August Foundation News

It’s hard to believe August is here. The kids are back in school and that means the hectic (but oh-so-lovely) fall season is just around the corner. The team at the Community Foundation is here to support you as you plan for end-of-the-year giving, the holidays, fundraising events, and updating any charitable giving plans. It's our pleasure to keep you up to date on issues and ideas that can help you make the most of your philanthropy.

August 17 is National Nonprofit Day

On August 17, National Nonprofit Day (NND) recognizes the goals and positive impacts nonprofits have on communities and the world.

#NationalNonprofitDay

Somewhere a volunteer reads to school children. At the same time, a patient receives steady medication. A lawyer provides legal services for low-income individuals. A lost soul's life is remembered with dignity, thanks to a nonprofit funeral home. Elsewhere, a first-time homebuyer moves into his own home. NND reminds us that each of these scenes is possible thanks to the nonprofit sector. It's the result of the work performed by capable people and organizations.

Through nonprofits, awareness, research, and aid reach the people who need it most. Nonprofits also generate tremendous benefits to their surrounding communities and the broader world, just like the Community Foundation of Northwest Mississippi.


DONOR EDUCATION

We’re already hearing from many advisors that they expect the next few months to be busy as clients reach out with questions about possible tax law changes and how charitable giving can fit into estate and financial planning strategies. 


Here are a few examples of the many ways the Community Foundation can help serve your philanthropic goals:

 

  • We’re constantly on the lookout for ways to help you leave a bequest to favorite causes. That’s the case all year round, and especially during national Make-A-Will Month. Now is a great time to talk to your advisors about spending practices while still supporting local charities.   

 

  • Structuring estate and financial plans to leave just the “right” amount to children can be tough. The Community Foundation can help your advisors incorporate charitable giving into the plans you are developing for parents who want to provide for their kids but don’t want to demotivate children’s own quest for financial independence. 

 

  • Gifts of real estate, like other long-term capital assets, to a fund at the Community Foundation can work wonders for charitable causes you support and be extremely tax efficient. A donor is typically eligible for a charitable deduction based on the fair market value of the property. Because the Community Foundation is a public charity, when we sell the donated property, the proceeds will flow into the fund free from capital gains tax. Please reach out to the Community Foundation and your advisors to learn more about each critically important step in the process and how to comply with tax laws. 


  • A donor-advised fund established at the Community Foundation is in most cases a far better fit for you than a donor-advised fund set up at a national financial institution. The Community Foundation offers much broader services, more personal attention, and deeper connections to the nonprofits whose work is essential to effecting positive community change. 


August is Make-A-Will Month

August is national Make-A-Will month and a great time to check in on key components of your estate plan. The reality, as we know, is that all property remaining at death has to go somewhere. And as heartbreaking as it may be for parents of grown children, it’s usually a mistake to assume that you should automatically leave the family home to children in your will or trust. Indeed, your children may not be nearly as attached to your things as you are, and the reality is that they may not want any of them–including the house. 

 

But don’t let this get you down. When one door closes, another door opens. It may be time to explore giving your personal residence to charity. The Community Foundation can help! 

 

Reach out anytime to discuss the possibilities with the Community Foundation team. As we begin the conversation, we’ll evaluate which type of gift format might be a good fit for your situation. For example: 

 

  • You can certainly deed your house to the Community Foundation outright. This might be a solid option if you are planning to sell the house in the near future to downsize or move to a retirement community. This is an especially good option if you do not need to rely on the sale proceeds to fund either your next move or your ongoing living expenses. And, if the total value of all your assets is in a range where you could be subject to estate tax, transferring your house to the Community Foundation takes the home’s value out of your estate, tax free, because of the charitable deduction. The Community Foundation will likely list the property shortly after you make the gift. Then, the proceeds from the sale will flow into your donor-advised or other type of fund to help you fulfill your charitable goals.   

 

  • If you’re hoping to get a little money from the sale of your residence, but you don’t need the full amount of its value, you can explore what’s known as a bargain sale. This transaction allows you to sell the property to the Community Foundation at a price below market value, allowing you to receive some income while still making a charitable contribution.

 

  • Another option is to transfer your residence using a charitable remainder trust. You’d transfer title to the property to the trust, and the trust would provide you with income for the rest of your life (or a term of years). Any remaining value would flow to your fund at the Community Foundation to support the causes you care about. You’d also be eligible for an upfront income tax deduction based on the present value of the amount projected to pass to your charitable fund in the future. 

