Smith County Community Foundation

INSPIREINVESTENRICH2015-2016 Annual Report

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INSPIRE·INVEST·ENRICHSmith County Community Foundation inspires the community to support local charities and to celebrate philanthropy through a pool of funds, responsibly invested and maintained. By providing donor services and flexible charitable giving, the Community Foundation helps donors support all their passions & causes.

Smith County Community Foundation inspires the community to support local charities and to celebrate philanthropy through a pool of funds, responsibly invested and maintained. By providing donor services and flexible charitable giving, the Community Foundation helps donors support all their passions & causes.

Our mission is to build permanant endowment fundsand meet charitable needs.

TABLE OF CONTENTS4 GIVE NOW GIVE LATER

6 DONORS & MEMORIALS

8 FOUNDING DONORS

9 FUNDS & GRANTS

11 KENSINGTON SENIOR CENTER GRANT

12 HANSEN PARTNERSHIP

13 FOUNDATION FINANCE

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LETTER FROM THE DIRECTORInspire, Invest, Enrich. What an appropriate theme for 2016 for the Smith County Community Foundation. Because generous donors like you have been inspired to donate, the Foundation has been able to invest your money which enabled the Board of Directors to enrich the work of many not-for-profit entities in Smith County.

SCCF dollars were enhanced by two generous $50,000 grants from the Dane G. Hansen Foundation. Together these funds made it possible to support several large projects and many smaller projects in our Smith County communities.

Many hours of volunteer labor are involved in helping projects utilizing grant money become a reality. The grant awarded to the Gaylord Fire Department is one such example. A number of parents and teachers volunteered their expertise to get the Smart Boards installed at Smith Center Elementary School.

Donations large or small, monetary or other are enabling Smith County to remain strong and grow. Your continued support will help many more good things to happen.

Joan NechDirector

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GIVE NOW

The Community Foundation makes it easy for you to give: both to start your own charitable fund and to support an existing fund held at the Foundation. Whether you’re donating cash or complex assets, we will work diligently with you to ensure we achieve the greatest benefit for you and the charitable causes you believe in.

CASH GIFTS, also payable by check/credit card, are simple to make, create immediate impact, and are easily earmarked to support your favorite charitable organization.

AGRICULTURAL COMMODITY gifts may provide significant income tax savings to a producer. Because the commodity is gifted, no revenue is recognized, and the cost of production may still be deducted as a business expense.

STOCKS, BONDS & MUTUAL FUNDS can translate to a charitable deduction for the current market value of your asset, even if you bought it for far less, and may help you avoid paying capital gains tax.

CLOSELY HELD STOCK gifts offer you a charitable deduction for their appraised fair market value and may help you avoid paying related capital gains tax.

REAL ESTATE gifts of home, business or land offer an income tax deduction for 100% of the fair market value of real estate held for more than one year. In addition, the capital gains taxes due, if the property had been sold, are bypassed when the real estate is gifted. The outright gift of the property reduces your taxable estate.

PRIVATE FOUNDATION CONVERSION can help you avoid burdensome, costly administration while continuing your charitable purpose. The foundation’s 501(c)(3) status results in greater tax benefits and no mandatory payouts.

When is the best time to make agift to charity?

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GIVE LATER

The Community Foundation makes it easy for you to give: both to start your own charitable fund and to support an existing fund held at the Foundation. Whether you’re donating cash or complex assets, we will work diligently with you to ensure we achieve the greatest benefit for you and the charitable causes you believe in.

BEQUESTS left via a will or trust can help you reduce your estate taxes while supporting your community in a permanent, public way.

CHARITABLE GIFT ANNUITIES offer you stable, secure income while giving you an immediate tax deduction for a portion of your gift.

CHARITABLE LEAD TRUSTS may enable you to transfer appreciating assets to family tax-free while making gifts to your fund in the interim.

CHARITABLE REMAINDER TRUSTS pay you income for life while offering you an immediate tax deduction for a portion of your gift. You can make additional gifts to the trust as circumstances allow.

CHARITABLE REMAINDER ANNUITY TRUSTS offer you predictable income and an immediate tax deduction for a portion of your gift. They are invested and managed separately, and you avoid all capital gains tax on any appreciated assets you contribute to them. They also reduce your estate tax liability.

LIFE INSURANCE allows you to make a significant charitable impact at very little cost. Name your fund as a beneficiary and give later. Donate an existing policy and take an immediate tax deduction.

RETIREMENT PLANS, when passed to an heir, are quickly depleted by double taxation. Name your fund as the beneficiary and avoid taxes, leave more to your family, and preserve your hard-earned assets for the good of your community.

