COMMUNITY  FOUNDATION  OF  THE  FOX  RIVER  VALLEY
Council of Professional Advisors
MEMORANDUM 
 
June, 2013

 

Appreciate the

Appreciated Asset

 

Today's philanthropists are becoming more creative, more savvy, and more efficient.  Donors now look for opportunities to maximize their return on investment (ROI), collaborate with other funding sources, or find matching gift opportunities before they make a gift to their favorite charity.  And if they don't like what the see, there are plenty of other organizations willing to accept the challenge of satisfying the donors' needs. (See "The [New] Science of Giving" below)

 

Organizations such as Charity Navigator  were established with the purpose of helping donors find dependable charitable organizations through a rating system.  Donors now give to organizations with the "highest rating" - organizations that collaborate with supplemental organizations - rather than the organizations they always gave to.

 

In addition to re-evaluating the "why we give", today's philanthropists are equally re-evaluating the "how we give". 

 

Last week the Dow Jones Industrial Average closed at yet another record high; closing May up nearly 90% from May, 2009.  With the markets fully rebounding from the nightmares of 2008, your clients are finding themselves again with significant asset appreciation.  At some point they (or their heirs) will have a hefty capital gains tax due, unless you suggest they donate those appreciated assets to an efficient, dependable organization such as the Community Foundation of the Fox River Valley!

 

Do you have a charitably inclined client that would like to make a difference in their community but may not have the "cash" to do so?  What if that client knew they could donate low-basis stock to the community foundation, establish an endowment fund in their name, and support their favorite charities in perpetuity - all while not having to pay capital gains tax on the appreciated value of the stock?  Sounds like a win-win-win scenario.

 

Next time you meet with a charitably inclined client, consider having a  conversation with them about making a charitable gift of appreciated assets.  These clients are looking for opportunities to make efficient, high-impact gifts, and they will appreciate your interest in their philanthropy.

  

Thanks for all you do to help raise the quality of life for the residents of the Fox River Valley!
  

       

 

 

 

 

Jeff Hartman

Director of Development

jhartman@CommunityFoundationFRV.org 

  

"The New Science of Giving"

A young Houston couple is planning to give away $4 billion-but only to projects that prove they are worth it.  Can they redefine the world of philanthropy?

By Brad Reagan   May 17, 2013   www.wsj.com

 

Like any popular food writer, Gary Taubes gets more than his share of e-mails about his work. So he didn't give it much thought one day two years ago when he got a five-line comment about a podcast he'd given the week before. It was plainly signed "John."

 

The man was intrigued by Taubes's theories on why people get fat-more specifically, the food writer's argument that most of the science on obesity is either badly flawed or inconclusive. What was needed, Taubes had said, was a comprehensive experiment that can answer some of the key questions about how our bodies process food. The problem is that such a study is hugely expensive. "From the little I know about the science of nutrition, your study makes a lot of sense," the listener wrote, adding that he ran a foundation focused on public policy.

  
Taubes noticed that the full name in the email was John Arnold, and a quick Google search turned up a curious figure under that name: a wunderkind natural-gas trader at Enron who later founded his own hedge fund. The fund was secretive-little-known in its hometown, Houston, much less the rest of the country-but legendary in hedge-fund circles for its mega-returns. It was starting to get interesting.

 

Click Here To Read The Entire Article!

 

2012 Center of Philanthropy at Indiana University
 Advisor Spotlight!
 
Rick L. Law
Law Elder Law, LLP

 

  Estate and Healthcare Planning
is the human drama!

 

My decision to start Law Elder Law, LLP began with a phone call to my law office in the year 2000. There was panic in the woman's voice as she said, "My husband has just been diagnosed with Alzheimer's disease. Am I going to lose my home, or will we lose everything?" I was an experienced estate planning attorney at the time, but did not know the answers to her questions.  She wanted to know how to get long-term care for her husband, protect her home, and have enough retirement assets to live in her neighborhood. I promised to find the answers. My life suddenly had a whole new direction. Finding those answers led to the creation of a law firm whose practice is focused on the issues of estate planning, asset protection, aging issues, veteran benefits, and end of life decision making.

 

The firm is known as Law Elder Law and Estate Planning Center with a regional presence in the Chicago metropolitan area. Law Elder Law, LLP has five full time attorneys and an outstanding support staff. As an organization, we work as a team to deliver first class services to our clients on time - every time and exactly as promised. To the extent legally possible, our mission to our client is to provide peace of mind solutions to protect everything that they own and everyone that they love. This is how we serve our friends, neighbors, and community.

 

Click Here to View Rick Law's LinkedIn Page

  

The community foundation is grateful to Rick for his continuous championing of philanthropy - both in personal and professional practice!

 

 

 

    

 

"Half of Americans Say

Giving Is Best Part of Wealth"

 

May 21, 2013 | Holly Hall

 

Giving money away to good causes is the most satisfying part of life for at least half of America's millionaires and billionaires, according to a survey released Tuesday.

 

Philanthropy ranked highest for a bigger share of the rich than the possessions and lifestyle that come with wealth, according to the study of 711 people with at least $3-million in assets beyond their home.

 

Young rich people were more likely than others to cite philanthropy as the best part of wealth. Nearly 7 in 10 people ages 18 to 32 cited philanthropy as their top pleasure, while just 35 percent of those over 68 felt that way.

 

About 76 percent of the wealthy said that supporting charities has a positive influence on society; 80 percent said the same thing about volunteering.

 

People's top reasons for giving, according to the study released by U.S. Trust, a subsidiary of Bank of America:

  • About 80 percent cited "creating a positive impact on issues or causes while still alive." 
     
  • About 54 percent listed "setting an example for family members."
     
  • About 38 percent cited "tax considerations such as estate or income taxes."
  • About 25 percent cited "the ability to define their legacy."

  

Click Here to Read the Entire Article From The Chronicle of Philanthropy

 

Interested in learning more about the Community

Foundation and the services it can provide to your charitable clients?  How about inviting a few of your clients to a breakfast or wine tasting?  

 

Show your clients that you are a broad based, informed advisor interested in all aspects of their financial planning-and let the Community Foundation do all the work! 

 

Contact us today to schedule a brief presentation at your next staff meeting,

or an after hours wine and cheese pairing.  We will coordinate all of the logistics and you will receive all the benefits. 

 

Your clients will thank you knowing that you are concerned about all aspects of their financial well-being!

 

 

 

We'd Love To Hear From You!

 

Do you have ideas for upcoming editions of the

Council of Professional Advisors MEMORANDUM?

 

Would you like to write an article on

relative legislation or philanthropy? 

 

Feel free to contact me at jhartman@communityfoundationfrv.org

or 630-896-7800 with any feedback you have

on this e-newsletter. 

 
   

 

 

 

111 West Downer Place, Suite 312
Aurora, IL 60506
630-896-7800