Securing Our Future The power of giving together Good Day. Thanks for giving me the opportunity to share some thought-provoking ideas about securing Iowa’s future… and to share a surprising secret about money in [County]. Preparing for your presentation: As you get ready to make this presentation, remember that copies of the Securing Our Future handout and county report provide good summary information as well as a nice leave behind. Especially when in front of an audience that is hearing about the local wealth transfer for the first time, you may be asked questions about the research and methodology used to calculate your figures. The report is a resource for wealth transfer in your state and county. Familiarize yourself with the entire document–particularly the background information.

Surprising wealth transfer in next 50 years It all adds up. Look at these estimates: $41 trillion in the United States $531 billion in Iowa through probate estates alone [$XXX billion] in [County]… an average of [$XXX,XXX] per probated estate Experts say these numbers are unprecedented. The World War II generation, plus the Baby Boom generation, own more private wealth than any time in our history. Note: These numbers may be staggering to some; this slide may offer a good opportunity to stop and ask if there are questions regarding the numbers, research, methodology, etc. $41 trillion in United States $531 billion in in Iowa through probate estates alone $XXX billion in [County] $XXX,XXX per probated estate

Wealth Transfer A likely scenario for Iowa and the U.S. The Iowa Transfer of Wealth Study was conducted by the Community Vitality Center (CVC). The first part of the study examined wealth transfer in Iowa’s counties for the years of 1998 through 2002. The study is based on probate records of wills and estates of decedents that were filed with the Iowa Court System in each county. The probate records for a decedent show the various court fees paid by the estate. One of the fees is an estate settlement fee. This fee is based on the value of the decedent’s estate and is determined by a formula outlined in the Iowa Code. Each $100,000 value of an estate is assessed a fee of $100 with no maximum to the fee. This allowed CVC to estimate the estate values that transferred each year for each of Iowa’s counties and for the state as a whole. The study found that there were there were year-to-year variations in wealth transfer. Therefore the results reported are based on the annual average over the five-year study period. The study also provides projections for 50 years- years 2000-2049. Our research estimates that in Iowa, $531 BILLION will transfer through probated estates alone. You can see how that transfer is expected to take place in each decade by the chart above. Wealth Transfer A likely scenario for Iowa and the U.S.

COMMUNITY WEALTH Yesterday For generations, people lived entire lives close to their birthplace [County] wealth passed from generation to generation, but stayed in [County] In addition to the wealth scheduled to transfer from one generation to the next, Iowans’ lifestyles—and mobility—are unprecedented as well. For generations, most people lived entire lives close to their birthplace. One family might occupy the same property, even the same home, for multiple generations. [County] wealth passed from generation to generation, but stayed in [County].

Today Many of the next generation no longer live in our county COMMUNITY WEALTH Today Many of the next generation no longer live in our county Once the wealth leaves our community, it may never return That’s no longer true. Many of the “next generations” no longer live in [County]… and once the wealth leaves [County], it may never return. This is important today because nationally in the next 20 years, the largest mass of wealth in history will transfer… from the WW II generation to Baby Boomers, then from Baby Boomers to the next generation. And of course, the two things we all know we can’t avoid are still death and taxes. The Community Foundation corollary to both: you can’t take it with you. So what will happen to all this wealth accumulated by the WWII and Baby Boom generations?

