Summer 2021 Our Mission: Bringing philanthropy to life for a stronger South Dakota.
Lifetime Planning - Perpetual Impact: Gail Miller The two ran the jewelry store for over 20 years and saw the world together, often piloted by Gail, in their small plane. After selling the Jewel Box, they started investing in real estate, both in South Dakota and in Bullhead, AZ, where they spent their winters. In addition to owning several commercial and residential properties, Gail followed his passion by purchasing and leasing farm and ranch land. Gail remained active in farming and ranching until his passing in 2018. For the late Wall, SD native Gail Miller, hard work was second only to putting together a great deal. He spent his life and career proving that a high school dropout confined to a wheelchair at the age of 16 could achieve great personal and professional success. Now, because of those efforts, his legacy will impact the lives of South Dakotans for generations to come. Formally trained as a jeweler and watchmaker, Gail’s career started in Murdo, SD when he went to work at Beckwith Jewelry. Soon thereafter, he opened his own store in Presho where he would meet and marry his life-long companion Delores, a teacher at a nearby country school. The couple moved to Pierre in 1965 after purchasing the Jewel Box.
Delores’s passing in 2013 brought great sadness and reflection for Gail. He contemplated how to best honor her memory and plan for the eventual disposition of all the two had built together. Having no children and being fiercely opposed to paying unnecessary taxes, Gail worked with his professional advisors to establish a fund at the South Dakota Community Foundation (SDCF). Gail appointed a five-member advisory board to work with SDCF to administer distributions to several designated charitable beneficiaries. Gail developed parameters for more flexible grant programs that will support initiatives that were important to both Delores and him. He also established a scholarship to honor his mother and father, Violet and Eugene Miller.
Never wanting to call attention to himself, his planning and gifting were done privately, with exceptions made only when he could honor his great love, Delores. The result will be the single, largest estate gift in SDCF history and more importantly, a stream of grant dollars that will benefit nonprofits and communities forever. As a result of his generosity and careful planning, Gail’s last deal will certainly be considered his best.
“ SDCF’s professional and efficient management were central factors in Gail’s decision. I am honored to have known and worked with him and his advisors in accomplishing the couple’s charitable goals.” Stephanie Judson, President & CEO
If you are interested in leaving a legacy for nonprofits you care about, please visit our planned giving site at SDCFGift.org or call us at 800.888.1842.
Header photo courtesy of Bonzeye Studio
Grantmaking Programs Respond to EverChanging Landscape South Dakota Community Foundation’s (SDCF) grantmaking programs were reprioritized in 2020 to meet the challenges that South Dakota nonprofit organizations faced due to the coronavirus pandemic. Both the South Dakota Fund and the Community Innovation grant programs were refocused solely on the coronavirus and its impact on our state. SDCF awarded fifteen South Dakota Fund grants focusing on the coronavirus totaling $183,771 from January through May 2021. Examples of successful projects include: installation of a security system by All About U Adoptions, Inc., located in Sioux Falls, that helped promote social distancing between clients and staff by providing virtual check-ins; REALTORS for Kids, Inc., in Spearfish, was able to provide much needed assistance for area youth; and the Hurley, SD Volunteer Fire & Ambulance Service, a nonprofit organization, received help to purchase necessary equipment during the pandemic when their normal fundraising activities had been hindered.
The SDCF Board of Directors met in May 2021 and decided to return the South Dakota Fund to traditional grantmaking practices. This unrestricted fund makes grants to nonprofit and charitable organizations across the state and supports efforts that include initiatives on culture, economic development, education, financial literacy, health, or human services. The South Dakota Fund application is available online at sdcommunityfoundation.org/grants and is ongoing throughout the year. The SDCF has partnered with the Bush Foundation since 2014 to offer Community Innovation Grants in South Dakota. Community Innovation Grants support community problem-solving projects that lead to more effective, equitable and sustainable solutions. With the approval of the Bush Foundation, SDCF suspended that grantmaking process in 2020 and redirected funds to coronavirus response efforts. Traditional Community Innovation Grants were offered once again in 2021. The second and final round of applications for 2021 was open July 1 through July 30. Successful grant recipients will be announced November 15, 2021.
If you are interested in learning more about SDCF’s continued grantmaking efforts, please visit SDCommunityFoundation.org/Grants.
