Moments in Philanthropy :: December 2011
In This Issue
New Funds at Madison Community Foundation (MCF)
MCF grants $500,000 to New Downtown Madison Library
End of Year Deadlines - Requesting Distributions
Year End Tax Planning Convenience: Passthrough Fund
Year End Tax Receipting
New Gift Annuity Rates to Lower Jan 1, 2012
IRA Charitable Rollover Allowable Through 2011
Meet the MCF Board: Craig Christianson – Family Philanthropy
Supporting Success for Students of Color: Women in Focus Fund
Sweet Treats for Visitors Week of December 12-16
New Funds at Madison Community Foundation
Laura E. Chritton Scholarship Fund
Madison Public Library Monroe Street Branch Endowment Fund
Clean Wisconsin Environmental Litigation Fund
Goodstock Fund
Salinger Family Fund
Donley Family Fund
Anonymous Charitable Gift Annuity
Burgess Designated Passthrough Fund
Women in Focus Scholarship Endowment
Matilda Ripley Fund
Columbus School District Passthrough Fund
MCF Grants $500,000 to New Downtown Madison Library
MCF Board of Governors recently made its third largest grant ever by gifting $500,000 to the Madison Public Library Foundation capital campaign to build a new Madison Central Library.
“In the last ten years, MMCF has granted more than $2,250,000 to Dane County libraries,” said Kathleen Woit, MCF President. “The new Central Library will enhance services to Madison Branch libraries through improved efficiencies, technologies and greater visibility system-wide. The Madison Library system has consistently improved its facilities and continues to provide exceptional resources to children, teens, adults, and the elderly.”
The new facility is designed to be a model urban library that not only provides educational information and resources, but is also designed to be a community center, program catalyst, and regional destination. More of the collection will be within reach of users, the number of public computers will triple, and laptops, iPads, and eReaders will be available on-site and for checkout. It will include a 250 seat auditorium, a 75 seat program room with after-hours access, and multiple smaller meeting rooms. Attendance is expected to double to 1 million in the first year after opening.
End of Year Deadlines - Requesting Distributions
The December deadline for requesting distributions is Thursday, December 15th. December distribution checks will be mailed on Thursday, December 29th. To request a distribution please login to your account at madisoncommunityfoundation.org or email Connie Tibbetts, Accounting Manager, or call (608) 232-1763.
Year End Tax Planning Convenience: Passthrough Fund
Passthrough Funds can be the solution for last minute, year-end needs for additional tax deductions. Madison Community Foundation will serve as the back-office - we handle all the paperwork involved, for only one percent of the contribution. Make a lump sum contribution to a Passthrough Fund at the Madison Community Foundation, get a 2011 tax deduction, tell us where to direct charitable distributions, and we handle all the administration. Passthrough Fund assets are placed in a temporary money market account and recommended distributions can be made for the full balance of the fund.
Types of assets that can be contributed include:
- Cash
- Electronic Funds Transfer
- Closely Held Stock
- Mutual Fund Shares
- Publicly Traded Securities
To learn more about Passthrough Funds, contact Paul Houseman, Donor Relations Director, at (608) 232-1763.
Year End Tax Receipting
In order for the donor to receive a 2011 deduction for a contribution by check, the contribution must be:
(1) Received in the MCF office on or before 12/31/11; or
(2) Be mailed in an envelope postmarked on or before 12/31/11.
Credit card gifts must be processed by MCF and the charge must appear on the donor's credit card statement with a date of 12/31/11 or prior. We encourage donors to make credit card gifts on-line at www.madisoncommunityfoundation.org, on or before 12/31/11.
New Gift Annuity Rates to Lower January 1, 2012
If you have been thinking about creating a charitable gift annuity, now is the time for action. Rates will decrease for all age levels for both single-life and two-life CGAs after January 1, 2012. The American Council on Gift Annuities decided to make the change due to changes in the economic environment. The rate change will be lowered between 0.4% to 1%.
- Benefits for a charitable Gift Annuity completed before January 1, 2012, include:
- Lock in current higher rates
- Receive the security of guaranteed income payments for life
- Receive tax advantages now
- Payments may be partly tax-free for your life expectancy
Don’t delay. New CGAs must be established before January 1, 2012 to qualify for existing rates. Since December 31 falls on a Saturday, all paperwork must be completed in Madison Community Foundation offices by Friday, December 30, 2011.