Three beneficiaries Heirs Taxes Community PASSING WEALTH FROM ONE GENERATION TO THE NEXT Three beneficiaries Heirs Taxes Community One of three things: It will be inherited It will be paid in taxes It will be given to charity to be invested in community, education and religious organizations With most estates in the U.S., The vast majority goes to heirs. For the largest estates in the U.S., A good chunk can go to taxes. But although a charitable legacy can actually benefit heirs for those with big estates, historically less than 20% of them have left a charitable legacy. And for more modest estates—where estate taxes are not a factor—very little goes to charitable causes… even for people who are dedicated and regularly support their church, alma mater, or community throughout their lifetime. Source: Charitable Statistics: An Untapped Well of Good There are more than 260 million Americans, of whom approximately two million die each year. In 1996, 79,346 estate tax forms were filed with the federal government. (At the time, these forms were required for estates in excess of $600,000.) Eighteen percent of the forms listed a charitable gift. In other words, 82 percent of the nation's wealthiest individuals left nothing to charity. In addition, the IRS tells us that charity is getting a decreasing share of the money in these wealthy estates, from 21.8 percent in 1976 to 6.3 percent in 1992. According to a 2004 Associated Press news story, only 42 percent of adults have wills, a five percent drop since 2000. If only 20 percent of Americans left a charitable bequest, the current number of charitable bequests would more than double. Imagine what the impact to charitable organizations would be if the 80 percent of Americans who give during their lifetimes also made a charitable gift through their estate plans! http://www.leavealegacy.org/why_give.asp

INCREASING OUR COMMUNITY’S SHARE 5% Invest 5% of our wealth as a legacy for future generations Secure Our Future It’s our goal to secure 5% of [County’s] wealth as a legacy for future generations. We think if more people realized how much good that 5% could do, they’d want to be part of that legacy.

[Community Foundation] The opportunity is significant. In [County], population XXX,XXX if just 5% of those assets were earmarked to benefit the community, that would generate [$XXX million] in just the next 10 years… a total of [$XX billion] over the next 50 years. 5% for future generations $XXX million in 10 years $XX billion in 50 years

The next 10 to 20 years Critical to [County’s] future LOOKING AHEAD The next 10 to 20 years But to realize the 5% potential for [County], the next 10 to 20 years are critical. It’s a limited window of time… during which we have the opportunity to preserve some of today’s wealth for tomorrow’s generations. Critical to [County’s] future Opportunity to retain 5% of [County’s] wealth for future generations

Two possible scenarios LOOKING AHEAD Much of [County] wealth has been transferred to communities in California, Arizona, Texas and beyond. Two possible scenarios Depending on how we use this opportunity, tomorrow offers two options. First, [County] can have a robust community endowment and a secure future… Or we can stand by while much of current [County] wealth is transferred to other communities across the country and world. [County] has a robust community endowment and a secure future; or,

Give a gift to our future LOOKING AHEAD Give a gift to our future We’re encouraging residents who Live here, Have worked here And to whom [County] as been good, to give a gift that secures the future of [County] You’ve lived here You’ve worked here [County] has been good to you

One gift, many generations YEAR 1 Establish a Named Fund $100,000 gift YEAR 15 $95,000 in cumulative grants and services $164,000 balance YEAR 25 $193,000 in cumulative grants and services $234,000 balance YEAR 50 $662,000 in cumulative grants and services $570,000 balance 6+ TIMES 2 TIMES 1 TIME Initial gift has been invested: Consider how one gift of $100,000 can grow. In the first 15 years, it has doubled in value: generating $95,000 in grants to support local causes and programs, and retaining all of its original value. By year 25, the value has doubled again, having paid out $193,000 in grants while growing to be worth $234,000. In just 50 years, the original $100,000 gift has generated nearly $1 million in value: $662,000 in grants, and $570,000 in asset growth. LOOKING AHEAD One gift, many generations assumes 4.5% annual payout and 8.5% rate of return

One gift, many generations YEAR 1 Establish a Named Fund $10,000 gift YEAR 15 $9,000 in cumulative grants and services $16,000 balance YEAR 25 $19,000 in cumulative grants and services $23,000 balance YEAR 50 $66,000 in cumulative grants and services $57,000 balance 6+ TIMES 2 TIMES 1 TIME Initial gift has been invested: OR.... Consider how one gift of $10,000 can grow. In the first 15 years, it has generated $9,500 in grants to support local causes and programs, and retaining all of its original value. By year 25, fund has paid out $19,000 in grants while growing to be worth $23,000. In just 50 years, the original $10,000 gift has generated $66,000 in grants, and has a value of $57,000. LOOKING AHEAD One gift, many generations assumes 4.5% annual payout and 8.5% rate of return