When is the best time to make agift to charity?

Need help with your charitable estate plan? Attorney John Griffin with Stewardship Counseling, LLC, provides free estate planning services once a month through the Greater Salina Community Foundation. Call for more information 785-823-1800.

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INSPIREOne way the Smith County Community Foundation achieves its mission is to inspire and enable donors to fulfill their charitable desires. The Foundation connects donors’ passions to causes and charities in this community and beyond.2015-2016 DONORSRoger & Janice AllenRobert Arms D.D.S.Rondey & Belinda ArnoldJohn & Andrea Atkinson M.D.Debbie AtwoodRhonda AtwoodG. C. & Judith AyresGlen BaetzJoe & Arloa BarnesLoretta BeckmannArt & Linda BefortEverett & Bonnie BenoitGeorge & Mary Ruth BensonKyle Bienhoff & Morgan GaubyStanley and Carolyn BillingsEvelyn BockSherry BockNorman BoxumJack & Jan BradyBraun Farm & Ranch LLCHarlan BurkheadArloa ByleveldCarl & Roma CaldwellJames & Connie CampbellJack & Janet CarlsonJames & Patricia CarlsonClass of 1956Brad & Karen ColeKaren ColeCarolyn Ruth CurtisJoe & Esther DelimontArden & Lynne DevlinBrend & Linda DoaneKeith & Marsha DoaneGuy DresserDouglas & Paula DrummGeorge & Sherri Eakin

Evangelical Free ChurchDemetre & Debra EvangelidisJohnnie & Denise FieneMarlene FitzpatrickBob and Roma FlynnGary & Brenda FrielingE. W. Geiger IIIDarold & Joyce GrauerholzRussell & Linda GroenendykGuaranty State Bank & Trust Co.James GwennapJeffrey HammerRichard & Ann HamptonDane G. Hansen FoundationRay & Corrina HaresnapeTheron & Lori HaresnapeJonathan & Nahomi HarkavyDarin & Jessica HawkinsRex and Nancy HeadrickDean HenrichsStanley & Cherie HerredsbergDon & Cathi HoltBrandon & Affton HommonTimothy & Stephanie HommonDonald HonrsbyIHC Collectors Club, Kansas Chapter #3Richard JohnsonGayle & Kristi JonesKansas Health FoundationGladys KennedyMichael & Karen KennedyLandMark Implement, Inc.Cathy LanusBrad & Peggy LattaBarb LehmannFred & Karla Littooy

Sharlyn LongMankato Livestock IncAva Lee MaydewGary & Judy McCartneyBarry & Barbara McGrathThomas E. McGurk M.D.Randy & Shirley MerrittMidway Co-op AssociationMelvin MillerNorma MillerMore Buick- ChevroletBruce & Deanna NechJoan NechTerry & Melissa NechCarol NoelJohn Overmiller & Kimberly PhelpsSkip & Marie OvermillerMarilyn ParsonsMichael & Carolyn PattersonThe Peoples BankHazel PettyBurke & Kim PhelpsDennis & Linda PletcherGladys PletcherProducers Agricultural Marketing AssnMichael & Dianna RiceGary & Evelyn RoeDennis Rotman & Mary Fisher- RotmanStephen RussellCandace SageErnest SchlatterJim & Marianne SchlatterMark & Karla SchlatterMarvin or Heather Schlatter

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2015-2016 MEMORIALSEdward “Bud” & Rosalee NechJim SchlatterF. Kent HenrichsRonald RiceLarry SuchslandLeland LehmannMary Lou GilgJean Gedney

Donna AyresCheryl LevinJoe LambertJanice RatliffStanley HooperNathalie CarleLinda Fetters

Arlo & Dixie SchurleBill & Joyce ShivelyMarlin & Ginger SmithJohn & Ella SparksMichael & Janice SpeersThe Srader FoundationLarry and Mary StanleySharon StewartKent & Cindy StonesJohn & Janice Tanis

John & Amy TerrillWayne & Eula ThompsonBradley & Barbara TimmonsDonna Van KootenJean VandehoefRobert & Nancy WahlGayla WalkerLinda WarnerDonald & Doris WiensRichard & Barbara Wilbern

Joe & Garoleen WilsonLarry & Barbara WilsonLisa WilsonCurt & Joni WoltersLowell & Marion WoodSerena WoodsideMike & Susan YoungRita ZeilerTodd & Krisha Zerger

Power of Endowment $10,000 endowed gift

Assumes 5% annual payout with a 1% administrative fee and a 8.5% rate of return

$15,500 endowed fund

$18,600 endowed fund

$35,000 endowed fund

YEAR 1

$51,000 in cumulative grants

$19,000 in cumulative grants

$10,000 in cumulative grants YEAR 15

YEAR 25

YEAR 50

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It was the faith and commitment of our Founders that inspired the creation and growth of the Foundation. The Smith County area was given a vehicle for good, forever.

