Arkansas Community Foundation lost one of its most cherished donors in 2023, Dr. Ruth Marie Allen. However, her legacy lives on. Every step along her illustrious career she left a path of charity and endowments.

While a pioneer in biochemistry and instructional design and technology, Dr. Allen also served in the Peace Corps in Malaysia. She was an esteemed professor and practitioner at various universities across the United States and China. While she worked tirelessly to build her career, she also found a way to be of service to every community where she lived.

One of the many ways she made an impact was through establishing scholarships. At Michigan State, just one of her alma maters, she endowed several student and faculty scholarships. At the University of Arkansas’ Clinton School of Public Service, she contributed to their curriculum, and established the Dr. Ruth Allen Scholarship for students.

One of her greatest passions was orchestral music. A loyal volunteer for the Arkansas Symphony Orchestra, she endowed the Dr. Ruth Marie Allen Concert Series which still provides concerts at UAMS.

Beyond the brilliance of her career, Dr. Allen was also wise with her charitable giving. She used her Roth and traditional IRAs to create the Ruth Marie Allen Endowment for Wildwood Park. Because of her foresight and smart giving strategies and planning while alive, generous gifts were immediately made to Wildwood Park for the Arts when she passed.

Dr. Allen holds a special place in the Community Foundation’s heart. She was a regular volunteer for the Foundation’s annual Arkansas Gives campaign and gave generously to various funds. Our staff worked closely with her to make sure her charitable intentions would continue to be fulfilled long after she passed. It was our honor to work with her and we are so grateful that Dr. Allen trusted us. Through the power of endowment, her legacy—like our appreciation—will live on forever.

By Jane Browning, Executive Director of Hot Springs Village Community Foundation

Does March Madness really refer to basketball, or is it all about tax season? Changing rules, changing circumstances, emerging priorities all vie for our attention at this time of year. We clearly need professional help in sorting through our financial matters to come out on top of this year’s filing season.

Fortunately, Hot Springs Village is blessed with a plethora of great professional talent in the way of accounting firms, estate lawyers, financial advisors and planners. We also have Hot Springs Village Community Foundation with its experience in philanthropic giving and planning. We are one of 29 affiliates in the state with direct access to a team of seasoned professionals with deep knowledge of the nonprofit landscape.

Arkansas Community Foundation offers tax-wise ways to give. Consider these opportunities for smart charitable giving:

Charitable Bunching. Combine multiple years of charitable contributions in one calendar year in order to exceed the standard deduction in that year and receive maximum tax benefits for those donations. Donors can use a charitable fund, such as a Donor Advised Fund, to bunch or “stack” donations in a single year. Gifts to charitable funds are tax-deductible and the assets can be invested, so charitable dollars grow tax-free. Donors can use those assets to provide ongoing support for their favorite nonprofits, even in the years they claim the standard deduction.

IRA Qualified Charitable Distributions. Utilize a retirement account to make charitable donations. A Qualified Charitable Distribution (QCD) allows traditional IRA account owners age 70 1/2+ to direct up to $105,000 each year to qualified charities without treating the distribution as taxable income. A QCD is particularly smart for those who take the standard deduction and would miss out on writing off charitable contributions. And an IRA owner of age 73+ can offset the tax consequences of their Required Minimum Distribution (RMD) by using it for a QCD.

Highly Appreciated Assets. Translate earnings into community impact by donating stock or another appreciated asset. Instead of selling, donors receive a tax deduction based on the stock’s full market value and avoid capital gains taxes. The gift can then be used to benefit the causes and organizations they care about most.

For more information about how March can be a little less mad, feel free to contact one of the Foundation’s philanthropic advisors by calling 501-372-1116.

Your clients certainly have no shortage of options for their philanthropic dollars. Many clients use their donor advised funds at the Community Foundation to support favorite charities across the country, including alma maters, organizations in the communities where they’ve lived in the past or have a second home, or charities in communities where their grown children are now living. 

Many clients, though, are deeply committed to the local community where they’re living now, where they’ve raised their children, and where they’ve built a business. That’s why it’s helpful to remind clients that they can reach out to the team at the Community Foundation when they want to make sure their dollars are making the biggest difference possible, right here in our community. Giving local satisfies many clients’ commitment to “take care of our own.” The unfortunate steady flow of crises and even disasters, coupled with decreasing state and federal funding to local nonprofits, means that philanthropy is playing an increasingly important role in our state. The Community Foundation, through its wide variety of fund types available to your clients (including endowment funds to support the community in perpetuity), can help your clients achieve their goals for local support, whether that takes the form of disaster recovery, supporting families in need, funding critical workforce development, or paving the way for historic preservation initiatives.

