Philanthropic Solutions

Philanthropic Solutions YOUR GUIDE TO CHARITABLE GIVING

Al and Elia Saenz

The Foundation for Good North Texas Community Foundation drives meaningful change through charitable investment. The Foundation helps donors meet the needs of our community by providing tax-efficient strategies to support the causes they care about most.

We serve a network of generous individuals, families, and businesses intent on shaping the future of North Texas for good, forever.

Table of Contents

Why Establish a Fund?

2

Charitable Fund Options

4

What Can You Donate?

5

Legacy Society

7

Community Foundation vs. Private Foundation

8

Frequently Asked Questions

9

Investment Portfolios

10

Administrative Fees

11

About North Texas Community Foundation

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Why Establish a Fund at North Texas Community Foundation?

North Texas Community Foundation helps individuals, families, businesses and private foundations create custom, tax-efficient giving plans. We are committed to providing a best-in-class experience while ensuring your philanthropic dollars work harder and smarter.

How We Work FLEXIBLE + TAX EFFICIENT

LEGACY

We offer charitable giving vehicles designed to meet your personal goals and maximize tax-saving benefits.

We help you support the causes and organizations you care about most, beyond your lifetime.

CUSTOMIZED SERVICE

RESOURCEFUL CONVENER

We create custom giving strategies to fulfill your unique charitable goals.

We cultivate local partnerships that offer the insight and perspective you need to respond to community needs.

LOCAL IMPACT

STEWARD FOR GROWTH

We are a trusted resource for data and connections to respected organizations in North Texas.

We help maximize the impact of your gift and improve the growth potential of your contribution over time through prudent investment strategies.

“ My parents taught me from an early age about the importance of supporting the needs in our community. I have been blessed to carry on my family’s legacy through the Community Foundation and trust that their team will continue our legacy for years to come.”

MARTY LEONARD 2

Jay McCall and Mayor Mattie Parker with The Tarrant To & Through Partnership (T3)

Making an impact through North Texas Community Foundation is easy.

GIVE

GRANT

GROW

Meet with a member of our team to select the fund type that works best with your personal situation and goals. Contribute to your fund now or through your estate plan.

Recommend grants through your fund to the organizations you care about most. Our team can help you define your charitable goals and create a giving strategy based on your unique interests.

Through prudent stewardship, NTCF preserves and grows your charitable funds to ensure sustainable giving today, tomorrow and beyond your lifetime.

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The Foundation for Possibility

Charitable Fund Options NTCF offers a variety of fund options to support your giving today and for generations to come.

DONOR ADVISED FUND Stay actively involved in the grantmaking process.

This fund gives you the flexibility to recommend grants to your favorite organizations while our team handles all administrative support.

DESIGNATED FUND Provide an ongoing, sustainable revenue stream to one or more of your favorite organizations.

A convenient and efficient way to provide direct support to specific organizations that are identified when the fund is established.

FIELD OF INTEREST FUND Make a bigger impact for specific causes close to your heart.

Whether it’s healthcare, education or the arts, this fund allows NTCF to identify and award grants to high-performing organizations in any focus area on your behalf.

UNRESTRICTED FUND Respond to emerging needs in North Texas.

This fund entrusts NTCF to target your charitable dollars towards the community’s most pressing needs. These funds are often pooled with additional resources to harness the power of collective giving.

“ Our fund at North Texas Community Foundation gives us the flexibility and tools to support local nonprofits and make a bigger difference.”

LISA AND BURCH WALDRON

Naming Your Fund When you open a fund at the Community Foundation you can give it a name that is meaningful to you. For example, the Doe Family Charitable Fund, or the Jane and John Doe Fund for Education.

Endowing Your Fund Any type of fund can be “endowed,” meaning that a portion of the earnings, not principal, will be used to make grants. This allows you to maximize your impact over time and support your charitable intentions forever.

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Burch and Lisa Waldron wtih Toby Owen, Executive Director of Presbyterian Night Shelter

What Can You Donate?

Discover tax-efficient giving options designed to maximize your impact.

We make it simple to convert your assets into charitable impact. NTCF will work with you and your professional advisor to identify the best giving strategy for you.

North Texas Community Foundation accepts a wide range of assets, including many complex gifts that commercial funds cannot accommodate.

CASH Receive a tax deduction the same year you donate cash in the form of check or wire transfer.

APPRECIATED SECURITIES Receive a deduction for the full fair market value and reduce capital gains liabilities on publicly traded stock, bonds and mutual funds held for more than 12 months.

BUSINESS INTEREST Receive a deduction for the appraised fair market value and avoid paying tax on your capital gain.

