Guide for Giving

8/6/2019 Guide for Giving

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G gA Guide to


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Pr mpt, p rs a s rvic . The Community Foundation strives to make your philanthropy uncomplicated and easy to understand.Meetings are held at your convenience, where you are most com ortable and as o ten as you

need to talk.

Y ur gift wi us d wis y. Because we poolcontributions, investment and administrativecosts are kept low. Because Grand RapidsCommunity Foundation is a public charity, alldonations quali y or the maximum availablededuction or tax charitable contributions.

Y ur gift wi addr ss curr t a d m rgi gds. The pro essional grantmaking sta at

the Community Foundation understands howlocal and regional issues a ect the community as a whole. Our broad perspective ensures thatthe grants we distribute are targeted wherethey will do the most good. Grants that theFoundation awards are approved by acommittee o community volunteers andthe Board o Trustees.

Y u hav ma y gift-givi g pti s. Howand what you give depends on your speci c

nancial situation and what you want toaccomplish with your donation. Ourdevelopment sta is always happy to sit d

with you and your pro essional advisor todiscuss the best giving option or you.

Your gift will bene t the community forever.

With the power o endowment, a gi t madnow will bene t the community or decadeto come. The use o gi ts can be narrow omore broad, depending on your desires.

Y ur gift is s cur . Grand Rapids CommunFoundation manages its investments or tot

return. Each year we publish an independenaudit o our nancial position, a statement activities, and lists o gi ts and grants madan annual report.

A th ugh c mmu ity ds a d rga izatiwi cha g , fu ds that ar d w d at Gra dRapids C mmu ity F u dati wi h di y ur am f r v r.

Since 1922, thousands of people like you have chosen to give to causesthey care about through Gr R p s C F .The bene tof giving at the Community Foundation include:

LoCaL ContRoL

FLexibiLity

PeRmanenCe

ChaRitabLe imPaCt

eConomy oF SCaLe

PubLiC aCCountabiLity

tax advantaGeS

youR Community. youR Foundation.


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Your philanthropic giving options at GrandRapids Community Foundation are tailoredto you. For some donors an unrestricted gi tto the Fund or Community Good meetstheir needs. Donor Advised unds give donorsmore control over where grants are madeand provide an excellent option to a private

oundation. Other alternatives includescholarship, Field o Interest and nonpro t

unds. All gi ts are endowed and the community

will bene t rom your gi t orever.

With li etime gi ts and bequests totaling$50,000 or more, you may establish a separate,grantmaking und. You may set up the und in your name or the name o a loved one; the

und may also remain anonymous.

I you are willing to share the story o yougi t, our sta will meet with you to talk a your amily or personal history, your valueand your philanthropic goals. Your name an your story will become a part o our permanarchives, and will be preserved and retold generations to come.

What v r y ur wish s, y ur h p s r y urdr ams f r th futur f y ur c mmu ity, a

fu d at Gra d Rapids C mmu ity F u datica ma th m a r a ity.

Whether you have a rm idea of what you hope to accomplish with r p l r por an idea thats just taking shapeGrand Rapids

Community Foundation can help you achieve your p l r p c g ls.

ss c tr m r c tr

unrestricted eld of interest advised scholarship designated

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What are your dreams?P rs l g g p l r p , l k s gs l f , r r

s sf g w r l g w r l fs l s. h r rs s s s c s r s k r g g.

1 De ne your personal beliefs and values.

Which social issues move you the most when reading the paper ortalking with other people?

What values de ne you and which values have you shared with amily and riends?

To which organizations do you currently give? Do these gi ts align with your values?

What gi ts have you made in the past that mean the most to you? Why?

2 Cr at y ur p a .

I you could change three things in your community, what would they be?

Do you pre er to und buildings, operations and projects? Do you like togive to grassroots causes or more structured organizations? Do you like togive locally, nationally or internationally?

How much involvement do you want with the causes you support?

3 D t rmi y ur givi g v .

What is your nancial situation and what is your current or uture desiredgiving range?

What is your tax situation?

What is your own charitable giving com ort level?

4 Imp m t y ur strat gy.

I needed, seek in ormation about philanthropic opportunities rom theCommunity Foundation.

Determine best giving instruments to accomplish philanthropic goals.

With Community Foundation assistance evaluate community needs,programs that meet those needs and opportunities or giving.

Recommend grants rom your Community Foundation und or makeoutright gi ts.

Evaluate results: did your gi ts accomplish what you hoped?

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Fund FoR Community Good

The Fund or Community Good is anunrestricted und that allows Grand RapidsCommunity Foundation to help the

community address unexpected and changingneeds. Community Good unds become parto Grand Rapids Community Foundationsgeneral und, targeting six broad grant areas:

arts and culture community development education environment health human services.

A Community Good Fund will bear yourname orever. This option is a good choicei you value the fexibility the Community Foundation o ers to help uture generationsdeal with social, economic and environmentalchallenges.

