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Creative Giving

APRIL 2011

Community Foundation of Northeast Iowa

www.cfneia.org

.Endow Iowa

What your clients should know What does it really cost to give? Federal Marginal Tax Rate

15.00%

Endowment Gift to Qualified Community Foundation

$10,000 $10,000 $10,000

Less: Endow Iowa 25% Tax Credit* Federal Tax Deduction Net Cost of Gift

w mobilizing community organizations. w helping citizens promote, plan and prepare for the future.

$13,918,149 = Donations leveraged by Endow Iowa Tax Credit program in 2010 alone. What kinds of programs did these dollars help? Arts/Culture/Humanities

12%

Education

4%

Environment/Animals

8%

Health

31% 29%

For good. For ever.

Human Services Public/Society Benefit

Since the Endow Iowa tax credit program began, it has encouraged more than $75 million in permanent endowment fund gifts. Permanent endowment gifts can be customized, so your client can be specific about what their gift supports, or they can leave it open to accomodate the changing needs of their community.

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COMMUNITY FOUNDATION

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endowment funds. w allowing communities to become self-sufficient through charitable projects and community betterment programs.

In 2010, 116 of 1,723 donors receiving the tax credit were businesses.

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w encouraging Iowans to invest in their communities through

15%

$2,500 $3,500 $4,000

Businesses benefit too!

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w endorsing the importance of charitable giving.

Other

$2,500 $2,500 $5,000

35.00%

*Based on current tax regulations. Example illustrated applicable for individuals who itemize deduction

Endow Iowa strengthens your clients’ communities by...

1%

$2,500 $1,500 $6,000

25.00%

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

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Endow Iowa was established to encourage philanthropic giving to improve the life of Iowans by investing in permanent endowments at their local community foundations. Donors who give to a permanent endowment at a qualified community foundation to benefit Iowa charitable causes are eligible for a 25% Iowa state tax credit in addition to the federal charitable deduction on their gift. Donors may choose to give to existing endowed funds or establish their own named funds to support the causes they care about.

Community Foundation of Northeast Iowa: Creative Giving, APRIL 2011


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Waterloo, IA Permit #707

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Non-Profit

US Postage Paid

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Community Foundation of Northeast Iowa

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APRIL 2011

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Creative Giving

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Return service requested

of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

PO Box 1176 Waterloo, IA 50704

PRESIDENT & CEO

319.287.9106

Mary Ann Burk

www.cfneia.org

CHAIR OF THE BOARD Gary Bertch

PROFESSIONAL ADVISORY COMMIT TEE Mark Rolinger, Chair

Counties We Serve

John Larsen Theresa Hoffman Heather Gunderson Mike Rickert Robert “Bob� Smith David Sparks Roger Neumann Steve Weidner

Confirmed in Compliance with National Standards for U.S. Community Foundations.

Helping your clients help their community.w www.cfneia.org

Charitable Giving Instruments

Encourage your clients to see the possibilites!

Outright Gift- Your clients can make a gift of cash, stocks, bonds, real estate, or other assets to their community foundation. Their gift qualifies for maximum charitable benefit under state and federal law. Bequest- Your client can designate a gift or portion of your estate to your community foundation and, in some cases, receive a substantial reduction in federal gift and estate taxes. Gift Annuity- Your client can make a gift of cash or property to your community foundation now, get immediate tax benefits, and ensure that they or their loved ones receive fixed quarterly or annual income payments for life. Retirement Plans- When clients choose to make testamentary gifts to charity of retirement assets such as IRAs and 401(k) plans, they are able to significantly reduce the tax burden of their estate and tailor their donations to fit their charitable goals.

NEW IRA TAX PROVISIONS!

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of Northeast Iowa Established in Waterloo/Cedar Falls in 1956

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COMMUNITY FOUNDATION

(319) 287-9106 w www.cfneia.org For good. For ever.

Iowa legislators have coupled the federal tax-free IRA Charitable Rollover, thereby making it tax-free in Iowa as well. Individuals 70 1/2 and older can transfer up to $100,000 from their individual retirement account to a charity, like the Community Foundation, without including the distribution in their gross income. When transfered to an endowment fund at the Community Foundation, donors are also eligible for the 25% Endow Iowa tax credit on their donation.

Community Foundation of Northeast Iowa: Creative Giving, APRIL 2011


Creative Giving-April 2011  

Newsletter for professional advisors.

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