hills bank donor advised gift fund and wealth management. ... contributions of cash or marketable...

Hills Bank Trust and Wealth Management

Serving thousands of customers ... one at a time.TM

Hills Bank Donor Advised Gift Fund

A Convenient Approach to Non-Endowed Giving

Hills Bank® was founded in 1904 on the principle that banks should care about the people and communities they serve, as well as provide ways to help them prosper.

We have done business this way for over a century with a staff that is appreciative, approachable, creative, and competent.

Hills Bank Trust and Wealth Management has managed assets for charitable organizations since the late 1950s. Today, we continue to play a leadership role by offering quality and enduring services to individuals, businesses, non-profits, and charitable organizations that support our communities.

Hills Bank and our employees are committed to the communities we serve. • Cash and in-kind donations to more than 300 local organizations. • Classroom Cash® - over $537,000 donated to area schools. • Summer Reading Programs - over 25 years of improving literacy in more than 15 local communities. • Leadership Grant and Youth Salute programs recognizing outstanding student leaders from our area high schools. • More than 6,000 annual employee volunteer hours.

We seek to support our communities, so they can continue to be a great place to live and work.

L I N N

J O H N S O N

W A S H I N G T O N

Kalona

Hills

Iowa City

Coralville

Mount Vernon

MarionCedar Rapids

C E D A R

J O N E SB E N T O N

I O W A

30Lisbon

6

380

80

1

Wellman22

Riverside

Tiffi nOxford

Amana

Walford

Fairfax

Swisher

Atkins

Palo

Toddville

Center Point

SpringvilleRobins

Hiawatha

Ely

Shueyville

Solon

West Branch

North Liberty

Washington

HB

HB

HB

HB HB

HB

HB

HBHB

HB

HB

HBHB

HB

West Liberty

Lone Tree

N

S

W E

Hills Bank LocationsHB

HB

WilliamsburgHB HB

Norway

S e r v i n g t h o u s a n d s o f c u s t o m e r s . . . o n e a t a t i m e . T M

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Simplify

Hills Bank Donor Advised Gift Fund

Simplifies GivingHills Bank Trust and Wealth Management offers a solution that can simplify your charitable giving process. The Hills Bank Donor Advised Gift Fund was established in 1997 by Hills Bank and Trust Company, a community bank headquartered in Hills, Iowa. Since 1997, the Fund has received over $36 million in contributions, and has distributed over $30 million to donor-selected charities.

For individuals and businesses who desire to make donations to charities, the Fund provides a streamlined process for making charitable donations in a convenient, cost effective, and tax efficient way that simplifies record keeping. Some prefer to make one-time or multiple gifts. Others may be experiencing an unusually profitable year or have sold a business. The Fund allows donors to maintain charitable giving and avoid setting unsustainable expectations regarding future gifts, even though annual contributions to the Fund may vary.

Since this is a non-endowed fund, there is an added benefit —you control the distribution rate for the remaining balance in your account. You decide how much you want to give to charities each year, unlike endowments that may have a required spending policy and private foundations that must make a minimum distribution each year.

a streamlinedprocess

you control the distribution rate

H i l l s B a n k T r u s t a n d We a l t h M a n a g e m e n t

Now and Later

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Local

Choice

Deduct Your Contributions Today, Choose Your Charities Later

Contributions of cash or marketable securities to the Fund are recognized for IRS purposes in the year of donation, even though the actual selection of the charitable organization(s) may not occur until a later date. This allows you the opportunity to give more thought to which organization(s) you wish to support—without being pressured by arbitrary year-end tax planning considerations. You can give for years to come through the carryover balance in your Fund.

You have the opportunity to contribute appreciated securities so that capital gains taxes may be avoided. Fund earnings are not taxable to you and remain in your account. Assets contributed during your lifetime are not part of your estate and are not subject to estate taxes.

Your Investments Are Selected LocallySome account balances are distributed immediately; others provide gifts for an extended period of time. You can choose an appropriate investment objective for your account using investments selected and monitored by Hills Bank Trust and Wealth Management. Investment choices range from a money market fund to balanced and growth-oriented portfolios. Since we are a local community bank, you have the opportunity to meet with your account relationship manager face-to-face.

opportunity to meet with your account

manager

You Choose the CharitiesThe Fund is an efficient tool for donors who desire to make important gifts to 501(c)(3) charitable organizations that are public charities under Section 509(a). Contributions can be distributed immediately or over an extended period of time. If desired, you can gift anonymously.

