News & Event
‘Tis the season when many people are considering their year-end charitable giving. It is our favorite time of year at the Community Foundation because we never cease to be inspired by the generosity in our community. This year many are considering the new landscape laid out by the Tax Cuts and Jobs Act (The Act) signed into law in December of 2017 as they determine how and how much they are going to give this year.
Since the passing of The Act we have shared what we believe is the good news for charitable giving. For starters, the reasons people give charitably are many and varied and most often align with a desire to give back and help others. A leading indicator of how much individuals will give is their available discretionary income. That might be the best news of all as the primary motivation for The Act was decreasing the amount of money in the federal government and increasing the amount of money in private citizens hands.
That means people on balance will have more discretionary income to potentially give to charity. And by using one or more of the tax smart strategies laid out in this article—gifting appreciated assets, bunching donations into one tax year and making qualified charitable distributions from one’s IRA—individuals and companies have the opportunity to give even more this year.
Let’s take a look at the main points of The Act that are likely to have the largest impact and how this may affect charitable giving.
The tax benefit is rarely the main reason people support nonprofits in the first place. People give because they want to make a positive difference in the lives of others and in our world. The needs in our community didn’t go away, so your opportunity to care for your neighbor didn’t go away either. And you will likely be able to give just as much to charity as you have in the past and still increase the amount of your income due to the lower tax rates.
The leaves have changed color, snowflakes have begun to fall, and turkeys will soon go in the oven in preparation for family and friends gathering together. It is a time of year that for many inspires gratitude and generosity. At the Community Foundation of the Holland/Zeeland Area, we are grateful for the community we serve and the many generous individuals who give back with their time, talent and treasure to make this place we call home so special. If you are considering how you will make a difference this year, consider these tips to make your charitable dollars go further.
It’s been another year of strong investment markets. If you have stock, bonds or mutual funds you’ve owned for at least a year and have appreciated in value, it is likely a better asset to donate than cash. If you donate the appreciated asset as a gift to charity you will avoid paying capital gains tax while getting a tax deduction on the full market value.For example, in 2017 you bought shares of XYZ Corporation for $100 per share. Today, those shares are worth $200 per share. If you sell the share, you’ll pay capital gains tax on the $100 difference between the sale price and purchase price. If you donate the share, you will avoid paying the capital gains tax and may take a tax deduction—if you itemize—for the $200 donation.
Pro tip: You may also donate complex, non-publicly traded assets to charity including private company stock, real estate, or other appreciated property.
As the fastest growing giving vehicle in the nation, Donor Advised Funds are a popular tool to organize your giving. Perhaps you want to gift an appreciated stock, but you want to support several organizations and don’t want to initiate multiple stock gift transactions. You can make one gift to a Donor Advised Fund, receive one receipt for your gift, and advise on which organizations the fund will support. If you’d like to transfer shares when the value reaches a certain level but want extra time to decide which charities to support, you could give the stock to a Donor Advised Fund. You can take a charitable deduction when you give the shares, but you have time to decide which charities to support.
Pro tip: You can bundle multiple years of giving into one year with a Donor Advised Fund to exceed the standard deduction. You will receive a charitable deduction at the time you donate to the fund, and can advise on the funds over several years so the charities you care about receive the sustainable support they depend on.
If you are 70 ½ or older and have an Individual Retirement Account (IRA), you are able to donate as much as $100,000 each year as a Qualified Charitable Distribution (QCD) to charity. A QCD may satisfy all or part of your Required Minimum Distribution effectively lowering your Adjusted Gross Income for that year.
Pro tip: An IRA QCD may not be donated to a Donor Advised Fund, however, you may establish a Designated Fund naming one or more charities you wish to support and at what schedule (lump sum or over a period of time).
We suggest that you consult with your financial, tax or legal advisor to discuss the giving strategies that best align with your financial and charitable goals, then give the Community Foundation of the Holland/Zeeland Area a call and we will work with you and your professional advisor(s) to help employ smart giving strategies.
Contact Colleen Hill, Vice President of Development and Donor Services, at 616-994-8853 or via email.
Get the most out of your charitable contributions with a Donor Advised Fund, the fastest-growing giving method in the nation. The reasons Donor Advised Funds are so popular are numerous and growing. Here are our top 10 reasons why you should consider using a Donor Advised Fund for your own charitable giving.
