January 2012
In This Issue:Focus on Planned Giving
CREATING YOUR LEGACY...What do you want your legacy to be? In this issue of Making Connections, we profile two families who have set up donor-advised funds at The Community Foundation that honor the memory and wishes of their parents by continuing the family tradition of philanthropy. In each case, the adult children are following in their parents' footsteps by continuing to "give where they live" and by donating to organizations that provide support and opportunities for people in need. We also introduce readers to Nancy Fax, a local tax attorney specializing in estate planning who frequently tells clients that donating a retirement plan to The Community Foundation, which receives the plan assets tax-free, is a very tax efficient way to make a charitable gift. Nancy puts her money where her mouth is; she has named The Community Foundation as a beneficiary of a portion of her IRA. The Community Foundation continues to bring together people like Nancy and many others who have the vision to plan ahead and the desire to make a difference for the future by leaving a charitable legacy in their name, or the name of a loved one. Those who remember The Community Foundation through a will, trust, designation, or other planned gift are invited to join our Legacy Society. Too often, these gifts are unrecognized because they come at the end of donors' lives. The Legacy Society provides a way to recognize and thank donors during their lifetimes. Planning for the end of life is one of those topics we all like to avoid, yet it's something we all have in common. I am reminded of a story one donor shared with me recently. Having grown up in a family in which philanthropy was always a priority, the donor said her aging father decided it was time to start planning for the day when he would no longer be around. Thinking it was better to have that conversation with his adult children sooner rather than later, he began by planting a tree and installing a bench on the grounds of his favorite nonprofit organization – one he hopes his children will continue to support in decades to come. On the bench he had engraved a two-word message, one he hopes will inspire the next generation to continue his long tradition of giving back. That message may be the perfect conversation-starter for your family, as you grapple with what kind of legacy you want to leave. With a new year before us, this is a good time to plan for the future. In the words of Sid Kaplan "Carry on!"
 Nancy Fax Philanthropist Nancy Fax: Creating My Own Legacy"I've named The Community Foundation as a beneficiary of a portion of my IRA. As much as I love The Community Foundation, I hope that gift doesn't come to fruition any time soon!" - Nancy Fax If the question at first seems off putting, consider the expertise of the source: Nancy Fax, a local tax attorney specializing in estate and family business planning and estate and trust administration. Nancy is also serving, for the second time, on the board of The Community Foundation for Montgomery County and has had, for many years, a fund at The Foundation. Most recently, she served as co-chair of The Community Foundation for Montgomery County's 15th anniversary celebration. In her professional role, she advises clients on such topics as how to ensure the smooth transition of assets upon death, how to make sure their estate is disposed of in the most tax-efficient manner and how to ensure clients' wishes are carried out after they pass away. Her clients include high net worth individuals, couples and families from around the region. Some are interested in starting a family foundation and, for some, that makes sense. Nancy recommends The Community Foundation as an alternative – "it's less expensive, less cumbersome and has fewer restrictions in the way you can give." Many clients find that setting up a donor-advised fund is a superior alternative to a private foundation. Nancy also points out that a donor advised fund can be used by families with children to engage them in giving. "Clients' eyes light up when they learn that The Community Foundation can be a way of involving their children in the charitable giving process," she says. Frequently, she recommends that clients donate a portion of their retirement plan – an otherwise heavily taxed asset – to The Community Foundation. "When you give your plan to a charity, such as The Community Foundation, 100 % of it goes to the charity," she says. If the retirement plan is left to private individuals, it may be subject to estate tax and will be subject to income tax upon distribution. So, donating a retirement plan to The Community Foundation, which receives the plan assets tax-free, is a very tax efficient way to make a charitable gift . Speaking from her personal experience as a Community Foundation donor, Nancy says: "The main thing I love about The Foundation is the broad array of issues it concerns itself with. You can use it for giving across the areas that need financial assistance." In addition, because of the knowledgeable staff of the Foundation, it serves as "a built-in charitable consultant." Nancy uses her fund to support causes important to her and also to support organizations her clients and professional colleagues care about. Among the groups she is impressed with are Impact Silver Spring, The Nonprofit Village in Rockville, Red Wiggler Community Farm in Germantown and Montgomery College – all organizations that are innovative, effective, visible and have strong and consistent leadership. But she is quick to add: "I hate to name just a few, since there are so many effective organizations in our community." As one of The Community Foundation's biggest fans who has introduced many clients to The Community Foundation, she is also responsible for spreading the word to local wealth advisers and has encouraged leaders in the community– including Steve Hull who publishes Bethesda Magazine and Peter Welber who is President and CEO of Chevy Chase Bank – to join the Foundation board in Montgomery County. "Networking is key to the success of the organization," she says.
