This document outlines ways for individuals to establish lasting legacies through charitable giving to community foundations. It discusses how community foundations work, the large transfer of wealth expected in Iowa in the coming decades totaling over $531 billion, and the Endow Iowa tax credit program which provides a 25% state tax credit for donations. The document explains different fund types like donor advised funds and gift types like cash, securities or real estate that can be used to take advantage of the tax credits and establish long-term community funds.

1. Creating Lasting Legacies
Through Charitable Giving
Wade A. Den Hartog, MBA
Director of Affiliates & Charitable Partners

2. Today’s Outline
• Introduction to a Community Foundation
• Transfer of Wealth
• Endow Iowa Tax Credit Program
• Fund Types
• Gift Types
• Questions?

3. Introduction to a Community
Foundation

4. Community Foundation Basics
• A Community Foundation is a neutral charitable
organization. Our focus is community wide and our mission
is to be a partner in philanthropy
• Three Pillars of our Work
• Community Investment (Grantmaking)
• Community Leadership (Bringing together leaders to
address community issues)
• A Vehicle for Charitable Giving

5. Community Foundation of Greater
Des Moines
• Established in 1969 by a group of community
minded individuals
• Currently manages over $285 million for the benefit
of the Greater Des Moines area and our statewide
partners
• 30 county affiliates across the state through the
County Endowment Fund Program
• Our focus is to partner with affiliates as they work to
establish funds that will sustain their communities
as a vibrant place to live, work and play

7. Iowa Host Community Foundations
Community Foundation of Greater Des Moines
Community Foundation of Greater Dubuque
Community Foundation of Johnson County
Community Foundation of Northeast Iowa
Community Foundation of the Great River Bend
Fort Dodge Community Foundation and United Way
Greater Cedar Rapids Community Foundation
Greater Poweshiek Community Foundation
Omaha Community Foundation
Pottawattamie County Community Foundation
Siouxland Community Foundation
South Central Iowa Community Foundation

8. Transfer of Wealth

9. Over 80% of people will give to a charitable
organization in their lifetime
but
Just 8% of people will leave a charitable organization
in their will or bequest

10. Transfer of Wealth
• In 2004, the Community Vitality Center conducted a study
on the transfer of wealth
• They analyzed the probate records by county and
demographic trends
• Study produced projections for the transfer of wealth in
each of Iowa’s 99 counties from 2000 – 2050
• They estimate these numbers are lower than what will
actually occur, in a large part due to the increase in the
value of farmland

11. How much wealth is being transferred?
 Annually
State of Iowa
$4.9 billion
Pocahontas County
$34.2 million
 Over the 50-year time period
State of Iowa
$531 billion
Pocahontas County
$2.9 billion
Some communities in the state our seeing many residents
(especially the younger generation) leaving rural Iowa and
moving to urban areas.

12. YEAR 1
YEAR 15
YEAR 25
YEAR 50
Establish a Named
Fund
$9,000 in
cumulative grants
and services
$19,000 in
cumulative grants
and services
$66,000 in
cumulative grants
and services
$10,000 gift
$16,000 balance
$23,000 balance
$57,000 balance
2 TIMES
6+ TIMES
Initial gift has
been invested:
1 TIME
LOOKING AHEAD
One gift, many generations
assumes 4.5% annual payout and 8.5% rate of return

13. Endow Iowa Tax Credit Program
• Encourages Iowa Taxpayers to Contribute to
Endowment Funds at Qualified Community Foundations
• Gifts to an Endow Iowa Fund are eligible for a 25% state
income tax credit, in addition to the federal deduction.
• Iowa Charitable Purpose (scholarships, agency
endowments, donor advised funds, etc.)
• There are $6 million tax credits available in 2013
• No more than 5% spending/granting policy

14. Who can Benefit from Endow Iowa
• Donors who wish to be charitable to Iowa non-profits
• Donors with a taxable event
• Inheritance, sale of business, influx of income
• Example
Less tax benefits:
Net federal tax savings
$1,000
- $396
Endow Iowa Tax Credit
-$250
Net Cost of Gift
$354

15. Fund Types
• Donor Advised Funds
• Designated Funds
• Agency Funds
• Field of Interest Funds
*All of these fund types can be Endow Iowa qualified

16. Gift Types
• Cash
• Appreciated Securities
• Gifts of Grain
• Gifts of Farmland
• Gifts of Real Estate
• IRA Charitable Rollover (for donors 70 ½ years or
older)
*All of these gift types can qualify for Endow Iowa tax
credits

17. Questions?
Wade A. Den Hartog, MBA
Director of Affiliates & Charitable Partners
(515) 244-0020
denhartog@desmoinesfoundation.org
http://www.slideshare.net/wadedh