The Community Foundation of the Rappahannock River Region
Register now to attend the report launch event at www.cfrrr.org
Newsletter Fall 2012 www.cfrrr.org
Foundation News
Knowledge is Power: The Women & Girls Fund of The Community Foundation is set to take action on the critical health issues and wellness opportunities most relevant to women and girls in the greater Fredericksburg area. The Women and Girls Fund, now in its fourth year of active philanthropic grantmaking, will introduce its new Health & Wellness Status Report on Tuesday, October 30th at a luncheon event expected to draw 200 community leaders and charter fund members. The new report is a continuation of research on the status of women in the Rappahannock Region that began in 2010.
“Being well enables us to do well: to secure economic life and to pursue aspirations, individually, within our family and within our many communities,” said Angela Williams, Chairman of the Women & Girls Fund Research Committee. “Like our first Status report, this Health and Wellness report presents an opportunity for a community dialogue. It enables us to acheive focused improvement through data-driven grantmaking.” The report introduces the MATCH model of public health, which provides a roadmap for building a community that is a model of wellness – one that can continued page 7 The Co mmun ity Founda tion
Celebrate Community! Save the Date - November 28th The Community Foundation’s annual Ring In the Holiday party will be held Wednesday, November 28th. Join as many as 300 attendees for what has become known as the first big party of the holiday season. This year we’ll “Celebrate Community!” paying tribute to the hundreds of individuals – donors and grantees, sponsors and guests – who make our region so vibrant. Event goers will enjoy a sumptuous array of holiday fare and heavy hors d’oeuvres, as well as an open bar.
11th An Holiday nual Party
Celebra te Com
Novem ber
28, 20 12
munity
Grants Available for Spotsylvania and Fredericksburg Educators Applications for Educators’ Grants Accepted November 1–January 7 Starting November 1st, The Community Foundation will accept proposals from teachers and other educators through the Haven Make a Difference Fund and the Trust for Public Education Fund. Although each fund has different guidelines, all grants support projects that benefit local students. Examples include funding for professional development, certification or continuing education for teachers, as well as projects that build character and citizenship among students. According to
Program Officer, Lisa Biever, these funds were established to help pay for the things that great teachers dream about for their students and often have to pay for out of their own pockets. Examples of last year’s grants include: • $2,000 to a Battlefield Middle School English teacher, to support her participation in the acclaimed Northern Virginia Writing Project summer fellowship program and to qualify her as a NVWP Teacher Consultant able to serve as a resource to her school and lead a professional learning group.
• $1,223 to a Rappahannock Regional Juvenile Center art therapist, for professional development and certification to create a Character Development Program at RRJC. • $2,000 to Spotsylvania High School for their Freshman Focus project to support the long-term success of incoming high school freshman through focused support sessions, mentorship and individual copies of Seven Habits of Highly Effective Teens books and workbooks. For guideline materials and more information, visit: www.cfrrr.org or call Lisa Biever at 540.373.9292 x121.
William J. Kinnamon, Jr. Memorial Fund
Fredericksburg Counseling Services establishes the new William J. Kinnamon, Jr. Memorial Fund When Bill Kinnamon passed away earlier this year, Fredericksburg Counseling Services wanted to honor a gentleman who had been a faithful volunteer for 27 years. In the past nine years, he was particularly involved in the agency, serving as its Treasurer and working diligently to help the organization build financial stability. 2
“Fredericksburg Counseling Services meant a lot to Bill. He always wanted to help others and he saw a real need in this area,”
said Bill’s widow, Jo Anne Kinnamon. Founded in 1962 as a pastoral and supportive counseling service, Fredericksburg Professional Counseling Service transitioned in 1999 to meet community needs by providing clinicallybased professional counseling at no cost to residents who would not receive services elsewhere. Many Virginia communities provide free medical clinics to people who have no insurance and little money. Fredericksburg, however, is one of only three Virginia communities with a free mental health clinic. In 2011, Fredericksburg Counseling Services provided free mental health support services to 2,500 qualifying individuals.
more secure in their giving. Also, some people aren’t necessarily comfortable having their names associated with a mental health charity, but they do want to support us.
Building an endowment fund for operational support at The Community Foundation was the right choice for Fredericksburg Counseling Services.
