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?