The Scranton Area Foundation and You

Building Community

tw ahis a community foundation?is a community foundation?

people connected by geography… and to each other

communitycommunity

foundationfoundation

a platform for growth

a platform for building community

foundationfoundationcommunitycommunity

The mission of the Scranton Area Foundation is to enhance the quality of life for all people in Lackawanna County through the development of organized philanthropy.

We are a tax-exempt public charity created by and forthe people of Scranton and Lackawanna County .

Our MissionOur Mission

• The Foundation Serves as a Steward:by developing and managing permanent endowment funds.

• The Foundation Serves as a Grant Maker:

by awarding grants and support to enable the community to respond to emerging and changing needs and opportunities.

• The Foundation Serves as a Charitable Resource:by encouraging and educating donors and providing a flexible vehicle for individual donors, non-profit organizations and the community-at-large.

• The Foundation Serves as a Catalyst:by mobilizing community leadership in response to issues.

Scranton Area FoundationScranton Area Foundation as a community foundationas a community foundationhas three special features.has three special features.

o enpersonalized servicepersonalized service

Personalized servicefeature

one

› Educate people on charitable giving vehicles

› Customize giving approaches to match personal interests and tax planning needs

› Facilitate complex forms of giving

› Share knowledge on community needs

› Offer grantmaking expertise and administrative services

› Help people create personal legacies via named funds

› Offer involvement in recommending uses of a gift

› Provide the option to give anonymously

Creating solutions that fit every situation

t owlocal expertiselocal expertise

› We are a Local organization with local staff andboard members

› We have Knowledge of Lackawanna County community issues, opportunities and resources

› We Monitor our unique community needs…

Local expertisefeature

two

Making a difference where it is needed most

Arts and cultureEconomic developmentEducationEnvironment

HealthHuman servicesRecreationNeighborhoods

› We Gather information and track local agencies and programs

› We Direct grants and resources to appropriate areas

eet rh community leadershipcommunity leadership

› Act as a community catalyst

› Build endowments to ensure grants are always available to support the community

› Support high impact opportunities

› Are governed by leaders with strong ties to our community

› Foster development of new organizations and programs

› Re-direct funds as community needs change

Community leadershipfeature

three

Our business is building community

eet rht ow

o enlocal expertiselocal expertise

personalized servicepersonalized service

community leadershipcommunity leadership

A bit of background.A bit of background.

1914 First U.S. community foundation established in Cleveland, Ohio

today Over 600 community foundations in the United States

› Serving citizens across the nation

› More than $30 billion in assets

› More than $2 billion in local grants each year

› And growing!

1954The Scranton Area Foundation began as a private foundation and in 1988 was designated as a public community foundation.

foundation

facts A brief history

› More than 70 funds

› $19,000,000 in endowed assets

› More than $600,000 annual grants

› Cumulative grants of over $8,000,000

foundation

facts Our vital statistics

The Scranton Area Foundation

Austin J. Burke - Chairman

Kathleen Graff - Vice-Chairman

Thomas C. Capezio – Treasurer

Warren T. Acker

Richard S. Bishop, Esq.

Dr. Edward G. Boehm

Dante A. Cancelli, Esq.

Karen Clifford

L. Peter Frieder, Jr.

Carlene R. Gallo, Esq.

foundation

facts Our board of governors ……involved community leaders

Judith O. Graziano

Cathy Ann Hardaway

George V. Lynett, Esq.

Patrick J. McMahon

Thomas R. Nealon, Esq.

Carlon E. Preate, CPA

James W. Reid, Esq.

Letha Reinheimer

James A. Ross

Walter L. Schautz

William W. Scranton, III

foundation

facts Our board of governors ……involved community leaders

Myer Alperin

Dorrance R. Belin, Esq.

Terry Bonifanti

Venald W. Bovard

Harmar D. Brereton, MD

Paul Browne

The Honorable Robert C. Cordaro

Francis E. Crowley

Catherine Richmond Cullen, Ed. D.

John F. Erhard, DDS

Matthew F. Flynn

Thomas G. Gallagher, Jr.

foundation

facts Our advisory council

Mary Ann LaPorta

Robert N. Lettieri

William R. Lynett

Richard C. Marquardt

Sharon McCrone

Sally O’Brien, Esq.

