the art of lasting philanthropy. the national community foundation environment over 700 community...
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The Community Foundation of New Jersey One-on-one donor consultation; philanthropic strategy and legacy Over $180 million in professionally managed charitable assets Over 800 funds established by families, businesses, foundations, and agencies Since 2000, $90 million in grants Localized around geographic areas for impactTRANSCRIPT
The Art of Lasting Philanthropy
The National Community Foundation Environment
Over 700 Community Foundations throughout the United States
Giving in 2006, $3.6 billion; over $44.5 billion in assets
Since 1990, total grants have increased 334%*
Since 1990, total assets have increased 350%* *constant dollars
The Community Foundation of New Jersey
One-on-one donor consultation; philanthropic strategy and legacy
Over $180 million in professionally managed charitable assets
Over 800 funds established by families, businesses, foundations, and agencies
Since 2000, $90 million in grants
Localized around geographic areas for impact
Localization
New Jersey is a complicated charitable environment
Creation of affiliates to bring together local constituents
Anchor points for distinct regions of the state with common challenges and opportunities
Monmouth County, Greater Morris County, Newark
Localization
Localization
Donor Advised Funds – flexibility in timing and recipients Business Advised Funds – from business equity to community equity Field of Interest Funds – specific program, cause or community Community Action Funds – unrestricted, timeless, responsive Scholarship Funds – cross generational educational opportunities Designated Agency Funds – perpetual support of specific agency Agency Endowment Funds – current and future needs of nonprofit
Giving Vehicles
Agency Endowment Funds
Established by nonprofits to meet current and future needs Professionally managed in a pool designed for long-term charitable purpose Agency is freed to focus on their good works 128 Agency Endowment Funds valued at $23.5 million 122 Designated Funds valued at $26.4 million
Cash Securities – beneficial tax treatment; pre-IPO, closely held stock Real estate Retirement plan beneficiaries Charitable Lead Trusts Life insurance, life insurance beneficiaries Bequests Life income plans – Charitable Gift Annuities
Charitable Assets
Life Income Plans – Charitable Gift Annuities
Enables donors to convert assets to income stream and give back Upfront tax deduction based on donation amount and donor age Lifetime annuity to donor Upon death, remaining principle to designated agency 23 NJ nonprofits benefiting from CFNJ Charitable Gift Annuities
A woman, age 80, owns securities worth $100,000, which she bought for $10,000 many years ago and which pay a total cash dividend of $1,000 per year.
By transferring her shares to the Community Foundation into its Charitable Gift Annuity Program she increases her current income to a guaranteed $8,000, based on current rates, and postpones federal and state capital gains taxes. In addition, she receives a charitable contribution deduction at the time of her gift.
She can choose to have her charitable goals live on through a named fund or can designate any New Jersey charity to receive the benefit of her gift after her passing.
Life Income Plans – Charitable Gift Annuities
Public Policy Work
Advocacy for New Jersey’s charitable community
High tax rates in New Jersey are encouraging high net worth families and their giving to leave the state
Absence of charitable deductions on state income tax does not foster an environment for giving
Community Foundation is working to reverse these trends
Q u e s t i o n s
The Art of Lasting Philanthropy