Call The Community Foundation at: 540.373.9292
“We knew that The Community Foundation was professional and reliable in its stewardship of donations,” said Executive Director, Marci Bartley. “Giving our supporters another avenue to donate to Fredericksburg Counseling Services has several advantages. Through the Community Foundation donors can feel
“In his role as the agency’s Treasurer, Bill spent a lot of time here and he understood what we are trying to accomplish,” Bartley said. “Bill would have liked our board’s decision to set up a fund. He had such a good heart and he meant so much to us. He wanted to make sure the agency stayed open and this fund will help assure that.” Anyone interested in making a contribution may:
Donate online at: http://tinyurl.com/ Bill-Kinnamon-Memorial-Fund Mail a check, payable to: The Community Foundation PO Box 208 Fredericksburg, Virginia 22404 (include William Kinnamon Fund in the memo)
Advisors add Value through The Community Foundation
A full house - local professional advisors build expertise at luncheon Bobby Thalhimer, Senior Vice President of Philanthropic Services and Donor Engagement at the Community Foundation serving Richmond and Central Virginia, is a recognized authority on creating dynamic community impact through charitable funds. At the invitation of The Community Foundation of the Rappahannock River Region, Bobby addressed local investment bankers, attorneys, financial planners and accountants at a recent luncheon at Ristorante Renato. He illustrated a variety of ways their clients stand to benefit by creating a charitable fund through The Community Foundation.
Community foundations offer: • Trust that a donor’s charitable intent will be honored in perpetuity. • Assurance that community foundation staff understand the confidential nature of the advisor/client relationship and the importance of exceeding the expectations of a referral. • Value added through the foundation’s in-depth community knowledge and its high level of personal donor service. • Expertise in engaging a donor’s family and supporting a legacy of giving • Ease of giving to the organizations a donor cares about. • Transparency of investment returns and operating costs, without conflicts of interest. • Flexibility to work both with donors who are fiercely independent and with donors who find benefit in collaborating in a learning community where needs, nonprofit providers and effectiveness of giving are consistently being assessed.
Local attorney O’Conner Ashby has advised several clients who established funds with The Community Foundation to achieve their philanthropic goals. “There are numerous reasons why my clients selected The Community Foundation to establish their charitable funds. It’s far less expensive to set up the fund with the foundation, rather than doing so independently. Administrative costs are nominal and control of the fund remains local,” Ashby said.
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Paula Felder The generosity of Paula Felder, noted local historian and writer, continues to improve and enrich the lives of citizens with intellectual disabilities, even after her death earlier this year. As she stipulated, the proceeds from her estate will go to the Anne Felder Fund, which she originally established at The Community Foundation in 2000.
Paula Felder’s estate will meet the needs of citizens challenged by intellectual disability and homelessness.
When the gift is complete, the Foundation expects to begin competitive grantmaking that supports nonprofit organizations whose projects align with the donor’s charitable goals. Paula envisioned her philanthropy addressing the needs of those with intellectual disabilities and the disadvantaged, including the homeless, in the Rappahannock Region. She suggested
that grant distributions could support residential services, daycare, research, education, vocational opportunities and recreational programs that serve those with mental disabilities. “In her lifetime Paula gave generously and often anonymously to many causes. She was passionate about the matters she supported,” said Foundation Executive Director Teri McNally. “Paula recognized just how lucky she was to be able to give at the level she gave. But I believe our community is lucky because Paula was the one making these gifts – thanks to her community spirit, generosity and intellect, her gifts have made a significant impact on our community and will continue to do so into the future.”
Celebrate Community! 11th Annual Holiday Party Wednesday, November 28th Mill Race North The Community Foundation’s 11th annual holiday party is a critical source of operating support for its mission to increase charitable investment throughout our region. It will be held Wednesday, Nov 28th at Mill Race North – the home of The Community Foundation’s offices – at 725 Jackson Street in downtown Fredericksburg. We are grateful for our many sponsors’ enthusiastic support of this year’s event.
