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The Art of Lasting Philanthropy

The Art of Lasting Philanthropy. The National Community Foundation Environment. Over 700 Community Foundations throughout the United States Giving in 2006, $3.6 billion; over $44.5 billion in assets Since 1990, total grants have increased 334%*

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The Art of Lasting Philanthropy

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  1. The Art of Lasting Philanthropy

  2. The National Community Foundation Environment • Over 700 Community Foundations throughout the United States • Giving in 2006, $3.6 billion; over $44.5 billion in assets • Since 1990, total grants have increased 334%* • Since 1990, total assets have increased 350%* *constant dollars

  3. The Community Foundation of New Jersey • One-on-one donor consultation; philanthropic strategy and legacy • Over $180 million in professionally managed charitable assets • Over 800 funds established by families, businesses, foundations, and agencies • Since 2000, $90 million in grants • Localized around geographic areas for impact

  4. Localization • New Jersey is a complicated charitable environment • Creation of affiliates to bring together local constituents • Anchor points for distinct regions of the state with common challenges and opportunities • Monmouth County, Greater Morris County, Newark

  5. Localization

  6. Localization

  7. Giving Vehicles • Donor Advised Funds – flexibility in timing and recipients • Business Advised Funds – from business equity to community equity • Field of Interest Funds – specific program, cause or community • Community Action Funds – unrestricted, timeless, responsive • Scholarship Funds – cross generational educational opportunities • Designated Agency Funds – perpetual support of specific agency • Agency Endowment Funds – current and future needs of nonprofit

  8. Agency Endowment Funds • Established by nonprofits to meet current and future needs • Professionally managed in a pool designed for long-term charitable purpose • Agency is freed to focus on their good works • 128 Agency Endowment Funds valued at $23.5 million • 122 Designated Funds valued at $26.4 million

  9. Charitable Assets • Cash • Securities – beneficial tax treatment; pre-IPO, closely held stock • Real estate • Retirement plan beneficiaries • Charitable Lead Trusts • Life insurance, life insurance beneficiaries • Bequests • Life income plans – Charitable Gift Annuities

  10. Life Income Plans – Charitable Gift Annuities • Enables donors to convert assets to income stream and give back • Upfront tax deduction based on donation amount and donor age • Lifetime annuity to donor • Upon death, remaining principle to designated agency • 23 NJ nonprofits benefiting from CFNJ Charitable Gift Annuities

  11. Life Income Plans – Charitable Gift Annuities • A woman, age 80, owns securities worth $100,000, which she bought for $10,000 many years ago and which pay a total cash dividend of $1,000 per year. • By transferring her shares to the Community Foundation into its Charitable Gift Annuity Program she increases her current income to a guaranteed $8,000, based on current rates, and postpones federal and state capital gains taxes. In addition, she receives a charitable contribution deduction at the time of her gift. • She can choose to have her charitable goals live on through a named fund or can designate any New Jersey charity to receive the benefit of her gift after her passing.

  12. Public Policy Work • Advocacy for New Jersey’s charitable community • High tax rates in New Jersey are encouraging high net worth families and their giving to leave the state • Absence of charitable deductions on state income tax does not foster an environment for giving • Community Foundation is working to reverse these trends

  13. Q u e s t i o n s

  14. The Art of Lasting Philanthropy

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