Council of Professional Advisors
April, 2013

It is my pleasure to present to you the Community Foundation of the Fox River Valley's first edition of the Council of Professional Advisors Memorandum.


An extension of the Community Foundation's current MEMORANDUM, this e-newsletter is published exclusively for the benefit of the professional advisor community.


This monthly publication will provide brief updates on various topics related to philanthropy, charitable giving, and estate planning.  It will also - from time to time - highlight a local advisor, as well as make you aware of upcoming events and continuing education opportunities.


We are happy to provide this inaugural e-newsletter to all professional advisors within our database.  Future editions of this e-newsletter will be available to Council of Professional Advisor members as a benefit for their membership.  For more information on the Council of Professional Advisors... 

section of our website by clicking here!
I would also like to take this opportunity to introduce myself to you.  I joined the Community Foundation in February as its first director of development.  Previously, I worked with The DuPage Community Foundation as its director of development.  My wife, Erin, and I are both from Naperville, and currently live in Yorkville with our daughter.  I look forward to working with you - the professional advisor community - to promote the community foundation and philanthropy throughout the Fox River Valley.
Thanks again for all you do for the community foundation.  I look forward to working with you to provide effective and rewarding ways for your clients to fulfill their charitable objectives! 




Jeff Hartman

Director of Development 


 Ten Reasons To Discuss The Community Foundation With

Your Clients



Creating Personal Charitable Legacies 

 We help donors develop personal charitable legacies that reflect their philanthropic objectives. We listen carefully to each donor and suggest ways to fulfill their wishes.


Perpetuating Family Names 
Many individuals are seeking meaningful ways to perpetuate their family name.

That goal is easily accomplished through the  creation of a permanent fund within the Foundation.


Continuing Support of Favorite Charities
We each have favorite charities we have supported during our lifetimes. Through an endowment fund, a donor's thoughtfulness will extend to future generations.


Protecting Donor Investments
As a third-party, we sit on the same side of the table as our donors.

We safeguard each fund entrusted to us and assure donors that their funds

will be administered in accordance with their objectives.


Ensuring Permanent Relative Purposes 
If the purpose(s) for which a fund was established becomes obsolete or impossible to fulfill, we will identify a relevant charitable beneficiary to match the original intent of the donor.


Providing Charitable Options
Donors have the option of giving to many charitable organizations and causes through one fund. Donors can create permanent funds (endowments) which are administered in perpetuity, or temporary funds (pass-thru) that close upon the fulfillment of their purposes.


Making Charitable Giving Convenient
It often takes less than one hour to create a charitable fund that will last beyond one's lifetime.


Offering Affordable Philanthropic Vehicles
A endowment fund can be created for $10,000. Funds established with less than $10,000 will be designated as endowments once the minimum level is achieved. Through the Community Foundation, permanent philanthropy is within reach of most citizens.


Giving Through A Community Foundation 
Donors give through a Community Foundation, not to a Community Foundation.

We are a unique service provider making it possible for your clients to achieve

their charitable objectives within one organization.


Setting An Example For Future Generations 
There is nothing more meaningful than bequeathing good values to our children and
grandchildren. An endowed fund is a permanent reminder of a past generation's

concern for a future generation's well-being.


The Power of Endowments

After five years, an initial gift of $25,000 will grow to nearly $29,000 with cumulative grants more than $5,300!


Assumes 8% return, 4% grantmaking, and 1% annual fees




November 8, 2012 | Holly Hall


Donor-advised funds last year grew for the first time since 2007, the best year the funds had before the recession took hold.


Using data from 652 organizations, the National Philanthropic Trust examined the performance of the funds, which allow people to set up charitable accounts, take an immediate tax deduction, and channel money to whatever charities they want whenever they want.


Among the Findings:

  • Assets in donor-advised funds grew by $5.5-billion last year, to $37.4-billion, a 17-percent rise and far above the pre-recession increase of $30.6-billion.
  • Contributions to the funds totaled $9.6-billion in 2011, a 10-percent increase.
  • Grants made from the funds last year grew by more than 13 percent, to $7.7-billion.
  • The number of funds also rose to 177,357 accounts, a 4.2-percent increase.

Donor-advised funds now account for more than 3 percent of the total Americans give to charities, the report estimated.


Beating the Stock Market


The robust growth of the funds last year is particularly striking, given the still-struggling American economy, the researchers said.


"If we were a private industry, you'd want to invest with us," said Eileen Heisman, president of the National Philanthropic Trust, an organization that itself manages donor-advised funds.


In 2011, the report noted, the U.S. economy grew by 1.8 percent after inflation, and the Dow Jones industrial average rose by 3 percent but failed to reach its pre-recession level.

Nevertheless, the stock market's improvement since the start of the financial crisis in 2008 has sparked the surge in popularity of donor-advised funds, Ms. Heisman said.

What's more, she says, many sponsors of the funds have attracted more donors by lowering the minimum amount required to open a fund.


Commercial vs. Charity Accounts


The report also compared the performance of the different types of organizations that offer donor-advised funds: 43 commercially sponsored and other national funds such as Fidelity Charitable and the Vanguard Charitable Endowment Program, 373 community foundations, and 236 organizations with a single mission, such as Jewish federations or universities.


National donor-advised funds had more donors, held more assets, and distributed more grant dollars last year than the other two types of funds.


But the average account size was higher at community foundations, which manage some especially large funds, and the single-cause funds distributed more as a percentage of their assets than other funds last year.


Looking ahead, Ms. Heisman predicted that more and more donor-advised funds will be created with real estate, limited partnerships in businesses, art, and other noncash gifts.


A Buffett Rule Worth Following

Oilman Joseph Pew likely didn't expect the charity endowed with his fortune to fund environmentalism and other leftist causes.


By Leslie Lenkowski


In 2011, a research study conducted by Indiana University's Center on Philanthropy revealed that annual charitable gifts from households whose wealth came from their own business or their family's were no different, on average, from the gifts of those who had inherited their wealth. An earlier version of the study, conducted in 2007, before the onset of the recession, found that current-generation business owners and their relatives were giving three times as much as heirs and heiresses did. Far from holding on to every hard-earned cent, in other words, entrepreneurs were as philanthropic as those born into wealth, if not more.

This surprising fact propels "Why Philanthropy Matters," by Zoltan J. Acs, a professor at George Mason University. Mr. Acs has spent his career studying how entrepreneurs operate and what role their business ventures play in the economy. In his new book, he focuses on another kind of contribution they make, one that, he argues, is as essential for prosperity as the products and services they create.


Successful entrepreneurship, he writes, requires a steady stream of innovations. The best places to develop them are privately funded research universities, medical centers and other kinds of institutions-like libraries and laboratories-that are insulated from competitive and political pressure. He cites, among other examples of nurtured innovation, the agricultural advances developed in land-grant universities during the 19th and 20th centuries and the contributions made to the information age by the students and faculty of Stanford University. As important as industrial research may be, the university has become, since the 1980s, "the source of new knowledge to be transferred to the private sector."


Click Here to Read the Entire Article


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 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-





111 West Downer Place, Suite 312
Aurora, IL 60506