CFNEM BlogSpot

Gift to the Community Foundation for Northeast Michigan…$200.

Cash back in your pocket at tax time…$100.

Possible federal deduction on your taxes…depends on your tax bracket.

Total cost for your gift…at least ½ what you originally gave.

Knowing you’ve made a real, positive difference for your community…PRICELESS.

(Thank you MasterCard – which you can use to make a gift online by the way! www.cfnem.org)

There’s a reason our mailbox is so full during the last month of the year – people care, and it’s the end of the tax year.  Through the Michigan Community Foundation Tax Credit, you can make a gift to CFNEM for twice the amount you’ll actually end up spending.  If you’re married you can get up to $200 back at tax time on a $400 gift.  If you’re single, you get up to $100 back on a $200 gift.  If you itemize on your federal tax return, the actual cost of your gift is even less since you can claim a federal charitable deduction in addition to the Michigan tax credit.

It’s quite a deal when you consider that the gift is a permanent investment in your community, allowing for grants to our local nonprofits for all kinds of causes, or for scholarships to our local students.

It’s just one more reason why giving to your Community Foundation is a good idea, and we want to make sure you know about it.

Of course, our local nonprofits will always need volunteers, and they’ll always need money to help support them right now.  All of that makes a difference in our community.  It feels good to know your contribution can help right now, and that you can see your money at work.  There’s satisfaction in seeing your money help the causes you care about.  But what happens later?

There’s also great comfort in knowing that even when we’re gone, what we cared about so much during our lifetime will still be supported.  That’s where the Community Foundation comes in.  We’re here for the long haul.  Faces at our office will change; faces on our Board will change; our location may even change.  But CFNEM’s purpose will always remain the same: to make a difference in the community through the visions of our donors.

When a donor or a nonprofit itself establishes an Agency Endowment Fund, they are taking a step to ensure the future viability of that organization.  Regardless of what the economy looks like or how many other funding sources are available, the organization will have money – every year – to help them operate and sustain the great work they do for our community.

Donors can choose to give to an existing fund already working to help the organization, or new funds may be established.  What local nonprofit is close to your heart?

Generous people usually begin their philanthropy by giving to their favorite worth causes. Many, if not most, individuals with means have practiced giving in various forms: a check to a favorite charity, a table at a benefit to oblige a friend or colleague, a gift to an alma mater, and, perhaps most commonly, a contribution to a religious organization.

Over time, many donors who want to increase their giving choose a focus and become more strategic. In general, Giving While Living involves planning how best to employ one’s resources, talents and passions in giving. Once a donor knows what he or she wants to accomplish, they can develop a plan with realistic goals and benchmarks, follow it through, and enjoy the satisfaction that comes from seeing the results of their investment.

Some reasons for Giving While Living are: the donor can help address urgent problems that require investment now rather than in the future · the donor may feel a sense of obligation, faith-based or otherwise, about sharing their wealth · the donor may wish to personally direct their giving and enjoy the satisfaction that the results bring · the donor may have a desire to use their own skills and experience to tackle problems · the donor may be concerned about “mission drift” after their death · the donor may be confident that future generations will make their own fortunes, and use their money to address the problems of tomorrow · the donor may be concerned that burdening one’s children with excessive wealth will sap their motivation.

Giving While Living can be a powerful tool to help donors look inward and determine their own motivations, expectations and goals.

-Barbara Willyard, CFNEM Executive Director

The possibilities are endless to make a difference…

Some people want to feel they’ve made a real difference in their community. A gift to an endowment fund at the Community Foundation is permanent.  It will outlast the tax year, the decade, all of our lifetimes, and beyond.  Its sole purpose is to continue to support the community, either as its needs change, or always for a specified purpose (the choice of a donor).

Of course, there are lots of ways to make a difference, like volunteering or mentoring.  Giving to your Community Foundation is a way to make a lasting impact.  It’s a way you can make a difference now, and in the future.

Want to make a permanent difference in your community?  We can help.

Learning to give starts early.  Understanding how important it is to give back to your community is often a driving force for some donors.  And when they use their own giving as an opportunity to teach their children about philanthropy, those values are passed on.

Many of our donors give as a family.  Together, they decide which funds they want to support each year.  In doing so, children learn about the importance of giving back, even if they don’t understand exactly how their gift works.  The seed of generosity has been planted, and is likely to thrive throughout their life.

The younger generations also learn from our example.  When we make a point to always put some money into the canisters for the Lions Club, Kiwanis, the MDA or the Salvation Army as they stand in front of popular stores, kids see it, and will carry that with them.  When we make it known to our families that we put our support behind causes we truly care about, it shows we want to make a difference.

Learning to give goes beyond just giving money to charity though.  Service-learning programs in schools and groups like the Community Foundation’s Youth Advisory Councils (YAC) aim to teach kids about community service, philanthropy and the importance of giving.

However you choose – we encourage you to involve your family in your charitable giving, whether that is of money, or time – and help grow a new generation of givers.

We at the Community Foundation don’t know much about Dee Brown Perry.  What we do know is that she cared about education and felt it was important, and that she had an affectionate connection to Alcona Community Schools.  Until the summer of 2006 we didn’t know who Mrs. Perry was, but she knew us.  And she knew that the Community Foundation was a safe and smart way to support education in Alcona, forever. 