FOUNDING DONORS

INDIVIDUALS & FAMILIESJulia R. Abbott & FamilyJoe & Arloa BarnesRoger L. & Pamela R. BartaLeona, Joe & Darla ConawayDemetre & Debra EvangelidisGary & Brenda FrielingEugene Kirchhoff & Brad & Karen ColeLinton C. LullMurray D. & Connie J. LullNeola S. MatsonRandy & Shirley MerrittMaxine MeyerJoan NechJohn & Joan OvermillerCurtis & Martha PetersonDuane & Hazel PettyBurke & Kim PhelpsErnest A. & Barbara J. SchlatterJim & Marianne SchlatterR.G. & Eda Jean SheppardJohn & Laura Zabel

BUSINESS ENTITIESCentral Plains Co-opComputer Solutions, Inc.- Galen & Judy LambertFirst National Bank of Smith CenterFrieling Grain Co., Inc.Midway Coop, Inc.Peterson Industries, Inc.The Peoples BankThe Employees of The Peoples BankWiens Harvesting Donald E. & Doris A. Wiens

2015-2016 Board of DirectorsJohn Terrill, ChairmanRandy Merritt, Vice–ChairmanArt BefortMorgan BienhoffKaren ColeTranda Nelssen

Todd SlavikLinda WarnerJohn ZabelFormer board member, Joan Nech, serves as the volunteer Director

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SMITH COUNTY ACTION FUND

The Smith County Community Foundation has been used as a philanthropy investment tool to make communities better for eight years. Since inception, SCCF has awarded over $860,000 in grants that support a broad range of charitable causes-some grants directed by donors and some determined by the board of directors.

FOUNDATION FUNDS & GRANTS

INVEST

USD 110 - $2,000Water supply for sports fieldSmith Center Elementary - $1,933Smart BoardsKensington Lions Club - $4,000Kensington Community Store computer updateCity of Gaylord Fire Department - $1,897Gaylord new fire house completionAmerican Lutheran Church - $1,520Handicap accessible pad

DONOR ADVISED FUNDSCurrent FundsKensington Lions Club FundJohn & Joan Overmiller Family FundBarbara Schlatter Memorial FundSmith Center Rotary Club FundThe Srader Foundation FundGuaranty State Bank & Trust Co for Smith County Fund2015-2016 Grantees-$357,250 total grantsCenter Theater, Inc.Cloud County Community CollegeKensington Community StoreThe People’s Heartland FoundationSmith County Memorial Hospital

FUNDS FOR THE FUNDSCurrent FundsL.C. Kramer & Velda Kramer Fund

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FIELD OF INTEREST FUNDSCurrent FundsDane G. Hansen Community Grant FundHealth Needs of Smith County FundKansas Health Foundation Fund for Smith County2015-2016 Grantees-$1,644 total grantsCity of Gaylord Fire DepartmentCity of KensingtonCenter Theater, Inc.Gaylord Community CenterGaylord Housing AuthorityHeart Choices, Inc.K-State Research & Extension, Post Rock District, OsborneKensington Community/School LibraryThe Peoples Heartland FoundationSmith Center ElementarySmith County Health DepartmentSmith County Memorial Hospital St. John Lutheran ChurchU.S. Center Foundation, Inc.

FOUNDATION FUNDS & GRANTS

ADMINISTRATIVE FUNDSCurrent FundsSmith County Administrative Fund

DESIGNATED FUNDSCurrent FundsThe Dispatch Christian Reformed Church FundKansas Health Foundation Operating Fund for Smith CountyKensington Lions Club Fund for Kensington Senior Community CenterJosias & Elsie Lambert Fund2015-2016 Grantees-$3,267 total grantsUSD 110USD 237 Smith Center

ORGANIZATION FUNDSCurrent FundsHOME Charitable Foundation FundSmith County Memorial Hospital Fund2015-2016 Grantees-$500 total grants

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ENRICH

SENIOR CENTER UPDATEThe Kensington Community & Senior Center was built in 1989, and is a facility with multiple uses for seniors and the community at large. Five days a week it is the nutrition site for seniors serving and delivering much needed meals and provides support services.

To ensure the center could continue to meet the nutrition needs of the community, Cynthia Wahl, Activity Director and Nutrition Site Manager, applied for a grant to make much needed updates.