OIL & GAS MINERAL RIGHTS Receive a deduction based on the appraised fair market value, not the cost basis of obtaining the rights.

RETIREMENT ASSETS Donors of a qualifying age may donate their required minimum distribution to a designated fund at NTCF. TANGIBLE PROPERTY Art, antiques, personal collections, or other property can be donated.

TRANSFERS FROM CHARITABLE ENTITIES Assets from private foundations or other donor advised funds may be used to create a fund at NTCF. All gifts are subject to our current due diligence and gift acceptance policies.

Please reach out to our team for additional information or questions about assets we accept.

REAL ESTATE Receive a deduction for the fair market value and avoid paying tax on your capital gain if the property has been held for more than 12 months.

Brad Chapman, Cheryl Chapman, Sandra McGlothlin and Mark McGlothlin 5

The Foundation for the Future

“I am delighted that the Community Foundation provides a way to preserve our family’s legacy and lets us pass our philanthropic values on to the next generation.”

LOUELLA MARTIN

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Nolan Catholic High School, a beneficiary of the Ella C. McFadden Endowment Fund

Legacy Society ESTABLISH YOUR LEGACY Imagine a brighter future for the causes and organizations you care about most.

With thoughtful estate planning now, you can be assured your assets will support our community beyond your lifetime.

CHARITABLE DOLLARS USED THE WAY YOU INTENDED The Legacy Society honors the generous donors who have entrusted North Texas Community Foundation to carry out their charitable intentions.

HOW IT WORKS • You include NTCF as a beneficiary of your will or trust to benefit the causes or nonprofit(s) of your choice.

• You determine the type of fund you would like to establish (refer to page 4 for more information about types of funds).

• Your charitable gift is excluded from your assets for estate tax purposes.

• Your gift creates a legacy of your values, helping to do good work in North Texas and beyond.

A bequest can take various forms. You and your advisor may utilize the following sample language for an outright bequest or distribution: “ I give, devise and bequeath ______ (describe dollar amount, property to be given, or proportion of residuary estate) to North Texas Community Foundation, a nonprofit corporation located in Fort Worth, TX, EIN 75-2267767.”

What Can I Leave as a Bequest?

• A gift from your estate, which can be in the form of any cash or noncash asset accepted by NTCF (see page 5).

• Charitable Remainder Trust. Name NTCF as the charitable beneficiary of a Charitable Remainder Trust (CRT), an effective tool for managing the size of your taxable estate.

We will work alongside you and your estate planning team to create a legacy giving plan that honors your charitable intentions and maximizes the impact of your gift.

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The Foundation for Growth

Community Foundation vs. Private Foundation: Which is Right for You? A charitable fund at NTCF can be a simple and cost-effective alternative to a private foundation that still achieves community impact, recognition and legacy.

Comparing the Options

How We Can Help

Private foundations provide donors a strong philanthropic identity, with the freedom to support multiple nonprofits and involve family members in their mission. However, the administrative requirements and operating costs can be substantial.

• Administration: NTCF handles all investment management, accounting, and reporting duties.

A Donor Advised Fund offers many of the same benefits of a Private Foundation at a fraction of the cost. This option gives you the ability to maintain the same identity and charitable goals, while our team provides all the necessary administrative support.

Converting Your Private Foundation: Please contact us to discuss the benefits of converting your private foundation into a donor advised fund.

• Identity: Retain existing private foundation name to honor founders and maintain public recognition.

• Donor Intent: Protected in perpetuity by a Board of Directors charged to fulfill your intentions and ensure that your foundation’s legacy is protected forever.

• Investment & Growth: Funds are invested and managed as part of a diversified, actively managed investment portfolio. Larger funds have the option to utilize the services of an outside investment manager.

• Administration: NTCF handles all investment management, accounting, and reporting duties.

• Grantmaking Support: NTCF handles all necessary paperwork for grant administration.

• Local Impact: Expert grantmaking staff can share research on causes and charities you care about most.

• Tax Returns and Audits: These functions are not required of Funds at the Community Foundation.

“When our family made the decision to find an alternative vehicle for our private foundation, it became clear that North Texas Community Foundation could offer us an efficient and effective platform. It has been a good decision for our family and we recommend it to other private foundations who might be considering alternative solutions.”

JOHN SNYDER

NANCY AND JOHN SNYDER FOUNDATION 10 8

Frequently Asked Questions What is the minimum needed to open a fund?

Minimum fund size is $25,000.

What are the costs?

