Professional Advisors

Professional Advisors

 

As a professional adviser to clients in Central Wisconsin, you undoubtedly find many of your clients are already giving annually to their favorite charitable organizations. Helping them to develop this plan, while balancing a client's financial needs, is no easy task. Why not help them achieve their charitable goals while gaining the maximum tax advantage, leaving a legacy and choosing from numerous giving options? The Community Foundation of Central Wisconsin is here to partner with you to help your clients achieve their philanthropic goals!

A Delicate Dilemma

We understand that it is a delicate dilemma. You want to discuss the many benefits of charitable giving with your clients, but you want to avoid recommending specific charitable causes or organizations.

A Simple Solution

Fortunately there is a simple solution. The Community Foundation of Central Wisconsin is a single, trusted vehicle your clients can use to address the issues they care about most, while gaining maximum tax benefit under state and federal law. We offer a variety of giving options- including the ability to establish a fund in your client's name.

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Frequently Asked Questions

As a professional advisor you will undoubtedly be faced with many questions from clients concerned with various aspects of charitable giving. Hopefully, the following suggestions will be helpful when facilitating these conversations and introducing to them the benefits of the Community Foundation of Central Wisconsin.

Why shouldn't I prepare my estate plan using the internet?
How do I reduce the amount of taxes at the year's end?

If your client wants to increase charitable giving but has some practical concerns, the Community Foundation of Central Wisconsin can help. If your client has limited time to make plans (i.e. during year-end tax planning) they may not be able to make the most knowledgeable decision on specific charities they would like to support. The Community Foundation of Central Wisconsin can help them establish a Donor Advised Fund in just one meeting. Your client can then work with our staff to learn more about nonprofits in the area that may be of interest to them. Establishing a Donor Advised Fund allows your client to gain an immediate tax deduction and still remain involved in the distribution of their gift.

How do I significantly reduce the amount of estate taxes?

Once your client has left provisions for family in their estate, they may soon realize they don't want their remaining assets to go to the federal government; instead they wish to use those assets to benefit charitable causes of their choosing. The Community Foundation of Central Wisconsin can assist you in establishing remainder gift through your client's will or trust. This will allow for them to provide for local charities and reduce estate taxes.

How can I reduce (or eliminate) capital gains tax on my highly appreciated stock?

The Community Foundation of Central Wisconsin can suggest several ways to structure a charitable gift, including planned giving techniques that can help to reduce (or eliminate) capital gains tax. These options then allow for the highly appreciated stock to add volumes of good work to the community.

What options do I have for charitable contributions if my assets are tied up in a closely held company?

If your client has an interest in charitable giving but has few liquid assets, the Community Foundation of Central Wisconsin can help structure an arrangement where the client donates some company stock to the Foundation (after valuation), and the company repurchases the stock at fair market value. The Community Foundation of Central Wisconsin establishes a fund in your client's name and distributes grants according to their charitable wishes.

How can I make a lasting difference, in the most effective way, to benefit my community?

If your client is unsure of how to give, we would be happy to help you introduce the Community Foundation of Central Wisconsin to them. By identifying the most advantageous tax strategy, the most appropriate vehicle, and the best way to extend the charitable benefit (type of fund, etc.) your client will be confident that their charitable gift will be put to good use.

How do I establish a scholarship fund for deserving students?

The Community Foundation of Central Wisconsin can help your client identify criteria for a scholarship (academic performance, financial need, etc.) and focus on the most effective process for establishing the fund. The Community Foundation of Central Wisconsin currently administers over 120 scholarships annually.

What are the advantages of establishing a Donor Advised Fund at the Community Foundation of Central Wisconsin instead of creating my own private foundation?

Some clients may be under the impression that creating a private foundation is the only option available to them in preserving their family name through charitable giving. The Community Foundation of Central Wisconsin can assist your client in establishing a Donor Advised Fund. These types of funds can provide advantages to clients while keeping them actively engaged in the distribution process. The chart below offers a comparison that may also be of assistance to you and your client when exploring the option of establishing a Donor Advised Fund.

Items to
Consider
Private
Foundation
Community Foundation
Donor Advised Fund
Setup Must incorporate and apply for IRS tax-exempt approval Simple agreement. Can be set up in as little as one day
Initial Costs Set up fees No set-up fees
Ongoing Costs Liability insurance, direct administrative costs Pooled administration, low costs
Tax Benefits for Cash Gifts Up to 30% of adjusted gross income Up to 50% of adjusted gross income
Excise Taxes Usually 2% of investment income annually None
Reporting Requirements Annual 990-PF must be filed by private foundation or hired staff None required by the donor. The Community Foundation handles all reporting
Grant making Must research and identify agencies and programs to fund Community Foundation staff educates donors regarding agencies and programs; provides information on qualified giving opportunities
Grant Management Must ensure all recipients are qualified 501(c)(3) organizations Community Foundation verifies an organization’s status. Plus, donors can access the Community Foundation’s strategic grant making services
Distribution Requirements 5% annual distribution required. Self-dealing restrictions None – Donors make grant recommendations at their discretion
Privacy Tax return is public record Donor may choose to remain anonymous

Resources for Estate Planners

Introducing Us to Your Clients

Estate planners, financial consultants, and other professional advisors are often asked to suggest the best vehicle for charitable giving to their clients.

