WWW.CFSJC.ORG • (574) 232-0041 • 205 W. JEFFERSON BLVD., SUITE 610 • SOUTH BEND, IN 46601

DECEMBER 2018 CONNECTING PEOPLE WHO CARE WITH CAUSES THAT MATTER

Breaking News! Lilly Endowment Inc. Offers 2-to-1 Matching OpportunityThanks to Lilly Endowment Inc., every dollar we raise for our Community Endowment Fund draws another two dollars in matching funds.

Lilly Endowment Inc., an Indianapolis-based foundation founded by members of the Eli Lilly family, has announced an exciting opportunity for the Community Foundation of St. Joseph County to build our Community Endowment Fund. That’s the fund that contains our pool of flexible, unrestricted money that allows us to be nimble in addressing critical needs in our community.

Lilly Endowment Inc. will match all gifts to our Community Endowment Fund with two dollars for every dollar we receive, up to $500,000. In other words, if we raise $500,000, we’ll receive an additional $1 million from Lilly Endowment Inc.

It’s money that makes a big difference. Our Community Endowment Fund provides much of the pool from which we award our competitive grants, and also funds our initiative work (see more details on page 3).

Our Community Endowment Fund supports our initiative work, including our work in early childhood education.

HIGHLIGHTS

HOW THE MATCH WORKS

Before Dec. 31, 2020, make a gift to the Community Foundation’s Community Endowment Fund.

Lilly Endowment Inc. will match that gift 2-to-1, tripling its value. For example, a $100 gift will draw $200 in matching dollars—a total benefit of $300 for the Foundation.

HOW TO GIVE

• Give online with your credit card at cfsjc.org/give. Just choose “Community Endowment Fund” from the list of options.

• Give by check, noting “Community Endowment Fund” in the memo line. Mail it to us (the address is at the bottom of this page) or drop it off.

• For gifts of stock, IRA gifts, or pledges, call us at (574) 232-0041.

LIBRARY MOMENTUMIt’s a big dream, with the potential to make a huge impact on our community: The major renovation proposed for the downtown South Bend branch of the St. Joseph County Public Library. The Community Foundation is partnering with the library and the City of South Bend to help make this dream become a reality. The expanded and enhanced space would include more room for community meetings and educational opportunities, making a remarkable resource even more valuable. Stay tuned!

This is a rare chance to bring in matching dollars from outside of our county, making every local donation go farther. If you can, help us maximize this remarkable opportunity with your gift!

VOICES FROM OUR BOARD: FORMER CHAIR TIM SEXTON“For nearly two decades, I have had the privilege of working with the Community Foundation of St. Joseph County in a variety of capacities. From board and committee work to participating with specific projects like Give Local, my time with the Community Foundation has been a blessing. I have been able to witness a team extremely focused on one objective: improving the lives of those in our community.”

Tim Sexton, Associate Vice President for Public AffairsUniversity of Notre Dame

Tim Sexton

COMMUNITY FOUNDATION OF ST. JOSEPH COUNTY • PAGE 2

The Community Foundation now offers a new fund option that can help maximize your tax benefits.

In December 2017, Congress passed the Tax Cuts and Jobs Act (TCJA). Among its many changes to U.S. tax law, the TCJA nearly doubled the standard deduction amount. For 2018, the standard deduction is $12,000 for individual taxpayers and $24,000 for married couples filing jointly. It’s likely that this change will significantly reduce

the number of taxpayers who itemize their deductions.

To help donors maximize the benefit of the higher standard deduction and continue to save taxes on charitable contributions, the Community Foundation of St. Joseph County is launching a new Donor Advised Pass-Through Fund option.

Here’s an example of how a Community Foundation Donor-Advised Pass-Through Fund could help.

Each year, John and Jane give $15,000 to their favorite charities. In addition to the satisfaction they get from helping these organizations, they’ve enjoyed the $15,000 charitable income tax deduction they received each year. While meeting with their tax advisor regarding this year’s tax situation, however, they were disappointed to discover that even with this generous amount of charitable giving, they will be just below the threshold for itemizing. Instead, they’ll take the standard deduction for a married couple and receive no additional benefit as a result of their charitable giving.

New Donor-Advised Pass-Through Funds: Flexibility, Tax Benefits

Rose Meissner, president of the Community Foundation

DONOR-ADVISED PASS-THROUGH FUNDS: THE BASICS

• Unlike Donor-Advised Endowed Funds, which are permanently invested and generate earnings that can then be granted to charities, some or all of the balance of Donor-Advised Pass-Through Funds may be granted to qualified charities.

• The minimum gift to establish a fund is $10,000.

• The minimum grant that can be made from a fund is $250.

One potential solution to this problem is giving through a Donor-Advised Pass-Through Fund.

Taxpayers may find that they can continue to itemize by bundling two or more years’ worth of charitable gifts into one year, exceeding the standard deduction threshold in those years. In alternate years, they can skip charitable donations and support their favorite charities with gifts previously made to their Donor-Advised Pass-Through Fund.

John and Jane’s tax advisor suggests that they set up a Donor Advised Pass-Through Fund at the Community Foundation. They can use this vehicle to double up their annual giving in 2017 with a gift of $30,000 that can then be distributed to their favorite charities over two years. Their 2017 gift of $30,000 will place them above the threshold to deduct their charitable gifts (and other deductible items). In 2018, they can skip making new charitable contributions and take the standard deduction instead. Their favorite charities will continue to receive their support in 2018 through grants from their Donor Advised Pass-Through Fund.