The Community Foundation team is always happy to provide insight into the challenges our community is facing and which organizations are delivering services to alleviate those needs so that your clients can provide immediate support through their donor advised funds. 

Additionally, supporting their local Giving Tree Endowment or an unrestricted fund may be a good fit for clients who want to improve lives, right here in this community, for generations to come. Supporting these types of funds may be particularly compelling for your clients who are 70 ½ or older. These clients may be eligible to make annual distributions up to $105,000 per spouse from their IRAs directly to an unrestricted fund at the Community Foundation. This transfer is called a “Qualified Charitable Distribution,” or “QCD.” Not only do QCD transfers count toward satisfying Required Minimum Distributions, but your client also avoids the income tax on those funds. Furthermore, those assets are no longer part of the client’s estate upon death, so the client can avoid estate taxes, too.

Please reach out to the team at the Community Foundation for more information on how your clients can support both current and future local needs, and also meet their own financial, tax, and generational legacy goals.

Just as each of your clients has a unique estate plan and financial plan to meet the client’s particular situation and goals, each of your philanthropic clients needs a unique charitable giving plan. For example, for some clients, giving shares of highly-appreciated stock consistently every year to their fund at the Community Foundation makes the most sense for their charitable goals and their mix of assets. For other clients, leaving a bequest to the Community Foundation to support specific areas of interest is the best fit for the client’s financial situation and community priorities.  

The Community Foundation offers charitable giving vehicles to meet a wide range of clients’ needs. In many cases, a single client can benefit from setting up multiple funds of different types. 

Here’s a quick primer on a few of the most popular fund types.

Donor advised Fund

A donor advised fund enables your client to establish a specific account for charitable giving. Your client makes tax-deductible contributions of cash (or, ideally, stock or other highly-appreciated assets) to the fund, and then recommends grants to favorite charities. 

Field-of-interest Fund

Clients who want to target their giving to specific areas of community need (such as education, health, environment, or the arts) can set up a field-of-interest fund to establish parameters for grant making under the ongoing guidance and expertise of the Community Foundation’s staff.  

Designated Fund

A designated fund allows a client to direct giving to a specific agency or purpose. Over time, the Community Foundation’s staff manages the distributions from the fund according to the terms established by your client.

Organizational Fund

An organizational fund is similar to a designated fund, except in the case of an organizational fund, the source of the initial contribution is the beneficiary nonprofit organization itself. If your client serves on boards of directors of charities, they’d likely be interested in learning more about organizational funds. Indeed, if you represent nonprofit organizations and their board members in your practice, it’s helpful to keep in mind that organizations frequently establish organizational funds at the Community Foundation to set aside endowment reserves or rainy day funds. The team at the Community Foundation is adept at navigating the specific accounting standards that are unique to this type of arrangement.

Scholarship Fund

Clients can set up funds to support students’ educational pursuits based on the parameters and application requirements they outline with help from the experts at the Community Foundation. 

Unrestricted Fund

The Community Foundation has its finger on the pulse of the community’s most pressing issues. An unrestricted fund gives your client the opportunity to support community needs that can’t be identified until the future. One of the biggest benefits of a Community Foundation is its perpetual structure that allows clients and their families to offer support to nonprofits that evolves over time as priorities in the region shift. 

Here’s a pro tip: If you represent clients who are age 70 ½ and older, consider recommending a Qualified Charitable Distribution from a client’s IRA to a fund at the Community Foundation. All of the fund types noted above are eligible recipients, with the exception of only the donor advised fund.

We look forward to working together to discover the type of fund (or funds!) at the Community Foundation that could be a good fit for each client’s unique charitable giving needs. 

Tax time has its silver linings! Going over a tax return with a client helps start a productive conversation about ways to plan gifts to charity more effectively. As you scan 2023’s charitable contributions, talk with the client about whether those charitable gifts were made with cash or with other assets and then steer the conversation toward discussing the most effective assets to give to charity during 2024 and beyond. 

Here is a four-point checklist that can help you advise your clients about the range of charitable giving options. 

