Page 22 – Arkansas Community Foundation

CPA Sharon Wilson of Forrest City is using the knowledge she’s gained and the relationships she’s built while serving on the Arkansas Community Foundation State Board to drive economic development for her community in the Delta.

“Whether it’s housing, credit repair or better conditions for our kids, my goal is to build partnerships that can help people in the Delta get to that next level,” Sharon said.

A former leader on the St. Francis County Community Foundation Affiliate Board, she knows the challenges of meeting local needs. She led the grants committee where her role was to identify local nonprofits doing work to better the community and support them through grants.

“Anytime I saw an organization pushing the next man forward, we’d join that effort,” Sharon said. “Whether it was a food pantry, a sports organization, or an afterschool program, the causes we supported raised up the people of our community.”

The Lake Village native and her husband Circuit Judge E. Dion Wilson moved to Forrest City in 1994 and set up law and CPA practices in an office they remodeled in the heart of downtown. Today, their family includes three children and two grandchildren.

“As soon as we moved here, we felt that we needed to give back,” she said. “Kids in Forrest City didn’t see a lot of people who looked like us in professional roles. We wanted to be the family that let them know the possibilities. We wanted them to see the opportunities that come when you get your education.”

Sharon’s CPA firm currently manages federal funds for the Forrest City School District. She’s a tax preparer and a consultant for small municipalities and nonprofits in addition to work with individual clients.

“As my clients age, that’s when a lot of them talk about what they want to do with their money. Even some of the younger ones want to make a difference in their communities with the resources they’ve earned,” Sharon said. “I share information about different vehicles that can help them with charitable giving, and the Community Foundation has been a tremendous resource.”

Sharon said the Community Foundation helps her clients meet goals for their family philanthropy and helps teach the next generation the best ways to give. “The staff is always ready and willing to help,” she said. “They are easy to work with, efficient, and their investment policies ensure maximum gains without sacrificing the safety of the funds.”

Little Rock, Ark. (Feb. 1, 2022) – Arkansas Black Hall of Fame Foundation, in partnership with Arkansas Community Foundation, is awarding grants to programs that benefit African American or other underserved populations in Arkansas. Nonprofits with programs focusing on education, health and wellness, youth development, strengthening families and economic development are eligible to apply. Grants that mitigate the impact of COVID-19 on these areas will also be considered.

“We are especially grateful to our donors whose consistent support allows us to fund our grant program each year. It is critically important that we continue to support organizations facing new challenges created by the pandemic. There are many nonprofits working tirelessly in communities throughout Arkansas to improve the quality of life for its citizens,” said Charles Stewart, ABHOF Chair. “This grant program allows us to make our state a better place to live for these communities.”

Since 2004, ABHOF has granted more than $667,000 to nonprofits across the state, with total community investment exceeding one million dollars. Projects supported through this grant program range from support for temporary emergency shelter for families temporarily displaced to support for the first Arkansas Racial Equity Summit at UCA.

“Our long-standing partnership with Arkansas Black Hall of Fame Foundation helps provide a support system for Arkansas nonprofits working to create positive change for underserved populations,” said Heather Larkin, president and CEO of the Community Foundation. “We’re proud of this investment and the programs that continue to support local people working to improve their communities.”

Grants will typically range from $1,000 to $2,500 but may approach $5,000 in special circumstances. Funds from Arkansas Black Hall of Fame Foundation cannot be allocated for salary support or to support general operating budgets outside the specific proposal or project.

Priority consideration for grants:

Requests that show multiple sponsoring agencies/organizations.
Requests that include evidence of local financial support (including, but not limited to, in-kind support.)
Requests that demonstrate collaborative ventures among organizations within the community.
Requests that have promise for sustainability beyond the period of the grant.
Requests that show an innovative approach to community challenges.

All geographic sections of the state are eligible. Scholarship requests will not be considered. Only 501(c)(3) nonprofit organizations, hospitals, public schools and government agencies are eligible to apply now through April 1 atwww.arcf.org/ABHOF. Organizations that do not qualify for tax-exempt status are not eligible.

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Arkansas Black Hall of Fame Foundation aims to provide an environment in which a future generation of African American achievers with Arkansas roots will thrive and succeed. The Foundation honors the contributions of African Americans through its annual Black Hall of Fame induction ceremony and awards grants to support charitable endeavors in Black and other under-served communities throughout Arkansas. Learn more at www.arblackhalloffame.org.

Arkansas Community Foundation, a nonprofit organization with over a half billion dollars in assets, fosters smart giving to improve communities. The Community Foundation offers tools to help Arkansans protect, grow and direct their charitable dollars as they learn more about community needs. By making grants and sharing knowledge, the Foundation supports existing charitable programs that work for Arkansas and partners to create initiatives that address unmet needs. Since 1976, the Community Foundation has provided more than $314 million in grants and partnered with thousands of Arkansans to help them improve our neighborhoods, our towns and our entire state. Contributions to Arkansas Community Foundation, its funds and any of its 29 affiliates are fully tax deductible.