To learn more about how Donor Advised Funds can simplify your giving and increase your impact or contact Colleen Hill, Vice President of Development and Donor Services at email@example.com
Dear Friends of the Foundation,
I hope you had a wonderful holiday season and are looking forward to a great year ahead.
I write to you today filled with gratitude and excitement. Over the last few years, you have heard me talk extensively about how the Community Foundation’s work is divided into two parts: building our Community’s Endowment and providing Donor Services.
From 2015–2017, we prioritized the Community’s Endowment side of our work as we engaged in our Today. Tomorrow. Forever. Campaign for our Community’s Endowment. With the momentum of some very generous matching donations, we spent a significant amount of time and energy elevating the important role that our Community’s Endowment plays in the long-term vitality of the Holland/Zeeland area. You all responded in amazingly generous ways that grew our Community’s Endowment by $5 million “Today” and our pipeline of “Tomorrow” estate gift commitments by more than $30 million.
With the campaign wrapped up and with the new Federal income tax law changes taking effect, in 2018 we prioritized the Donor Service side of our work. We spent time with companies, families and professional advisors highlighting the various tools we have to make giving as efficient and effective as possible. We were astounded and humbled by the deep generosity of many in our community as we received close to $20 million in contributions to Donor Service funds here at CFHZ. These gifts ranged in size from $25 to $7 million, and combined with nearly $1 million in gifts to our Community’s Endowment, led to CFHZ’s 2018 contributions totaling close to $21 million. That is more than double our previous high of $9.7 million!
These resources will impact many individuals and nonprofits in the Holland/Zeeland area, and we are honored that many of you chose to partner with CFHZ to help you best achieve your charitable goals.
For me, this record year says two things:
1. Our community is deeply generous and is committed to making a difference in the lives of others and
2. The hard work of so many staff and board members over the last 65 years has made the Community Foundation a trusted partner for many local families and companies.
Nothing inspires me more than having witnessed and felt these two things in profound ways over the last few months. It is a privilege to serve this organization and work with you all!
There was much more that happened during the year, but the above list aggregates some of the highlights from my perspective.
It was an inspiring year here at CFHZ and I want to thank each of you for all that you have done, and continue to do, to partner with the Community Foundation to ensure that the Holland/Zeeland area thrives Today, Tomorrow and Forever.
With deep gratitude,
CFHZ President/CEO Mike Goorhouse is delighted to have Colleen join the staff “Colleen is the perfect fit for this position and I couldn’t be more grateful that she is willing to bring her talents and passion to our organization. With her successful track record of fundraising in this community, her connections with professional advisors and her longstanding personal commitment to our mission, I believe Colleen is going to take the Community Foundation’s development and donor service work to new heights!”
Hill has been involved with the Community Foundation for 10 years and served on the Board and Distribution Committee since 2016. In addition to her service at the Community Foundation, Hill is actively involved in a number of community organizations. She currently chairs the advisory council of Kid's Food Basket – Holland and serves on the board for Center for Women in Transition. Hill was formerly Chair of the Center for Women in Transition’s Forward Together Endowment Campaign, co-chair of the Herrick District Library millage campaign and past board member of the Holland Young Professionals. “It is such an honor to join the amazing team at the Community Foundation. It gives me great joy to know that so many individuals, families and companies have put their faith in the Community Foundation. I consider it a great responsibility to serve and guide donors toward achieving their giving goals.” Hill said. “I have long valued our Community’s Endowment and its ability to respond swiftly to the ever-changing needs of our community and invest strategically in initiatives that will enable our community to thrive today, tomorrow and forever.”
Hill succeeds Ann Query, who served as CFHZ’s part-time Director of Development for the last 18 months. “We couldn’t be more grateful to Ann for helping us out this last year and a half as we finished our campaign and tried to keep up with the increased demand for our services. She has been committed to CFHZ for more than 25 years and her passion for our mission has inspired many to support our work.” says Mike Goorhouse. Prior to joining the staff, Query served on CFHZ’s Board of Trustees for over 15 years, serving as Chair of the Board on two different occasions.
Applications are due by Monday, April 9th!
VIEW THE VICE PRESIDENT OF DEVELOPMENT AND DONOR SERVICES JOB DESCRIPTION
85 East 8th Street, Suite 110, Holland, MI 49423 (616) 396-6590 Email us
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