Legacy Newsletter Fall/Winter 2020

Legacy

Wa s h i n g t o n C o u n t y C o m m u n i t y F o u n d a t i o n , I n c .

Giving “Close to Home” for 25 Years In December 1995, the world excitedly watched the space probe Galileo reach Jupiter. Windows 95 was the hottest software program on the market. And, the Washington County Community Foundation began operations with only $5,000 in assets and a commitment to serving donors at all giving levels.

Now, 25 years later, as we reflect on this anniversary, we are incredibly proud of our growth. The WCCF currently holds assets of more than $50 million. And since our inception, more than $20 million in grants and scholarships has been awarded.

We have been fortunate. There are too many people to thank, too many moments to highlight, and too many accomplishments to mention in any publication, post, or speech.

Every donor, volunteer, and supporter has played a role in helping us to reach this significant milestone. You are likely among them. Although we were not able to celebrate as we would have liked, the events of 2020 have made us all the more grateful — grateful that we have come so far and that, as an organization, we are healthy. Being able to help our community when and how it needs it most is a gift. With your continued support, we will continue to respond, grow, and foster charitable giving in Washington County far into the future.

Coming Full Circle: A Q&A with WCCF Chairman James McCune Q. Why was the WCCF created?

A. At that tim e, there were many foundations in existence, but they were managed by people who were not from Washington County. We believed Washington County was large enough and had enough resources to support its own community foundation. The single most important consideration was that decisions would be made by local people, not those who don’t know our community or understand its needs.

The positive impact of that upon the community is immeasurable, and the beauty is that decisions on where that money goes are made locally.

Q. What is your favorite memory from your time as our inaugural Chairman?

A. My favorite memory about the early days of the WCCF would probably involve the creation of the Washington County Visiting Nurses Association Scholarship Fund. The Visiting Nurses Association was going out of existence and had about $130,000 in assets. Its Board took a gamble and created a fund at the WCCF for nursing scholarships (by far our largest fund at the time), which required approval by the court and the Attorney General.

Q. Looking back on the WCCF’s evolution Q. What makes you proud to be the WCCF from fledgling local charity to community Chairman today? leader, what has been the biggest surprise? A. I am m o st p ro ud o f the huge p o sitive im A. The biggest surp rise to m e has been the pact the Foundation has made in our own comFoundation’s outstanding success over its 25munity. The WCCF is now well-known as a veyear history. When the WCCF was started in hicle that donors can trust to accomplish their 1995, we had no idea whether it would succeed specific charitable goals. The fact that local peoor not. The WCCF now has more than $50 mil- ple and businesses have created funds totaling lion under management and has cumulatively (Continued on page 3) awarded grants totaling more than $20 million.

Helping You Give . . . Close to Home

Using IRAs and Trusts in Charitable Giving

By David DelFiandra, Partner, Leech Tishman

Washington County Community Foundation Board of Trustees

Chairman James H. McCune Vice Chairman E. Alex Paris, III Secretary Richard L. White Treasurer Michael S. Anderson Megan M. Chicone Barbara A. Graham Tammy L. Hardy Geraldine M. Jones Debra E. Keefer William M. Kline, III Cynthia B. Kotowski Ivana G. Liberatore Andrew M. McIlvaine Thomas P. Northrop Joseph M. Piszczor Elizabeth M. Rogers Kurt R. Salvatori Brian J. Smith Lynne R. Stout Joseph H. Young

The Washington County Community Foundation seeks to improve the quality of life in Washington County by promoting and facilitating philanthropy.

The end of a tax year is a great time to reflect on finances and charitable intent. This year has brought with it many challenges due to COVID‐19 and its impact in almost all areas of our lives. That, combined with the fact that this is an election year, should cause all of us to pay particular atten‐ tion to certain charitable opportunities that have been impacted by legisla‐ tion and the current interest rate environment.

CARES Act: The CARES act was passed by Congress to provide finan‐ cial relief to Americans impacted by COVID‐19. A provision of the CARES Act makes changes to charitable deductions on income tax returns for calendar year 2020 only. First, every taxpayer can take a $300 above the line deduction for charitable contributions. You do not need to itemize to take this deduction. Second, if you choose to itemize, you are able to deduct 100 percent of cash gifts in 2020 without any Adjusted Gross Income (AGI) limitations.