Many gifts, many generations If 5% of estates transfer to our community foundation endowment… YEAR 10 $[XX] charitable gifts $[XX] total grants $[XX] community endowment YEAR 50 $[XX] charitable gifts $[XX] total grants $[XX] community endowment And consider the numbers if everyone gives... just think of the good work this kind of money could do in [County]. In year 10, [$XXX million] in charitable gifts would have produced [$XX million] in grants, and grown into a [$XXX million] community endowment. By year 50, the collective 5% is staggering: nearly one billion dollars in gifts, [$XX] in grants, and a [$XX] community endowment. In the year 2058, that will have made a huge difference for the people of [County]. LOOKING AHEAD Many gifts, many generations

The plan: Securing Our Future Remember your heirs and tax obligations Give to your community for good… forever So here’s the plan: Remember your estate to your heirs… and taxes if you’re in that bracket… and then set aside a portion of your estate for the good of this community forever.

The Smiths Home $150,000 Retirement assets $100,000 SECURING OUR FUTURE The Smiths Home $150,000 Retirement assets $100,000 Savings and investments $100,000 Life insurance policies $50,000 Total $400,000 5% plan  $20,000 Here’s how that would look for the Smiths. They have a home worth $150,000, retirement assets worth $100,000, another $100,000 in investments, and a $50,000 life insurance policy. With an estate value of $400,000, their 5% for [County] is $20,000. They have designated the Community Foundation as the beneficiary of 20% of their retirement assets. Because their heirs will only receive a fraction of retirement assets anyway (due to income taxes), this gift allows the Smiths to create a permanent legacy and still leave the vast majority of their estate to their four children. Recommendation: Anyone who gives 5% of estate, regardless of amount, may name the fund.

The Blakes Homes $500,000 Retirement assets $1,000,000 SECURING OUR FUTURE The Blakes Homes $500,000 Retirement assets $1,000,000 Savings and investments $500,000 Life insurance policies $500,000 Business $2,500,000 Total $5,000,000 5% plan  $250,000 For the Blakes, who have a larger estate, the 5% calculation suggests a community endowment gift of $250,000. Assets in their qualified retirement plan are the most advantageous for them to give as well. Based on current values, they have designated the Community Foundation as beneficiary for $250,000 of their 401K, and they’ve signed a fund agreement with the Community Foundation naming the fund and determining its purpose.

Janis MacLeish Homes $300,000 Retirement assets $150,000 SECURING OUR FUTURE Janis MacLeish Homes $300,000 Retirement assets $150,000 Savings and investments $ 150,000 Life insurance policies $50,000 Total $650,000 50% plan  $325,000 For Janis MacLeish, a teacher who had no heirs, investing in the future was second nature. She decided to leave 50% of her assets to a community endowment fund, an investment of $325,000. She left 100% of her retirement assets and life insurance policy to the community foundation since she knew they would be heavily taxed anyway and $25,000 from her savings as a way for her legacy to live on.

The payoff Permanent legacy for donor Source of pride for heirs SECURING OUR FUTURE The payoff Permanent legacy for donor Source of pride for heirs Stronger community for all For both the Smiths, the Blakes and Ms. MacLeish the payoff for their legacy gift is threefold: They preserve a portion of the assets for ever, as a permanent legacy of their life and their history in [County]. They provide a lasting source of pride… for generations to come, their named charitable fund will stand as a tribute to their lives, generosity and hope for the future. And of course, the third part of the payoff is that their gift will help ensure a stronger community for all of [County]’s future citizens.

Permanent legacy Endowed named fund SECURING OUR FUTURE Permanent legacy Endowed named fund Targeting causes you care about most Grants awarded in the name of your fund for generations to come The foundation of the permanent legacy is the endowed charitable fund, named for you or those you’d like to honor. Most people choose to establish the fund in their own names, but some prefer to honor parents or children. If you like, you may set up the fund to support causes you care most about… or you may give the Community Foundation the flexibility to use it for the greatest needs. In either case, the grants from your fund will be awarded in your name for generations to come.