When Mrs. Perry passed away, she left the bulk of her estate (an incredibly generous $1.3 million) to establish a CFNEM endowment fund for scholarships to Alcona High School graduates.  Just this week our Executive Director presented 21 Alcona students with a combined $43,700 in scholarships.  Mrs. Perry had a cause she cared about, and she made sure it was addressed.

Without doubt, the Dee Brown Perry Scholarship Fund was established with one of the largest gifts CFNEM has ever received, but most of our 370 funds began with much more modest gifts.

We also have a donor who cares very much about Alpena Regional Medical Center, and chose to establish a fund specifically to purchase new equipment for the hospital.  A cared-about cause was successfully matched with a way to support it, and since then the fund has helped ARMC purchase hyperbaric chambers with a $162,000 grant.

If there is an interest, cause or a specific nonprofit that is truly special to you, we encourage you to support it.  Browse through a list of our funds – maybe someone else cared enough about the same thing and has already created a fund for that purpose.  You could add to it.  The option to establish your own fund exists, too.  We’re here to help you make you charitable giving as effective as possible.  Let us assist you in figuring out how to support what you care about most.

(Why Might One Give to a Community Foundation?)

Reason #1: Leave a Personal Legacy

It is never easy or pleasant to think about a time when we are no longer here, but that very fact is what makes Reason #1 a reality.

Many donors choose to give to the Community Foundation to leave a personal legacy: one that reflects what is important to them; reflects their interests; and lets people know they genuinely care about their community.

Donors can give to the Community Foundation while they are living, after their death, or both.  Many will choose to give gifts or establish charitable funds during their lifetime so they can see the results of their contribution in action.  Others will choose to designate in their will a certain dollar amount or percentage of their assets to establish a fund or give a large gift once they have passed.  Either way, they leave a lasting legacy to which they can attach their name – one that lasts forever, when not much else in this world ever does.  It’s a way for some to be certain their life made a difference in the world.

If you want to leave a personal legacy, give us a call.  We can help you do it.

Our donors all have different reasons for giving.  Blog entries over the next months will cover many of those possible reasons, expanding on how you can use the Community Foundation to reach your charitable goals – whether that’s simply to feel like you are making a difference, or to leave a legacy in a certain area of interest.

Why might you give to your Community Foundation?

1. To leave a personal legacy
2. To support a particular interest/cause/nonprofit you truly care about
3. To help teach and involve your children about philanthropy and the importance of giving back to their community
4. To make a difference in your community
5. To ensure the viability of a nonprofit, even after your lifetime
6. For a great tax benefit
7. For recognition
8. To belong to a giving circle
9. Because you’re not sure where to give your charitable dollars, but the Community Foundation has a good idea
10. Because you feel education is important but expensive, and you want to help students pay for it
11. To honor or remember a loved one
12. Because “they” did

Following the Great Depression and World War II, the United States entered a golden age of business growth and personal prosperity. Despite the recent downturn in the economy, Americans have created, invested and multiplied unprecedented private wealth. Over the next 50 years, this capital—a conservative estimate of $50 trillion—will change hands.  For northeast Michigan, that means most of the $16.27 billion expected to transfer will certainly go to heirs (and taxes), but a portion may be preserved as your legacy for the future of northeast Michigan.

Research has been done by the Rural Policy Research Institute (RUPRI) Center for Rural Entrepreneurship, and funded in part by the W. K. Kellogg Foundation, estimating the portion of wealth transfer likely to happen in our state and community.  If we could hold on to 5% – (just 5%!), our communities would be better for it.

That’s why the Community Foundation for Northeast Michigan and its affiliates are working to secure planned gifts and bequests for endowments that will ensure a stronger future for northeast Michigan, forever.  If we don’t take action, much of those assets in northeast Michigan will drain from our state.

No matter whether your estate is large or small, plan a portion of it to go back to your community. You can work with your professional advisor to work out the details or it can be as simple as a bequest in your will of a percentage of your assets to go to the Community Foundation to support your community. If we who live in northeast Michigan don’t make plans to support it, who will?

If you would like more information about the Transfer of Wealth, contact our office.

As the Program Associate for the Community Foundation, I am in a unique spot when it comes to grantmaking.  I’m an advocate for the grantee, and a spectator without a vote.

Recently, I attended a meeting where members of the Iosco County CF Board reviewed applications for their annual Common Grant.  It’s always fascinating to see how a large group comes to consensus on the great task of giving away money.  It is always agreed – there are rarely any programs that are not worthwhile. 

The reason I bring all this up is because I have been working to help our affiliates make donors more aware of what unrestricted giving (creating or giving to a fund whose purpose is to address the changing needs of the community) can do.  Watching the granting process unfold reminds me how valuable those unrestricted assets really are.

The Iosco County CF Board poured over the many grant applications they received, trying their best to wisely spend the limited amount of money available for the year.  As they discussed various aspects of each project, two major themes kept emerging as important issues Iosco County faces, right now.  Like the rest of the country, Iosco was hit hard by the recession; many of its residents are in great need of the basic essentials.  Additionally, businesses are struggling as tourism, one of the area’s main money makers, has declined.  Though not all their 2010 Common Grants focus on these issues, several do.  It is that outcome which highlights how unrestricted funds allow the Community Foundation to meet needs in their communities as they change and emerge. 

Once the economy has truly recovered, there is no doubt the focus of ICCF’s grant making will shift to the next pressing issue.  That flexibility is what makes a Community Foundation one of the greatest assets we have.

Happy Spring!
Christine Bruske-Hitch
CFNEM Program Associate