A $4,400 grant from the Dane G. Hansen Community Grant Fund through SCCF made the renovation to the center possible. The Center was able to purchase new furniture, two large frost-free refrigerators, and a dishwasher. The community pitched in and helped prepare the walls for a fresh coat of paint to enhance the new furniture and appliances.

Through the generosity of inspired donors investing in the Smith County Community Foundation, charities in Smith County and many other locations are able to enrich communities through arts, education, science, spirituality, and countless other missions.

The Keep 5 in Kansas campaign asks every Kansan to consider designating at least 5% of their estate wealth to their local community foundation. By designating as little

as 5% to our communities, we can create a permanent source of funding that will improve our quality of life, ensuring our cities, towns and counties remain great places to live for future generations of Kansans.

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THE FUTURE IS BRIGHTMore than a year ago, the Smith County Community Foundation (SCCF) was given a $100,000 grant from the Dane G. Hansen Foundation to distribute to Smith County charitable projects. This grant established the Dane G. Hansen Community Grant Fund. From that time, the Hansen Foundation has only increased their partnership with SCCF.

Through the Dane G. Hansen Community Grant Fund, a component fund at SCCF, the SCCF Board of Directors awarded over $58,000 to charities across Smith County. Some examples of projects include emergency equipment for Gaylord Community Center, Women in Agriculture program hosted by Post Rock Extension District, Home on the Range site plan, and breastfeeding initiative through Smith Co. Health Department.

Another program initiated by the Hansen Foundation is an opportunity for the SCCF to increase the Smith County Action Fund, an unrestricted community grant fund. Every dollar given to the Action Fund in November 2016 by donors will earn an additional dollar from the Hansen Foundation. By supporting the Action Fund donors are ensuring that local charitable needs are being met now and in the future.

The final phase introduced in the summer was Dane G. Hansen Community Clean-Up Fund. This fund offers residents the opportunity to beautify their communities by removing trash and overgrowth. More information can be found at www.smithcountycommunityfoundation.org.

The Dane G. Hansen Foundation was established as a charitable organization in 1965 through the generous donation of Dane G. Hansen. Hansen was an exceptional Kansas citizen who had a personal interest in promoting education and helping make communities in northwest Kansas better places to live.

HANSEN PARTNERSHIP

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9 3

18

15

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30

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Donor Advised- 9%

Administrative- 3%

Designated - 18%

Field of Interest- 15%

Organization- 8%

Unrestricted- 30%

Pass-Through-17%

Investment InfoGSCF INVESTMENT PORFOLIO

SCCF ASSETS BY TYPE

SCCF TOTAL ASSETS

The Foundation believes the best long-term performance will be achieved through a balanced portfolio consisting of 75% equities and 25% fixed income and cash.As an affiliate of the Greater Salina Community Foundation (GSCF), the funds at the Smith County Community Foundation are pooled together with all the funds held by GSCF and their affiliates. The funds are invested with Vanguard and governed by a finance committee at GSCF.We are confident in our performance and rate well when compared to other investment pools. Our 5 year annualized return is 7.31% and our 10 year annualized return is 6.09%.

2nd Quarter 2016 + 2.10%

Trailing 1 Year - 0.30%

Trailing 3 Years +23.34% Absolute + 7.24% Annualized

Trailing 5 Years +42.31% Absolute + 7.31% Annualized

Trailing 10 Years +80.59% Absolute + 6.09% Annualized

$885,874

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

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REVENUESGifts & Bequests-Principal $70,049.92Gifts & Bequests-Income $163,351.00Dividend Income $15,064.96Realized Gain on Investments $318.35Unrealized Gain on Investments $(10,688.52)

Total Revenues $238,095.71TRANSFERSInterfund Gifts $(3,606.27)Interfund Grants $2,483.00

Total Transfers $(1,123.27)EXPENSESGrants Authorized $438,269.29Foundation Administrative Contribution $10,403.57Operating Expenses $1,364.79

Total Expenses $450,037.65NET ACTIVITY $(210,818.67)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF ACTIVITIES

ASSETSWells Fargo CMM $149,488.88Pooled Investment– Vanguard $736,385.52

Total Assets $885,874.40LIABILITIESTotal Liabilities $0FUND BALANCESFund Balance—Principal $783,243.17Fund Balance—Income $(46,266.07)Fund Balance—Spendable $148,897.30

Total Fund Balances $885,874.40TOTAL LIABILITIES & FUND BALANCES $885,874.40

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INSPIREINVESTENRICH

What will your

legacy be?

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P.O. Box 116Smith Center, KS 66967785-476-7538www.smithcountycommunityfoundation.orgsmithcounty@gscf.org