Secure Act: The Secure Act was passed in late 2019 and became effective on January 1, 2020. This law was not COVID‐19 related, but it impacts every taxpayer with a qualified plan (IRA, 401k, 403b). The first change is that the date on which you must begin taking a Required Distribution has increased from age 70 ½ to age 72. The second change is that most non‐spouse beneficiaries can no longer stretch the Required Distributions over the beneficiary’s remaining life expectancy. Instead, they are now allowed a maximum defer‐ ral of 10 years. This is a big tax blow to the beneficiaries because it generates more taxable income and less time to grow tax free. The Secure Act did not change your ability to di‐ rect up to $100,000 per year to a charity from a qualified plan. Any such amounts will be deemed a qualified charitable distribution and count toward any Required Distribution.

In addition, you are allowed to implement this annually so long as you are age 70 ½.

Charitable Trusts: In addition to giving outright to a charity or creating a Donor Ad‐ vised Fund to further control your giving, now presents a good time to consider estab‐ lishing a Charitable Trust. A Charitable Trust is drafted by a lawyer and can take the form of a Charitable Remainder Trust or Charitable Lead Trust.

Charitable Remainder Trusts: With a remainder trust created during your lifetime, you contribute assets (usually appreciated securities) to the Charitable Remainder Trust and you (or another non‐charitable beneficiary) retains an annuity of at least 5 percent of the initial fair market value. The annuity can be paid for a term of up to 20 years or life.

You obtain a charitable deduction equal to the present value of the projected remainder passing to the charity. The charity can be changed during the term of the trust and you can serve as the Trustee if created during your lifetime. Since the passage of the Secure Act and the elimination of the stretch for the beneficiaries, individuals may consider cre‐ ating a testamentary Charitable Remainder Trust. A testamentary charitable remainder trust is established in your Last Will and Testament. Instead of naming your children as the beneficiary of your qualified plans, you may designate the Charitable Remainder Trust as the beneficiary. You would name your children as the beneficiary of the Charita‐ ble Remainder Trust for the remainder of their lifetimes. This essentially replaces the stretch that was eliminated by the Secure Act. It allows your children to stretch the ordi‐ nary income over their remaining lifetimes rather than the 10 years required by the Se‐ cure Act. A charity you designate, such as the Washington County Community Founda‐ tion, receives the remainder of the trust assets at the death of your children.

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CNX Resources Real Estate Gift Results in $183,000

This gift was far too large to wrap! The WCCF re‐ ceived an early holiday gift from CNX Resources in the form of real estate. This 2.5 story brick house and 12 acres of land was donated then sold via public auc‐ tion this past October for $183,000.

Discussions between CNX and the WCCF regarding the real estate donation began approximately one year ago. The time frame for the donation was extended when real estate activity was curtailed in Pennsylva‐ nia because of the COVID‐19 pandemic.

After real estate activity was permitted to resume, representatives from CNX and the WCCF worked to‐ gether, along with several other companies and indi‐ viduals, to finalize the legal documents and attend to Going once, going twice — sold! Representatives from CNX, the other tasks necessary to complete the gift. the WCCF, and Joe Pyle Auctioneers pose with “Real estate can be an attractive asset for charitable the new owners of 88 Kopper Kettle Road. giving,” remarked Betsie Trew, WCCF President & CEO. “We hope that other businesses will follow the lead of CNX and consider donating excess property.

This could be residential property that was acquired through business transactions, such as this CNX proper‐ ty, or business property that is no longer integral to the operations of the business.” The auction proceeds will be applied to the WCCF’s new web‐based software program, Akoya, which will greatly enhance the Foundation’s productivity. portunities to obtain tax advantages and provide for Charitable Lead Trusts: A Charitable Lead Trust is the Washington County Community Foundation:  Deductions for cash gifts to public charities are the opposite of a Charitable Remainder Trust. It pro‐ not limited by a percentage of AGI under the vides that the charity gets an upfront income interest CARES Act. and a non‐charitable beneficiary obtains a remainder interest. Charitable Lead Trusts are great vehicles to  Donor Advised Funds allow the donor more con‐ implement in this historically low interest rate envi‐ trol without the administrative burdens. ronment since the gift of the remainder will be based  Charitable Remainder Trusts can replace a stretch on a very low Internal Revenue Code Section 7520 in‐ IRA eliminated by the Secure Act. terest rate.  Charitable Lead Trusts are favorable in this his‐ Overall, this last quarter of 2020 provides unique op‐ torically low interest rate environment.

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$50 million is a huge vote of confidence.