–Remind clients that cash is not king when it comes to charitable giving. Cash is typically not the most tax-effective form of charitable giving. Instead, encourage clients to consider giving highly-appreciated assets, including publicly-traded stock, to their fund at the Community Foundation to support their favorite charities.   

–Think beyond stock. Encourage clients to explore not only highly-appreciated stock as a potential gift to charity, but also the various forms of “noncash” assets that can make great charitable gifts. After all, American households’ most valuable assets are retirement accounts and personal residences, not cash. Examples of assets that could be excellent charitable gifts depending on the client’s circumstances include gifts of real estate, closely-held stock, and, for clients who are age 70 ½ and older, direct transfers from an IRA (known as a Qualified Charitable Distribution) to a field-of-interest or unrestricted fund at the Community Foundation. 

–Make it easy on yourself and your client. Reach out to the team at the Community Foundation for assistance! We are happy to help you and your client evaluate the best assets to give to a donor advised or other type of fund at the Community Foundation to achieve the client’s charitable goals.

–Close the loop on IRS reporting. Remember that the reporting requirements are different for noncash gifts to charity versus cash gifts. Make sure you are familiar with IRS Form 8283, which must be filed with any tax return claiming a deduction for noncash assets valued at $500 or more. The IRS expects strict adherence to the terms of the form, especially the requirement for a qualified appraisal. On our end, the Community Foundation will handle the confirmation of receipt and a commitment to document and notify the IRS if disposition occurs within three years.

Opening up the full range of charitable giving options for a client can help you structure a holistic estate and financial plan that meets the client’s objectives for family wealth, philanthropy, and tax effectiveness. Reach out anytime to the team at the Community Foundation to discuss techniques and strategies. 

Before getting married, the Johnsons made agreements about where and how to raise their children. It landed them in Greenwood, Arkansas.

“It was love at first sight for me, but it took him a little longer,” said. Sandy Johnson M.D., cofounder of Johnson Dermatology. “He came around quickly though.” Sandy and her husband, fellow dermatologist Brad Johnson, M.D., established their clinic in nearby Fort Smith in 2006.

“I’m originally from Ohio. And Brad comes from a long line of community activists that are well known in Greenwood,” said Sandy. “Many in his family were educators and believed in giving back to their community. My family also held similar values, but both of our families did their charity work through the church. Brad and I wanted to be a little more intentional about our giving — make a different kind of impact more specific to our passion.”

The Johnsons established the Brad and Sandra Johnson Endowment in 2002 at Arkansas Community Foundation. They’ve made several grants every year since then.

“Brad and I used to live in Little Rock, and one of the things we loved most about the city were the walking trails,” said Sandy. “We knew we wanted to have the same kind of trails where we were raising our family.”

Both runners, Sandy and Brad are proponents of a pedestrian-friendly lifestyle. They believe that when kids — or anyone for that matter — can be outside more and feel safe outdoors, it helps improve communities.

“When we first moved here, our kids couldn’t walk to school,” she said. “They are in college now, but now walking to school is possible for more local students. Our ultimate goal, which is why our fund is endowed, is for all the area’s schools to be connected by walking trails.”

That goal is on its way to becoming reality. Because of the many donations made to Greenwood Parks and Recreation, nature walks can be found all over the Greenwood and Fort Smith communities. The Johnsons have funded trails, sidewalks, path lighting and various other small projects to make nature walks accessible for more people. They are deeply involved. More than funders, they review drawings, attend planning meetings, and are committed to making sure implementation is right.

“Greenwood is well-known for its good education system, and that was a huge reason why we raised our kids here,” said Sandy, “But from the beginning of our relationship, we’ve enjoyed the outdoors and being in nature. It’s always been as important as just about anything else.

“Over time, we have learned that our marriage is better when we go on walks, simple as that,” she said. “Nature has been good for our family. And we want for more people to enjoy it, too.”

In 2023, EAST applied for and was awarded a three-year grant from the IMPAC Endowment through Arkansas Community Foundation. This grant helped provide technology training and professional development to EAST facilitators throughout Arkansas for their 2023 seminar held at Oaklawn.

The “Off to the Races” event was three full days including 39 unique breakout sessions with 45 presenters for 215 EAST facilitators, including on-demand participants. The on-demand option afforded individuals who may be affected by time or travel barriers the opportunity to participate and still receive quality training at their convenience.