Little Rock, Ark. (Feb. 7, 2022) – Scholarships are now available for eligible Arkansas students through Arkansas Community Foundation.

Each scholarship has its own eligibility criteria. In general, 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. 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 Endowment, provides a scholarship for female students pursuing a business degree at a college or university in Pulaski County
Anne Pressly Scholarship Endowment, to memorialize the legacy of Anne Pressly and support a female graduate of an Arkansas high school who plans to pursue a career in Journalism
Arkansas Service Memorial Scholarship Endowment, for students who are children of Arkansans who lost their life in service in the state, nation or community
Barbara Mashburn Memorial Scholarship Endowment, provides a scholarship for a graduate of an Arkansas high school pursuing an education as a vocalist
East Student Scholarship Endowment, provides a scholarship to a graduating senior who attends any high school with an EAST program
Elizabeth G. Redman Republican Party of Arkansas Scholarship Endowment, for students who are members of or active in the Republican Party of Arkansas
Herchel and Melba A. Fildes Endowment, 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 Endowment, for students who are members of the Arkansas Federation of Young Republicans or are active in the Republican Party of Arkansas
Lu Nedrow Graduate Scholarship Endowment, provides a scholarship for a member of the Epsilon Zeta Chapter of Alpha Gamma Delta at Arkansas State University in Jonesboro who is pursuing a graduate degree
Marie and Bob Marshall Republican Party of Arkansas Scholarship Endowment, for students who are members of or active in the Republican Party of Arkansas
Merwin T. and Agnes Bowman Nursing Scholarship Endowment, for students seeking a Bachelor of Science in Nursing or equivalent degree from a qualified institution.
Poultry Federation Scholarship Fund 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 Fund, provides a scholarship to students pursuing an advanced degree with an emphasis in healthcare and/or hospital administration
Roy Burlison Honorary Scholarship Fund, provides scholarships to high school seniors who are fast-pitch softball players
Ryan Mondy D.A.S.H. Memorial Scholarship Endowment, provides scholarships to graduating seniors whose lives have been affected by cancer
Sheffield Nelson Scholarship Endowment for UCA, provides a scholarship to student enrolled at University of Central Arkansas

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

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

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Arkansas Asset Funders Network, Arkansas Community Institute and HOPE Policy Institute (HPI) hosted a virtual town hall on Thursday, January 27 to spotlight the burden of medical debt and court costs in Arkansas. The event unveiled policy recommendations and a special announcement benefitting Arkansans struggling with medical debt. The goal of the event was to grow awareness of medical and court costs/fees debt in Arkansas and inspire action and policy change at local and state levels.

Moderated by Roby Brock, the event, “We’re Still Hurting: From the ER to the Courtroom” included Judge Rita F. Bailey of the 31^st State District Court, Heather Larkin of Arkansas Community Foundation, Signe-Mary McKernan of the Urban Institute, Kevin Ryan of the Fay W. Boozman College of Public Health at UAMS, Neil Sealy of the Arkansas Community Institute and Joanna Smith-Ramani of the Aspen Institutes’ Financial Security Program.

Lower income Arkansans and people of color are disproportionately affected by medical debt. Heather Larkin announced that a group of philanthropic organizations and donors is erasing $35.3 million of medical debt for Arkansas residents. 23,896 Arkansans, spread through all 75 counties, are benefiting from the debt payoff, with an average eliminated medical debt of approximately $1,500 per individual or family. RIP Medical Debt coordinated the payment on behalf of the Winthrop Rockefeller Foundation, HOPE Credit Union, Arkansas Community Foundation and other donors.

Read the news release about $35 million debt payoff.

As part of the event, Arkansas AFN, ACI and HPI shared federal, state and hospital-led policy recommendations that could help alleviate and prevent medical dept. They also highlighted how the court system, state legislature and local governments could enact changes to end the criminalization of poverty and reform debt collection practices. Click here to watch the event.

Understanding Debt

Medical debt and fines and fees debt is a barrier to economic mobility. If people are already struggling with low incomes, and having to put money toward debt, then they can’t save or build wealth towards the future. This type of debt perpetuates the cycle of poverty.

When families can’t pay the debt, they default on these debts which results in damaged credit scores, compounding barriers to economic opportunity. Medical debt and fines and fees exacerbates pre-existing financial insecurity. There is data that shows a spillover psychological effect of date, which deeply effects families and their children.

Actionable strategies to combat the debt crisis include passing state laws to regulate and expand hospital-based financial assistance programs and providing protections for patients from abusive medical debt collection practices.

On a federal level, advocates can urge the Consumer Financial Protection Bureau to mitigate the harms of medical debt by limiting medical debt reporting on credit reports; create and publish new data on consumer impact of medical debt, particularly in communities of color; and increase consumer safeguards related to debt collectors and health care providers. 