Q. What is something that you wish everyone knew about the WCCF? A. I w ish every lo cal p erso n w ho has charitable o bjectives co uld learn m o re abo ut the Fo und atio n. In ad d itio n to managing funds created by donors, the WCCF conducts free educational programs for local charities, so that their boards and staff can learn to better raise and manage funds and comply with necessary requirements.

Q. What do you think the next 25 years will bring?

A. The past 25 years have been a very satisfying adventure. But to quote a former president: ʺYou ainʹt seen nothing yet.ʺ The WCCF has a very active long-range planning committee hard at work. We are constantly seeking diversity and youth on our Board. We have a beautiful, debt-free Foundation office in the historic Brownlee House (generously donated by William and Saundra Stout). It has been a distinct honor for me to have served as the initial chair of the Board of Trustees 25 years ago, and to serve again to observe our twenty-fifth anniversary. It is hard to believe the tremendous growth and success the WCCF has experienced. The future is bright.

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Support the WCCF through the Give 365 Annual Fund

Three hundred and sixty-five days per year someone is helped by the work of the Washington County Community Foundation.

That someone might be one of the more than 300 local students who recently re‐ ceived a scholarship, or that someone may be one of the many needy students who are able to participate in remote learning because of the COVID‐19 grants issued to each of our 14 public school districts earlier this year.

That someone may be a senior citizen, a widow, a child, or a special‐needs adult, who depends on one of several food service programs that are supported by the WCCF. That someone may be a homeless veteran who is receiving counseling as a result of a WCCF grant, or an unemployed citizen who is able to search the internet for job opportunities at one of our local libraries, because of a WCCF technology grant.

The list of those helped by the WCCF would fill this entire publication, as grants are issued to more than 150 local nonprofits each year in the following areas: Arts & Hum anities, Co m m unity Im p ro vem ent, Ed ucatio n, Environment & Animal Welfare, Health & Fitness, Human Needs, Religion & Faith-Based.

A portion of the revenue needed to operate the WCCF is obtained from the fees that we charge. But because so many of our charitable services are free, we cannot do all that we do without operational support.

Operational gifts help to ensure that no student is charged a fee for applying for a scholarship, as is the case with other scholarship programs. Operational gifts also help to maximize the grant amounts going to our charities and educational institutions. Additionally, operational gifts help to ensure that we can continue to provide free to local charities, educational programs, a community‐wide day of giving, and a dedicated web‐ site filled with stories of how lives have been changed by their programs.

Although our work is unique, the WCCF is like all other charities in that we too need financial support from the community in order to fulfill our mission.

YOU can be a part of making Washington County better through your operational gift to the Give 365 annual fund of the WCCF. Simply return your contribution using the remittance envelope in this newsletter or visit w w w .w ccf.net to make a gift online. Thank you in ad‐ vance for your support, which will help our community 365 days a year!

$20,000 Grant to Literacy Council Sustains Remote Learning Program amid Pandemic Disconnected. It’s a word that resonates with us all at some level right now. And, earlier this year, it was a concept that threated the continuation of the Literacy Council of Southwestern PA’s key programs. Dedicated tutors, with laptops and internet service, were ready to go remote at a moment’s notice. However, the Literacy Council’s clients simply did not have the technology necessary to continue their lessons in this manner.

After learning about this precarious situation, the WCCF awarded a $20,000 grant from the Close to Home Disaster and Emergency Fund to equip the Literacy Council and its students, for remote learning. The tools included Chromebooks and MiFis (wireless mobile hotspots).

Literacy Council Board President Kris Drach shared, “This is really going to help us get through ‘COVID Days.’ Our student enrollments are holding steady because of your generous remote learning grant. . . “ 4

Making an Impact: Recent Grants Across Washington County

The WCCF recently issued grants totaling $140,000 to recipients across Washington County. A significant portion of these awards was issued from the Close to Home Disaster and Emergency Fund.

A few days before Thanksgiving during the 2000 Turkeys Telethon on Facebook, spearheaded by Range Resources, WCCF President & CEO Betsie Trew called in to announce that the Community Foundation would be awarding a grant of $25,000 from the Close to Home Disaster and Emergency Fund to provide Thanksgiving meals for the needy.

Earlier this fall, grants of $5,000 each from the Close to Mark Windle of Range Resources Home Disaster and leads telethon volunteers in a round of applause after the Emergency Fund went to the WCCF’s surprise donation of 14 public school districts in $25,000 to this year’s Washington County to help 2000 Turkeys fundraiser, support the education of which helps to feed local financially needy students families in need. during the COVID‐19 pandemic. The districts include: Avella, Bentworth, Bethlehem‐Center, Burgettstown, California, Canon‐McMillan, Charleroi, Chartiers‐Houston, Fort Cherry, McGuffey, Peters, Ringgold, Trinity, and Washington.