There is no set-up fee. Funds up to $1 million in value are charged a 1% annual administrative fee, based on the fund balance, paid 1/12th per month. The fees support the administrative requirements of your fund and further investments in our region, including research on civic concerns, leadership collaboration on critical issues and encouraging philanthropy in our community. In addition, investment fees are charged based on the investment portfolio you select.

What kinds of assets can I use to establish my fund?

Cash, closely held stock, publicly traded securities, mutual funds, business/ partnership interests, life insurance, retirement plan assets, tangible personal property, real estate, oil and gas, and other mineral rights.

How long does it take to establish a fund?

Most funds may be established after one brief meeting.

Can others add to my fund?

Yes, all they need to do is identify your fund as the recipient of their gift.

Can my fund support grants outside of North Texas?

Yes, you may grant from your fund to any qualified charity based in the United States. Grants can be sent internationally with the help of an intermediary agency. Please contact our team for more information.

Who can I name to be an advisor to my fund?

You and/or anyone you designate can be an advisor to your fund.

Can I grant out of my fund at any time?

Yes, you may grant out of your fund as often as you like. Our minimum grant amount is $250.

What happens to my fund when I die?

Your fund can continue to support the charities and causes you love beyond your lifetime. Name a successor donor advisor to make grants on your behalf, designate charities to receive gifts from your fund until the balance is depleted, or entrust NTCF to distribute funds for the period of time you determine. You may leave a gift from your estate to your fund or endow your fund so that it lasts forever.

Photo courtesy of Texas Wesleyan University

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Investment Portfolios North Texas Community Foundation offers expanded investment options to help maximize the impact of your gift.

Our Investment Committee works with Mason Investment Advisory Services to manage our investment portfolios, which include a range of diversified high-quality, low-cost investments as directed by our Investment Policy Statement.

These portfolios are listed in order of risk/return: LIQUID PORTFOLIO The fund’s assets remain in cash.

Consider this if making immediate gifts.

SHORT TERM PORTFOLIO Consider this portfolio if anticipated grants will take most of the balance in the fund between one to two years.

INTERMEDIATE TERM PORTFOLIO Consider this portfolio if anticipated grants will take most of the balance in the fund between two and five years.

LONG TERM PORTFOLIO Consider this portfolio if anticipated grants will occur over a period longer than five years.

Please contact us for current portfolio asset allocations.

INVESTMENT MANAGEMENT FEES Our investment fees range depending upon the portfolio selected. A member of our team can provide you with a current report of investment performance returns for each of the portfolios to help you choose an investment option for your fund.

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John, Gregor and Grainger Esch at HSC

What Does It Cost?

Administrative Fees Our hands-on approach allows us to treat each donor personally, offering thoughtful guidance with the right expertise.

NTCF’s fees support the administrative requirements of your fund, as well as the customized services we offer.

We keep our tiered fee schedule low by managing costs. Investment fees are assessed separately from administrative fees.

Administrative Fees assessed on a sliding scale ASSET VALUE IN FUND

RATE

FIRST $1,000,000 1.00% NEXT $4,000,000 0.85% NEXT $5,000,000 0.60% NEXT $10,000,000 0.40% AMOUNTS EXCEEDING $20,000,000

0.20%

This schedule represents an annual cumulative stepped fee on the market value of the fund, assessed 1/12th monthly. Investment and banking fees are assessed separately from the administrative fee. Fundholders receive monthly and end-of-year statements showing all activity in their fund.

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The Foundation for You North Texas Community Foundation was established in 1981 with the mission to strengthen our region through effective philanthropy and community leadership.

North Texas Community Foundation is...

Community Building Takes Collaboration

• A 501(c)(3) public charity composed of a wide collection of charitable funds.

NTCF works with local donors and leaders to proactively respond to the needs of our region. In collaboration with our donors and partners, NTCF is proud to offer grant cycles in the following focus areas:

• Led by a volunteer board of directors comprised of philanthropic experts, professional advisors, nonprofit executives and civic leaders intent on ensuring every donation does the most good.

• Accredited and certified according to the National Standards of the Council on Foundations. This means that the Foundation has shown clear “Evidence of Excellence” in accountability and management of its investments.

• Arts and Culture • Animals • Building Nonprofit Capacity • Children and Families • Conservation and Environment • Disaster Relief • Emergency Responders • Opportunity & Access

Together, we can cultivate a more vibrant and resilient community where all North Texans can thrive.

FOR MORE INFORMATION, VISIT WWW.NORTHTEXASCF.ORG

Janis and Chris White at the Humane Society of North Texas 12

777 Main Street, Suite 2850 Fort Worth, Texas 76102 817.877.0702 northtexascf.org