Garrett Dolan of Tyson Foods

Op-ed by Garrett Dolan, Ph.D. Senior Manager, Corporate Social Responsibility Tyson Foods

The provision of child care influences who is available to work, when a person is able to work, where they can work, and especially, why they work.

In Arkansas and across the nation, there are very few affordable care options available. The annual cost of tuition exceeds $10,000 per child. Not to mention, it costs over $4 million to build a new licensed facility. These costs far exceed what a working family can afford and are the primary reasons why there is limited availability.

Running parallel to the child care shortage is an “intense and growing shortage” in labor participation. Tyson Foods experiences this problem with fewer candidates being able to work, higher rates of turnover and increases in absenteeism. Child care is one of the top reasons why these trends are deepening.

Collectively, we have a real opportunity to improve our state’s future if we aggressively address child care together. With smart investments, we can expand the labor pool, reduce reliance on government welfare, and increase school readiness for children. It requires transformational thinking with the supply of governmental incentives especially related to the cost barriers of building new facilities and paying tuition. Parents need tuition subsidies that are realistic and sufficient enough for them to choose to go back to work.

At Tyson Foods, we are working hard to figure out our company’s role in addressing child care and doing more to serve the communities where our team members live and work. We strive to be the most sought-after place to work and ensure team members have the tools and resources they need to be successful. We have piloted two on-site child care programs in Texas and Tennessee to help us learn more. Meanwhile, it is Arkansas where we call home and employ more than 20,000 team members.

Let’s join together and move with purpose to bring about the systemic changes needed.

For many rural communities, the school district serves as the economic, cultural, and social hub of the town. Pea Ridge School District — also referred to as Pea Ridge School Community — has adopted a community-focused model that meets the needs of all Pea Ridge residents, not just the students.

Alex Jackson, special projects coordinator for Pea Ridge School District, oversees community initiatives such as The Blackhawk Pantry. The pantry is open every Thursday morning to students, families, faculty, and community members to pick out kid-friendly meals, fresh produce, protein, and other resources at no cost.

The Northwest Arkansas town can be considered a “bedroom community,” as most of its residents travel south to Bentonville and other nearby cities to work. The school district is Pea Ridge’s largest employer and enrolls 2,496 students in pre-K through 12th grade.

Assistant superintendent Anne Martfeld has a 25-year career in education and began working in the Pea Ridge School District four years ago. At the time, the district was beginning construction on its new high school building. The new construction — combined with a grant from the Walton Family Foundation — served as a blank slate for the district, allowing Pea Ridge School District to explore how they could use the new facility to meet the needs of the community while integrating an innovative learning opportunity for students. Community Clinic Pea Ridge became the foundation of the district’s community-centered model.

“We partnered with Community Clinic to have a school-based health center in the high school which would be adjacent to the medical care professions classroom,” Martfeld said. “Our grant from the Walton Family Foundation helped us think about the connection of community and school and how we as a district could serve our community in a holistic way.”

Community Clinic Pea Ridge offers primary and acute care, basic lab tests, wellness checks, immunizations, sports physicals, return-to-play care, and other services to the community of Pea Ridge and the surrounding area.

In addition to being open to the entire community, Community Clinic Pea Ridge offers a shuttle for students. This transportation option allows children to get sports physicals, wellness exams, and other routine health care services without their parents or caregivers having to miss several hours of work to get them to and from appointments in Bentonville.

The clinic served as a launch pad for Pea Ridge School District to build additional inclusive spaces that provide students with real-world experiences while meeting a community need. Alex Jackson is the special projects coordinator for the district and oversees the clinic and other community initiatives, including The Blackhawk Pantry.

Community Clinic Pea Ridge is adjacent to the medical care professions classroom, giving students the opportunity to gain real-world experiences while meeting a community need.

Every Thursday morning, The Blackhawk Pantry is open to students, families, faculty, and community members to pick out kid-friendly meals, fresh produce, protein, and other resources at no cost. To date, the Northwest Arkansas Food Bank has donated more than 25,000 pounds of food to the initiative.

“Our district social worker, Amanda Shackelford, wanted to have a closet where students could access food,” Jackson said. “I am known for going big, so we cleared out our old records room and essentially created a free grocery store.”

Since opening in February 2022, The Blackhawk Pantry has served an average of 100 people per week, totaling more than 3,800 visits. Jackson wants to ensure the pantry is available to anyone who needs it and simplifies the process of meeting families’ needs by minimizing asks of patrons. Students in the district make up 40% of visits.