Legacy Giving: Following Her Mother's Legacy Wishes - Patricia Weiss Fagan "Every family is different. Some support the arts, some focus on health, others on the environment. The most important thing is that families come together – sooner rather than later – to talk about the causes they think are worthwhile and prioritize their charitable giving. – Patricia Fagen When Patricia Weiss Fagen inherited a substantial amount of money from her mother several years ago, she knew exactly what to do with it. She knew her mother wanted the funds to be used for charitable donations – not only because her mother's will spelled that out, but because the family had always supported charitable causes, going back generations. And Patricia knew whom she wanted to manage her money and guide her grant making: The Community Foundation for the National Capital Region. "I always wanted to be a good citizen of Washington, D.C." she says, "but it's hard to know which nonprofit organizations are sustainable, which ones need philanthropic support the most—that's what The Community Foundation is good at determining." Patricia's mother left money to each of her daughters – Patricia, in Washington, and Nancy, in Boston. "When I was growing up we thought everyone made contributions to charity," she says. "My father, my mother and my grandfather before them were always involved in charitable giving and charitable work. It's what one did. For my parents and grandparents, the charities began with helping fellow Jews in need, and with time, the practice of giving evolved beyond this." Today, she is carrying on that family tradition through the Weiss Fagen Fund. A senior associate at Georgetown University's Institute for the Study of International Migration, Patricia has supported causes that relate to her work in international migration, human rights and humanitarian assistance. While she was previously focused on international organizations, such as Amnesty International and Human Rights Watch, more recently she has turned her attention to the Washington region. In the past year, for instance, Patricia has contributed to Ayuda, CentroNia, and House of Ruth. "Our region has many nonprofits, but not all of them are sustainable," Patricia points out. "It's important to me that I invest in groups that have a future. I rely on Community Foundation staff to vet organizations. That's not something I could do on my own." Patricia's inheritance has allowed her to make substantial investments in organizations whose daily work involves securing the region's safety net by providing assistance for food, shelter, clothing, and healthcare. Patricia also supports nonproft organizations highly involved in eradicating the achievement gap that exists among local residents as well as those that invest in providing solutions and training in workforce development.
Family Philanthropy: Siblings Working Together in Honor of their Parents - Ellen Ross
"I feel we're continuing our parent's legacy and reinforcing things that were important to them and enriched their lives." – Ellen Ross Rose and Harold Kramer moved to Silver Spring in the early 1940s. They raised three daughters and a son while Harold, after leaving the government, owned and operated City Tire Company and Bell Cab of DC and Montgomery County among other business ventures. Rose, who had taught school for nine years in the District, turned her attention to civic activities. Over the years, she was active in the League of Women Voters, served on the Montgomery County School Board, where she lead the fight for school desegregation, and was elected to the Montgomery County Council, where she pushed for affordable housing. Looking back, Ellen Ross recalls, "My mother became aware through her work that that there were a lot of people in our community in need and a lot of inequities. Even a cross burning on our lawn didn't deter her from doing what she believed in." Together, the Kramers gave back to the community by supporting the organizations Rose believed in: The Jewish Community Center, Planned Parenthood, WETA, The Children's Inn at the National Institutes of Health, among others. "Dad had paved the way by making good investments but mom was the driving force," says Ellen. At the end of their lives, Rose and Harold told their children of their plan to create a fund at The Community Foundation for Montgomery County with a generous portion of their assets. When Rose passed away in 2006, the Rose and Harold Kramer Fund was established. Each year, one of the four children has the responsibility of making grants from the fund. Last year was Ellen's turn. (Ellen is the only sibling currently living in Montgomery County but all four are involved in administration of the fund.) "My year was wonderfully interesting," she says. Early in the process, Ellen met with Anna Hargrave, Deputy Director of The Community Foundation for Montgomery County. "Anna reads your personality really well and saw right away what I reacted well to." A resident of Wheaton, Ellen expressed an interest in local groups that provide after-school activities and college preparation for teens living in this multicultural neighborhood. In turn, Anna presented Ellen with a list of a dozen highly effective groups working with middle and high school students, among them CollegeTracks, Identity, Community Bridges, Liberty's Promise and the National Center for Families and Children. The Foundation staff also invited Ellen to participate in site visits to local nonprofits including Identity in Gaithersburg, CollegeTracks at Wheaton High School, and White Oak Middle School where she observed Community Bridges, an afterschool program for girls that promotes leadership skills and strong self-esteem. She also observed an after-school civic education program hosted by Liberty's Promise for immigrant and first-generation American youth. During the visit, Montgomery Councilwoman Nancy Navarro spoke candidly about her own experience being an immigrant and how she became engaged in the civic and political life of the county. The site visits "made me feel more engaged," says Ellen, who last spring was invited to serve on one of the Foundation's grants committees. Ellen's brother in Colorado, who is managing the fund this year, has followed her lead in giving to many causes in Montgomery County. "My research paid off," she says.