The grants were targeted to purchasing technology and other items for students within each district who qualify for the free and reduced lunch program. According to information compiled by the Kids Count data center of the Annie E. Casey Foundation, every school district in Washington County has students who qualify for this Federal income‐based program, and in total, there are approximately 11,000 students in the county who qualify.

Thanks to a generous follow‐up gift of $10,000 from CNX Students in the California Area School District give Resources, the Foundation was able to provide additional the Close to Home Disaster and Emergency Fund support for educational technology to three districts. The CNX COVID-19 technology grant to their Resources‐sponsored grants included $5,000 to McGuffey, $2,500 district a ʺthumbs-up.ʺ to Trinity, and $2,500 to Washington.

Finally, a total of $35,000 was awarded to seven charities during our final competitive grant cycle of 2020.

These grants were targeted towards capacity‐building projects (any activity that increases the nonprofitʹs operational, programmatic, In this still from a recent live financial, or organizational concert, the rhythm section of maturity). the Twin Coaches Orchestra, a Awards of $5,000 each were project of the Mon Valley presented to: The National Duncan Academy for the Arts (MVAA), Glass Society for website, social gets into the musical groove. media, and print enhancement; MVAA recently received $5,000 East Bethlehem Township for five for new multimedia equipment. historic plaques that will go in downtown Fredericktown; California Borough Recreation Authority for fence replacement at Rotary Park; Mon Valley Academy for the Arts for new multimedia equipment; Washington County Watershed Alliance for a new digital monitor; Mon-Vale Health Resources for a SmartCurve breast stabilization 5 system; and Lone Pine Christian Church for new playground equipment.

Over $1.3 Million in WCCF Gives Grants Awarded!

Charities Celebrate Safely with “Selfies” This year, WCCF Gives took on its most critical role ever, as charities throughout Washington County, including the WCCF, had to cancel most of their in‐person fundraising events.

WCCF Gives 2020 emphasized online giving, accepted checks postmarked the day of the event to eliminate the need for in‐person deliveries, and covered up to $50,000 in credit cards fees so donors could give more to their charities. The community gener‐ ously responded, and more than $1.3 million in grants was awarded to local chari‐ ties. In recent years, these grants have been distributed at our Gives Gatherings, a highlight for our charities and our sponsors alike. It was disappointing that we were unable to host these fun and uplifting events in 2020 due to the pandemic. So, as an alternative, partici‐ pating charities submitted celebratory selfies, excited to share in the record‐setting achieve‐ ment from a distance and show their appreciation to everyone who made a gift. Thank you for your generosity! SAVE THE DATE: WCCF GIVES 2021 — SEPTEMBER 16

Top row from left: Blueprints, SPHS Care Center; Second row from left: Washington County Gay Straight Alliance, Domestic Violence Services of SWPA, Greater Washington County Food Bank; Bottom row from left: TRPIL, Presbyterian SeniorCare, CASA for Kids 6

Top row from left: Meals on Wheels @ the Crossroads, PA Elks Major Projects, Washington Health System; Second row from left: Literacy Council of Southwestern PA, Little Lake Theatre Company, Dress for Success Pittsburgh; Third row from left: National Duncan Glass Society, Washington County Watershed Alliance, Meadowcroft; Fourth row from left: United Way Washington County, Angel Ridge Animal Rescue, Girl Scouts Western Pennsylvania, Washington Symphony Orchestra, WOMEN of Southwestern PA

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Helping You Give . . . Close to Home 1253 Route 519 PO Box 308 Eighty Four, PA 15330

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Legacy is published by the Washington County Community Foundation, Inc. 1253 Route 519, PO Box 308, Eighty Four, PA 15330 Betsie Trew, President & CEO Aliesha Walz, Chief Operating Officer - Emily Fox, Communications Associate Circulation of 11,500+ www.wccf.net * 724-222-6330 * info@wccf.net 8

The Washington County Community Foundation is a 501(c)(3) organization under section 509(a)(1) and 170(b)(1)(A)(vi) of the Internal Revenue Code. The official registration and financial

information of the WCCF may be obtained from the Pennsylvania Department of State by calling toll-free, within Pennsylvania, 1-800-732-0999. Registration does not imply endorsement.