Council of Professional Advisors
May, 2013

I received an email last week from the Giving Institute.  Each year since 1955, in conjunction with Indiana University School of Philanthropy, the Giving Institute has published "Giving USA: The Annual Report on Philanthropy in America".  This report has become the 'longest running and most comprehensive report on philanthropy in America.'  It truly sets the standard for analytics on philanthropy and charitable giving.


The newest report, Giving USA 2013, will be out on June 18, and will provide a plethora of data on charitable giving for 2012.   

After receiving this email - and putting a tickler in my outlook for June 18 - I went back and reviewed the Giving USA 2012 report to refresh myself on the data from 2011.  Below is a summary of charitable giving in 2011.
At first glance, one would surmise that individuals gave 73%, or nearly $218 billion to charities in 2011.  Not too shabby!  However, as advisors, you know that bequests come from the estates of individuals.  Also, lets say for a minute that half of the 14% of giving from foundations came from private foundations (the other half might come from university, hospital, community, and other types of foundations).  As advisors, I can assume that you have facilitated a number of private foundations for your clients, and private foundations are started by individuals.  Therefore, I believe a more accurate calculation of the total giving from individuals in 2011 is 88%, or nearly $263 billion!
So what does this mean for the community foundation?  What does this mean for your practice?
We know that individuals and families might have a financial planner, an accountant, an estate planning attorney, or a number of other advisors that guide them through various financial and estate matters.  The community foundation wishes to be the philanthropic advisor, someone who is brought to the table to provide added value to charitable transactions.
Nearly ninety cents of every dollar given to charities in America in 2011 was given by your clients.  The reality is that most of those dollars are given to one's church or alma mater.  Don't get me wrong, one's church and alma mater play a major role in shaping who one becomes in life.  I will forever be grateful to my church and alma mater as, together, they led me to meet a wonderful woman who is now my wife, and also led me to this organization!  However, I can image that a church or alma mater have become the default receptacles for charitable giving simply because clients may not know the full extent of their giving options.
If you have a client who wishes to make a charitable gift during lifetime, or wishes to leave a bequest to an organization they have supported during their lifetime, I encourage you to contact the community foundation.  Through an entirely anonymous and private conversation, we would be happy to discuss your client's charitable intentions and find the most efficient, tax advantageous scenario for 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 


 Using Different Eggs from the Same Basket!


Less than 5% of this nation's wealth is in cash, and 95% is in assets.  Too often when we discuss charitable giving, we discuss giving in terms of cash.  Writing a check or making an online gift with a credit card have become so simple, yet are becoming more and more expensive!


When someone makes a charitable contribution of cash, they feel the effects of that gift immediately; they have less cash in their checking account, or they see a "charge" on their credit card.  Furthermore, these types of gifts can be "expensive".  Writing a $100 check to your favorite charity costs you, the donor, $100.  And, if you don't pay off your credit card each month, that same $100 gift you made on your credit card just cost you more in financing charges.


But what if we suggested our clients make charitable gifts through appreciated assets?


That stock your client bought in 2009 for $25 per share is now worth $50 per share.  If your client gives 100 shares of that stock to their favorite charity, it only cost them $2,500; however, they are making a charitable gift of - and receiving a charitable deduction for - $5,000!  Same goes for your clients "tax deferred retirement accounts".  Over the years these accounts have grown tax free, and now can be given to charity at a higher value!


Consider advising your clients to make gifts of insurance, IRA's, 401k's, real estate, stocks, and other appreciated securities when making lifetime gifts - or bequests - to charitable organizations.  Not only are these gifts "cheaper" for the donor, but often times end up being larger gifts to the recipient organizations...and they make up 95% of your clients total assets!




 Advisor Spotlight!
Ronald M. Hem
Alschuler, Simantz & Hem, LLC


Ron is one of the founding members of Alschuler, Simantz & Hem, LLC.  In addition to his community service to such distinguished organizations as Aurora University (current Chairman), Rush-Copley Hospital (former Chairman), and Aurora Noon Rotary (former President), Ron has been a champion of the community foundation for more than 10 years. 


Ron has referred numerous clients to the community foundation, and has facilitated many bequests from families and individuals that have included the community foundation in their estates.  Ron practices what he preaches and is himself a member of the Foundation's Legacy Society. 


Ron has also provided guidance and counsel to the community foundation; most recently providing clarity to the recent tax legislation that went into effect on January 1, 2013.


Click Here to View Ron's Summary of the revised 2013 Tax Legislation


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




"I Give Millions to Charities.
Here's Why It's Unwise to Limit Tax Breaks"


April 11, 2013 | Earle I. Mack



I have been fortunate enough to have given away millions of dollars to charity over the years. And I've never shied away from asking my peers to do the same.  


Unfortunately, that may all change if Congress or the Obama administration reduces or caps the charitable deduction. 


It's imperative that more independent voices come forward to protest any limits on the value of deduction as soon as possible. We need to keep public pressure on Washington and educate these leaders that capping or reducing the charitable deduction will not hurt millionaires nearly as much as it will devastate charities and the communities served by generous charitable donations.


Along with more than 40 other witnesses, I went to Washington in February to warn the House Ways and Means Committee about the devastating effect reducing the value of the charitable deduction would have on the unique partnership that exists between nonprofits and government­-which does so much to make our communities healthier and stronger. 


I was the only witness unaffiliated with a charitable organization. I appeared as a donor who has financially supported numerous nonprofit institutions and served as a board chairman, trustee, and volunteer.


It is my experience that when I approach others asking them to donate large sums, one of the first things they ask me is "Is it a 501(c)(3) and is it tax-deductible?" 


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



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relative legislation or philanthropy? 


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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!





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