Planned Giving at The Community FoundationShape the Future, Build a Legacy... The Community Foundation can help you design your charitable legacy whether it's through a planned gift or endowed fund. We also can work with you and your family to build a family tradition of giving that will carry on for generations to come. What will your legacy be? How will you continue your commitment to the issues and organizations that matter the most to you through your charitable giving? How can you use your donor advised fund at The Community Foundation to teach your children about giving so they can learn to be good stewards of the community as well? The Community Foundation can help you with all of these decisions and be your long-term partner in philanthropy. Ways to Shape Your Legacy Most donors wishing to create a legacy and provide ongoing support for the causes they care about will establish a permanent endowment fund that will provide a source of financial support to benefit charitable organizations for generations to come. Types of permanent endowment funds include the following:  Create a Designated Fund to Support Your Charity-of-Choice A designated fund is one in which you designate a specific charitable organization or purpose to be the beneficiary. This is an easy way to support the organization you care about most, now and in the future. A primary benefit of a Designated Fund is that the gift continues long after you have passed away. Also, if the charity comes into misfortune, the Foundation holds variance power that would redirect your gift to a similarly-focused organization. Your gift will not be lost if the charity would cease to exist. Create a Field-of-Interest Fund to Support a Range of Groups Working on An Issue Field of interest funds are designed for donors who have interests in a particular area of funding but who wish to rely on the Foundation to make specific grants in support of those interests. For example, you may be concerned about environmental issues and want your fund to support groups and projects that the Foundation finds most compelling - and that may not be supported through other grants programs of the Foundation. You may specify an issue area, a particular cause, or a specific geographic area as the focus for the grants you wish the Foundation to make in the name of your fund. You can stay involved in the grant decision process if desired or leave it up to us – there is a great deal of flexibility. Field of interest funds may be created by any individual, family, group, business, or organization. Funds may be named for the donor, a family member, friend, or organization. Or, you can name the fund to ensure your anonymity. Field of interest funds may be established as expendable or endowed funds. You can also donate a variety of assets to your fund. A primary benefit of field of interest funds is that as a donor, you can be assured that grants will bemade that support the issues you care about in perpetuity. And like donor-advised funds, you avoid the administrative headaches and costs of establishing a private foundation. Unrestricted Fund An Unrestricted Fund is a flexible fund dedicated to improving the quality of life in the metropolitan Washington region. With these types of funds, The Foundation and its Board of Trustees determine the specific needs to address each year, and grants are made to address those needs in the name of the donor, if desired. This type of fund is a great way to meet a variety of community needs year after year. Donate to the Community Leadership Fund The Foundation’s Community Leadership Fund is dedicated to creating greater equity, access, and opportunity in our community. The Fund invests in three specific areas to help low-income individuals and families achieve economic stability. Grants support safety net services, education and workforce development. Contributing to this fund, either through a one-time gift, an annual contribution or an endowed gift is a wonderful way to support the mission and impact of The Foundation.
Learn More about Planned GivingWhat are the tax benefits of planned gifts?
Resources for Planned Giving
Gary, Tracy. Inspired Philanthropy: Your Step-by-Step Guide to Creating a Giving Plan and Leaving a Legacy (Kim Klein’s Chardon Press).