Source of pride Give back to your community SECURING OUR FUTURE Source of pride Give back to your community Model values for the next generation Honor family heritage We find that charitable funds are a significant source of pride for future generations. They are a lasting tribute to your life, your connection to this community, and your commitment to its future. The fund models your community and charitable values for future generations. And the name you choose may be a source of pride as well.

Stronger community Causes that move you SECURING OUR FUTURE Stronger community Causes that move you Enrich education · Safeguard health · Improve neighborhoods · Cultivate arts · Protect environment · Strengthen families Your commitment can shape a stronger community in a multitude of ways. The community foundation invest in all areas of our community. An unrestricted gift allows the community foundation to target the needs and opportunities that our critical to our quality of life today and in the future. You also have an option to target a special cause that moves you through a field of interest fund… where your charitable intent will be honored forever You may choose to direct your gift to enrich education, safeguard health, improve neighborhoods, cultivate arts, protect the environment, strengthen families… or all of the above. Now I want to share a few grants that would not be possible with out caring community members who have generously come before us…

Enrich education GRANTS THAT MAKE A DIFFERENCE Here are some examples of Community Foundation grants made possible by the gifts of others… your fund could address similar needs. To enrich education, recent grants funded new playgrounds and libraries at local schools. Note: These slides offer the opportunity to discuss a variety of grants that might be funded through a endowed community fund or legacy fund. Use examples specific to your community.

Safeguard health GRANTS THAT MAKE A DIFFERENCE To safeguard health, a recent grant helped purchase emergency medical equipment. Note: These slides offer the opportunity to discuss a variety of grants that might be funded through a endowed community fund or legacy fund. Use examples specific to your community.

Improve neighborhoods GRANTS THAT MAKE A DIFFERENCE Improve neighborhoods Grants to support the operations of youth and senior centers help improve city neighborhoods. Note: These slides offer the opportunity to discuss a variety of grants that might be funded through a endowed community fund or legacy fund. Use examples specific to your community.

Cultivate arts GRANTS THAT MAKE A DIFFERENCE We awarded two grants to help construct the regional performing arts auditorium. Note: These slides offer the opportunity to discuss a variety of grants that might be funded through a endowed community fund or legacy fund. Use examples specific to your community.

Protect environment GRANTS THAT MAKE A DIFFERENCE And several grants have helped improve community parks and construct new bike trails. Note: These slides offer the opportunity to discuss a variety of grants that might be funded through a endowed community fund or legacy fund. Use examples specific to your community.

Strengthen families GRANTS THAT MAKE A DIFFERENCE And a recent grant helped provide after-school programs at targeted community centers. Note: These slides offer the opportunity to discuss a variety of grants that might be funded through a endowed community fund or legacy fund. Use examples specific to your community.

Charities that touch your life GIVE THROUGH YOUR COMMUNITY FOUNDATION Charities that touch your life Option to designate a local nonprofit [Student Achievement Foundation · Pediatric Asthma Network · Garfield Park Senior Center · Lorain Arts Council · Elyria Memorial Park · Boys and Girls Club] The community foundation is also a steward for many nonprofit’s endowed funds. We can work with you to support a special charity that has touched your life. Nonprofit organizations appreciate our planned giving and investment expertise. They trust us to bring these capabilities… it allows them to focus on their mission. Donors appreciate these capabilities as well as knowing that if the nonprofit ceases to exist, their gift is still preserved for similar nonprofit organizations.