Funds or Community Good allow theCommunity Foundation to seek long-termsolutions to problems such as hunger,

homelessness, child wel are and publiceducation. They also support buildingprojects that bene t the entire community,such as museums, per orming arts centersand botanical gardens.

Contributions are acknowledged in a varietyo ways, including publishing the names ocontributors in our annual report, ensuringthat your nameor the name o a lovedonewill always be remembered and linke

with philanthropy. Establishing a Fund orCommunity Good can be the rst importantstep to creating your own legacy o caring.

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FieLd oF inteReSt Fund

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exible for the future.

Charles Bob Evenson, a li elong outdoorsman,was passionate about preserving Michigans landsand waters. Lucy Barnett elt great compassion

or elderly people in need. Mary and DavidHunting cared deeply or children and believedthat positive camping experiences had the powerto trans orm young lives.

Because o the heart elt dreams and generousbequests o Mr. Evenson, Miss Barnett and theHuntings, Grand Rapids Community Foundation today holds Field o Interest undsin each o their names. It is impossible toanticipate the needs that the environment, olderadults or summer camps will ace in uture years.But because o the commitment o caringpeople, those causes will have a secure source o

unding through Grand Rapids Community

Foundations endowment.

Your Field o Interest und will award grants toprojects or programs within your speci ed areaand carry your name or the name o a loved onein perpetuity. When we approve a grant to anorganization in that speci c Field o Interest, wemake the gi t in your name.

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SChoLaRShiP Fund

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Higher education has long been seen as oneo the surest paths to increased opportunity.Un ortunately, many people who could

bene t the most rom a college education areleast able to a ord it. Scholarship unds helpthem on their path to higher education.Grand Rapids Community Foundation holds

unds or aspiring artists, engineers,musicians, pilots, teachers and others.

Applications are available online, and awardsare decided based on a competitive process,which may consider academic achievement,extracurricular activities, a statement o the

applicants personal aspirations and goalsand nancial need. Advisory committees,comprised o responsible and knowledgeablecommunity members, help screen and selectcandidates. They make recommendations tothe Community Foundations Board o

Trustees. You or a member o your amily may participate in the scholarship selectionprocess i you wish.

Like other Grand Rapids Community Foundation unds, scholarship unds areendowed and may be named to honor lovedones. Community Foundation sta handleall details o awarding scholarships romannouncing their availability to processingapplications to writing the checks.

Dar ath r Gr r was the

rst person in her family toearn a college degree. Aftergraduating from high school,she went on to WesternMichigan University andreceived her bachelors degree.From there it was a mastersin curriculum and teachingfrom Michigan State University.Her rst, last and only job waswith the Kent Intermediate

School District (KISD). Itaught high school studentsbusiness subjects, whichincluded everything from howto operate a mimeograph,key punch machine, or an IBMSelectric typewriter to a wordprocessor, she said with alaugh. From 1972 until she

retired in June 2005, she

dedicated herself to teachingyoung people the fundamentalsof business. Business makesthe world work and all of itintrigues me, Dareather said.I had a teacher who inspiredme, a typing teacher, actually.He taught me to type on amanual typewriter withoutletters on the keys! He gaveme the love of business

education, she said.

As part of her retirement andsubsequent estate planning,she created a scholarship inher name at Grand RapidsCommunity Foundation forAfrican American females. Inhigh school, I knew I wouldnt

be able to attend college

because my parents didnthave the money. I found ouabout grants and student loathat helped pay for college,and I decided to pursue mydreams (of becoming ateacher) and actually ful llethat dream. I want others tobe able to ful ll their dreamalso, she said. Her agreemwith the Community Foundat

speci es that the scholarshithe applicants must show thhave been active in multiplcommunity service projectsand have a letter ofendorsement showingvolunteerism.

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nonPRoFi t Fund

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During the Great Depression, the Clinicor In ant Feeding helped make sure babies

didnt succumb to malnutrition or starvation

during hard times. The clinics missiontouched the heart o Mrs. John Wood Blodgett,one o Grand Rapids Community Foundations original trustees. In her will,Minnie Blodgett le t a bequest to GrandRapids Community Foundation anddesignated it or the Clinic or In ant Feeding.

Today, the Clinic or In ant Feeding nolonger exists. But because Mrs. Blodgettentrusted her bequest to the Community

Foundation, her legacy and intentionendures. Her und, Estate o Minnie C.Blodgett or Clinic or In ant Feeding,continues to make grants to improve thecare and treatment o children.

I you want your gi t to support speci ccharitable organizations, you can establish anonpro t und. Your gi t becomes a permanent

und o the Community Foundation, whichwill support the organization as long as itexists. I it ever closes its doors, theCommunity Foundation will use the und tosupport programs with similar goals.

It is imp rta t t r m m r wh d sig ati gy ur fu d that it wi ast f r v r. Th ssr strictiv it is, th m r it wi h p m t thu p ct d a d cha gi g ds f upc mi gg rati s.