Their tax advisor gave them an additional tip. Instead of writing a check for $30,000 to set up their new fund, John and Jane will make a gift of appreciated stock. In addition to their charitable income tax deduction, they now avoid capital gains taxes, too. Best of all, their favorite charities continue to benefit from their steady, generous support.

Think a Donor-Advised Pass-Through Fund might be right for you? Contact Rose Meissner at (574) 232-0041 or by email at rose@cfsjc.org.

• The Community Foundation assesses an administrative fee of 1% (1/12% monthly) on all Donor-Advised Pass-Through Funds.

• Donors may elect to invest fund balances over $10,000.

• A minimum of 50% of dollars granted from Donor-Advised Pass-Through Funds must benefit charities serving St. Joseph County, IN.

PAGE 3

value the work they do to improve our community. Since we began making grants, we’ve awarded more than $125 million to local charities—and that number grows every year, thanks to the strength of our endowment.

WHAT ELSE DOES THE COMMUNITY FOUNDATION DO? Perhaps more than you realize! Our Early Years Count education initiative funds teacher training and evaluation in dozens of preschools, daycares, HeadStart classrooms, and elementary schools. This year, we worked with partners to launch the Imagination Library in our county, expanding our early literacy efforts. Our ArtsEverywhere initiative produces the free Community Foundation Performing Arts Series every summer at Potawatomi Park. Our African American Community Fund supports many projects, including the community safety work of the South Bend Group Violence Intervention. In partnership with Habitat for Humanity and REAL Services, our Senior Living initiative helps local seniors age in place, and funds quality-of-life programs like Music & Memory. Our biennial Leighton Award for Nonprofit Excellence recognizes the best of our local charities with a $175,000 prize, encouraging every organization to continue to grow and improve. And our two Give Local St. Joseph County events, held in 2015 and 2017, raised a combined $15 million for local charities.

Did you learn something new about the Foundation’s work? We bet you did! Pat yourself on the back—and keep learning at cfsjc.org.

Often, people know us because of a specific program. But are you aware of the full range of our work?

HOW MANY CHARITIES HOLD FUNDS WITH THE FOUNDATION? We believe firmly in the power of endowment, and many local charities do, too. More than 80 hold endowed funds within the Community Foundation, including LOGAN, Center for the Homeless, South Bend Symphony, Unity Gardens, Pet Refuge, and dozens more. (You’ll find the full list at cfsjc.org/endowments.) The money in these funds is permanently invested, and each fund generates annual earnings which are paid to the charity to support its work. It’s a wonderful way to ensure that the charities that make our community a better place have resources that will support them now, and long into the future.

HOW MANY STUDENTS EARN FOUNDATION SCHOLARSHIPS? Each year, more than 300 students

Quiz Time: How Well Do You Know the Community Foundation?

The Imagination Library, launched in April, is just one of many ways that we strengthen our community.

receive support from the Foundation’s more than 60 scholarship funds. Over the years, we’ve awarded more than $12 million in scholarships, helping thousands of deserving students pursue their dreams. Two of our biggest scholarships—the Laidig Community Service Scholarship, and the Charles Martin “Touch a Life” Scholarship—include paid internships. To date, recipients of those scholarships have served more than 34,000 internship hours at 29 different local charities.

HOW MUCH MONEY DOES THE FOUNDATION GRANT? We award some $7 million dollars in grants each year to local charities—charities that provide social services, educate young people, create and curate the arts, steward our parks, and more. We believe in these charities, and we

Each year, more than 300 students receive support from the Foundation’s more than 60 scholarship funds.

The Community Foundation awards some $7 million in grants each year to local charities.

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As the end of the calendar year approaches, don’t forget about a great opportunity to benefit your favorite charities AND reduce your taxable income: IRA Roll-Over gifts.

If you’re over the age of 70½, you can make gifts to your favorite charities (including the Community Foundation) directly from your IRA accounts. These charitable transfers count toward your Required Minimum Distribution (RMD) and are excluded from your taxable income. (This exclusion does not apply to gifts made to Donor-Advised Funds.)

Your IRA plan administrator can help you set up IRA Roll-Over gifts. For more information, call Rose Meissner, president of the Community Foundation, at (574) 232-0041.

Foundation Makes Special Projects Grant to Benefit Howard ParkIn our last grant cycle, the Community Foundation awarded a $100,000 Special Project Grant to South Bend’s Venues, Parks & Arts to support a major renovation of Howard Park. The grant will help make the park, playground, and structures more accessible to people of all abilities.

Part of VPA’s extensive My SB Parks & Trails efforts, these changes to Howard Park will include much gentler slopes, ADA-compliant pathways, fully-accessible public restrooms, hands-free sliding doors for the Community Center, and plenty of wide, open views of the St. Joseph River. Areas of the playground will be connected

via pathways, ramps, and platforms, and the majority of the more than 40 play components will be universally accessible. The playground’s design also incorporates multiple sensory elements, creating opportunities for children to interact with the play equipment through touch and sound.

Work on Howard Park’s renovation has begun, and Venues, Parks & Arts estimates that the project will be complete in November 2019.

Learn more about the Foundation’s competitive grants at cfsjc.org/grants.

If you’re over age 70½, you can make gifts to your favorite charities directly from your IRA accounts.

IRA Roll-Over Gifts: Benefit Charities And Reduce Taxes