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Working together to help our communities.For good. For ever.
Community Foundation of Northeast Iowa&
Your County Community Foundation
What is acommunityfoundation?
A public charitable foundation that
o Holds many named funds
o Is supported by individuals, families and businesses
o Channels gifts from donors to non-profit organizations in the community
A community foundation is:
The idea is simple.
Anyone can use the Community Foundationto give back to their community.
A community foundation has three special features.
o Build endowments to ensure grants are always available to support the county
o Invest and protect principal
o Distribute earnings via grants
o Create donor stories/vignettes
o Power of variance – redirect funds as community needs change
One:One: Permanent
The Power of Endowment
6+ TIMES
YEAR 15
$9,000 in cumulative grants and services
$16,000 balance
Initial gift has been invested: 1 TIME 2 TIMES
YEAR 50
$66,000 in cumulative grants and services
$57,000 balance
YEAR 1
Establish a Named Fund
$10,000 gift
YEAR 25
$19,000 in cumulative grants and services
$23,000 balance
Assumes 4.5% annual payout and 8.5% rate of return. This is for illustration purposes only. The Community Foundation allows a 4% annual payout.
o Educate people on giving options
o Customize giving to match personal interests/tax needs
o Offer involvement in recommending uses of a gift
o Create donor legacies via named funds
Two:Two: Personalized
o Local organization with local Board of Directors
o Knowledge of local community issues, opportunities and resources
o Share information with donors
o Survey & work closely with local agencies
o Nonprofit Economic Impact Survey in 2009
Three:Three: Local
Tools for giving
Ways to giveCash, Appreciated
Securities, Real Estate, Other Assets
Bequests Establish fund through your will
Retirement Plans IRA Rollover
Insurance Community Foundation can be
named as beneficiary, in total or even a portion, of your policy
Charitable Gift Annuity A way to make a gift to your
favorite charity, and still receive an income for yourself or others.
Charitable Lead Trust Trust pays charity a fixed amount
for a number of years and then assets go to beneficiary
Charitable Remainder Trust Trust pays beneficiary for life and
then assets transfer to the charity
Named funds
Donors can establish a fund
In their name, a family’s name, or in the name of any person or organization they wish to honor
Grants distributed from a donor’s fund
Awarded in the name of their fund
Allow the person or organization to be remembered and linked to good works in the community forever
Types of funds
Unrestricted FundMeets changing
community needs
Field of Interest FundWomen’s Fund,
Education Fund, Environment Fund, Health Fund, etc.
Types of funds
Donor Advised Fund Involving donors in
the use of their gift
Scholarship FundBenefits students
seeking higher education
Types of funds
Designated FundBig Brothers/Big
Sisters Fund, YMCA Fund, Habitat for Humanity Fund etc.
Agency Endowment FundUsed by non-profits
to build permanent financial support for their organization
Tax benefits for giving
Endow Iowa• A 25% state tax credit is available for donations to endowment funds at qualified community foundations.
Iowa Benefitsto Giving to Community Foundations
What does it really cost to give?
Federal Marginal Tax Rate 15.00% 25.00% 35.00%
Endowment Gift to Qualified $10,000 $10,000 $10,000Community Foundation
Less:Endow Iowa 25% Tax Credit* $2,500 $2,500 $2,500Federal Tax Deduction $1,500 $2,500 $3,500
Net Cost of Gift $6,000 $5,000 $4,000*Based on current tax regulations.
Overview ofYour Partnership with CFNEIA
Partnership Overview
Carry out the mission of the CFNEIA
May have own statement of mission, but not in conflict with the mission of the CFNEIA
Affiliates do not have separate legal or tax status, they do not have their own IRS 501(c)(3) status, but rather operate as programs of the CFNEIA
Role of YourCountyGoverning Committee
1. Create Procedures for Committee
Nominate candidates for Governing Committee and elect officers
Develop a regular schedule of meetings and minutes
Form additional committees or task forces to undertake specific activities
Provide for regular communication with CFNEIA staff concerning County activities
2. Build Endowment Funds to Meet Needs
Build permanent endowment funds as well as non-permanent funds to meet the charitable needs of your County
Coordination with CFNEIA’s Director of Outreach or President & CEO
Undertake appropriate public relations/visibility efforts
3. Establish Local Grant Making Program
Carry out grant-making program in coordination with CFNEIA’s program director
Receive and evaluate proposals submitted to your County in keeping with its grant program
Submit recommendations for grants to CFNEIA’s Board of Directors
Role of theCFNEIA Staff
1. Finance and Administration
Completion of annual federal and state tax returns
Annual audit
Investment management of County’s fund(s) assets as part of CFNEIA’s pool of funds
Quarterly financial statements
Implementation of contracts/employment
2. Program and Grant Making
Provide best practices in grant review and due diligence, including preparation of guidelines for grant applicants
Use of CFNEIA grant application and forms
Centralized administration of the application review process
Grant processing, including grant award and denial letters, contracts, terms of grant, grant payments and grant reports
3. Development and Donor Relations
Consultation regarding planned giving and fund development
Preparation and execution of a fund agreement
Acknowledgement to donors of all gifts to County’s fund(s) and tax credit applications
Promotion of County’s fund(s) and/or funds identified with County Community Foundation
4. Public Relations and Marketing
Design template flyers
Help with press releases
Development and ongoing maintenance of County web page
Listing of funds on CFNEIA’s website
5. General
Orientation of County Governing Committee
Goal setting and long-range planning
Best practices
Administrative support
Questions?
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