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donoR adviSed Fund

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A Donor Advised und (DAF) at GrandRapids Community Foundation is simpleto establish and operate. The Community

Foundation is responsible or making surethat all legal requirements are met. Each year,donors make grants rom the spendableamount o the und. This is ve percent o the

air market value o the und over the last our years. Donor Advised unds allow you tomanage your charitable giving without thework and expense o running a private

oundation.

With a Donor Advised und, you can re er

requests to us, give anonymously or suggestwe make payments to any charity that meetsIRS guidelines. We then take care o alladministrative details. Under Internal RevenueService rules, the Community FoundationsBoard o Trustees must approve all grants.Our grant allocation procedure protects youby making sure your grantees meet the legalstandards or charitable intent.

Donor Advised unds also o er the optiono allowing your children or grandchildrento participate as advisors during your li e

or to become advisors a ter your death. Mopeople are choosing this option to includethe next generation in amily philanthropy,passing along the joy and values o charitable giving.

A ter the death o the last advisor, DonorAdvised unds retain their establishing namand preserve the legacy and intent o thecontributor.

The Community Foundation o ers two typo Donor Advised unds. The Dynamic uis established with a gi t o $250,000 or mo$50,000 is endowed with the remaining balaavailable or immediate grantmaking. TheLegacy und is established with a minimumgi t o $50,000 and grants are made rom aportion o the unds earned income.

Community Foundation sta can help youreview the options to determine which bette

meet your needs.

Tom and Mickie Fox are knownby many people in the GrandRapids business community.Tom Foxs days as owner of FoxJewelers made him a legendin retailing. Strong supportersof the West Michigan area,

Tom and his wife Mickie, havedonated countless hours tolocal organizations. Theirdecision to establish a DonorAdvised fund at the CommunityFoundation with appreciatedstock ensured that their

commitment to this communitywill last for generations to come.

Weve always been extremelyproud of being part of theGrand Rapids community,and were now at the point in

our lives where we can giveback to this community in asigni cant way, Tom said.As the Foxes discovered, aDonor Advised fund at GrandRapids Community Foundationis simpler and less expensive

than establishing and managa private foundation. Donorrecommend how the spendaportion of their fund will beawarded, and each time agrant is awarded from theirfund, the grantee receives a

letter indicating which donomade the gift. The Foxes kntheir fund will increase in vover time and continue tosupport the causes they careabout.

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Fu d f r C mmu ity G d r U r strict d Fu dsMeet the uture needs o a changing community by providingmaximum fexibility or uture grantmaking.

Fi d f I t r st Fu dEnsure permanent support or a special area o interest whileallowing fexibility or the uture.

Sch arship Fu dImprove the lives o students with a permanent source orhigher education unding.

Nonpro t FundHelp provide a permanent source o income to meet the uture

needs o a designated charity.

D r Advis d Fu dRecommend annual grants or the causes you care about most.I desired, design a amily grantmaking plan that includes thenext generation.

M m ria sYou may establish any o the above unds to honor thememory o a loved one.

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CHARITAble InCoMe TAx DeDUCTIonS FoR InDIVIDUAlS

Typ f C tri uti Am u t P rc tagthat ca f Adjust d Gr ssd duct d I c m that ca

d duct d i y ar

C s C s v l 50%

or r c pr p r , s c s r , C s b s s 50%pr c l pr p r , gr c l r l pr c s,l g s pr p r , S c 306 s ck,

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S r - r c p l g pr p r C s b s s 50%( l l ss 12 s) s c s s cks,

s r c p l ss s, s lf w c f r rk l w l l

s r - r c p l g

L g- r c p l g pr p r F r m rk v l 30%( l r 12 s) s c s s cks,

s r c p l ss s, s lf w c f r rk l w l l

l g- r c p l g

L g- r ppr c r l pr p r F r m rk v l 30%

t g l p rs l pr p r , f r c p s C s b s s 30%s f pr p r s r l s p

p rp s r f c . u r l s l s c c s s s 50% c l g ppl s.

Gifts to Grand Rapids Community Foundation come in all shapes andsizes. Cash, securities, closely-held stock, business real estate and privatehomes are all assets that have been used to establish charitable funds.W r ss , c r g f s p r c r

w rk f C F .

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c s r rk w .

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ve succeeding taxablers. Pl s r w r

g g p s r ltax bene ts with yourprofessional nancial

s r.

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CaSh

A cash gi t is the most popular typeo charitable gi t because o its simplicity.

With a gi t that meets our und minimum, you can establish a und o your choice thatwill begin generating income or grants orscholarships immediately.

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Grand Rapids CommunityFoundation grants havehelped restore sections ofthe Rogue River, makingthe habitat for fish moreproductive.


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StoCKS, bondS, mutuaL FundS

R c iv a charitad ducti f r th fairmar t va u , t th

rigi a i v stm t.

Av id capita gai s ta .

n mi imum is r quir d.

Mu tip gifts ca c m i d t sta isha fu d.