 

If you’re interested in giving your residence to your fund at the Community Foundation, our team will work closely with you and your advisors to carefully evaluate the opportunities and walk through all of the steps in the process. For example, it’s important to look at factors such as valuation (which must be documented with a qualified appraisal), whether there’s a mortgage on the property that would make a gift more challenging, how long you’ve held the property and your cost basis, and ensuring that a sale is not already formally or informally in the works.

Endowments: 5 Fast Facts

What does “endowment” mean?

“Endowment” refers to a designated pool of assets that are invested by the Community Foundation and tracked separately such that a percentage of the assets are distributed each year to support a nonprofit or charitable cause, and the rest of the assets remain invested to grow in perpetuity. 

 

Why is an endowment fund so important to the future?

The assets set aside in an endowment fund produce an income stream that helps support an organization's mission now and in the decades ahead, allowing nonprofits and donors to deliver their mission consistently over time, especially as needs shift and the fundraising environment ebbs and flows. Plus, the growth of the endowment itself can provide increasing levels of support each year. 

 

How can donors stay involved even after they make an endowment gift?

Our team is happy to keep donors informed about the positive change in the community that is occurring thanks to distributions from the endowment fund. We’re happy to continue to keep a donor’s children and grandchildren informed, too, beyond a donor’s lifetime. In this way, a donor’s legacy continues through the generations. 

  

Who decides where the endowment distributions go each year?

As the donor, you recommend distributions from your endowment, which our independent board reviews and approves to ensure they meet your charitable goals. The Community Foundation is dedicated to understanding the region's needs and supporting local charities.

 

How can a donor make an endowment gift?

A donor may transfer cash to an endowment fund. Even better for tax purposes, a donor can transfer appreciated stock or real estate. A donor can also work with estate planning and financial advisors to structure a bequest to the endowment fund. Many advisors highly recommend a bequest through an IRA beneficiary designation because of the multiple tax benefits. Related, if a donor is over 70 ½, making a “Qualified Charitable Distribution” from an IRA directly to a designated endowment fund is a very effective charitable planning tool to reduce income tax and, if applicable, also satisfy Required Minimum Distributions.

In the Community

The Community Foundation team travelled to Minneapolis in July for the EMPOWERED: AkoyaGO software training.

Junior Achievement visits Tunica Rotary and Coahoma County

Joe Dulaney, Brenda Smith, Janel Bonds, Leigh Mansberg, and Kara Dulaney.


Junior Achievement spoke to the Tunica Rotary Club about making sure every child is WORLD READY. The pillars of JA are: Entrepreneurship, Work-Readiness, and Financial Literacy. Click here to request a JA program in your school!

Tom Pittman, Stacye Trout, Leigh Mansberg, Keith Fulcher, and Kara Dulaney at The Roost to celebrate Junior Achievement in Coahoma County.

Click here to donate to the Junior Achievement Endowment at the Community Foundation

Noah's Gift: 5K and Scholarship

Noah’s Gift Endowed Fund was established in memory of Noah Costa. Noah was adventuresome, athletic, and had a big heart. After his death at 16, the grant program was established to help teenagers pursue extraordinary experiences.

To help Noah's legacy live on, we invite you to participate in the 5K on October 5 - it's a fun day for the entire family! Or, if you know a teenager ages 13-19, encourage them to apply for a grant for an extraordinary experience they've been dreaming of!


Click here to Register for NG5K Run-Walk-Skate on October 5, 2024
Click here to apply for the Noah's Gift Grant

MedleyFest 2024

The Community Foundation of Northwest Mississippi holds the Medley Jane Morgan Foundation Endowment. Medley Fest 2024 will be October 19, 2024, to honor Medley Jane's legacy and light. Beginning at 5 p.m. doors will open to the public at free admission to socialize. Light snacks and drinks will be for sale and all proceeds will go to Rallying Against Sexual Assault, an organization near and dear to Medley's heart. Finish the evening off with a jam up set from Triple Annie!

Click here to make a gift to the Medley Jane Morgan Endowment at the Community Foundation

Mississippi Alliance for Nonprofits & Philanthropy

The Mississippi Alliance for Nonprofits and Philanthropy toured the state this summer and made a stop in DeSoto County! The series focused on public policy for elected officials and local nonprofits to come together to discuss state and federal public policy issues affecting their work and community.

www.cfnm.org | 662.449.5002 | Text 662.719.1732

Established in 2002 with a generous grant from the Maddox Foundation

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