The Grandparent Legacy Project.
Hughes, James E. Family Wealth: Keeping it in the Family: How Family Members and Their Advisers Preserve Human, Intellectual, and Financial Assets for Generations.
O., Williams, Roy. Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values.
Websites The Community Foundation of the National Capital Region – www.cfncr.org National Center for Family Philanthropy – www.ncfp.org Council on Foundations – www.cof.org
The Community Foundation's Legacy Society...For nearly four decades, The Community Foundation has been shaping today's dreams while building for the future. We are a trusted partner of generations of families – carrying out family giving traditions and helping families to create a legacy they can call their own through The Community Foundation's Legacy Society. You can become a member of the Legacy Society whether you are a current donor of The Community Foundation or if you are new to us. Those who remember The Community Foundation through a will, trust, designation, or other planned gift are invited to join our Legacy Society. Too often, these gifts are unrecognized because they come at the end of donors’ lives. The Legacy Society provides a way to recognize and thank donors during their lifetimes. Involvement in the Legacy Society gives you the opportunity to enjoy the company of others who care about leaving,protecting,and strengthening the national capital region. Members are invited to all Foundation events and are recognized in Foundation publications and on our website, at the donor's discretion. We invite you to join the Legacy Society in one of the following ways:
You may choose to remain anonymous in your philanthropy with The Community Foundation. However, participation in the Legacy Society can be an inspirational experience, and may encourage others to look toward the future and how they too may have an enduring impact on the causes they care about. Only a statement of intent to leave a gift to The Community Foundation is required. No documentation of gift amount or type is necessary. As a member of the Legacy Society, you will be recognized as an important philanthropic leader who is supporting The Community Foundation's ability to respond to emerging needs and ensuring the long-term vitality of this community. And, you can rest assured that your gift is being managed by a team of true giving experts – from a volunteer Board of community and business leaders, to a thoughtful, experienced staff with a deep and broad familiarity with your community, to a financial team of unparalleled experience and investment knowledge. In other words, your investment is in the best possible hands. Join the Legacy FundThe Community Foundation welcomes these new funds to its family of more than 800 charitable giving funds: AIM Charitable Foundation If you have questions or need more information about making a planned gift to The Community Foundation or would like to notify us that you already have, please contact: Ellen Morgenstern, Chief Development Officer, emorgenstern@cfncr.org Upcoming Events
SAVE THE DATES!
The planning task force has designed an engaging, colorful program with benefits for community foundations and donor families. Dynamic plenary sessions will bring testimonials on hot topics like education reform, public philanthropic partnerships, arts in philanthropy and you will hear from speakers such as Ron Clark from Ron Clark Academy (www.ronclarkacademy.com), Jonathan Greenblatt from the White House Office of Social Innovation and Civic Participation and many others (http://www.cof.org/events/conferences/2012fam/plenarysessions.cfm). Off-site learning experiences will take you to the Everglades, Wynwood Arts District, the Little Haiti Cultural Center, and more. Learn about the many diverse neighborhoods of Miami Beach, so you can see philanthropy at work (http://www.cof.org/events/conferences/2012fam/offsite.cfm). There is so much in store at "Fusion". To see the full line up check out the conference website: http://www.cof.org/events/conferences/2012fam/index.cfm About The Community FoundationFounded in 1973, The Community Foundation for the National Capital Region promotes charitable giving and plays a leading role in finding innovative solutions to the Greater Washington region's most challenging problems. The Foundation is a community of givers – individuals, families and corporations have joined with the Foundation; as a result, the Foundation provides sound management of more than 800 funds and some $360 million in assets. In FY2010, The Community Foundation and its donors awarded some $50 million in grants to nonprofit organizations in the Washington, DC region and beyond. The Foundation has two affiliates – The Community Foundation for Montgomery County and The Community Foundation for The Prince George’s County. For more information, visit www.thecommunityfoundation.org. • • | ||||||||||||||||||||||||||||||||||||||
You are invited to join the Council on Foundations at the 2012 Family Philanthropy Conference, February 13–15 in Miami Beach. "Fusion," the conference theme, symbolizes the blending of culture and flavor into family philanthropy. All Community Foundation members will receive the member rate of $925.00. You will enjoy savings of $375.00.