The Blackhawk Pantry also serves as a resource center in partnership with the Northwest Arkansas Food Bank and Community Clinic where experts on social services program are on-site and available to answer any questions.

“To me, having a community-centered school involves all of those pieces working together to make it successful,” Jackson said. “And that comes from having strong relationships with our students, our teachers, and our external and internal stakeholders.

“When people from the community step foot on our campus, we want them to be able to envision themselves as being a part of our community school.”

Undrea “Gem” Jones is a former inmate and volunteer. She goes into prisons regularly to record parents reading books they have chosen for their children. Jones understands the complexity of parents’ feelings as they read.

Undrea “Gem” Jones was released from prison after 21 and a half years on Feb. 26, 2019. She always knew she would go back in — but as a volunteer for the Storybook Project of Arkansas. She wants to be a part of helping parents and grandparents form and foster bonds with the children in their lives the way volunteers helped her.

“It was a momentous event for me because it was coming full circle,” she said. “That was a whole experience that I had been waiting to have for a very long time.”

Jones was sent to prison for a crime she committed at the age of 16. Her son was 2 years old. The Storybook Project of Arkansas, a nonprofit prison outreach that allows volunteers to record inmates reading to their children, was already underway at the Arkansas Department of Corrections-McPherson Unit when she arrived.

Experts, like those from the American Academy of Pediatrics, point out that reading to children not only boosts their language skills, it also strengthens their relationships with their parents.

Books have seen Jones through some of the hardest times in her life, including her own childhood.

“I love books. I excelled in academia,” she said. “There was a lot of trauma that I was dealing with at that time, and books were a safe-haven for me. I read anything that transported me from my present circumstances.”

She couldn’t physically pull her son onto her lap and snuggle him for reading time while she was in prison, but the Storybook Project of Arkansas allowed her to give him the gift of her voice.

Jones and other volunteers from the outreach visit prisons four times a year, said Denise Chai, who leads the Arkansas program.

“We bring in a whole bunch of books, and they choose one,” said Chai. “They will write a message in the book, and then they go and sit down with a volunteer and they’re recorded, giving a message Then they read the book and give another message at the beginning. After we leave the prison, we burn that to a CD, because we’re not quite digital, and we mail the book and the CD to the child.”

Jones doesn’t remember any of the books she chose to read to her son.

“I don’t remember the books because you’re going through so much in the process at that moment,” she said. “It’s amazing, but it’s also really difficult because you want to say so much to your child, but at the same time you want to hold it together and send love and encouragement, and you’re holding a broken heart because you can’t be there. You would have to prepare yourself so you would not be overcome with just the gratitude and appreciation and broken-heartedness — and get through it.”

Choosing books to share with him, however, was simple. “I heard another volunteer say we had so many different, beautiful books, and she said, ‘How do they choose which book they want to read?’” said Jones. “I said, ‘The book chooses us.’ During the whole process as my child grew older, I found a book always picked me for what I was going to read to him.”

She remembers asking him to read a book about Puerto Rican evangelist Nicky Cruz when he was old enough, and to let her know what he thought of it. She didn’t read the book to him, but he did write a report to share his thoughts when he finished on his own.

“He had the foundation of reading from the storybooks that I sent him,” she said.

That book, like others they shared during her sentence, created common ground for them, helping foster a bond that can be lost when parents and children are separated for long periods.

Jones considers herself lucky because some of the people she met in prison didn’t have custody of or contact with their children; her son was in the care of family, and they made sure he heard about her and that she saw him when possible. The recordings he received of her reading to him linked them while they were apart, sometimes serving as conversation starters when they could be together.

She hasn’t discussed the Storybook Project with her son and won’t hazard a guess about what it might have meant to him. She is a proud mom, though.

“My son has a love of academia, and he went to college on an academic scholarship. He loves knowledge,” she said. “He is career-focused, and he’s in a committed relationship. He has never been touched by the criminal justice system. He is an awesome man.”

The Storybook Project, she said, helped her be a better mother.

“It wasn’t just about reading a book or sending a book or recording to our child,” she said. “To us, it’s everything. We get to send a piece of ourselves to our children, some of them we haven’t ever seen, some of them we haven’t seen in years or months,” she said. “That one moment that we got the opportunity to be a normal parent was —– is — just something that is priceless.”