PLE A S E CO N S I D E R A D O N AT I O N If you would like to offer your support for these or other worthwhile projects across our state, learn more at SDCommunityFoundation.org/Giving.
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BOYS & GIRLS CLUB OF THE CAPITAL AREA
A $15,000 grant enabled the Boys & Girls Club of the Capital Area to install a room divider in its large multipurpose room resulting in more “safe space” classrooms. This will allow an additional 20 to 25 youth to participate in Club offerings.
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RAPID CITY YMCA
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FEEDING SOUTH DAKOTA
Grant dollars supported the Rapid City YMCA in hiring an e-learning coordinator to train staff and assist students while working through the Rapid City Area Schools’ e-learning requirements.
Feeding South Dakota received funding for a volunteer incentive program to bolster recruitment efforts for the mobile food program in central South Dakota.
Community Innovation Grants Benefit Nonprofits
The South Dakota Community Foundation congratulates the fourteen nonprofits that received a Community Innovation Grant for Round 1, 2021. SDCF received sixty-three applications for Round 1 and distributed $204,830 among these successful applicants: Alzheimer’s Association South Dakota Chapter, Boys & Girls Club of the Northern Plains, Inc., Center for Rural Affairs, Dakota Wesleyan University, Lutheran Social Services of South Dakota, Missouri Sedimentation Action Coalition, Mniluzahan Okolakicipayi Ambassadors, NAMI South Dakota, Pathways to Inclusive & Equitable Workplaces, St. Francis House, Southeast Technical Institute Foundation, Survivors Joining for Hope, Inc., United Way of Northeastern South Dakota and Victims of Violence Intervention Program.
Each of these organizations has its own unique focus, but several of these projects will have a statewide effect. The Alzheimer’s Association South Dakota Chapter is working to ensure that South Dakotans living in rural areas have the same access to Alzheimer’s resources as their counterparts living in urban areas. Targeting underserved, rural communities, the Center for Rural Affairs wants to ensure broadband access for all our state’s citizens. Lutheran Social Services will improve their agency and staff’s capacity to work toward racial equity. NAMI South Dakota will gather data to strengthen their ability to deliver mental health information virtually. A program focused on providing curriculum, resources and activities for youth who have lost someone to suicide will be developed by Survivors Joining for Hope, Inc.
NSA Challenges Accepted The SDCF seeks to support sustainability for South Dakota nonprofits by partnering with organizations and their donors to build endowment funds. The Nonprofit Savings Accounts (NSA) program issues a challenge to successful applicants to raise $80,000 over two years. If the organizations meet the goal over the prescribed time period, the SDCF contributes a $20,000 challenge match to the nonprofit’s SDCF endowment. Funds are permanently invested, and earnings create a long-term revenue source to support the nonprofit. Main Street Square in Rapid City and Meals on Wheels Western South Dakota recently accepted NSA challenges. Learn more about the Nonprofit Savings Account grant program on our website at sdcommunityfoundation.org/grants/nonprofit-savings-accounts.
“We are proud to partner with all these grant recipients and send our thanks to the Bush Foundation for the continued support they have provided for our state,” said Ginger Niemann, SDCF Senior Program Officer.
United Way of Northeastern SD was awarded a $20,000 Community Innovation Grant in Round 1, 2021. Funds will support five Aberdeen organizations as they identify a shared vision through the process of self-evaluation and strategic planning.
Meet the Board:
Beth Benning, Board Chair
It has been said that good nonprofit boards deliver “governance” and great boards help build a legacy. The South Dakota Community Foundation (SDCF) has been fortunate to have had great board members building a legacy for the last 34 years. SDCF’s Board Chairs have encouraged, dreamed, and shaped the leadership of the staff, and the current Board Chair is no exception. Beth Benning is no stranger to many in South Dakota. She was born and raised in Redfield and moved to Spearfish to continue her education. A Spearfish resident since 1973, Beth has contributed her time to many organizations: Northern Hills Training Center, Spearfish Foundation for Public Education, Good Shepherd Clinic, Black Hills State University, Monument Health, Spearfish Economic Development Corporation, Zonta Club, and others. In addition to her volunteer positions, she excelled in her role in local government for the City of Spearfish, retiring in 2008 after 35 years as the Spearfish City Finance Director. During her career in city government, Beth was honored with two prestigious awards: the Outstanding Finance Officer Award from the S.D. Governmental Finance Officers’
Association and the Excellence in Municipal Government Award from the South Dakota Municipal League. Her alma mater, Black Hills State University, recognized Beth with the Distinguished Alumni Award, and she has been the recipient of the Spirit of Spearfish award from the Spearfish Chamber of Commerce two times: in 1989 and 2018. During her tenure as SDCF chair, Beth worked tirelessly to stay engaged with her colleagues during the pandemic. “It was arguably a difficult time to stay connected, so I did what I could to make sure every board member had a voice even if we weren’t allowed to sit across the table from one another,” she said. In addition to reaching out to each board member by phone, Beth and SDCF staff convened the regularly scheduled board meetings via Zoom, provided virtual updates, and hosted a virtual board member social hour.