Ever-changing opportunities and needs GIVE THROUGH YOUR COMMUNITY FOUNDATION Ever-changing opportunities and needs Community Legacy Fund Together, we can grow a permanent endowment that is flexible and relevant through changing times. We can build security and prosperity for future generations. If it all sounds good and worthwhile, we invite you to consider this option. We’ve established the [County] Endowment Fund—a special fund to secure and grow local assets focused on improving [County]. This endowed fund is permanent and growing. Because it’s restricted only to this geographic area, it is flexible enough to be relevant through changing times—always. Because this fund pools the charitable gifts of many, it harnesses our strength in numbers to create benefits that we—and future generations—can all enjoy. And because of all of these qualities, this fund promises security and prosperity for the future of [County]. Does [County] Endowment Fund sounds good to you? Note: Insert the name of your community foundation’s unrestricted endowment fund

Securing Our Future: leaders GIVE THROUGH YOUR COMMUNITY FOUNDATION The power of giving together. Securing Our Future: leaders Tom and Betsy Snow Jared Smith Washington Eliza and Geraldo Garcia Robert and Connie Hoff Gerard and Penny Afendoulis You’ll be in good company. Here’s a short list of some local leaders who have already signed up to Secure Our Future . Note: Add names of people who have already stated they are including the community foundation in their estate plans.

Securing Our Future: options GIVE THROUGH YOUR COMMUNITY FOUNDATION We accept a wide variety of assets. Securing Our Future: options Outright Gifts Bequest by Will Beneficiary Designation Charitable Gift Annuity Charitable Remainder Trust Charitable Lead Trust Life Estate Contract We accept a wide variety of assets and help you turn them into charitable good. Here are some of the ways of giving made possible through the Community Foundation [share list and give examples if time permits]. Outright Gifts: simple, easy, direct Bequest by Will: you can designate an amount or a percentage, and we can give you sample language Charitable Gift Annuity: annuity contract pays for life and charitable fund commences grants upon death Charitable Remainder Trust: trust pays beneficiary for life and then assets transfer to community foundation Charitable Lead Trust: trust pays the community foundation a fixed amount for a number of years and then assets go to beneficiary Life Estate Contract: this allows you to retain life use of your property Note: Please confirm that your internal policies cover all the giving vehicles. Many of the “ways of giving” I just described refer to “planned giving.” If you want to make charity part of your personal wealth transfer, you’ll want to think about planned giving. In contrast to responsive charitable gifts that you take care of with your check book, for many times, many places, many causes… planned giving is a means of accomplishing all of your goals—personal, charitable, and financial—in one well-crafted arrangement. The Community Foundation can work with you and your financial advisor to develop a personal giving portfolio that will make your philanthropy experience as effective and satisfying as it can be.

Three easy giving strategies GIVE THROUGH YOUR COMMUNITY FOUNDATION Three easy giving strategies Give highly appreciated assets during your lifetime Give retirement assets through your estate Designate the Community Foundation as an insurance policy or retirement account beneficiary Let me share a few rules of thumb as you consider a planned gift: Give highly appreciated assets during your lifetime. By giving appreciated securities to charity, you can avoid paying capital gains taxes and deduct the full appreciated value. Give retirement assets through your estate. Because of tax penalties, these may lose up to 70% of their value when given to heirs. Designate the Community Foundation as an insurance policy or retirement account beneficiary. You can do this without revising your estate plan.

Secure Our Future today Insert Logo Secure Our Future today If this sounds like the kind of good work you’d like to be part of, we invite you to Secure Our Future today. Start by assessing your estate value, and calculating the portion that you’ll designate for the community. Then, determine the most advantageous asset to give. Depending on your circumstances, that may lead you to transfer funds directly transfer securities change beneficiary designation on retirement assets or life insurance establish a charitable trust or change your will. Assess your estate value Calculate a percentage for your community Determine most advantageous asset to give

Everyone can be a philanthropist Hopefully, I’ve convinced you that everyone can be a philanthropist. One good way is by giving for good. Everyone can be a philanthropist

Address, City, State www.XXXXXXXX.org Insert Logo Thank you. I’m happy to talk with anyone who wants to know more about the wealth transfer or [Community Foundation]. Address, City, State www.XXXXXXXX.org

additional royalty-free images