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FALL/WINTER 2011

UKROPS’ LEGACY OF PHILANTHROPY CONTINUES

Most of the kids are blown away by the river. It’s something in their back yard, yet they’re amazed to see a school of mallards float by.

Daria Blom is witnessing the dramatic impact upon local school children of a $30,000 grant made by The Community Foundation (FOR) to Friends of the Rappahannock on behalf of the Ukrop’s Endowment Fund. “The three-year grant will enable FOR to almost double the number of children who are exposed to the beauty and environmental impact of the river,” said Blom, FOR Education Director. The latest grant from the Ukrop’s endowment underscores the company’s lasting commitment to the Fredericksburg Region. The family-owned grocery store chain established the Fund to recognize that their businesses have been successful because of their customers–the families in our community. “I think the Ukrop’s family takes corporate responsibility seriously. This endowment fund, as advised by Jim and Bobby Ukrop and locally Jon Wallace, really do a beautiful job of using their charitable dollars to benefit our community,” said Teri McNally, Executive Director of The Community Foundation.

Save the date!

November 30th to

Light Up the Community!

www.cfrrr.org

Since 2000 the Fund has grown to $1.3 million and the proceeds have provided over $630,000 to local charities over the years. “When First Market Bank merged with Union Bank & Trust to form Union First Market Bank, the Ukrop family wanted to maintain their commitment to the Fredericksburg community,” said Jon Wallace, Union First Market Regional President. Wallace is a former member of Board of Governors of The Community Foundation. The Community Foundation helped the Ukrop family create a donor advised fund, which will continue to grow in impact over

time. This type of fund provides the greatest flexibility to meet the donor’s philanthropic objectives. The Foundation makes distributions annually in the donor’s name with proceeds from the fund like the Ukrop’s Endowment Fund’s gift to Friends of the Rappahannock. When area children have meaningful waterside experiences we encourage them to become our future river stewards.“ For many of these children a FOR fieldtrip is their first river experience,” said Blom. Thanks to community philanthropists like the Ukrop’s, it won’t likely be their last. That’s the power of philanthropy!

The Community Foundation’s 10th annual Ring in the holiday party will be held Wednesday, November 30th at Mill Race North in downtown Fredericksburg – home of the Community Foundation’s offices. We expect as many as 300 attendees for what is becoming famous as the first big party of the season. This year we’ll “Light Up the Community” as we honor the area’s abundance of individuals who are committed to giving back. This year the party will double as the launch party for the Foundation’s new brand identity. 1


PARTNERS IN PHILANTHROPY

Each charitable fund at The Community Foundation has its own story. While purposes vary, the story always involves someone who wants to better the lives of others in the region for generations to come. Often, professional advisors play a key role in introducing the philanthropist to the Foundation.

Mr. Bill Kinnamon

If it weren’t for Bill Kinnamon, Elsie Wheeler might never have known how easy it is to establish a fund with the Foundation. A local attorney and former President of the volunteer Board of Governors, Mr. Kinnamon helped Mrs. Wheeler plan her estate well before her death last year at the age of 98. When Mr. Kinnamon retired, Jim Spitler took over as the estate executor and helped ensure that her wishes were honored.

Mr. Kinnamon recalled, “She wanted to support five local charities through her estate. I felt that two of the charities—Rappahannock Agency on Aging and Hospice Support Care— would be best served by establishing two separate funds with the Foundation. In doing so, she created a lasting legacy for her family by naming the funds after them and will help both organizations achieve their charitable missions now and in the future.” “Professional advisors often introduce the Foundation to people who have a heart for giving, yet don’t know how cost-effective and easy it can be through the Foundation,” said Community Foundation President-Elect Bern Mahon, President of Union Investment Services. “They are an integral part of the success of The Community Foundation.”

‘BECAUSE I WANT TO MAKE A DIFFERENCE.’