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Platinum Design Storage & Handling, Inc. Cary Street Partners Hirschler Fleischer Mary Jane O’Neill Cullen, Inc. PBGH, LLP The Davis Family StellarOne Union First Market Bank - Union Investment Securities Wack Contractors
Gold Cushman & Wakefield - Thalhimer Zope Corporation Parties by Dori
Bronze Bowling, Franklin & Co., LLP Carter Frackelton Germanna Community College Education Silver Foundation Applied Technology, Dr. and Mrs. Timothy Inc. J. Hughes CB Richard Ellis Holmes, Riley & Brokerage Services Associates of Cooper Financial Merrill Lynch Raymond James J. F. Fick, Inc. Hallberg & O’Malley John and Linda Coker Financial Group Keystone Coffee and HDT Global, Inc. Auto Spa Hilldrup Properties, Parrish Houck and Inc. Snead, PLC Johnson Realty PermaTreat, Inc. Advisors, Inc. Rob Billingsley Lucy and Wayne Northwestern Harman Mutual Peoples Community Worth New York Bank Sarah Pierson Sterne Agee SunTrust Bank The Blalock Family
The Hoffman Family Fredericksburg The Keddie Group Davenport & Co. LLC Therapy Toolbox Tulip Salon & Spa Aveda Utility Professional Services, Inc. Fred & Tanya Howe Vanderpool, Frostick and Nishanian, P.C. Virginia Commerce Bank Virginia Partners Bank
Grant Awards: Six-Month Retrospective The Community Foundation receives direct support from many of its fund holders, including:
The Harry and Marie Dawideit Fund The Wayne A. Dennison Fund The Rennie and Richmond McDaniel Fund The O’Neill Family Legacy Fund The Mary Wynn Richmond McDaniel Fund
Fund
Grant Amount
Grantee
The Sara P. Boutwell Memorial Fund The Colangelo/Phelan Family Legacy Fund
$
984
Youth in Philanthropy
$
300
Children’s Home Society
The Community Enrichment Fund
$ $ $ $ $
8,000 4,387 2,500 2,613 2,500
The Forbush Family Legacy Fund
$
946
The Molly Gill Memorial Scholarship Fund
$
1,521
The William Lakeman Habitat for Humanity Fund
$
10,144
The Mahon Family Legacy Fund
$
922
The Mary Wynn Richmond McDaniel Fund
$
6,000
UVA at Wise
The O’Neill Family Legacy Fund
$
8,483
The Community Enrichment Fund
The Robert Cullen O’Neill Memorial Fund
$ 1,757 $ 5,000 $ 10,000
Youth in Philanthropy Kenneth T. Whitescarver III Memorial Scholarship Fund Friends of the Rappahannock
The Rappahannock Big Brothers Big Sisters Fund The Stafford Junction Fund
$
1,530
Rappahannock Big Brothers Big Sisters
$
766
Stafford Junction
The Sullivan Family Legacy Fund
$ $
500 500
Virginia Intermont Lloyd F. Moss Free Clinic
Thank you for helping to sustain our work to enrich the community by promoting philanthropy.
Rappahannock Big Brothers Big Sisters Rappahannock Council Against Sexual Assault Rappahannock United Way Special Olympics Virginia Virginia Cooperative Extension Stafford Junction disAbility Resource Center Habitat for Humanity The Presbyterian Church
The Elsie, Carroll and Willie Wheeler $ 994 Hospice Support Care Hospice Support Care, Inc. Fund The Elsie, Carroll and Willie Wheeler $ 994 Rappahannock Area Agency on Aging Rappahannock Area Agency on Aging, Inc. Fund Women and Girls Fund $ 8,000 Science Saturdays $ 4,000 Healthy Families Rappahannock Area $ 2,600 THRIVE The Healing Center
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Community Foundation vs. Private Foundation
Establishing a fund with The Community Foundation has some distinct advantages over a private foundation.
When individuals and families learn the costs, ongoing administrative burdens, quarterly tax payments, mandatory pay-out rates and reduced tax benefits of private foundations they are often prompted to search for an alternative. Establishing a named fund at The Community Foundation often meets the needs of donors more efficiently and effectively.
about these issues, we are discussing a very serious subject – money. Money determines how you live, how you support your family, how you will retire, how you are taxed and how you share with others. It also says a lot about how hard you have worked and how committed you are to making good decisions.
Establishing a fund with The Community Foundation has some distinct advantages over a private foundation. When we talk
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We take the responsibility of your investment with us as an honor, and we continually work to ensure that donors are happy with fund service and how grants are distributed.
