Board of Directors or Trustees

Transparency

No Self Dealing

Cyclical

Personnel/HR issues

Bottom-line

highly regulated

^

About Community Foundations

Growing numbers and assets in the US and in SD

Created by and for the people in a dedicated area

IRS-designated, tax-exempt, 501 (c)(3) public charities

Stewards of permanent community financial resources

Giving through a Community Foundation

Involves donors in identifyingand responding to communityissues

Makes giving flexible and easy

Offers significant tax benefits

Becomes a permanent community resource

Donor Advised Funds: Create a personal legacy of giving at your community foundation

Donors can establish a named fund

Grants distributed from a donor’s fund are awarded in the name of their fund. – This person or organization will

always be remembered and linked to good works in our community.

The benefits of a Donor Advised Fund

It’s personal

It’s flexible

It’s efficient

It’s easy

You can give anonymously or refer requests for funds to the Community Foundation

You can name successor advisors

Donors don’t give

toa

Community Foundation,

they give THROUGH

a Community Foundation

How a Donor Advised Fund works

Donor

Donor Advised

Fund Agreement

Community Foundation

Favored Charities

$

$

The Community Foundation provides:

Administrative support

Investment management oversight

Strategic grantmaking opportunities

a vehicle to create a personal giving legacy

General Guidelines for a Donor Advised Fund at a Community Foundation

Recommendations include:501(c)(3) public charity, church,

synagogue or unit of government

Federal law has established guidelines and prohibits certain activities

“A civilization flourishes

when people plant trees

under which they will

never sit.”

-Greek Proverb

The Fun Part: Grantmaking

Grantmaking is rewarding

Considerations:– What do I/we want to give to?– Who do I/we want to give to?

Allow for flexibility

Conduct due diligence*

Recognize the process is always evolving

* Only if a private foundation. Community Foundations provide this service.

Ways to Give

Outright Gifts

Retirement assets (i.e. IRA, annuity, insurance policy)

Bequest by Will

Charitable Lead Trust

Charitable Remainder Trust

Ask your professional advisor about charitable giving as part of estate planning

Prepare a will and include the Community Foundation

Outline your charitable intentions in an agreement with the Community Foundation

Memorials may directed to the Community Foundation

Encourage family and friends to include charitable giving in their wills

Legacy Giving

We help donors create an individual or a family legacy that is personal and enduring

Our Donor Advised Funds help people invest in the causes they care about most

We can preserve donor intent even as community needs and organizations change

We offer maximum tax advantage under state and federal law

We accept a wide variety of assets and can facilitate even the most complex forms of giving

Why people choose to give through a Community Foundation like BHACF

The benefits of philanthropy

Givers are happier Science magazine, March 2008

Givers live longer University of Michigan Study, 2002

You support your values

You benefit your community…forever

Thank you!

Your interest and attention are appreciated!

Thanks to Rick Kahler and the Kahler Financial Group

Please contact Rick or me if you have any follow-on questions or comments

We are here to help you!

To learn more, call 605.718.0112 or contact us at bhcfoundation@rushmore.com or

visit www.bhacf.org

For good. For ever.SM

Slogan © 2006 Council on Foundations and Community Foundations of America

We are certified in compliance with National Standards for U.S. Community Foundations

Black Hills Area Community Foundation