As Board Chair, Beth also demonstrated her support of the Foundation’s mission through giving. Together, Beth and her husband Jim embraced SDCF as a partner in accomplishing their philanthropic goals. “We are so grateful for the life we built together in Spearfish, and we are committed to doing our part to support our community now and in the future,” she said.
Integrity & Initiative Your primary goal as a parent is to help each child be a successful person – not just financially, but also in his or her career, family life, and social status. While attorneys and CPAs are trained to help you transfer property to children, a good inheritance plan is much more than just transferring property. Many plans are successful in transferring property but can lead to a very bad result if children aren’t properly ready to receive an inheritance. Yes, a successful plan transfers property. But good planning transfers it at the right time, in the right way and in the right amount so that it achieves a good result. While a good result cannot be guaranteed, the “Integrity and Initiative” plan will increase the probability of that favorable result.
Time to Learn The first strategy of the Integrity and Initiative plan is to spread the resources out over time. This gives children some time to learn. Parents have usually acquired an estate over 20, 30 or even 40 years. If you ask a person of retirement age to recall their early years, they will frequently share stories about the challenges they faced. For most people of retirement age, those challenges were financial “bumps in the road” that were very educational. Without that education, they would not have been as successful in life or in their finances. Children in line to receive a substantial inheritance also need time to learn. Stretching an inheritance over a period of time may enhance the overall probability that the inheritance will facilitate development of integrity and initiative. A good Integrity and Initiative plan could transfer property in four ways: – Gifts during life – Principal when the parents pass away – Income for a term of years – Delayed principal
Gifts During Life When should a parent start making gifts to children? The easy answer is as soon as the children reach the age of financial responsibility. But what is that age? That will vary, but most children in their 30s, 40s or 50s do reach that point of maturity.
At that time, parents frequently start by making gifts using the annual gift exclusion. This exclusion amount may be gifted with no tax or reporting to the IRS. The current annual gift exclusion is $15,000 per child and is adjusted every two to four years. Generally, it is better to give property rather than cash. Cash tends to be spent fairly quickly. Regular gifts of cash may result in a child acquiring a taste for expensive items that are above his or her normal lifestyle. This can lead to problems later in life. By making gifts of stock, land or other types of property, parents encourage children to invest and build their assets. Therefore, a good gift is a gift of property. Principal When the Parents Pass Away The second gift strategy is to transfer principal after both parents pass away. This can be a bequest from the estate of the surviving spouse. The principal could also be a distribution from an insurance trust that pays to the children after both spouses have passed away. The transfer of principal could be a specific property such as a home, land, or securities, or it could be simply a portion of the estate.
Income for a Term of Years A very popular third option is to create a trust that pays income for a period of 15 or 20 years to the children. For larger estates this is usually a charitable remainder unitrust. The trust is funded after both parents have passed away, and it pays a 5% or 6% annual income to the children. In many cases, it is very advantageous to fund the trust with an IRA or other qualified plan (recent legislation that limited non-spousal beneficiaries of an IRA to 10 years in which to withdraw all assets makes such a trust particularly attractive). The trust earns income for the family for the selected number of years. At the end of the 15 or 20 years, the trust is then transferred to favorite charities. The combination of some principal and income for a term of years is very helpful. Parents can treat their children equally; however, some children may require a longer period of time to mature in their financial management. The combination of principal and incomefor a period of years allows these children the time to learn better money-management skills.
