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The Greater Des Moines Community Foundation (Community Foundation) is a donor-driven, tax-exempt public foundation with a mission to improve the quality of life in Greater Des Moines through philanthropy. We work to foster greater giving in our community and serve as a catalyst for community betterment.
As a community foundation, we are a hybrid between a private foundation (whose main activity is awarding grants) and a typical publicly supported charity (whose main activity is providing a service). Like a private foundation, one of our main activities is making strategic grants. But like other charities, we also provide a valuable service - helping donors make effective gifts to charitable causes. While donors generally choose to give to organizations throughout the Greater Des Moines area, grants may be made to any IRS-qualified public charity.
The Community Foundation was founded in 1969 by local leaders interested in improving quality of life in Greater Des Moines.
Growth & Relationships (As of December 2007)
Assets: $184 million
Charitable Funds: 506
Grants (’06): $26 million
We are governed by a public board of directors that is representative of, and has strong ties to the community. The Community Foundation, under the leadership of the president, Johnny Danos, employs 10 professional and administrative staff members.
Community foundations are among the fastest-growing forms of philanthropy in the United States today. Funds are established by individuals, families, groups of individuals, nonprofit organizations and businesses.
Donors can make gifts to establish a fund while living or establish a fund through a simple planned giving vehicle.
• Donor Advised Funds are one of the most popular charitable giving vehicles and are typically established by living donors who wish to be actively involved in philanthropy. The donor designates an advisor to the fund who has the authority to recommend gifts from the fund.
Because we are a public charity and not a private foundation, federal law does not require us to distribute any set amount of grants each year. Therefore, when a fund is established, you will determine if it is permanent or provisional.
Permanent endowments allow grants to be made each year that are limited to an agreed upon fixed percentage of the fund’s assets. This option creates an endowed fund that ensures your contribution will grow and maintain its value for charitable giving during and after your lifetime. If you choose to benefit from Endow Iowa Tax Credits however, you must agree to a spending rate of up to 5% of the fund’s value per year.
Provisional endowments allow you to recommend grants of any amount, including the entire balance of the fund. Unless specified in the fund agreement, donors are encouraged to hold a minimum balance of $10,000 in order to build resources for the future.
You may also choose to establish a "Legacy" Fund to receive future assets designated for charitable causes through the establishment of a planned gift. This fund allows you to establish and change funding priorities while you are still living.
Our public charity status also provides several other advantages. We offer a range of services to donors with advised funds. We can consult with them to refine their giving priorities and research prospective grantees to provide a vehicle for anonymous giving.
Types of Funds
Donor Advised Funds
Designated Funds
Field of Interest Funds
Unrestricted Funds
Scholarship Funds
• Designated Funds are available to benefit a specific agency or agencies. When establishing the fund, the donor earmarks one or more charitable organizations or programs to receive their gifts.
• Field of Interest Funds benefit a defined area of charitable activity or a certain group of people. For example, field of interest funds could benefit the arts, health care or disadvantaged youth and families.
• Unrestricted Funds benefit the Greater Des Moines community at large. These funds are available to meet the emerging needs of our community and improve our quality of life. Our Board of Directors awards these funds throughout the year through our structured grantmaking process.
• Scholarship Funds can be established by an individual, a corporation or a group of people, such as a civic club or trade association. These funds can supply financial support for students at any level of education, or fellowships for people furthering their professional development.
Most people who give through the Community Foundation note one or more of the following reasons:
• Community Foundation donors care deeply about the Greater Des Moines community and want to see local results. The Community Foundation exists to match donors with charitable community causes that deeply impact the quality of life in our community. We offer extensive knowledge about local charitable organizations and causes that can help you make informed decisions about your charitable giving.
• Community Foundation donors give to more than one charitable cause.When donors establish a fund at the Community Foundation, they open the door to a broad range of giving options. The Community Foundation offers donors much more flexibility than a direct gift to a charity by allowing donors to direct their charitable dollars to multiple organizations.
• Community Foundation donors are interested in creating a personal or family legacy. With an endowed fund, you can name successor advisors to continue to recommend grants after your death. This is a wonderful way to connect generations in giving. And, if you or your successor relinquish the role of fund advisor, your gift continues as a named fund at the Community Foundation, providing a lasting legacy. In addition, by establishing a permanent endowment, you become a member of our LifeTown Legacy Society.