R a iz su sta tia tasavi gs.

R duc th siz f y urstat .

Dr. Mary App t faces thehuman drama of life and deathevery day in an operating room.A practicing anesthesiologist,Dr. Appelt has seen rsthandthe bene ts of philanthropy onall levels of society.

Whether we give to providean underprivileged student acollege education or to create astate-of-the-art neonatal center,its very important to give backto the community that hassupported and rewarded us,she said.

Like many investors,Dr. Appelt was faced withpaying capital gains andincome taxes on some highlyappreciated stocks she wantedto sell. She believed that givingher appreciated stocks to theCommunity Foundation offered

a more signi cant socialbene t, while helping herachieve her charitable and

nancial goals.

It pleases me to know thatthe gift I made to Grand RapidsCommunity Foundation will

continue to generate revenuthat can be reinvested in oucommunity, Dr. Appelt sai

Dr. Appelt chose to directher gift to the Fund forCommunity Good. I amcon dent that the Commun

Foundation will distribute tincome from my gift to heladdress this communitysmost pressing needs,she said.

Giving gi ts o appreciated property in theorm o stocks, bonds or mutual unds may

provide greater tax bene ts than a cash gi t o

equivalent value, especially i it has a low costbasis. You will receive a charitable deduction

or the ull market value o your propertyeven i you initially bought it or ar less. Youwill also avoid capital gains taxmoney youdhave to pay i you liquidated the property.

To illustrate the bene ts, consider the scenarbelow. It shows how, by giving appreciatedstock, you can make a signi cant charitable

gi t or cents on the dollar.

You may deduct the ull air market valueo gi ts o long-term capital gain propertyto 30 % o your adjusted gross income. Any amount in excess o the 30 % ceiling can becarried orward or ve years.

A Gift f Appr ciat d St c

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H w t Ma a Gift f r 59 C ts th D ar Appr ciat d

Cash Pr p rty

C rr f r rk l f g f $10,000 $10,000C s s s $10,000 $1,000i c s gs $2,800 $2,800( ss g 28% c r ck )C p l g s s g g s ck $0 $1,350

( ss g 15% c p l g s r ck )n c s f g f $7,200 $5,850

W r g f f c s rs c r s, r c r l

c w l s $10,000. i 28%

r ck , r c s w l $7,200.

b f g s c r s p rc s f r $1,000, c l ls s $1,350

c p l g s . t c s

f g f : j s $5,850.

THe ADDeD DIVIDenDS oF GIVInG SeCURITIeS

CLoSeLy heLd StoCK

I you own closely held stock in your business, you may choose to contribute it to GrandRapids Community Foundation. (Closely held

stock is generally not sold to the generalpublic.) Giving it to a charitable organizationmay o er you and your company a numbero advantages. First, youll receive a charitablededuction or the appraised air market value.Youll also avoid tax on the capital gain. And,at a later date, the company may redeem thestock, or the company Employee StockOwnership Plan or another shareholder may buy the stock at its air market value.

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R c s z f rs .

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ReaL eState

Whether it be a home, cottage, businessproperty or undeveloped land, Grand RapidsCommunity Foundation can help you turn

this asset into an excellent charitable gi t.

We can accept the gi t outright or show youhow a charitable trust can be used to convert your asset into a gi t that also produces anincome.

Because each gi t o real estate is unique, aCommunity Foundation sta member wouldbe happy to meet with you to discuss thelogistics o making such a gi t.

C r l c sr s ppr s

f r rk l , r g l s .

a c p l g s .

R c s s l s gs.

R c s z f rs .

Marvi Stah

A legendary golf pro,Hollywood lmmaker andGrand Rapids business leader,Marvin Stahl was also a civic-minded philanthropist. Whenhe and his wife, Dottie, couldno longer enjoy their belovedsummer home on BaldwinLake, they donated it toGrand Rapids Community

Foundation. The home

was sold, with proceedsestablishing the Marvin StaFund. Since 1987, the fundsubstantially increased invalue while awarding grantto a number of valuablecommunity programs andservices.

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LiFe inSuRanCe PoLiCieS

401K and iRa aCCountS

Cl c r l c c p c rrl f r p - p p l c .

a l pr s r c l .

R c s s z f rs .

m z ss l .

m z s .

R c f r l c c .

Giving a li e insurance policy is aninexpensive way to make a substantialcontribution to Grand Rapids Community

Foundation. Many people nd in later yearsthat they dont need all the insurance they did when they were younger. I you ownunneeded policies, you may name theCommunity Foundation as sole bene ciary and trans er ownership. Once you do that, you are immediately eligible or a charitabletax deduction on the computed current valueo your paid-up policy. I you are still makingannual premium payments, those paymentswill also quali y or a charitable deduction.

(Those premiums are paid directly to theCommunity Foundation, which in turn paysthe insurance company.)

