dsmWealth January 17, 2019

A lot of good things come out of this old house at 1915 Grand Ave., home of the Community Foundation of Greater Des Moines.

Benefactors Find Help at Community Foundation
BY STEVE DINNEN

Being charitable is a little more complicated than just cutting a check. You first have to identify who will receive it, and why, then tend to bookkeeping and legalities, and maybe make some tax moves, and then ideally follow up to see that your money is being used wisely.

At the O’Halloran Family Foundation, benefactor Jim O’Halloran was doing it all on his own for many years after he launched his effort to give something back to the community (he founded truck dealership O’Halloran International in 1981). Then it came to the attention of family members such as his daughters Anne Broderick and Beth Gookin, who oversee the foundation today, that they might enlist the Community Foundation of Greater Des Moines to bolster their efforts.

The result? "It has been helpful," Broderick says. "It has been reaffirming."

For starters, the Community Foundation handles much of the paperwork. It tackles accounting, auditing, due diligence and check-writing duties that otherwise would be shouldered by the O’Hallorans. Importantly, it then can identify appropriate donation opportunities after, Gookin says, "we identify what’s important to us."

With the assistance of consultant Kaye Lozier, the sisters identified goals and values for the foundation. Immigration and refugee support was one area of interest; others were empowering women and supporting arts and culture.

With that in mind, Broderick says, the Community Foundation researched and identified candidates worthy of support. The Foundation turns 50 this year, and by now has developed knowledge of every charitable organization in Central Iowa. That has a come in handy, the sisters say, in identifying which entities would be of interest to them.

Lynne Yontz, chief charitable giving officer at the Community Foundation, says her organization has helped arrange interviews between givers, such as the O’Hallorans, and recipients so the two can discuss mutual goals. They also have arranged on-site visits so that donors can get a personal feel for the activities of a potential beneficiary.

Community foundations such as Greater Des Moines'—there are a number across the country—are legally recognized as entities that basically serve as conduits between donors and recipients. Donations that pass through them are entitled to all eligible tax benefits, and they handle administrative paperwork as well as investment services for funds that are awaiting disbursement.

Broderick and Gookin say their relationship with the Community Foundation of Greater Des Moines has worked to boost the efficiency of their family foundation.

"It has guided our giving," says Broderick.

Considering Your Own Charitable Foundation?
BY STEVE DINNEN

Private or community—the choice is yours when it comes to setting up a charitable foundation.

Those two types of foundations have different tax-savings features. And they have different expense loads and distribution requirements.

Both are established by a family or individual (there are separate foundations for companies). There is no minimum contribution with either. But there is a difference in the tax break. A cash gift to a community foundation can offset as much as 60 percent of your adjusted gross income (AGI), while capital gains property (stocks, typically) merit a 30 percent deduction. With a private foundation, the cash deduction is limited to 30 percent of AGI and the capital gain portion is 20 percent.

Regarding distributions, there is no annual payout required of a community foundation. A private foundation typically has to pay out 5 percent of its assets annually.

Don’t do this on your own—call in lawyers and tax experts for guidance on how best to put your charitable efforts into play.

Some of World's Wealthiest Got a Wake-Up Call in 2018
BY QUENTIN FOTTRELL FOR MARKETWATCH

The richest people on the planet added fewer members to their exclusive club last year.

The world’s high net worth (HNW) individuals—a net worth of between $1 million and $30 million in assets—grew by just 1.9 percent to 22.4 million people in 2018, according to data released Wednesday by global wealth consultancy Wealth-X. Their combined wealth also grew by 1.8 percent to $61.3 trillion, below the rate of global economic growth of approximately 3.7 percent last year.

Asia‘s high net worth population saw its wealth grow by less than 1 percent in 2018. While Asia’s gross domestic product grew by more than 8 percent in 2018, its stock markets plunged by more than 11 percent last year, Wealth-X said. "This competing effect has resulted in almost no change in the HNW population and its wealth in the region," it added.

In Latin America and the Caribbean, Africa, and the Pacific, the number of HNW individuals shrank in 2018 (down by 7.6 percent, 2.5 percent and 1.9 percent, respectively) and their wealth also declined last year by similar rates. While these regions saw GDP expansion in 2018 — except Latin America and the Caribbean — their stock markets were among the worst performers during the year," Wealth-X said. > FULL ARTICLE

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