Jane Oppenheim

Barbara Thomas Norton

Raymond Pilch

Carol Weiss Rubel

Nicholas D. Saccone, DDS

Mary Kay Warner

Sheryl Youngblood, Ph.D.

foundation

facts Our advisory council

Meeting diverse community needs

foundation

facts

Arts and Culture $ 87,450

Public Affairs $299,845

Education $102,470

Environment $ 50,000

Health $237,845

Human Services $270,378

Children/Youth $376,349

Housing $ 80,000

Our grant awards 2000 - Present

foundation

facts

› Youth and teen program funding:

Tomorrow’s Leaders Today

› Health grants:

VNA Hospice

› Environmental issues:

Lackawanna River Corridor Association

› Public Affairs/Community Issues:

Scranton Tomorrow

Our grant examples

Tools for giving.Tools for giving.

Named Funds…… a personal legacy of giving

Donors can establish a fund in their name, in a family’s name, or in the name of any person or organization they wish to honor.

Grants distributed from a donor’s fund are awarded in the name of their fund. This person or organization will always be remembered and linked to good works in our community.

for giving

tools

› Unrestricted Fund

Meeting ever-changing community needs

› Field of Interest Fund

Addressing needs in an important area of community life: arts, aging, at-risk youth...

› Designated Fund

Directing gifts to specific agencies or purposes(e.g., scholarship)

› Donor Advised Fund

Involving donors in the use of their gift

› Supporting Organization

Managing gifts and grants with some similarityto a private foundation

for giving

tools Charitable funds

You can create a named fundin any of these categories.

› Outright Gifts

Give cash, stocks, real estate or other assets

› Bequests

Designate a portion of an estate

› Charitable Lead Trust

Trust pays the community foundation a fixed amount for a number of years and then assets go to beneficiary

› Charitable Remainder Trust

Trust pays beneficiary for life and then assets transfer to community foundation

› Life Estate Contract

Donor transfers home to community foundation and still enjoys use while living

for giving

tools Charitable instruments

We accept a wide variety of assets.

People giving back.People giving back.

The advantages of The advantages of planned givingplanned giving

People giving back

› Preserve assets for children

› Increase support of community

› Assure gift is well managed

Estate planning goals:

giving back

people The advantages of planned giving

› Transferred $1,000,000 inappreciated assets

› $75,000 paid annually to community foundation, for 15 years; establishing afund in their name

› After 15 years, remaining assets transfer to children

› The family meets regularly to recommend charitable distributions

Charitable Lead Trust:

The advantages of planned giving

giving back

people

A quick comparisonConventional CommunityInvestment/ FoundationEstate Plan Trust

Gross amount to heirs at end of 15 years $2,396,558 $1,440,414Less: Federal estate tax (@ 50%) ($1,198,279) ($0)Less: Gift tax adjustment ($0) ($150,000)

Amount to charity — Donor Advised Fund 0 $1,125,000Total family and charitable benefit $1,198,279 $2,415,414

Net amount to heirs $1,198,279 $1,290,414

Initial value of stocks and bonds $1,000,000 $1,000,000Current taxable gift to heirs NA $300,000

The advantages of planned giving

giving back

people

(sample calculation (sample calculation — — for illustration only)for illustration only)

One family’s story

TeachingTeachingcharitable givingcharitable giving

› Opportunity to make charitable decisionsas a family

› Hands-on experience for three children —each can express giving preferences

› Teach financial and community responsibility

› Passing along family “giving values”to next generation

Philanthropic goals:

Teaching charitable givinggiving back

people

› 1994: set up with a gift of $200,000

› 1999: fund has grown to $250,000

› Two times each year the family meets to recommend charitable distributions

› 1998: during the year, distributed more than $12,000 in grants to local community

Donor Advised Fund:

giving back

people Teaching charitable giving

forms of philanthropy in the United States today.

fastest-growingCommunity foundations are among the

t ne reasonsreasonspeople choose to givethrough community foundations

reasonsten People choose to give

through community foundations

1 We are a local organization with deep roots in the community

5 We accept a wide variety of assets, and can facilitate even the most complex forms of giving

4 Our Donor Advised Funds help people invest in the causes they care about most

3 We provide highly personalized service tailored to each individual’s charitable and financial interests

2 Our professional program staff has broad expertise regarding community issues and needs

reasonsten People choose to give

through community foundations

7 We offer maximum tax advantage under state and federal law

10 We are a community leader, convening agencies and coordinating resources to create positive change

9 We build endowment funds that benefit the community forever and help create personal legacies

8 We multiply the impact of gift dollars by pooling them with other gifts and grants

6 We partner with professional advisors to create highly effective approaches to charitable giving

under which she will never sit, then you know

that civilization has come to that land.

Greek philosopher

plants a treeWhen a person

The Scranton Area Foundation

and you…

sowing seeds of hope

Building Community Together

© 2002 Council on Foundations and Community Foundations of America