Since the insurance policy is owned by theCommunity Foundation rom the day it istrans erred, it is not part o your estate andnot subject to tax. Simply name Grand RapCommunity Foundation to receive part or ao your li e insurance proceeds when you

You may need the Community Foundationstac ID number or your bene ciary designation. It is 382877959.

Assets held in 401k and IRA accounts requirespecial consideration in your nancial andestate planning.

The law requires income tax to be paid on any

withdrawals rom the accounts, which may diminish its value or you and your heirs. I you leave retirement assets to amily membersin your estate plan, an estate tax may be leviedas well. This double taxation could signi cantly decrease the value o the asset or your heirs.

By donating a retirement asset to theCommunity Foundation during your li etime, you can remove it rom your estate, preservemore o its value and receive a ederal

deduction or the gi t.

By leaving retirement assets to the Community Foundation in your will, you can avoidincome and estate taxesand preserve yourhard-earned assets or the good o yourcommunity orever.

15 G f s Your

J h Gi a d Rita Wi iams

The community is our responsibility and it should be our frst priority. We all have a

duty to the community. Rita William


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Cash Cash is the simplest gi t to give. You can combine multiple cashgi ts to establish a und at the Community Foundation.

St c s, b ds, Mutua Fu ds Receive a deduction or the ull air market value, and avoid payingtax on your capital gain.

C s y H d St cReceive a deduction or the appraised market value, avoid capitalgains tax and buy back at new cost basis, i you choose.

R a estatReceive a deduction or the appraised market value, and avoidpaying tax on your capital gain.

401 a d IRA Acc u tsMaximize value by avoiding income and estate taxes, and receivea deduction.

lif I sura c P ici sReceive a deduction or the computed current value o your paid-uppolicy or premium payments.

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ChaRitabLe bequeStS

Th M tz S ci ty

Named for G rg a dMary M tz , whose $100,000gift was the rst bequest receivedby Grand Rapids CommunityFoundation, the Metz Societyrecognizes people who haveincluded the CommunityFoundation in their estate plan.

Metz Society members areinvited to special CommunityFoundation events that areexclusive to members anddonors.

If you have included theCommunity Foundation in will or estate plans, please lus know. Even if you wish tremain anonymous, we wanto be able to fully carry outyour gift intentions. Knowiwhat you want is important

to us.

d ss s w ls r c r l

r s s r c s .

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Gi ts provided through wills or trusts havebecome the oundation o the Americanphilanthropic tradition. In act, the vastmajority o planned gi ts ultimately receivedresult rom bequests. Such gi ts enable you tomake signi cant contributions that may nothave been possible during your li etime.

When you remember the Community Foundation in your will, you may reduce your estate taxes while supporting yourcommunity. You may give a speci c dollaramount, property or a percentage o yourestate. You may also give a remainder o yourestate a ter bequests to riends and amily.

Wh p a i g a qu st t Gra d RapidsC mmu ity F u dati , sur t ta witha m m r f th d v pm t staff. Y ur stafr pr s tativ wi h p ma sur that y urwish s ar c ar y u d rst d i th pr s t th y ca car fu y carri d ut i th futur

L g c Your

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A qu st ca ta vari us f rms. Y u a d y ur advis r mayc sid r th f wi g samp s f s v ra typ s f qu sts whpr pari g y ur wi . F r r strict d qu sts, p as c tact aGra d Rapids C mmu ity F u dati d v pm t staff p rst discuss th t rms.

Specifc Bequest: With a speci c bequest, you designate

that Grand Rapids Community Foundation is to receive aspeci c dollar amount or speci c property. I give to GrandRapids Community Foundation, Grand Rapids, Michigan,a Michigan nonpro t corporation, (dollar amount) to beheld, administered and used by its Board of Trustees forits grantmaking, programming and support of Grand RapidsCommunity Foundation in the areas of greatest need andopportunity.

Residuary Bequest: A residuary bequest is used to giveGrand Rapids Community Foundation all (or a portion thereof)

of your property, after all debts, taxes, expenses and all otherbequests have been paid. I give to Grand Rapids CommunityFoundation, Grand Rapids, Michigan, a Michigan nonpro tcorporation, (all of, speci c or percent of) the remainder of myestate, both real and personal, to be held, administered andused by its Board of Trustees for its grantmaking, programmingand support of Grand Rapids Community Foundation in theareas of greatest need and opportunity.

19 L g c Your

Harv y l mm was born inIonia in 1922. While his familywas of simple means, his

parents were devoted membersof the community. His father, aschool board member, and hismother, a homemaker, stressedthe importance of a goodeducation. Harvey listenedand learned and, in 1940,graduated valedictorian of hisclass. His success in high schoolhelped him earn a scholarshipto the University of Michigan.

I had never been away fromhome and I remember feeling alittle homesick at the university,

said Harvey, who majored inaccounting. By 1944, Harveyearned his degree. He brie yentered the working world andreturned to his alma mater in1945 to earn an MBA.