Things to Consider
Fund with Community Foundation
Create Private or Corporate Foundation
Organization
Established (1997)
Must establish
Tax Exempt
501(c)(3) Status
Must establish with IRS
Funds Required
$10,000 minimum
Experts recommend $10 million minimum
Selection of Grantees
Donor, family or his/her advisory committee recommends grantees
Donor specifies grantees
Tax Deductibility of gifts
a) Up to 50% of donor’s Adjusted Gross Income (30% with appreciated assets) b) Excess may be carried over for five years
Limited to 30% of donor’s AGI (20% with appreciated assets)
Federal approvals, restrictions and special taxes
a) Approved by IRS b) No payout requirement c ) No federal excise tax
a) Must receive IRS approval b) IRS requires 5% of assets to be paid out annually c) Fund is charged 2% federal excise tax on income unless strict requirements are met d) Greater incidence of IRS field audit
Legal documents for creation of, foundation designation of funds and grant awards
In place
Must create
Office
In place
May need to obtain
Staffing
In place
May need to obtain
Accounting
In place
Must obtain
Tax Return (state and federal)
Community Foundation prepares
Must prepare
Public Report
Report to public made annually
Must prepare reports for the general public
Knowledge of Potential Grantees
Community Foundation provides
Must develop
Grant Evaluation Process to Ensure Donor’s Intent Satisfied
In place
Must develop
Public Recognition for Donor
Fund may be named or anonymous
Must provide or rely on grantee organization
Director/Officer Liability Insurance
In place
Must obtain
Investment of Assets
Finance Committee oversees investment policies
Must establish policies and select investments
Organization Overhead
1%
Substantial costs; plus 2% federal excise tax on income
Nonprofit Agency Endowment Funds at The Community Foundation An Essential Tool for Nonprofits The Community Foundation provides an easy, secure alternative to the often cumbersome and costly process of creating and maintaining a private or independent endowment fund, or investing and managing a large gift. Local nonprofit agencies establish charitable funds with The Community Foundation to achieve a variety of benefits, including: • The Community Foundation’s own nonprofit status entitles an agency’s donors to tax deductions superior to those accorded by private foundations. The Community Foundation is a publically supported tax-exempt organization under provisions of Sections 501(c)(3) and 509(a)(1) of the Tax Code—not a private foundation. • The Community Foundation makes it easy. The foundation handles all administrative needs including the development and management of any grants, financial transactions, tax filings and audit requirements.
• The Community Foundation provides full-time professional management of all held funds. • Nonprofit agency funds have less exposure to investment expenses due to the aggregation of other endowed funds in The Community Foundation’s investment pool. • A nonprofit agency’s personnel and volunteers can focus their efforts on fund-raising when The Community Foundation relieves their fund management burden. • An agency’s donors can accomplish multiple charitable objectives within the structure of The Community Foundation. Many donors find this flexibility attractive when considering major planned gifts. • The Community Foundation serves as a 3rd party fiduciary, giving donors more security in making gifts and bequests to an endowment. • The Community Foundation staff and professional advisors have expertise in planned giving, endowment administration and charitable trust administration.
• The Community Foundation offers a separate board and staff dedicated to the fiduciary responsibility of maintaining the endowment. • Statements and disbursements (if needed) are made on a quarterly basis. • The nonprofit agency’s named fund is included in foundation marketing materials – The Community Foundation offers increased exposure for each fund to a wider pool of potential philanthropists. • The Community Foundation is available to assist its partner agencies with planned giving presentations to their potential and existing donors. • There is no need for the agency to create a separate 501(c)(3) organization, reducing potential accounting and legal fees, as well as the requirement to file annual IRS 990 returns. • The Foundation’s annual administrative costs are nominal: typically 1% of the fund value.
Knowledge is Power Continued from cover
be sustained and that will flourish. Using MATCH Model Community Goals and Benchmarks, the report makes it possible to measure our own community’s progress towards achievable 21st century health expectations. The Women and Girls Fund’s new report goes on to encourage and support regional collaboration. It stresses that new and improved health care intervention and prevention efforts won’t be sufficient to
protect the health of women and girls. It urges the adoption of policies that increase health options and outcomes by empowering women and girls to advocate for their own health in all settings. The report also outlines what individuals can do now to help create a model community where women and girls live, learn, work and grow older in optimal health. Just one of these opportunities is the Women and Girls Fund itself – through
the fund, area women engage the power of philanthropy. They bring their collective time, treasure and talents to bear on the issues that most affect us. “Become a philanthropist who invests in programs that improve and protect the health of women and girls by joining the Women and Girls Fund,” said Mona Albertine, Past President of the Community Foundation. To become a member visit www.cfrrr.org or call 540.373.9292
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540.373.9292 www.cfrrr.org PO Box 208 Fredericksburg, Virginia 22404.0208 Community Foundation of the Rappahannock River Region Permit No 479
PAID
Nonprofit Organization US Postage
The Community Foundation is a non-profit organization that manages and distributes charitable giving in the Rappahannock River region. Our goal is to promote greater philanthropy by addressing the challenges faced by donors in a responsible and knowledgeable manner. We distinguish ourselves from other local charities by providing efficient and effective services to build a collection of permanent funds.