“I loved every session I attended,” said one participant. “I loved that other facilitators presented their best practices. This was one of the best seminars you guys have put on!” Another teacher said, “The most valuable part of EAST Seminar is the networking and camaraderie we develop with other facilitators. Once I return to my classroom, I now have 8-10 new friends to reach out to for questions and advice.”

Learn more about the EAST Initiative mission here.

Attendees received 2,848 hours of professional development from the live event and 712 hours was received by on-demand participants. Of the 39 sessions, 32 were technology focused, including topics such as cyber security, data science, technology repair, environmental science, tech certifications, engineering, 3D printing, AI, eSports, ArcGIS, videography and podcasting.

The event had a variety of ways to engage, including a wide array of exhibitors present to provide information about the field, morning posts designed to energize attendees, prizes for participants, staff recognition and networking groups and events.

Following the Seminar and thanks to survey results from attendees, 98% of facilitators felt better prepared to lead their classroom, 82% improved their understanding and skills with technology, and 95% felt better prepared for the new school year. They also identified areas to explore in the future like AI workshops, classroom management, 3D printing, design software, among others.

The purpose of the EAST Seminar was to create a relevant educational experience for EAST facilitators intentionally designed to inspire and recharge, cultivate networking and collaboration, and encourage continuing professional development and growth.

The Seminar was also made possible through generous sponsors, including the IMPAC Endowment, University of Arkansas, Avad3, ArcBest Technologies, Acxiom and Tesla Software.

When asked if EAST accomplished this goal, teachers responded with a resounding “Yes!”

“The breakouts were great, informative, and gave me ideas to take back this year,” said a local teacher. “I am glad some of the sessions I wanted to see were recorded! I love the network piece and getting to know other facilitators. It is one of the best seminars I attend that prepares me for the upcoming school year.”

The IMPAC Endowment that helped fund this seminar exists to provide research, development and implementation of computer technologies in Arkansas schools. To help increase the impact of this endowment, click here to make a donation.

Little Rock, Ark. (Feb. 7, 2024) – Scholarships are now available for eligible Arkansas students through Arkansas Community Foundation.

The Community Foundation’s scholarships are for Arkansas students pursuing education at two- or four-year colleges or universities, vocational schools or technical training programs. Each scholarship has its own eligibility criteria. Some scholarships are designated for graduates of a particular high school or those who plan to attend a particular college. Others are based on extracurricular activities or intended college majors.

“Since 1976, the Community Foundation has partnered with individuals and organizations who want to support students in their pursuit of higher education,” said Heather Larkin, Community Foundation president and CEO. “These generous people provide the funding and determine the size and eligibility criteria of each scholarship, while we oversee the application and awarding process on their behalf.”

Scholarships with statewide eligibility include:

·        Abigail Robertson Scholarship, provides a scholarship for female students pursuing a business degree at a college or university in Pulaski County

·        Advancing Women in Transportation Scholarship, provides a scholarship to female students who plan to pursue a career in a transportation related field in Arkansas

·        Anne Pressly Scholarship, to memorialize the legacy of Anne Pressly and support a graduating high school senior woman who plans to pursue a career in Journalism

·        Arkansas Service Memorial Scholarship, for students who are children of Arkansans who lost their life in service in the state, nation or community

·        Barbara Mashburn Memorial Scholarship, provides a scholarship for a graduate of an Arkansas high school pursuing an education as a vocalist

·        East Student Scholarship, provides a scholarship to a graduating senior who attends any high school with an EAST program

·        Elizabeth G. Redman Republican Party of Arkansas Scholarship, for students who are members of or active in the Republican Party of Arkansas

·        Herchel and Melba A. Fildes Scholarship, provides a scholarship to students studying nursing and attending Harding University in Searcy, Arkansas or Arkansas State University in Beebe

·        Lillian McGillicuddy Republican Party of Arkansas Scholarship, for students who are members of the Arkansas Federation of Young Republicans or are active in the Republican Party of Arkansas

·        Marie and Bob Marshall Republican Party of Arkansas Scholarship, for students who are members of or active in the Republican Party of Arkansas

·        Merwin T. and Agnes Bowman Nursing Scholarship, for students seeking a Bachelor of Science in Nursing or equivalent degree from a qualified institution

·        Poultry Federation Scholarship, provides scholarships to students pursuing a degree related to the poultry industry and attending a school in the University of Arkansas system, Arkansas State University system, Arkansas Tech University or Southern Arkansas University

·        Robert P. Atkinson Hospital Leadership and Scholarship, provides a scholarship to students pursuing an advanced degree with an emphasis in healthcare and/or hospital administration

·        Ryan Mondy D.A.S.H. Memorial Scholarship, provides scholarships to graduating seniors whose lives have been affected by cancer

To apply, and for more information about these and other scholarships, visit  www.arcf.org/scholarships.