He became of ce manager ofMeijer in 1949. It soundsimpressive, but there were onlyabout 12 employees. We

worked in a small of ce inGreenville with old wooden

oors. There were only a fe

Meijer groceries at that timeHarvey said. He retired as coperating of cer after 38 ye

The thing that really matteto me is helping people. Ibelieve that how much youhelp others is the one truemeasure of success, he said

I have included the CommunityFoundation in my will becauseit is a permanent part of our community. I know that my giftwill beneft the people herelong after Im gone.

bequeSt

Contingent Bequest: In the event of an unexpected occurrencea contingent bequest will ensure that property will pass toGrand Rapids Community Foundation rather than unintendedbene ciaries. For example, If, at any time, there is no oneto take under the other provision of this will, I give propertyand funds to Grand Rapids Community Foundation, GrandRapids, Michigan, a Michigan nonpro t corporation, to be he

administered and used by its Board of Trustees for its grantmakinprogramming and support of Grand Rapids CommunityFoundation in the areas of greatest need and opportunity.

Restricted Bequest: You may prefer to restrict your bequfor a speci c purpose. For example, if you wish to memoriala family member or special friend or honor a colleague, youcan establish a legacy fund that will provide support for a programin which you (or the person honored or memorialized) wereparticularly interested. A restricted bequest should be made ithe broadest terms that are consistent with your purpose to

guard against the possibility of your gift becoming impracticor obsolete. I give to Grand Rapids Community Foundation,Grand Rapids, Michigan, a Michigan nonpro t corporation,(percent or dollar amount) to be held, administered and usedby its Board of Trustees for its establishment of an endowed___________ fund. Distributions from the fund are to be usedby the Board of Trustees for ___________. The fund shall benamed the ___________.


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ChaRitabLe GiFt annuity

Pr c f r l ffor you or a bene ciary.

m k ,

signi cant gift to theC F .

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c p s .

es l s f r s l l s $10,000.

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Charitable gi t annuities o er two key bene ts, simplicity and a reliable income.When you establish a gi t annuity with Grand

Rapids Community Foundation, you orsomeone you designate will receive a li eincome in exchange or your charitable gi t.The annuity rate depends on the annuitantsage. The older you are, the higher the rate.

Charitable gi t annuities o er several taxadvantages as well. Part o the gi t quali es ora ederal income tax deduction. By trans erringan appreciated asset to the Community Foundation, you will reduce and de er your

capital gains tax and may reduce probate costsand estate taxes. (Check with your tax or

nancial advisor or detailed tax implications.)

A de erred gi t annuity allows you to receivepayments later in li e. This type o gi t isattractive to younger donors who are planning

or retirement. You will receive a higher rateand a li etime income, based on when you wantto start receiving payments (at least 12 monthsa ter establishing the und). I you need current

tax deductions and want to augment retirementincome on a tax-sheltered basis, a de erred gi tannuity is an excellent option.

Gift a uityMrs. Chu, age 70 , trans ers long-termappreciated stocks with a current air mark

value o $20,000 (original cost basis was$4,000 ) to Grand Rapids Community Foundation. Based on her age, her annuity rate is 6.5 %, so she will receive $1,300 each year or the rest o her li e. About$163 o $1,300 will be income tax- ree, plus shell bable to take a charitable deduction o abou$7,384 . In her 28 % income tax bracket, thisgenerates a net tax savings o $2,068 ,representing additional spendable income vtaxes not paid. In addition, she was able to

spread her capital gains tax over several yea

D f rr d gift a uityDr. and Mrs. Lynch, both age 45, decideto make a combined cash contribution o $10,000 to Grand Rapids Community Foundation in exchange or a de erred giannuity with quarterly payments to startwhen they are age 65. I they establish acharitable gi t annuity immediately, theirannual annuity rate would be 4.5 % and the

annual income would be $450 . However, bde erring payments or20 years, at a timewhen additional income will be welcome,the Lynches will receive an annual incomeo $1,420 , representing a de erred gi t annurate o 14.2 %.

Besides supporting their community througtheir gi t to Grand Rapids Community Foundation, the Lynches have supplementedtheir retirement with a li etime income. Th

year they established their de erred gi tannuity, they were able to claim a $1,976 charitable gi t deduction.

20

Please note: b c s CGa r s r fr r r s rk , r s r r f r ll s r p rp s s l . Pl s c ll C F r s

www.grf . rg f r c rr r s.


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Few people have a keenerunderstanding of the needsof their community than

Jim a d Ch rry Carp t r . Jim was president andchairman of the former Union

Bank for many years and alsoserved on the CommunityFoundations Board of Trusteesfor eight years, one as its chair.Cherry was a homemaker andactive community volunteerfor more than 50 years. Oneof her passionate interests wasCamp Blodgett, a summercamp for students fromeconomically disadvantaged

backgrounds. Positive campexperiences help these youngpeople develop their untappedpotential through self-esteemand motivation.