For more information, email Ann E. Casey, Vice President, Finance & Planned Giving, or Paul Houseman, Donor Relations Director, or call (608) 232-1763.
IRA Charitable Rollover Allowable Through 2011
The IRA Charitable Rollover Extension of 2010 is still allowable through Dec 31, 2011. Created by the Job Creation Act of 2010, it provides another opportunity between now and the end of the calendar year.
This extension is a significant opportunity for individuals who:
Are at least 70 1/2 at time of distribution
Hold assets in IRAs they do not need
Are subject to the 2% rule that reduces itemized deductions, or do not itemize
Plan to donate all or part of their IRA at death
Donors of IRA rollover gifts must not benefit in any way from the gift, nor can the gift be used for a charitable remainder trust or annuity. As of the writing of this newsletter, there is a bill in the House of Representatives to extend and expand the provision. To follow the status of this bill, or other legislation impacting philanthropy, check out the Council on Foundations’ public policy updates here.
For more information on how details of this ruling affect your gifts to Madison Community Foundation, email Ann E. Casey, Vice President, Finance & Planned Giving, or call (608) 232-1763.
Meet the MCF Board: Craig Christianson – Family Philanthropy
Craig Christianson, MCF fundholder and new member of the MCF Board of Governors, and his wife Karen, make philanthropy a big part of their holiday celebration.
“It is quite simple,” said Craig. “First, we gather the information (aided by saved tax records of donations and calendared non-profit activity) for our charitable giving throughout the year. We then author a short note that details the who/what/where/when/how much/why for each donation and place it into an unmarked envelope that then goes on the tree.
“On Christmas Eve, we take turns selecting an envelope from the tree, read about the donation, and then discuss it as a family. The donations vary in terms of amounts, and the reasons why. There are many stories told, especially for the donations that are given repeatedly throughout the years in honor of loved ones no longer with us. Many times the kids were involved with setting-up/tearing-down for a fundraising event, and we have lively discussions about what that all involved. Generally, we enjoy the sense that we give of our time and money throughout the year, and Christmas is a time to reflect on giving – not just receiving.
“The annual donation to our Acorn Fund at MCF is notable because we reinforce the legacy aspect of the MCF stewardship of the funds; possible direction for our fund in the future; and generally our love for our community in all its diversity.”
Craig joined the MCF Board in May of 2011. As the general counsel for the Promega Corporation, he is responsible for all legal activity, and manages business development related to intellectual property and strategic collaborations. Formerly the Director of Licensing for the Wisconsin Alumni Research Foundation, he managed a team responsible for the marketing, licensing and monitoring of technologies developed by UW researchers for five years. Prior to joining WARF, Mr. Christianson spent 14 years at IBM in various management and executive positions.
Supporting Success for Students of Color: Women in Focus Fund
One of the newest funds opened at Madison Community Foundation is by Women in Focus, a group dedicated to supporting and encouraging minority students to succeed in education. Named The Women in Focus Scholarship Endowment, distributions from this fund are used for the scholarships that have been awarded every spring since 1986.
“This endowment signifies our passionate commitment to children of color getting the education they need to succeed, forever,” says Sally Hestad, Chair of the WIF Endowment Committee. “We have extended our ability to affect future generations for minorities in Madison.”
Teresita Torrence, WIF President, is enthusiastic about the new endowment. "The members of Women In Focus, Inc., are proud to begin this new chapter of the organization. We envision the organization having an impact on students' lives far into the future."
To date, over $200,000 has been awarded in scholarships funded through various sponsorships, donors, and fundraising events, primarily the annual “I Have a Dream” Banquet and Ball, held in January and honoring the vision of Dr. Martin Luther King, Jr. Fund growth will be an ongoing process. If you wish to contribute to the fund, please click here.
Sweet Treats for Visitors Week of December 12-16
Visitors to our offices the week of December 12-16 will have a chance to share a cup of hot cider or coffee and some sweets of the season while transacting late season philanthropic business.
We will be open between the hours of 8 a.m. and 4 p.m. We would love to see you – please stop in!