Look no further.

Our staff works to ensure that a donor’s contribution addresses the issues the donor cares about most. By working with us your client will be able to fulfill their charitable intent while making a lasting difference in the community.

When working with your client there are several options they can consider when giving through the our foundation. Your client can decide the type of fund, ways to give, and even how they wish to become a donor that will best help them to achieve their goals.

You can expect working with us to offer you and your clients several distinct advantages over direct giving to charities.

Convenience

We are a local organization established by and for the people of Central Wisconsin and have broad knowledge of community issues and needs.

Simplicity

A charitable fund through us is an easy, low-cost alternative to forming and administering a private foundation.

Tax Incentives

We offer the maximum federal and state tax incentives.

Flexibility

We provide many ways to give including Outright gifts, Honorary/Memorials and Income planned gifts. The Community Foundation also provides your clients the opportunity to make one gift for the benefit of a variety of causes.

Community Impact

We are deeply involved with the needs in the community and can direct gift dollars to high-impact areas. Since 1982, residents of Central Wisconsin have been turning to the Community Foundation of Central Wisconsin to make their philanthropic giving as effective as possible. In 2013, the Community Foundation of Central Wisconsin awarded $989,175to projects and programs in the area.

Stability

The Community Foundation of Central Wisconsin’s standards for investment performance, donor services and grant making have been constant. We have been a trustworthy catalyst for charitable giving since 1982.

Feel free to contact us to discuss any client situation. We would be happy to work with you to explore the most effective giving options for your client.

Information for Estate Planners

Our foundation understands that estate planning is a complex business and you play an important and vital role in helping your clients preserve assets for themselves, their families, and the community they care about. That’s where we can help.

Conversations with Clients

Have you had conversations with your clients about the following?
Preserving an Estate

Estate planning identifies significant taxes going to the IRS, but your client wants to direct dollars for local benefit.

We can work with you and your client to reduce their taxable estate through a charitable bequest or other planned giving. Your client’s gift will create a legacy of caring in the community that stays true to their charitable intent forever.

Establishing a Private Foundation

Your client is thinking about establishing a private foundation but is looking for a more cost-efficient, simpler way.

We can help you and your client analyze the benefits of creating a Donor Advised Fund as an alternative. Existing private foundations can easily be transferred to a supporting organization or an advised fund at a community foundation; thus, enjoying the advantages and support of the community foundation.

Strategic Giving

Your client is passionate about helping meet a specific community need and wants to make a meaningful gift.

You and your client can work with our staff to understand community needs and programs, allowing us to recommend more specific grants that will make the greatest impact.

Substantial IRA/401(k) Assets

Your client wants to leave his/her estate to the community as well as family, and has substantial assets in retirement accounts.

Our foundation can assist you and your client in evaluating the most beneficial asset distribution to minimize taxes, giving more to their heirs and preserving charitable intent.

Resources & Services

The Community Foundation of Central Wisconsin is committed to being a philanthropic partner with you. Please contact us if there are ways we can assist you in introducing the benefits of the Community Foundation of Central Wisconsin to your clients.

Community Foundation – CFPC Property, LLC

The Community Foundation of Central Wisconsin has a separate corporation called the CFPC Property, LLC, which has been established to accept gifts of real estate. CFPC Property, LLC provides a simple way for donors to reap the rewards of charitable donations while receiving the maximum tax incentives under law. The net proceeds of the real estate sale can then be used to establish a specific type of fund or income plan to benefit the Community Foundation of Central Wisconsin or other charities.

Publications

The Community Foundation of Central Wisconsin has professional publications of their annual report and other brochures that may be of assistance to you when visiting with your clients.

Financials

Annual audits and tax forms are prepared by CliftonLarsonAllen LLP, Certified Public Accountants and Consultants. Complete audited financial statements and copies of our 990 and / or 990-T are available upon request by contacting the Foundation office.

As a foundation that adheres to National Standards, our program is efficient in areas such as governance, resource development, stewardship and accountability, grant making and community leadership, donor relations, and communications.

You may also visit www.guidestar.org and do a search for our organization for more information.

 

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Ten Reasons to Give

Ten Reasons… People Choose to Give through the Community Foundation

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

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

3.  We provide personalized service tailored to each individual’s charitable and philanthropic interests.

4.  Through our Donor Advised Funds people can invest in the causes they care about most.

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

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

7.  We offer maximum tax advantage under state and federal law.

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

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

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

Leah Lueck
Community Foundation of Central WI
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