Community Foundation relationships grow deep over time. As donors get to know us they realize the cost savings benefit of our low fees and expert gift planning. In time, donors can see the impact their gifts will bring to themselves, their heirs and to the community.
The example below is a timeline of a decade-long donor relationship with one family that evolved to create a scholarship that will eventually make a difference in many people’s lives. In addition to the good in the world, their gift generates income for their children, now in their 50’s, and financially benefits themselves through increased tax deductions.
- 2007 – A Charitable Remainder Unitrust and Legacy Fund Agreements were drafted. Meetings with family were held and the plans were carefully reviewed by the donor’s advisors. At this point, the CRUT was a “just in case”, to be funded through the donor’s estate in case something happened. The Charitable Trust receives irrevocable gifts that are tax deductible, and the assets are invested with the income going to the Donor’s children. The Community Foundation charges no fees for the gift planning service.
- 2016 – The donor said, “Let’s get going now.” Over the years, they attended Community Foundation events, met other satisfied fundholders, and discussed gift possibilities with me several times. An establishing gift was made and in 2017 their children started to receive income. The Community Foundation serves as Trustee without fee, and there is a small fee (1% or less) that covers the cost of tax filings and administration.
- 2017 – The Donor gained another tax deduction when he made an additional contribution to the Trust which increased the children’s income in 2018.
- 2018 – the Donor contributed a vacation home to the Trust. The family had decided to sell the home anyway and by contributing it to the Trust, they gained many tax advantages. The result will be a greatly increased income for the children.
- At some point in the future when the children pass away, the charitable trust will terminate, and the remaining assets will flow to a Legacy Fund at the Community Foundation. Our long-time Donor appreciates the flexibility that he can change this agreement at any time. In fact, has made two changes in past years. At the present time, he designates the remainder to fund a scholarship program at a specific University.
If you or a client are considering setting up a gift arrangement that benefits charity, and the family, the Community Foundation is a great choice. We are intensely set on delivering on the promise of following the donor’s intent and instructions, and we serve as trustee without a fee. We can handle gifts of real estate and other assets at a transactional cost of 1% or less. As a charitable foundation, we charge very little, just enough to cover our costs. Working with us maximizes the current financial benefit to the family and the eventual charitable impact. Our gift planning services include initial discussions, setting up and qualifying the trust, tax filings, real estate transactions, investments, distributions, and developing an ongoing relationship that grows with the donor’s satisfaction.
When you work with the Community Foundation, you help increase our capacity to do important work to improve the lives of residents in our community. We are your community foundation. Please keep us in mind for even the most complex ideas, plans, financial and charitable goals. We won’t let you down.
Chris Askin, President, and CEO 775-333-5499
Connecting people who care with causes that matter