Serving as one of theCommunity FoundationsTrustees really opened my

eyes to the needs of thecommunity and the simpleand effective ways in whichindividuals can satisfy boththeir philanthropic goals andcreate a more positive

nancial environment forthemselves, Jim said.

The Carpenters transferredappreciated stock to fundcharitable gift annuities that

will provide lifetime income,part of which is income tax-free.

My Community Foundationannuity payments substantiallyexceed the dividends I receivedon the stock prior to giftingthem to the Foundation, Jim

said. Additionally, theCarpenters were able tospread their capital gainstax over several years.

One major difference betw

a charitable gift annuity ancharitable remainder annuitrust is that you can establia gift annuity through theCommunity Foundation wias little as $10,000; trustsoften require a more substaninitial investment. Calculatsample income and tax beneat www.grfoundation.org.

Charita Gift A uiti s

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ChaRitabLe tRuStS

With a charitable lead trust (CLT), you donateincome to charity and retain the principal.Through the trust, you determine how muchwill be paid to Grand Rapids Community Foundation or how long. The principal thatremains a ter the trust terminates will revertback to you or pass to another designatedindividual. You may choose between variableor xed income payments.

A CLT can substantially reduce the amount o

gi t and estate taxes because you or your estatecan claim a charitable deduction or theCommunity Foundations charitable interestin the income payments.

Charita trusts a w y u t d at th tr ,a d p th fruit r d at th fruit, a d

p th tr .

A valuable option in estate planning,charitable trusts provide maximum fexibility

or giving a gi t and securing a li e income.

Your options include a charitable lead trust(CLT) or several types o charitableremainder trusts (CRT).

R r sf rppr c pr p r

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Charita l ad Trust

22

1 W lp f r pr f sss r, s l c ss

s f r r s .2 y r sf r w rs p f ss

r s , w c w s it for a speci ed period of time. Thispr s

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HeReS HoW IT WoRkS:


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A charitable remainder trust (CRT) is one o

the most fexible ways to give to Grand RapidsCommunity Foundation. With a charitableremainder trust, you donate an asset to charity and retain the income or li e. Because the CRTis charitable, it can sell highly appreciatedproperty without paying capital gains taxes,allowing the ull amount o the asset to work.You may choose between xed (annuity) orvariable (unitrust) income.

Example: Mrs. Vasquez,age 66, creates a charitableremainder annuity trust(payments to be madequarterly) with herself as sobene ciary and Grand RapCommunity Foundation as charitable remainderman. Sfunds it with stock valued a

$300,000 (purchased yearsago for $30,000) that waspaying annual dividends ofjust $6,000. Mrs. Vasquezrealizes a substantial charitadeduction and avoids capitagains tax. Her current annuincome more than doubles.After her death, the trustassets will go to Grand RapCommunity Foundation. W

the annuity trust, Mrs. Vasqreceives a lifetime income,takes advantage of taxbene ts, and, after her deatestablishes an unrestrictedlegacy fund that will carry hname or the name of a loveone in perpetuity.

Pr l f cf r rs lf r r bene ciaries.

Make a signi cantc r l g f .

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Charita R mai d r Trusts

Fi d Paym ts:Charita R mai d r A uity Trust

A charitable remainder annuity trust (CRAT)pays a li etime income based on the initial value

o the assets unding the trust. The payout ratemust be at least 5% o the initial air market valueo the gi t.

I you establish an annuity trust, you will receivea deduction or the present value o thecharitable remainder interest and avoid capitalgain tax on the trans er o appreciated long-termsecurities. Typically, the allowable charitablededuction rom a CRAT is slightly greater than

rom a unitrust when the initial value and cost

basis o the assets gi ted are equal.

You may calculate the benefits of acharitable remainder annuity trust atwww.grfoundation.org

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ChaRitabLe tRuStS

The percentage payment you receive rom a

unitrust varies rom year to year as the airmarket value o your trust assets fuctuates.I the value o the trust assets increases, sotoo would your payments. You must speci y a payment rate (at least 5% by law). I yourtrust assets outper orm that rate, the extragains would be reinvested, eventually increasing your principal and payments. Youmay view this as a possible hedge againstinfation, assuming growth in value o thetrust assets is somewhat comparable to the

infation rate. The reverse, however, is alsotrue. I your trust earns less than the rate youspeci y, you will still be paid that samepercentage. This could erode your principaland lower your payments.

To emphasize asset growth and a highercharitable deduction, establish a lower trustpayout rate. I you select a higher trust payoutrate, youll receive a greater annual paymentand lower charitable deduction.

You can und a unitrust with cash or, ideall

with long-term, highly appreciated securitieThe charitable deduction youre allowed isbased on the air market value o the asse(even though you may have purchased them

or much less), the payout rate you choosethe number o individual bene ciaries youspeci y, and the age o the bene ciaries oterm o years the trust is established. Your legal and nancial planning counsel can he you assess the options best suited to yoursituation.

Pr l f c

f r rs lf r r bene ciaries.

Make a signi cantc r l g f .

