Live…Give…Better Together.

Community Foundation of Greater Des Moines

Wade A. Den Hartog, Director of Affiliates & Charitable Partners

Joe Sorenson, Manager of Affiliate Relations

Presentation Outline

Endow Iowa and IRA Rollover Updates

Fund Illustrations

Gift Illustrations

Keep Iowa Growing

Endow Iowa and IRA Rollover

Endow IowaThen donors can be eligible for

• 25% tax credit for contribution – in addition to federal deduction (can carry forward for up to 5 years)

• Limit each year, per taxpayer and also statewide $300,000 per taxpayer

• Tax credit paperwork submitted; awarded on a first come-first served basis

As of 10/8/2014, $2,744,370 Endow Iowa tax credits remain

Endow IowaWith Endow Iowa, donations to Community Foundation endowments cost donors less.

$10,000Less tax benefits:Net federal tax savings -3,960Endow Iowa Tax Credit -2,500Net Cost of Gift $3,540

Note: Use appreciated assets subject to capital gains and the savings are even better!

Disclaimer: Information provided is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. The Community Foundation does not provide legal or tax advice. Consult an attorney or tax advisor regarding your specific legal or tax situation.

Charitable IRA Rollover

It MIGHT be back?!

• For Individuals 701/2 and older

• Can transfer up to $100K of IRA assets directly to charity

• No charitable deduction but the money is not realized as income for tax purposes

• Iowa Taxpayers can qualify for Endow Iowa tax credits!

Fund and Gift Illustrations

1. Donor Advised Fund2.Legacy Fund

DONOR ADVISED FUNDS

Donor Advised

Fund

LEGACY FUNDS

1. Contribution made through planned gift(will /testamentary instrument)

2. Deduct assets from estate for purposes of estate tax

3. Administration (agreement easily modified)

4. Investment

Legacy Fund

5. Favorite Charities(one or several)

Family Foundation Fund

Community Foundation’s Better Together Fund

The Johnsons

A GIFT OF APPRECIATED SECURITIES• Ted and Marlene own 1,000

shares of stock• They originally paid $10 per

share or $10,000 more than 11 years ago

• The fair market value today is $37 per share or $37,000

• If they sell the stock, they’ll have $27,000 in long-term capital gain income

• If they are in the 20% LTGC tax bracket, their bill equals $27,000x.20=$5,400

• Their net amount after selling the shares will be $31,600

The Johnsons

CONTINUED

• If they instead give the stock to charity, they bypass all $5,400 of capital gains tax

• Plus, they can deduct the fair market value of their stock $37,000 (up to 30% of their adjusted gross income)

• In addition they get 25% state tax credit

• They have a 5-year carry forward, too

Keep Iowa GrowingIowa’s Farmland Giving Program

…for the love of the land

Why?Farmland is by far Iowa’s most valuable asset:

Total number of farms 88,631 Total amount of farmland 30.6 million acres Average farm size 345 acres Average dollar value per acre $8,716 Aggregate value of Iowa farmland

is estimated at $267 billion

Why?

The Community Foundation’s 30 affiliated county community foundations, together with Polk County, hold a combined 9.5 million acres of farmland.

If Keep Iowa Growing captured only 1% of this farmland, the value of assets held for charitable causes would be an estimated $866 million.

Why Now? Less Debt. Iowa farmland without debt:

1982 – 62% 2012 – 78%

Average age of farmland owners 56% of Iowa farmland is owned by people over age 65 30% of Iowa farmland is owned by people over age 75

Compared to 12% in 1982 Lack of succession planning and estate planning

Why Now? Protect Iowa’s Wealth

The projected transfer of wealth in Iowa through 2049 is $198 billion

Promote Charitable Giving During one of the largest transfers of wealth in

history, the Community Foundation must be proactive and innovative to provide options to channel this wealth to charitable causes.

Why the Community Foundation of Greater Des Moines?We are uniquely positioned to offer benefits not available from other charitable resources: Maximum tax benefits

Endow Iowa tax credits An affiliate relationship in 30 counties throughout Iowa We are the “nonprofit’s nonprofit” Expert staff and Board to manage & market the program Offering donors flexibility and control in designing their legacy

How It Works

Keep Iowa Growing provides a vehicle to keep land an Iowa asset, keep land functional as farmland and provide a lasting legacy to the community and Iowa.

Landowners Can…

Make a gift of farmland in which the revenue benefits the charity of their choice immediately.

Be flexible in making a gift of farmland but retaining a life estate and an income stream for their lifetime.

Suggest a tenant farmer.Establish a variety of fund types, such as a Donor Advised

Fund, Family Foundation Fund, Designated Fund, Field of Interest Fund, Better Together Endowment, or their County Community Foundation Endowment.

What types of Gifts will be accepted through Keep Iowa Growing?

Outright gifts of farmland made during life Bequests Retained life interest

For term of years For term of life donor For term of life of donor and spouse (“last-to-die”)

Outright Gift

Land stays in production

Retained Life Interest

Upon death of donor Land stays in production

Questions?