Donors should note that IRS regulations require the Fund to certify that 100% of the distributions directly benefit charitable organizations. Therefore, the Fund may not be used for private or personal benefit such as tuition obligations or securing tickets, nor may the fund be used for political contributions or activities. The fulfillment of a pledge is considered to be a discharge of a personal obligation.

distribute immediately or over time


Details

Establish

Let Us Take Care of the DetailsThe Fund provides a broad range of administrative services for you. The administrative team will take care of charitable gift record keeping details such as documenting and issuing gifts, as well as verifying that gifts are being received by eligible charities.

You will receive confirmation of each gift made. A quarterly statement provides your balance, lists gifts made from your account and shows investment income received.

An initial donation of $10,000 in cash or marketable securities will open your account within the Hills Bank Donor Advised Gift Fund. Additional contributions having a value of $2,500 or more may be made at any time. Investment income attributable to your gift is added to your account, increasing the amount available for giving. Under certain circumstances it may be possible to transfer funds from an existing foundation or similar donor advised charitable fund. These transfers are considered on a case by case basis by Hills Bank and Trust Company. You do not need to be an Iowa resident to participate in the Hills Bank Donor Advised Gift Fund.

All forms needed to open your account and request gifts accompany this brochure. Asset transfer instructions may be obtained through your account relationship manager.

All gifts to the Fund are irrevocable, non-refundable, and given without restriction or conditions. Therefore, it is important that you consider your long-term charitable plans and income needs before establishing an account. Please discuss your gifting and estate plan with your legal and accounting advisors.

Establish a Donor Advised Account

we take care of record keeping

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Frequently Asked QuestionsFrequently Asked QuestionsWho can open an account?Individuals and businesses anywhere within the United States may establish an account.

How do I get started?Complete the enclosed application and return it with your initial deposit or security transfer instructions. When securities are used to fund the account, please allow sufficient time to complete the transfer prior to your fiscal year-end.

What is the minimum contribution to the account?The minimum contribution of cash or marketable securities to open a gift fund account is $10,000. Additional contributions having a minimum value of $2,500 may be made at any time.

What can I donate to the Fund?Cash and marketable securities—stocks, bonds, and mutual fund shares—are appropriate funding sources. As securities are accepted, they are sold and the proceeds are invested by the Fund. You can make multiple distributions to several charities from a single donation to the Fund.

Some securities are not marketable or transferable, so all contributions to the Hills Bank Donor Advised Gift Fund are subject to acceptance by the Trustee.

When do I deduct my donation to the Fund?You deduct your donation in the year that the contribution is accepted by the Fund, regardless of how much was actually distributed to charities during that tax year. There may be limitations on the amount which is deductible depending on the contributed asset and your adjusted gross income (AGI).

Why would my business use the Fund?The Fund provides an opportunity for tax planning combined with community-building charitable gifts. An account within the Fund allows donors to maintain charitable giving and avoid setting unsustainable expectations regarding future gifts, even though annual contributions to the account may vary.

How is the value of marketable securities as a donation determined?Although you are responsible for the valuation of your gift, our administrative team can assist you by gathering daily security quotes for you on the day the security was received.

Is the Fund a private foundation?No. The Fund is a public charity and donor advised fund.

What is the process for making charitable distributions from the Fund?You complete a donor request form for each charity, which includes the amount you want distributed. The minimum amount is $250 per distribution. Prior to distribution, the request is approved by the Trustee. Distribution request forms and postage paid envelopes are included in this packet. Additional forms and envelopes may be obtained by contacting your account relationship manager.


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Frequently Asked Questions How is the distribution made to a tax-exempt charitable organization and how will it be recognized?As Trustee of the Fund, Hills Bank and Trust Company will verify the 501(c)(3) status of the charity and approve the distribution. Your donation will be sent to the charity with a letter stating: “This check is a gift from the Hills Bank Donor Advised Gift Fund on behalf of (your Fund name is inserted here).”

Can gifts be made anonymously? Yes.

Can the Fund be designated as a beneficiary of my Individual Retirement Account (IRA) or Retirement Plan?Yes. The Fund may be named as the beneficiary of a specific sum or specific percentage of your IRA or 401(k) balance at your death.

Can the Fund be a beneficiary of life insurance proceeds?Yes. The Fund may be named as a beneficiary of life insurance proceeds.

Can I donate to the Fund through my estate? Yes. Donations to the Fund through your Will or Trust are treated like any charitable bequest. Plus, your charitable legacy will continue as distributions are made to charities at the direction of a family member or a trusted friend.

Will my Fund account be published in an annual report or other publication?Hills Bank will not publish any materials indicating accounts or amounts given. However, charities may publish lists of donors that contribute to that charity. You have the ability to gift anonymously if you would like your name and gift amount to remain private.

What happens if I die before gifting to the Fund is completed?When you open an account, you may elect a successor individual or charitable advisor to recommend distribution to qualified charities at your death. Or, you may specify the charities that should receive the undistributed balance. You can revise this information at any time.