Hedge against in ation:c cr s f

ss s gr w l .

S s s.

a c p lg s w r g l

ss s s l .

R l z c r l c .

i cr s c c r g l w l ss s.

m k lc r s f l k .

Example: Mrs. Vanderbeek, age 66, creates a 5%charitable remainder unitrust(payments to be madequarterly) with herself assole bene ciary and GrandRapids CommunityFoundation as the charitable

remainderman. She fundsit with stock valued at$300,000 (purchased yearsago for $30,000) that waspaying annual dividends ofjust $6,000. Mrs. Vanderbeek

realizes a substantialcharitable deduction andavoids capital gains tax. Hercurrent annual income willimmediately increase morethan twofold. As the assetsin the unitrust grow and arerevalued annually, her annual

income will increase as well.She can always add to hertrust at any time. After shedies, the trust assets will goto Grand Rapids CommunityFoundation. With the

unitrust, Mrs. Vanderbeekreceives a lifetime income,takes advantage of taxbene ts, and, after herdeath, establishes anunrestricted legacy fund thatwill carry her name or thename of a loved one in

perpetuity.

Varia Paym ts: Charita R mai d r U itrust

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27/32

Like many Grand Rapids

Community Foundationbenefactors, Ma D ri g has been a lifelong residentof Grand Rapids. Max hasseen the challenges facedby diverse local charitiesto answer the needs of agrowing community.

I really wanted to givesomething back to this

community, said Max, astockbroker for more than40 years. Thats why itwas especially meaningfulto establish our charitableremainder unitrust to bene tGrand Rapids CommunityFoundation.

Max and his late wife, Lois,

established their charitableremainder unitrust withappreciated stocks. Theirgift provided an immediatecharitable tax deduction, thusdecreasing their tax liabilityduring a high-income year.Max receives income duringretirement, and as the trustsassets grow in value, the trustwill act as a hedge against

in ation. Max and Lois werealso able to make a muchlarger gift to Grand RapidsCommunity Foundationbecause they avoided payingcapital gains taxes.

Through their charitableremainder unitrust, theDoerings generosity willcontinue to bene t the

community that hadcontributed to their ownprosperity.

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RemaindeR inteReStin ReSidenCe oR FaRm

Improve your cash ow.

m k s s l g f Gr R p s C

F w l r gl f s f pr p r .

R l z c r l c .

a c p l g s .

e j r f r lc p s .

A gi t o a remainder interest in a personalresidence or arm allows you to continue tooccupy the residence or operate the arm

without disruption. You get an income taxcharitable deduction or the present value o the remainder interest. In computing thisvalue, depreciation may be taken into account.This gi t permits you to avoid any potentialcapital gain tax on the built-in appreciation.

In contrast, should the same gi t be madeto a unitrust, you must give up possessiono the property. But a gi t o a remainder

interest provides a deduction that rees uptax dollars into spendable income withoutcausing any disruption in li estyle. Taxes,insurance and normal maintenance remain your responsibility. You will be entitled toadditional deductions upon makingsubsequent capital improvements.

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Purpose Grand Rapids Community Foundation makes grants to nonpro torganizations throughout Kent County,supporting arts and culture, education,community development, environmentalpreservation, health and human services. Weseek to serve the community with leadership

that encourages collaboration, demandsaccountability, values diversity, promotes justice, supports prevention and advancessystemic solutions to community problems.

Leadership Grand Rapids Community Foundation is governed by an elected12-member volunteer Board o Trustees.Trustees serve one or two our-year terms.

Financial Management Grand Rapids

Community Foundation manages itsinvestments and its spending by closely adhering to policies developed by volunteercommittees and volunteer leaders andrecognized experts in nancial matters. Theinvestment policy is designed to produce atotal return that exceeds the rate o infationby at least 5% annually. The spending policy,which allows us to grant 5% o the averagemarket value balance over the past our years, allows grantmaking to continue at a

relatively stable rate despite variations in theinvestment market.

HistoryFounded in 1922 , Grand RapidsCommunity Foundation was one o the rscommunity oundations in the United Stateand the rst in Michigan. Like other commun

oundations, it is a public charity, charteredsa eguard the broad interests o the entirecommunity it serves.

Services The development sta at GranRapids Community Foundation is availableto help you de ne your philanthropic goals,discuss your charitable plans or evaluategiving options. We will work with you and your tax, legal and/or nancial planningcounsel to come up with the best plan or your situation. For more in ormation or toset up an appointment, call 616.454.1751 .

n t : Th amp s us d thr ugh ut this i ustrat p t tia ta c s qu c s f varigift pti s. Y ur particu ar situati maydiff r. P as ca th C mmu ity F u datiat 616.454.1751 t ar m r .

Since 1922, Gr R p s C F hasworked to build this communitys permanent endowment andlead the community in strengthening the lives of its people.

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C Your

F Your


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F r r f r , c ll 616.454.1751www.grf . rg

Guide for Giving

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