Deadlines for scholarship applications differ and can be found on the application portal.

Arkansas Community Foundation, a statewide nonprofit organization, provides resources, insight and inspiration to build better Arkansas communities – communities where our kids will want to raise their kids. The Community Foundation is the largest grantmaker in the state in the number of grants made each year. Since 1976, the Foundation has provided more than $393 million to nonprofits. The Foundation staff works directly with donors, professional advisors and nonprofits to help strengthen Arkansas communities through strategic philanthropy and focusing on local needs. Its assets rank among the top 60 out of more than 800 community foundations in the United States. Serving statewide and local initiatives, the Community Foundation helps connect those who want to give to causes they care about. Contributions to Arkansas Community Foundation, its funds and any of its 29 affiliates are fully tax deductible.

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Greetings! I just wanted to take a moment to give a huge thank you to all the incredible people who have helped make the Arkansas Community Foundation the strong organization it is today. From our donors and nonprofits to businesses, professional advisors, volunteer board members, and staff members – you all deserve a round of applause.

Alyson Bradford

Together, we’ve had an amazing year, granting over $47.4 million to Arkansas nonprofits. That’s a massive impact! Our focus is on making a difference in important areas like early childhood literacy and food security through our grantmaking efforts. And let’s not forget the hundreds of grants we make each year through donor advised funds, supporting causes like early childhood development, education, animal welfare, medical research, and financial literacy and more.

In fiscal year 2023, we raised over $1.2 million in donations to help with the long-term recovery after the tornadoes in Central Arkansas and Wynne. Our flagship grantmaking program, Giving Tree, made an amazing 499 grants totaling over $866,000.

Despite the challenges our state faces, the people of Arkansas, especially those in the Community Foundation family, continue to choose hope. We’re ending the year stronger than ever, and I truly believe the future is bright.

We’re so grateful for our partnership with trusted financial advisors who help their clients find the perfect home for their philanthropy. And a special shoutout to all our grantees who work tirelessly to serve our fellow citizens and advocate for positive change. We couldn’t do it without you.

I also want to give a personal thanks to our exceptional team at the Foundation. They’re absolute rockstars – talented, hard-working, and caring. On behalf of the board of directors, I want to express our deep gratitude for everything they do to make Arkansas a better place for all of us.

So, take a moment to dive into our fiscal year 2023 annual report and join me in thanking everyone who’s working tirelessly to fulfill our mission of building strong Arkansas communities. You’re all incredible!

Alyson Bradford 

Board Chair

Many Community Foundation donors have updated their estate plans, leaving bequests to their donor advised or other charitable funds. A “specific bequest” designates a set amount from the donor’s estate or trust, for example:

“I bequeath $15,000 to The Community Foundation (tax ID and/or address), a tax-exempt organization under IRS Section 501(c)(3), to be added to [Name of Your Fund], a component fund, and I direct that this bequest become part of the Fund.”

The Community Foundation is ready to receive such bequests, usually once the estate is settled.

Alternatively, a “residuary bequest” designates a portion of the remaining estate after specific bequests, expenses, and taxes are paid:

“I leave all the rest and residue of my property, both real and personal, to The Community Foundation (tax ID and/or address), to be added to [Name of Your Fund], and I direct that this bequest become part of the Fund.”

The amount of a residuary bequest is determined after settling the estate, and the designated charity (e.g., your fund at the Community Foundation) receives the full amount once the estate is completely settled. Typically, a “partial distribution” is made by the estate’s representative as soon as they have sufficient information about assets and liabilities.

When leaving a residuary bequest to your Community Foundation fund, our team assists at various steps during estate administration. We receive updates on assets, expenses, taxes, and periodic accountings, executing documents like receipts for distributions.

Our team welcomes the opportunity to work with you and your advisors to establish bequests that create a charitable legacy.