When you ask Fredericksburg native Nick Seay, owner of an internationally renowned identity consultancy in Washington, D.C., why he took on the task of rebranding The Community Foundation, his answer is characteristically direct: “I lived in Washington 32 years and came home two years ago. I want to make a difference and I believe in the Foundation.” The Foundation’s new brand and identity system was developed pro bono by Beverage Seay, Inc., known internationally for its brand and identity work, visual communications, environmental design, and web and interactive services. Normally the firm does this kind of work for iconic corporations like Exxon Mobil Corporation, Rolls Royce North America, and US Airways, as well as dignitaries like England’s Prince Phillip. 2

“Each year we completely re-do the brand of a worthy non-profit on a pro bono basis. All we ask from them is that they listen to us. The Community Foundation listened in every aspect of the process and that is why the re-branding has been successful,” said Seay, also a member of the Board of Governors. The Foundation’s annual holiday celebration “Light up the Community” on November 30th will double as a launch party for the new brand identity. “We don’t want to be Fredericksburg’s “best kept secret”! We’re excited about the potential for the new brand to convey the powerful work we’re doing to everyone in the communities we serve,” said Community Foundation Board President Richmond McDaniel, Senior Vice President of CB Richard Ellis. www.cfrrr.org


COMMUNITY FOUNDATION vs. PRIVATE FOUNDATION?

The costs, ongoing administrative burdens, quarterly tax payments, mandatory pay-out rates and reduced tax benefits of private foundations often prompt individuals and families to search for an alternative. Establishing a named fund at The Community Foundation often meets the needs of donors more efficiently and effectively.

these issues, we are discussing a very serious subject – money. Money determines how you live, how you support your family, how you will retire, how you are taxed and how you share with others. It also says a lot about how hard you have worked and how committed you are to making good decisions.

Establishing a fund with The Community Foundation has some distinct advantages over a private foundation. When we talk about

We take the responsibility of your investment with us as an honor, and we continually work to ensure that donors are happy with fund service and how grants are distributed.

FUND WITH COMMUNITY FOUNDATION

CREATE PRIVATE OR CORPORATE FOUNDATIONS

THINGS TO CONSIDER Organization

Established (1997)

Must establish

Tax Exempt

501(c)(3) Status

Must establish with IRS

Funds Required

$10,000 minimum

Experts recommend $10 million minimum

Selection of Grantees

Donor, family or his/her advisory committee recommends grantees

Donor specifies grantees

Tax Deductibility of gifts

a) Up to 50% of donor’s Adjusted Gross Income (30% with appreciated assets) b) Excess may be carried over for five years

Limited to 30% of donor’s AGI (20% with appreciated assets)

Federal approvals, restrictions and special taxes

a) Approved by IRS b) No payout requirement c ) No federal excise tax

a) Must receive IRS approval b) IRS requires 5% of assets to be paid out annually c) Fund is charged 2% federal excise tax on income unless strict requirements are met d) Greater incidence of IRS field audit

Legal documents for creation of foundation, designation of funds and grant awards

In place

Must create

Office

In place

May need to obtain

Staffing

In place

May need to obtain

Accounting

In place

Must obtain

Tax Return (state and federal)

Community Foundation prepares

Must prepare

Public Report

Report to public made annually

Must prepare reports for the general public

Knowledge of Potential Grantees

Community Foundation provides

Must develop

Grant Evaluation Process to Ensure Donor’s Intent Satisfied

In place

Must develop

Public Recognition for Donor

Fund may be named or anonymous

Must provide or rely on grantee organization

Director/Officer Liability Insurance

In place

Must obtain

Investment of Assets

Finance Committee oversees investment policies

Must establish policies and select investments

Organization Overhead

1%

Substantial costs; plus 2% federal excise tax on income

www.cfrrr.org

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The Community Foundation’s annual holiday party is a critical source of operating support for our programs to increase charitable investment in the greater Fredericksburg region. We are grateful for the enthusiastic support of this year’s party sponsors! PLATINUM Design Storage & Handling, Inc. Cary Street Partners The Davis Family Hirschler Fleischer Mary Jane O’Neill | Cullen, Inc. PBGH, LLP Union First Market Bank | Union Investment Securities Wack Contractors ■

GOLD Cushman & Wakefield | Thalhimer Hallberg & O’Malley Financial Group Party Elegance ■

