Updates from Truman Heartland's President & CEO | Leaving a Legac

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About Our Foundation

President's Blog

News and Updates from President & CEO Phil Hanson

Updates from Truman Heartland's President & CEO


Phil Hanson shares information on charitable giving trends and how the Truman Heartland Community Foundation is partnering with individuals and organizations across the region to benefit the Eastern Jackson County community.

Leaving a Legacy

On Wednesday February 22nd we had the opportunity to meet with over 60 representatives from area charitable organizations for a forum regarding our upcoming community grants process. Our grants committee is getting geared up for our Annual Community Grants process this year and Letters of Interest are due on Thursday April 6th. We also discussed a relatively new grant program, the Jelley Family Foundation Endowment for Children’s Education with applications due on May 25th. Applications are made online at our website at www.thcf.org, where you can find more information about these grant programs. Please help us spread the word about this opportunity to nonprofits serving our Eastern Jackson County Community.

Last year our grants committee made 53 grants totaling $294,000. Our Board of Directors has the responsibility to make grants each year from endowed funds established by numerous donors over the years, many through planned/estate gifts. Awarding these grants is a tremendous responsibility since these donors have entrusted our board to take great care of their legacy gift. The needs in our community change over time and these individuals had the confidence that our Community Foundation would year after year through a competitive grants process fund the best programs of nonprofits making a difference in our community.  Our volunteer Board of Directors and Grants committee take this responsibility to heart and do their best to ensure we are funding the most effective programs.

These gifts made through estate plans are vital to the health of our community and are an important way that people can make their mark and leave their legacy in our community, just as Dr. Carl Jelley did with establishing his endowment for children’s education.   I’d like to share with you some information about one type of planned gift that could be utilized to create an endowed grant making fund, a Charitable Gift Annuity.

A Charitable Gift Annuity (CGA) is an instrument that allows a donor to make a gift to a charity that will provide income to the donor for his/her lifetime and also provides a legacy gift to the charity. So let’s look at an example of a married couple both age 65, who create a CGA with Truman Heartland Community Foundation. They donate $50,000 of appreciated stock with a cost basis of $20,000. When setting up this CGA contract assuming they are in 25% tax bracket, they would receive and income tax deduction of $14,997 saving $3,749 in income taxes. They would also avoid capital gain taxes of $900 for a total tax savings of $4,649. Annually they would receive an annuity payment of $2,100 with $856 of this being tax free, making the effective payout rate 5.3%. The estimated payout over both of their lives is $55,020, more than the original gift amount. At the end of their lives with professional investment our goal is that $50,000 would remain available in their CGA fund that would then be utilized to create an endowed fund in their name to provide additional funds for our Annual Community Grants program.

As you can see from this example, a CGA is a great tool for charitably minded people who want to leave a legacy gift to receive the tax benefits of making that gift today and also receive annual income during their retirement years. We would be pleased at Truman Heartland Community Foundation to speak with you about this and other charitable giving tools.

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