Passing the Hat 2.0: Charitable Giving Goes Low Maintenance Passing the Hat 2.0: Charitable Giving Goes Low Maintenance Presentation by Regina Q. Jahr, Executive Director Black Hills Area Community Foundation

Passing the Hat 2.0: Charitable giving goes low maintenance Today’s Webcast Discuss options for philanthropic giving Examine the differences between community foundations and family foundations Explore Donor Advised Funds at community foundations Review the benefits of philanthropic giving

Charity or Philanthropy? Charity - Giving change Philanthropy - Making change

Creating a vision for philanthropy Who to involve: Family – One or two generations – Future generations Attorney CPA Business partner(s) Financial Planners Insurance advisor/agent Community Foundation Executive

Becoming a philanthropist Create your philanthropic legacy Express values through giving Generosity Passion Dedication

Types of Foundations Company sponsored foundation Operating foundation Private independent foundation Community foundation

Private Foundations Endowment usually comes from a single source -an individual - a family, or -a group of individuals Scale = impact Contributions to endowment limited as to tax deductibility Annual reporting includes 990-PF filed with IRS and made available to the public

The Family Foundation: it’s a business Intense upkeep and maintenance Governed by Board of Directors or Trustees Transparency No Self Dealing Cyclical Personnel/HR issues Bottom-line highly regulated ^

About Community Foundations Growing numbers and assets in the US and in SD Created by and for the people in a dedicated area IRS-designated, tax-exempt, 501 (c)(3) public charities Stewards of permanent community financial resources

Giving through a Community Foundation Involves donors in identifying and responding to community issues Makes giving flexible and easy Offers significant tax benefits Becomes a permanent community resource

Donor Advised Funds: Create a personal legacy of giving at your community foundation Donors can establish a named fund Grants distributed from a donor’s fund are awarded in the name of their fund. – This person or organization will always be remembered and linked to good works in our community.

The benefits of a Donor Advised Fund It’s personal It’s flexible It’s efficient It’s easy You can give anonymously or refer requests for funds to the Community Foundation You can name successor advisors Donors don’t give to a Community Foundation, they give THROUGH a Community Foundation

How a Donor Advised Fund works $ $ The Community Foundation provides: Administrative support Investment management oversight Strategic grantmaking opportunities a vehicle to create a personal giving legacy

General Guidelines for a Donor Advised Fund at a Community Foundation Recommendations include: 501(c)(3) public charity, church, synagogue or unit of government Federal law has established guidelines and prohibits certain activities “A civilization flourishes when people plant trees under which they will never sit.” -Greek Proverb

The Fun Part: Grantmaking Grantmaking is rewarding Considerations: – What do I/we want to give to? – Who do I/we want to give to? Allow for flexibility Conduct due diligence* Recognize the process is always evolving * Only if a private foundation. Community Foundations provide this service.

Ways to Give Outright Gifts Retirement assets (i.e. IRA, annuity, insurance policy) Bequest by Will Charitable Lead Trust Charitable Remainder Trust

Ask your professional advisor about charitable giving as part of estate planning Prepare a will and include the Community Foundation Outline your charitable intentions in an agreement with the Community Foundation Memorials may directed to the Community Foundation Encourage family and friends to include charitable giving in their wills Legacy Giving

We help donors create an individual or a family legacy that is personal and enduring Our Donor Advised Funds help people invest in the causes they care about most We can preserve donor intent even as community needs and organizations change We offer maximum tax advantage under state and federal law We accept a wide variety of assets and can facilitate even the most complex forms of giving Why people choose to give through a Community Foundation like BHACF

The benefits of philanthropy Givers are happier Science magazine, March 2008 Givers live longer University of Michigan Study, 2002 You support your values You benefit your community…forever

Thank you! Your interest and attention are appreciated! Thanks to Rick Kahler and the Kahler Financial Group Please contact Rick or me if you have any follow-on questions or comments We are here to help you!

To learn more, call or contact us at or visit For good. For ever. SM Slogan © 2006 Council on Foundations and Community Foundations of America We are certified in compliance with National Standards for U.S. Community Foundations Black Hills Area Community Foundation