Market declines and inflation have made 2022 a challenging year for some clients to fulfill their traditional giving objectives. 

With annual inflation hovering at 8% (and no relief in sight) and liquidity less than ideal, cash may be hard for donors to part with. Giving stock may also be hard to swallow, at least psychologically, in a down market. For example, assume shares of a client’s stock have dropped 15% over the last quarter, from $200 per share to $170. If the client has been intending to make a $10,000 gift to charity this year, last quarter the client could have accomplished that with a gift of 50 shares. Now, though, the client will need to give nearly 59 shares to hit that $10,000 target. Realizing that it will “take more shares to do the same good,” your clients may be less inclined to give depreciated stock shares to their donor-advised funds and other charitable recipients.

So, with money tight and stock perhaps painful to give, your clients may be considering alternatives to cash or securities for their gifts to charity. Be aware of the IRS rules to both meet the clients’ objectives and stay in Uncle Sam’s good graces. 

A high-level understanding starts with the $5,000 threshold for documentation that appears on IRS Form 8283, titled Noncash Charitable Contributions. This form is required to be filed with any tax return claiming such a deduction. 

Substantiation of value up to $5,000 is routine and consistent with securities (i.e., acquisition and contribution dates, fair market value of the item(s) and method of value determination). Requirements for gifts up to $500 are less stringent. 

Real estate, closely-held stock, art, jewelry, or vehicles valued at $5,000 or greater require more specifics. They’re also subject to greater scrutiny if the donor is audited or questioned. 

Consider the additional documentation requirements:

–From the donor (your client): the type of gift, description, physical location and a third-party appraisal of value. 

–From the appraiser: a signed declaration on the tax form describing their qualifications and identification number; that they do this work regularly; and where they can be located. 

–From the recipient (the charity, sometimes known as the “donee”): signed confirmation of qualification, receipt, federal identification number and a commitment to document and notify if disposition occurs within three years. (The Community Foundation is accustomed to filing this documentation for donors’ gifts to funds.)

Your clients also need to know that meeting the requirements for declaring value rests with them and not their tax preparer, recipient organization or appraiser. In the recent case of Heinrich C. Schweizer v. Commissioner, a donor/taxpayer was found liable for reimbursements and penalties related to a decade-old donation of art first valued at $600,000—later reduced by more than 50%—and exacerbated by the IRS’s determination of participants’ roles and responsibilities. Tax advisors continue to be reminded of the intricate requirements to substantiate hard-to-value gifts such as conservation easements, watching carefully to see how taxpayers can win valuation arguments with the IRS.

So while a high-value donation of real property to your client’s donor-advised at the community foundation or a little-used auto to benefit a charity is admirable and relieves the pressure on making traditional cash or securities gifts, patrons should take a vigilant and “donor beware” approach to alternative gifting. While beauty is in the eye of the beholder, value and deductibility are determined by others. 

Giving appreciated stock to charitable organizations is a highly-effective tax strategy. During years when highly-appreciated stock is in short supply, however, implementing this strategy may be easier said than done. 

This is when donor-advised funds come in especially handy. Now is the time to discuss charitable giving with those clients who regularly added to their donor-advised funds throughout the market’s long bull run. If these clients intend to ride out today’s market conditions in their personal portfolios, this year’s bear market doesn’t mean the clients’ year-end charitable giving has to take a hit. These clients can use their donor-advised funds to support their favorite organizations, sometimes even at levels consistent with prior years. 

For other clients, this may be a year to consider contributing cash to a donor-advised fund instead of donating highly-appreciated stock (which has been the go-to gift for so many of the last several years). Gifts of cash could reduce the burden on a client’s personal stock positions that may have fallen in value dramatically, giving these positions more time to recover value and, at some point in the future, be contributed to a donor-advised fund at a higher value (thereby resulting in a higher tax deduction for the client). 

Finally, consider encouraging your clients who’ve not yet established donor-advised funds at the Community Foundation to consider doing so now. Not only does a donor-advised fund help organize charitable giving, but over the long term it can also protect a client’s ability to support their favorite causes even when market conditions are rough.

The team at the Community Foundation is always happy to help your clients maximize both the philanthropic and financial elements of their charitable giving strategies. We look forward to hearing from you.

Meet professional advisors who partner with the Community Foundation to meet their client’s charitable goals – and who also have their own funds with us.