Light Up the Community November 30th, 2011 5:30 – 7:30 pm Mill Race North | 725 Jackson Street Fredericksburg, Virginia Visit our website for more information: www.cfrrr.org

SILVER Applied Technology, Inc. Cooper Financial | Raymond James CB Richard Ellis | Brokerage Services HDT Global, Inc. Hilldrup Properties, Inc. Johnson Reality Advisors, Inc. ■

Peoples Community Bank StellarOne BRONZE The Blalock Family Bowling, Franklin & Co., LLP Coker Orthodontics Mary Carter Frackelton Germanna Education Foundation Glover and Dahnk The Hoffman Family | Fredericksburg Holmes, Riley & Associates of Merrill Lynch The Keddie Group | Davenport & Co., LLC Miller Foley Group Northwestern Mutual | Rob Billingsley Parrish, Houck and Snead, PLC PermaTreat, Inc. SunTrust Bank Tulip Salon & Spa | Aveda Utility Professional Services, Inc. | Fred & Tanya Howe Vanderpool, Frostick and Nishanian, P.C. Virginia Partners Bank ■

GRANT AWARDS: SIX-MONTH RETROSPECTIVE The Community Foundation also receives direct support from many of its fund holders. Thank you for helping to sustain our work to enrich the community by promoting philanthropy. Caroline County Public Spirit Fund $300 State Fair of Virginia Community Enrichment Fund $5,619 Friends of the Rappahannock $4,392 King George Family YMCA $6,089 Rappahannock Area Office on Youth Alan F. Courtney Charitable Fund $1,500 Orange County Department of Social Services Duff McDuff Green, Jr. Fund 2011/2012 Cycle (To Date) $3,000 Cobblestone Children’s Museum $3,250 Fredericksburg Rescue Squad $3,000 RACSB Program for Teen Parents $2,050 Rappahannock Area Kids on the Block $3,000 Riverside Foundation for the Performing Arts $1,000 Safe Harbor Child Advocacy Center $3,000 Salvation Army, Fredericksburg $2,405 Central Virginia Battlefields Trust $3,000 Ladies’ Memorial Association of Fredericksburg

Duff McDuff Green, Jr. Fund 2010/2011 Cycle (To Date) $7,500 National Housing Trust/Hazel Hill $10,000 Historic Aquia Episcopal Church $5,000 Gari Melchers Home and Studio $5,000 St. George’s Episcopal Church $10,000 Dahlgren Heritage Foundation $5,000 Central Virginia Battlefields Trust $5,000 Fredericksburg Cemetery Co. $5,000 Fredericksburg Area Museum $10,000 The George Washington Foundation $5,000 Citizens for Caroline Historical Preservation $2,500 Friends of the Rappahannock $2,500 Fredericksburg Soccer Association $5,000 Project FAITH $10,000 Cal Ripken Sr. Foundation 1st Lt. Benjamin Hall Memorial Fund $3,000 Ben Hall Memorial Endowment Scholarship Fund-Michigan Tech Robert Cullen O’Neill Memorial Fund $10,000 Micah Ecumenical Ministries $10,000 Cal Ripken Sr. Foundation

O’Neill Family Legacy Fund $10,000 Germanna Education Foundation PNC Community Giving Fund $137,000 Smart Beginnings Rappahannock PNC Endowment Fund $670 Spotsylvania Education Foundation Chris Ross Memorial Fund $5,000 Ducks Unlimited Trust for Public Education IV Fund $600 Courtland Elementary $2,000 Berkeley Elementary $1,119 Riverview Elementary $2,192 Spotsylvania Career & Tech $2,000 Spotsylvania Middle School $2,226 Riverbend High School Ukrop’s Endowment Fund $10,000 Hope House $2,500 Mattaponi Boy Scouts of America $4500 Salvation Army Women’s Auxiliary Women & Girls Fund $11,000 Rappahannock Council Against Sexual Assault $4,000 Healthy Families Rappahannock Area

Community Foundation of the Rappahannock River Region P.O. Box 208 | Fredericksburg, VA 22404-0208 | 540-373-9292 | www.cfrrr.org

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Community Foundation Newsletter Fall-Winter 2011