• Community Foundation donors like to stay personally involved in the use of their gift dollars.A fund at the Community Foundation is a personal expression of philanthropy in a public charity setting. You can work with our community investment team to support ongoing uses for your fund and target the issues you care about most.
• Community Foundation donors place a priority on the sound financial management of their contributions.The Board of Directors sets investment objectives to provide a real rate of return over inflation sufficient to support the mission into perpetuity. Working closely with professional investment managers, the Community Foundation’s pooled investment portfolio return through December 31, 2007 was 11.2%.
• Community Foundation donors appreciate receiving the maximum tax advantage under state and federal law.As a member of the Community Foundation, you are not subject to complex tax restrictions and reporting requirements. The fair market value of your appreciated assets qualifies for a charitable deduction, eliminating capital gains tax on the appreciation. Plus, by making a charitable gift to a permanent endowment fund, you can qualify for a 20% Endow Iowa Tax Credit – that’s in addition to the normal state and federal charitable income tax deductions.
The Community Foundation offers you a much more personal, local and flexible approach to giving. We match donors with community causes they care deeply about and we offer extensive knowledge about local charitable organizations and emerging community needs. We help donors make informed and impactful decisions about grantmaking.
We also provide donors with access to Endow Iowa Tax Credits. This 20% Iowa tax credit is only offered through Iowa community foundations. These credits are available to donors in addition to the normal state and federal charitable income tax deductions for certain charitable gifts. Approximately $3 million in Iowa tax credits will be awarded beginning 2008.
The Community Foundation makes it easy for you to establish an endowment. By establishing an endowment, your fund continues to grow creating resources for giving both during and after your lifetime. The Community Foundation allows you and your family to create a permanent and lasting local legacy. (Up to 5% of the fund’s value per year.)
• Convenience. Establishing a fund is quick and easy, and can be accomplished in a matter of days if necessary. Establishing a private foundation takes months, and requires significant expenses in legal costs and filing fees.
• Deductibility. We offer donors the most favorable tax treatment, whereas private foundations are far less advantageous.
• Payout. As a publicly supported charity, the Community Foundation is not subject to the 5% minimum distribution rule that applies to private foundations. This feature allows donors to establish "acorn" funds, allowing these funds to build over time before making grants.
• Administration. The Community Foundation has community investment and finance staff, auditors and lawyers available to provide services. The Community Foundation includes all funds in its audit and tax return while a private foundation must secure these services and file its own return.
• Anonymity. Some donors prefer to make all or some of their gifts anonymously, which we can do very easily. And, since the Community Foundation is a public charity, we are entitled to shield our donor list in our tax return from public view.
• Research. We can also review a charity on the donor’s behalf, to help secure the needed information to make a responsible gift.
Typical gifts are cash and publicly traded stock. Unlike private foundations and some national charitable gift funds, the Community Foundation also accepts real estate, family limited partnerships and privately held stock, subject to our gift acceptance policies.
Working with your financial advisor or institution, you make a gift to the Community Foundation. We will talk with you about your goals to ensure we understand your intentions, and then prepare a simple fund agreement for your signature. You then recommend grants from the fund to support the charitable organizations of your choice. Or, you may set up an unrestricted fund allowing the Community Foundation the flexibility to meet the emerging needs of the community.
Through economies of scale, the Community Foundation is able to charge minimal fees compared to the costs of establishing and maintaining a private foundation or administering and investing funds as an
individual. Administrative fees are based on the services offered for each type of fund. The minimum investment to establish a fund is $10,000.
Asset Size % of fund balance
Up to $1 million 1.00%
For the next $1 million 0.50%
Over $2 million 0.25%
The minimum grant amount is $200. Checks are typically issued within one week.
The check will include the Community Foundation’s name and the name of your fund, unless you request anonymity.
Yes, the Community Foundation offers tools for you to manage your fund online. By using DonorCentral, you can view your fund balances, gifts to the fund, grants made, and historic fund statements — with information updated daily. You can also make grant recommendations using an online form.
For more information on establishing a fund at the Greater Des Moines Community Foundation contact:
Kaye Lozier
Director of Development
(515) 883-9505
lozier@desmoinesfoundation.org
www.desmoinesfoundation.org
1915 Grand Avenue | Des Moines, IA 50309 | 515.883.2626 | www.desmoinesfoundation.org
There are subtleties within each type of charitable gift and cannot be implemented without the advice of your attorney, tax and financial advisors. We look forward to working with you and your team of advisors to determine your most beneficial vehicle for giving. | 