Eric Hutchinson, vice president of Goldman Sachs, is a local professional advisor we work with to serve his clients. Hutchinson served on the Community Foundation’s state board starting in 2013, which included nine years as Finance Committee chair. We are so grateful for his leadership and service to the Foundation. He and Donna, his wife of 51 years, established the Hutchinson Family Endowment with the Community Foundation of Faulkner County. We are excited to get to know Eric better through our Q&A series and shine a light on important contributors like him to the Foundation:

What is your favorite nonprofit in Arkansas and what drew you to their mission? How did you hear about them?

Without question, my favorite charity is Arkansas Community Foundation. I like that there are so many opportunities to give to causes that are important to our family, all through a single resource. Plus, the Community Foundation provides help to identify needs in the community and to vet the charities serving those needs. This allows us to give with confidence that our dollars will be productively employed. I first heard about the Foundation hearing then CEO Pat Lile speak at an event. Pat inspired me to learn more and when we learned what was possible, we established a family fund. Our family fund serves as a giving vehicle for our family and as a teaching vehicle for our grandchildren to learn about philanthropy.

What inspires your family to give?

We have been teaching our children and grandchildren to be sensitive to needs they see in the community. We honor their awareness by finding and giving to charities to support the causes they find important.

How did you get involved in charitable giving? 

Both my wife and I grew up with parents who were giving-oriented and taught us the importance of giving back to the community and sharing our blessings. We always wanted to give and the Foundation provided a more convenient way to accomplish our giving goals.

What do you enjoy doing in your spare time?

My wife and I love to travel and have been blessed to visit many wonderful places all over the world. We have shared this love of travel with our children and grandchildren through regular family trips designed around experiences that will enhance their world view.

What has been your most valuable lesson in life?

Probably the most important lesson I ever learned is that I am 100% responsible for my life. If something doesn’t about my life doesn’t suit me, it is up to me to make it right.

What question do you wish you got asked more?

I love travel and have learned much on those travels. I love to talk about those experiences and relive them as I tell about them. 

If you had a chance to have a meal or conversation with someone, living or dead, who would it be? Why?

Jesus Christ. No one human being has had more impact on the world than Jesus and it would be amazing to learn more about his human experience.  How he developed, how he learned and grew as a human being. I also wonder about how he felt about his ministry and his call to impact the world. Eric is from Searcy and currently resides in Conway, Arkansas. He and Donna have one living child, Amy Huett. Amy is a PhD Nurse and serves as the Director of Nursing Excellence at Arkansas Children’s Hospital in Little Rock. She has three children: Katie Huett is a junior at the University of Arkansas in Fayetteville studying nursing. Nicholas Huett is a freshman at the University of Arkansas in Fayetteville studying criminal justice. Eric Huett is a sophomore at Greenbrier High School and rising football star. 

You’ve no doubt noticed that donor-advised funds have been featured more prominently over the last few weeks in financial and wealth management publications. That’s in part because the Accelerating Charitable Efforts Act was reintroduced in the House of Representatives on February 3, 2022. The legislation contains the same proposed law changes as the bill introduced in the Senate in July 2021, which stalled. 

Portions of the bill are designed to address concerns that donor-advised funds are not required to make distributions to charities according to any timeframe or monetary level. The ACE Act proposes to create four new categories of donor-advised funds, each with different tax consequences to the donor.

Donor-advised funds are excellent charitable planning tools for many situations, including for individuals and families who want to organize a regular stream of giving to community organizations and unlock illiquid assets to do so. Indeed, the proposed legislation recognizes special categories of donor-advised funds established at community foundations, referred to as Qualified Community Foundation Donor Advised Funds, which are treated favorably for tax deduction purposes.

We’re tracking closely the various conversations surrounding this proposed legislation, including a proposal by some community foundations that calls for a five percent aggregate minimum payout and other measures to address concerns while also maintaining the characteristics of donor-advised funds that motivate more charitable giving overall, especially as Millennials catch on to this particular vehicle to fund their charitable priorities. 

As with any proposed legislation, no one can predict whether or when new laws impacting donor-advised funds will be enacted, and if they are, what parts of the proposed legislation will be included in the version that becomes law. What we can tell you, though, is that we are watching this legislation very carefully, on a daily basis, just as we do with any proposed legislation that could significantly impact your clients’ charitable giving strategies. You will hear from us if changes are enacted. In the meantime, please reach out with questions. 