Delayed Principal The fourth option is an additional payment of principal when the children have become more mature. Following the expiration of the payouts for the unitrust term of years, an additional amount can be distributed. This frequently is done through the “Wait a While” trust. Your attorney may have another name for that trust – the charitable annuity lead trust. As an illustration, for the term of years that the children were receiving unitrust income under the third transfer option above, the charities receive the payouts from the lead trust. After the unitrust income payments have been made to children and that trust terminates, the children receive their delayed principal distribution from the lead trust.
Keys to Successful Planning A successful Integrity and Initiative plan is created by understanding the four transfer options and then setting goals. These goals will frequently include a target amount for the inheritance for the children at each level. In addition, it is useful to create a total inheritance target amount per child. For example, one parent wanted the children to receive $50,000 each year in income. Because a unitrust funded with $1,000,000 paying a 5% payout produces $50,000, she decided to set up a unitrust of that amount for each child. Over the 20 years, the trust paid more than $1,000,000 as income to each child with the remainder then distributed to charity.
Conclusion As suggested, it may help to establish an overall target inheritance for each child. It is also important to know that the different options may be combined to achieve all your objectives. Your best plan is more than just transferring property to your children. You want to give your children the best possible opportunity to develop integrity and initiative. © A. Charles Schultz, JD, Provide & Protect, Crescendo Interactive, Inc.
NON-PROFIT ORG. U.S. POSTAGE PAID SIOUX FALLS, S.D. PERMIT NO. 7972
PO Box 296, Pierre, SD 57501 SDCommunityFoundation.org info@SDCommunityFoundation.org 800-888-1842
Introducing the Newest Members of Our Team! Cassie Stoeser CO N T R O L L E R
Cassie joined the Foundation in March 2021 as Controller, and assists with the accounting and financial operations of the Foundation. Before joining the SDCF, Cassie served the State of South Dakota as the Finance Director of the Governor’s Office of Economic Development (GOED), where she oversaw multiple loan and grant programs for small businesses and communities. Prior to that, she worked at BankWest as a Credit Analyst and the South Dakota Department of Legislative Audit as an auditor. The most rewarding part of her most recent job at GOED was helping businesses and communities to improve the quality of life in South Dakota. In that same vein, Cassie looks forward to helping play a part in enhancing communities across the state and making South Dakota an even better place to call home.
A native of central South Dakota, Cassie grew up in Onida. She now lives outside of Pierre with her husband Cody and three young children.
Jennifer Schuetzle ACCO U N T I N G CLERK
Jennifer joined the Foundation in February 2021. She assists with gifts received and issues IRS receipts to donors in a timely and accurate manner. Before her time with SDCF, Jennifer worked in the insurance industry for seven years with Fischer, Rounds & Associates and American Trust Insurance, LLC. Jennifer grew up in the “middle of nowhere,” Montana. She became a Pierre transplant in 2005 where she continues to reside with her husband and daughter. She is proud to be part of an organization that assists donors, communities, and nonprofits in creating a lasting legacy for South Dakota.
SDCF Leadership B OA R D O F D I R E C T O R S OFFICERS Beth Benning, Chair Doug Sharp, Vice Chair Stephanie Judson, CFP®, CGPA, SDCF President & CEO, Secretary
B OA R D M E M B E R S Karl Adam Dennis Batteen Mark Buche Matt Cronin Dennis Daugaard Marilyn Grossenburg Kathy Gunderson Charles Hart Marcia Honomichl
S TA F F
Marilyn Hoyt Scott Jones Maree Larson Deanna Lien Les Lindskov Keith Moore DeMaris Nesheim Stanley Porch Shawn Rost Bob Sutton
Clay Cudmore, CPA, CMA, Chief Financial & Administrative Officer Jamie Farmen, Community Development Coordinator & Marketing Manager Pat Gallagher, Community Development Coordinator Shelly Jund, Executive Assistant to the President & CEO Beth Massa, CFRE, Regional Director for Foundation Relations Kelly Nelson, Program Accountant Ginger Niemann, Senior Program Officer Janet Ricketts, Program Assistant Jennifer Schuetzle, Accounting Clerk Cassie Stoeser, Controller Peggy Urquhart, Administrative Assistant Jeff Veltkamp, MBA, CFRE, Director of Development Karly Winter, JD, Operations & Compliance Manager