Are Fund assets part of my estate?No.

What if I don’t make gifts and my account is inactive?Account holders will be notified of the inactive status and will be encouraged to make qualified distributions from the account. The Fund reserves the right to close accounts with a de minimis balance. Small balances remaining in the account will be distributed to a qualified charity or charities.

What is the annual cost to administer the account at the Fund?The annual cost of asset management and administrative services is 1 percent (1%) of the first $500,000, then 0.2% on balances in excess of $500,000. Our minimum annual fee is $100. The fee is automatically deducted from your account balance.


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People like you

Servicesinvestment management

services based upon your goals

Our Customers are People Like You. They are parents and grandparents, married and single, working and retired. They have hopes and dreams, concerns and fears. They are businesses and non-profit organizations.

There is a reason customers come to Hills Bank for professional trust and wealth management services. Hills Bank Trust Officers have diverse backgrounds with professional experience in accounting, legal, trust, and financial services. This means you can depend on us for a broad range of comprehensive advice.

Trust and Wealth Management Services Provided. Investment Counseling Financial and Retirement Planning

• Investment Accounts

• IRA and Roth IRA

• Rollovers from Retirement Plans

Revocable and Irrevocable Trusts Estate and Wealth Transfer Non-profit and Charitable Asset Management Employer Sponsored Retirement Plans • 401(k) • Profit Sharing Plans

Individuals, families, businesses and organizations grow and change. Every situation is unique and with this uniqueness comes an investment goal, or set of goals, that is specific to that individual, business, or organization. Hills Bank investment management services are based upon achieving your goals—not ours. Your investment relationship will be under the direct ongoing management of a team of professionals led by a Hills Bank Trust Officer.

Who We ServeThe Hills Bank Donor Advised Gift Fund is only one of the many services offered through Hills Bank Trust and Wealth Management. We provide a broad range of trust and wealth management services to help you achieve and maintain wealth so you can provide financial security for yourself, your family, or your favorite charity.


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Select your life stage. • Short Takes give an introduction to a variety of relative topics. • Find Out More with in-depth articles• Helpful Tools such as calculators and interactive tutorials can be personalized so you can analyze your unique situation.

Your Financial Resource Center—

HillsBankWealthManagement.com

Imagine(ages 20-30)

Prepare(ages 30-50)

Anticipate(ages 50-65)

Realize(age 65+)

Whether you are saving for college, planning your retirement, or reviewing your estate plan, the more you know about handling your finances, the more likely you are to reach your goals. Our Financial Resource Center website is available from the comfort of your home and will help you identify solutions for your stage in life. We provide you with the information and tools you need to help you meet your goals.

Knowledge is Power


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We invite you to experience Hills Bank and Trust Company, a strong financial institution serving our customers and shareholders in true community banking spirit since 1904.

Strength and stability. • $2 billion Iowa-based bank with 17 locations in the Cedar Rapids/Iowa City Corridor. • $1 billion in Trust and Wealth Management assets. • 425 employees bank-wide and a Trust and Wealth Management staff of 30. • Trust and Wealth Management staff has over 500 years of cumulative experience.

Local ownership.Work with people invested in your success. As an independent community bank with over 2,100 shareholders, our employees are the largest single shareholder, so they’re committed to your satisfaction.

Local service and decision making.When you need a broad range of comprehensive advice, ask our experienced wealth management advisors. With a breadth of knowledge in retirement and financial planning, trust, accounting, legal, and financial services, we have the ability to respond to your needs.

Clear, concise reporting.Whether you prefer paper or online, you will have access to reports that feature a clear, concise picture of your portfolio and its performance.

Fully-disclosed fees.Feel at ease knowing that our interests are aligned with yours. Fees are fully disclosed and based upon the assets under management, not transactions or commissions, so you’ll know what you’re paying and how it’s calculated.

Consider Hills!

Why Hills Bank

When the time is right...consider Hills!


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business card slots

Cedar Rapids240 3rd Ave SE319-654-8020

North Liberty590 W Forevergreen Rd

319-338-1522

1-800-899-8858HillsBankWealthManagement.com

“How far you go in life depends on your being tender with the young,

compassionate with the aged, sympathetic with the striving,

and supportive of the weak and strong, because some day in your life,

you will have been all of these.”- George Washington Carver -

All material is confidential or proprietary to Hills Bank and Trust Company and may not be reproduced or distributed without the consent of Hills Bank and Trust Company. All information is believed to be reliable, but not guaranteed.

Investment products are not a deposit, not FDIC insured, not insured by any federal government agency, carry no bank guarantee, and may go down in value.

1-800-HILLSBK • hillsbank.com© Hills Bancorporation • Rev. 9/12

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