Philanthropy Avenue: A Path for Community Building
Article Five
Generosity – A habit of giving freely.
Generosity is a habit to engender, not break. At this time of Thanksgiving many of us count our blessings and give thanks for our health, our home, our friends and our family. For those of us in the non-profit arena it is also a time to give thanks and recognition to those who have given their time, talents and treasurer so generously.
The economy has placed an even higher demand on our non-profit service providers. Families who have never before sought social service support have needed to this year. Because of the growing needs, I want to encourage you to feed your habit for giving.
Your generosity will make an impact. Below are few non-profits that have funds at the Community Foundation. Many are on the front lines, providing food, clothing and other essentials. Others are helping to build the economy for more jobs and others are training the current and future workforce to be strong leaders. Together, as a community, we are dedicated to building a safe and welcoming community for living. So we ask for your generosity – please give freely to the needs that touch your heart. Your gift can be made on-line through PayPal or you can send a check to the Community Foundation of Greater Butler County with the fund noted in the memo line or you can purchase a Giving Card from our website and make the gift directly.
ARC of Butler County – services for persons with developmental disabilities (Butler County)
Augusta Community Caring Center – provides food and clothing to those in need (Butler County)
Big Brothers Big Sisters – providing long-term relationships for youth (Butler County)
Birth to K Alliance (Smart Start) – child care, healthcare and family support (Butler County)
Downtown Augusta Inc. – building business and economy for a thriving Augusta (Augusta)
Leadership Butler – youth and adult leadership enhancement programs (Butler County)
Sunlight Children’s Advocacy Rights Foundation – protects and nurtures children (Butler County)
Tri-County CASA– supporting abused and neglected children in the courts – (Butler County)
Mid-Kansas Community Action Program – varied supports for persons with low-income (Butler County)
You may learn more about these and other organizations by visiting our website, www.communityfoundationgbc.org/
Article Six
Community Foundations Offer Flexibility, Tax Advantages
In a recent news release from the Kansas Association of Community Foundations, an article highlighted advantages of working with a Community Foundation for making your charitable giving plans. I want to share some comments from this article with all of you.
The article began by noting there are distinct advantages to using a community foundation as a tool to accomplish both tax efficiency and the fulfillment of your philanthropic goals. By setting up a community foundation donor advised fund (DAF), gifts to the DAF earn an immediate tax deduction without the requirement of naming the charitable recipient at the same time. Such a structure eliminates the annual scramble to make donations that often leads to poorly thought-out philanthropy. When donors recommend grants, the community foundation handles the paperwork, vets the charity, and, if the recommendation is approved, cuts the checks, either in the donor’s name or anonymously. This is absolutely one of the most flexible vehicles available for giving to charity.
DAFs also offer superior tax benefits. Cash donations can be deducted up to 50 percent of adjusted gross income, as opposed to 30 percent for donations through private foundations. Gifts of appreciated assets are deductible up to 30 percent with a DAF but only 20 percent through a private foundation. Many community foundations also specialize in accepting special assets, including real estate, private company stock, and more, all usually deductible at market value. I must mention that this is true for our local Community Foundation. We are always ready to talk with a donor about all types of assets they wish to gift to help determine what is best for their goals in giving.
Not all donors wish to set up named funds. Many wish to make a contribution and know their gift will be utilized wisely. An example in the KACF article shared that donors making distributions from an IRA can give to a community foundation’s general fund. In such cases, the foundation evaluates what charities best serve the community’s needs, from soup kitchens to educational programs and beyond, funding them as it sees need. Or they may make gifts to field-of-interest funds, which make grants in support of particular charitable causes such as hunger or homelessness, to scholarship funds, or to funds designated for the benefit of a particular charity or charities. Regardless of how the tax environment develops, charitable giving remains important to both clients and to the greater good. It is true that most donors want the satisfaction of knowing that they are helping make a difference, it isn’t always about the tax benefits.
The Community Foundation of Greater Butler County is excited to launch its first formal grant making cycle in the spring of 2010. Donations made toward general giving, as well as specific funds in place at the Community Foundation will determine the grant values available for distribution through our grant cycle. Our website will have more information on this after the first of the year.
Article Seven
Life Insurance, A Definitive Charitable Gift
There is no doubt; there are few certainties in life. The adage “that only two things are certain - death and taxes” does ring some truth.
Typically when people think of this adage they may feel sad about their mortality; others feel ripped off about taxes, taxes, taxes; and some connect to thinking they have no control and a sense of listlessness engulfs them. Well, I am here to suggest – turn it around. Take control.
Yes, our passing is guaranteed, so turn it around. Make something good come from it. Leave a legacy! Yes a legacy. What is your passion? What do you want to be remembered for? What do you believe in? Leave a gift in the form of a donation through a Life Insurance policy. There are numerous ways to accomplish this; talk to your financial advisor today or call me to explore your options. This is such an easy way to turn the doom and gloom of our impending passing around. Leave a Legacy, Be Remembered.
The other great fact rolled into all of this is that charitable giving has possible tax incentives tied to it. So right there you have turned the looming certainty of taxes, taxes, taxes around. We all have to pay them but wouldn’t it be great if you could reduce your tax burden? Giving to, or through, a non-profit organization like the Community Foundation of Greater Butler County can provide you the highest level of charitable tax relief allowed by law. There are even options for having your life insurance premium as a tax deductable contribution if you establish the Community Foundation or other non-profit as the owner of the policy.
See, don’t you all feel better? While there are certainties in life, it is up to you to turn it into a positive, fulfilling and meaningful experience.
The Community Foundation of Greater Butler County is here to serve you. I am always happy to speak with individuals, families and non-profits about starting a fund that connects to your area of interest and passion.