Potential legislative changes aren’t the only choppy waters as 2022 gets into full swing. Charities are impacted by inflation, and your clients may wish to take that into account in their charitable giving plans for 2022. Certainly as your clients’ purchasing power dips, so does their ability to make charitable contributions. But, it’s possible that the charities your clients love to support are feeling the sting to an even greater degree. This might sway your clients toward maintaining–or even increasing–their historical charitable giving budgets and perhaps even adjusting those budgets for inflation. Be mindful, though, that even the possibility of inflation can have a significant psychological effect on your clients, impacting everything from their confidence as consumers to attitudes toward (and longing for??) Girl Scout Cookies.

The team at the Community Foundation has decades of experience working with advisors and donors through economic ups and downs. We’re happy to be a sounding board as your clients evaluate whether and how to adjust their charitable giving in 2022, especially in cases where establishing a fund at the Community Foundation can help achieve both a client’s and a charity’s objectives. 

We often hear from our  fundholders that one of the reasons they love working with the Community Foundation is because the foundation is truly the community’s foundation. Whether a family has established a multi-million dollar field-of-interest fund or a donor advised fund to organize a few thousands of dollars of annual charitable gifts, the family knows that they have full access to the Community Foundation’s charitable giving expertise and deep knowledge of the needs in our region.

This is part of the reason we find it so heartwarming to see a focus on altruism appear in the mainstream media. When people from all walks of life can share in the joy of philanthropy, everyone wins. 

Here are a handful of stories we’ve particularly enjoyed that are worth checking out if you happened to miss them.

–Yvon Chouinard, Patagonia’s founder, and his family have just given their ownership of the company to charity by establishing a group of trusts and nonprofits.

–Here in Arkansas, our very own Dr. Omar Atiq made news when he forgave thousands of dollars of medical debt.

–And business leaders aren’t the only people who are increasingly publicizing their charitable giving commitments. More celebrities are sharing their stories of charitable passion, too.

We look forward to hearing your thoughts on these and other stories as philanthropy pops up in your news feed. The community foundation is here to answer your questions and provide the tools you need to activate your charitable intentions in a concrete, meaningful, and tax-savvy way. 

Bear markets aren’t much fun for anyone. But that doesn’t mean your charitable giving commitments have to be put on hold. If you are like many donors, you are still looking for ways to support the organizations you care about that rely on your support to achieve their missions.

Remember, not every stock is down. It’s still incredibly tax-efficient to donate highly-appreciated stock to your fund at the Community Foundation. When you give appreciated stock held for more than one year (a long-term capital asset) to your donor-advised or other type of fund, instead of selling it outright, the capital gains tax is avoided. Plus, marketable securities are typically deductible at their fair market value, further helping your overall income tax situation.

Don’t forget about the Qualified Charitable Distribution (QCD), either. If you’ve reached the age of 70 ½, the QCD is an elegant and effective planning tool. You are still required to take Required Minimum Distributions (RMDs) from your IRA even in a down market, but the QCD can help offset this tax hit by allowing you to direct up to $100,000 to a qualified public charity, including a field-of-interest fund or unrestricted fund at the Community Foundation. 

This is also a good time to make sure your estate plan is in good shape, including bequests you may wish to leave to a fund at the Community Foundation so that the causes you care about can continue to be supported for generations to come. A bequest by way of a qualified retirement plan beneficiary designation is an especially effective tool to support your charitable intentions after you are gone. That’s because funds flowing directly to a fund at the Community Foundation from a retirement plan after your death will not be subject to either income tax or estate tax. 

Please reach out to our Development team at Arkansas Community Foundation.  We are here to help! 

The Fayetteville Area Affiliate of Arkansas Community Foundation recently held an event to recognize the organization’s history and growth. The organization is celebrating the awarding of $6.9 million in the last fiscal year to nonprofit organizations and also kicking off a campaign to endow its operating endowment.

“Our Board of Directors is pleased to share the growth of our local affiliate that encourages smart giving and promotes philanthropy throughout Washington County,” said board chairperson, Allison Dolan. “In less than 20 years, our affiliate has gone from awarding two grants totaling $50,000 to almost $7 million in our past fiscal year, and we wanted to share that milestone with our founders and supporters.”

“The growth of our affiliate is just another indicator showing that Washington County residents are community-minded individuals who want to make a difference through philanthropy,” said campaign chairperson, Danna Grear. “By establishing an operating endowment for the Fayetteville Area Affiliate, we will be able to continue the tradition of servicing donors to make grants into perpetuity.”