Securing Our Future

The power of giving together

Securing Our Future

Surprising wealth transfer in next 50 years

$53 trillion in United States

$531 Billion in Iowa

$??? Locally

Surprising wealth: Iowa

$ 6.1 billion county-wide over 50 years

$314,000 per household

Washington County, IowaPopulation: 21,529 (2006 Estimate U.S. Census)

• For generations, people lived entire livesclose to their birthplace

• Quad Cities wealth passed from generation to generation, but stayed in the Quad Cities

Yesterday

COMMUNITY WEALTH

• Many of the next generation no longerlive in our community

• Once the wealth leaves our community,it will never return

Today

COMMUNITY WEALTH

Three beneficiaries

Taxes CommunityHeirs

PASSING WEALTH FROM ONE GENERATION TO THE NEXT

Secure Our Future

5%

Invest 5% of our wealth asa legacy for future generations

INCREASING OUR COMMUNITY’S SHARE

Washington County

$305 million in 50 years

If just 5% is ENDOWED for future generations

$38 million in 10 years

#’s reflect Washington County Wealth Transfer Estimates

$34.3 million at 50 years

5% GRANTED annually to future generations

$2.1 million at 10 years

Washington County has a robust community endowment and a secure future; or,

LOOKING AHEAD

Two possible scenarios

Much of Washington County’s wealth has been transferred to communities in California, Arizona, Texas and beyond.

6+ TIMES

One gift, many generations

YEAR 15

$100,000 in cumulative grants and services

$158,000 balance

YEAR 25

$200,000 in cumulative grants and services

$213,000 balance

assumes 5% annual payout and 8.5% rate of return

Initial gift has been invested: 1 TIME 2 TIMES

YEAR 50

$625,000 in cumulative grants and services

$455,000 balance

YEAR 1

Establish your Family Fund

$100,000 gift

LOOKING AHEAD

Remember your heirs and tax obligations

The plan: Securing Our Future

Give to your community for good… forever

Home $150,000

Retirement assets $100,000

Savings and investments$100,000

Life insurance policies $50,000

Total $400,000

5% plan $20,000

Janis MacLeish

SECURING OUR FUTURE

# of Years

Fund Value

Annual Grant

Amount

Total Grants

Paid Out

10 $32,474 $1,582 $14,101

25 $48,074 $2,342 $43,537

50 $92,446 $4,503 $127,256

The Blakes

Homes $500,000

Retirement assets $1,000,000

Savings and investments$500,000

Life insurance policies $500,000

Business $2,500,000

Total $5,000,000

5% plan $250,000

SECURING OUR FUTURE

# of Years

Fund Value

Annual Grant

Amount

Total Grants Paid

Out

10 $324,735 $15,818 $141,010

25 $480,744 $23,417 $435,366

50 $924,459 $45,030 $1,272,564

Homes $300,000

Retirement assets $150,000

Savings and investments $ 150,000

Life insurance policies $50,000

Total $650,000

50% plan $325,000

SECURING OUR FUTURE

The Smiths

# of Years

Fund Value

Annual Grant

Amount

Total Grants

Paid Out

10 $487,103 $23,726 $211,515

25 $721,116 $35,125 $653,049

50 $1,386,689 $67,545 $1,998,846

Gift of Retirement Assets $100,000

Income Tax Avoided $35,000

Net Cost of Gift to Heirs $65,000

SECURING OUR FUTURE

Don’t forget about taxes

Gift of Retirement Assets $100,000

Income Tax Avoided $35,000

Estate Tax Avoided $45,000

Net Cost of Gift to Heirs $35,750

SECURING OUR FUTURE

Don’t forget about taxes…

The payoff

1. Permanent legacy for donor

2. Source of pride for heirs

3. Stronger community for all

SECURING OUR FUTURE

1. Permanent legacy

Endowed named fund

Targeting causes you care about most

Grants awarded in the name of your fund for generations to come

SECURING OUR FUTURE

2. Source of pride

Give back to your community

Model values for the next generation

Honor family heritage

SECURING OUR FUTURE

3. Stronger community

SECURING OUR FUTURE

Enrich education · Safeguard health ·

Improve neighborhoods · Cultivate arts ·

Protect environment · Strengthen families

Causes that move you

Charities that touch your life

GIVE THROUGH YOUR COMMUNITY FOUNDATION

Option to designate a local nonprofit through the Community Foundation of Washington County

Securing Our Future: options

We accept a wide variety of assets.

Outright GiftsBequest by Will Beneficiary DesignationLocal Community Impact Fund Charitable Gift AnnuityCharitable Remainder TrustCharitable Lead TrustLife Estate Contract

GIVE THROUGH YOUR COMMUNITY FOUNDATION

Three easy giving strategies

Give highly appreciated assets during your lifetime

Give retirement assets throughyour estate

Designate the Community Foundation as an insurance policy or retirement account beneficiary

GIVE THROUGH YOUR COMMUNITY FOUNDATION

IRA $600,000

45% Federal Estate Tax on IRA ($270,000)

Balance as Income $330,000

35% Federal Income Tax Bracket (on $330,000) ($115,500)

Net Distributed to Heirs $214,500

OR Leave $600,000 in a charitable fund for your children to direct for the benefit of the community.

SECURING OUR FUTURE

IRA’s in a Large Estate

First Child

Endowed Fund $200,000

Annual

Distribution $10,000

SECURING OUR FUTURE

IRA’s in a Large Estate

Second Child

Endowed Fund $200,000

Annual

Distribution $10,000

Third Child

Endowed Fund $200,000

Annual

Distribution $10,000

Family Endowed Fund

Endowed Funds $600,000

Total Annual Distributions $30,000

SECURING OUR FUTURE

IRA’s in a Large Estate

Total Charitable Grants Made

Balance of Endowed Fund

Amount Available for Annual Granting

Beginning 0 $600,000 $30,000

Year 15 $591,984 $934,780 $45,378

Year 50 $3,383,906 $2,630,344 $127,687

Step 1: Discuss with Family

Step 2: Sign Family Fund Agreement with CFGRB

Step 3: Change IRA Beneficiary to Family Charitable Fund at CFWC

Step 4: Accept Membership in the Legacy Society

SECURING OUR FUTURE

IRA’s in a Large Estate

Four Easy Steps

Everyone can be a philanthropist

1060 West Monroe St. Washington, IA 52353

Telephone: 319-653-2265