More creative solutions include developing constructive alternatives to harsh fine and fee collection practices such as low-cost payment plans, financial counseling/coaching, and meaningful community service.

Funders can also lessen the burden of medical debt and court costs by increasing Arkansans’ access to legal representation or legal counseling; calling for systemic reforms; elevating impacted residents’ stories; and funding advocacy, research and public-private pilot initiatives.

Unless adequately medical debt and fines and fees deepens existing disparities in Arkansas, stifling economic opportunity particularly for ALICE households.

A full list of policy solutions presented at the January event can be found here.

About Arkansas Asset Funders Network
Arkansas Asset Funders Network is a regional chapter of grantmakers who invest in opportunities for low and middle-income individuals and families to build economic well-being. Members include private, public, corporate and community foundations as well as public-sector funders and financial institutions. For more information, visit assetfunders.org.

About Arkansas Community Institute 
Arkansas Community Institute was founded in 1985 to improve housing opportunities in low- to moderate-income neighborhoods in Arkansas. The grassroots organization organizes low-income, working families to enable them to fight for social and economic justice. Over its history, ACI has released several reports on fair housing, predatory lending, access to health care, Arkansas’s landlord tenant laws and debt. ACI also offers free tax preparation and other services.

About the Hope Policy Institute
The Hope Policy Institute (HPI) is the policy and advocacy arm of Hope Enterprise Corporation / Hope Credit Union. HPI develops and advocates for policies to increase investment, expand financial inclusion and build the power and voice of local people in the Deep South. Channeling the voices and lived experiences of its members who often face discrimination in the financial service sector, HPI offers policymakers, at all levels, the information needed to make equitable decisions and build a stronger region. To learn more, visit hopepolicy.org and hopecu.org.

Debt in America: An Interactive Map
This map shows the geography of debt in America and the  debt differences that can reinforce  the  wealth gap  between white communities and communities of color.
Click here to view the interactive map.

Arkansas Community Foundation is honored to receive the 2022 Advancing Equity Award from the Clinton School of Public Service and their Center on Community Philanthropy.

Watch the announcement here.

The Advancing Equity Award is presented to organizations using innovative solutions to address racial inequalities in their communities and advance progress toward inclusion. The award recipients will receive support to continue and enhance their efforts. The National Day of Racial Healing (NDORH) is an opportunity for people, organizations and communities across the United States to call for racial healing, bring people together in their common humanity and take collective action to create a more just and equitable world. NDORH is a part of the W.K. Kellogg Foundation’s Truth, Racial Healing & Transformation (TRHT) effort – a national and community-based process to plan for and bring about transformational and sustainable change and to address the historic and contemporary effects of racism.

“The greatest wealth transfer in modern history has begun,” according to a mid-2021 report in the Wall Street Journal. And, with tax reform’s big bite into estate values off the table, at least for now, many of your older clients may be thinking seriously about their legacies.

And these legacies will be significant. As of March 31, 2021, according to data collected by the Federal Reserve, Americans in their 70s and older had a total net worth reaching almost $35 trillion. By 2042, an estimated $70 trillion will change hands, including an estimated $9 trillion flowing to charities, according to research conducted by Cerulli Associates.

As you advise an older client, an important part of the conversation will be to determine the best charitable giving vehicles to achieve your client’s community goals, particularly evaluating the potential role of a donor-advised fund or private foundation. Increasingly, your clients are learning about their options in mainstream media and likely have a greater level of awareness about charitable giving options than ever before, especially in the wake of the recent twists and turns concerning potential tax reform.

Here are key points to keep handy for those conversations:

– A donor-advised fund at the Community Foundation costs nothing to set up, and ongoing fees are minimal.

– A donor-advised fund can be created quickly–within a week or even days. A private foundation, by contrast, requires establishing a legal entity through state and IRS filings.

– Donating hard-to-value assets to a donor-advised fund delivers better tax benefits (deduction of fair market value) than a gift of the same assets to a private foundation (deduction of cost basis).

– A client can deduct a greater portion of AGI (e.g., cash deductible up to 60% of AGI) with a gift to a donor-advised fund than with a gift to a private foundation (e.g., cash deductible up to 30% of AGI).

– Ongoing operations of a donor-advised fund through the Community Foundation are very easy, with no tax filings required.

– Sometimes, both a private foundation and a donor-advised fund are useful tools to meet a client’s charitable giving goals. The team at the Community Foundation team can help you develop a structure for your client that maximizes the benefits of each vehicle within an overall philanthropy strategy.

Finally, remind your clients that the best time to set up their philanthropic plans really is right now. By being proactive, your client has nothing to lose and everything to gain in ensuring that their charitable wishes are carried out. To that end, the Community Foundation regularly works with advisors helping clients who wish to establish deferred or “shell” funds to receive bequests after the clients pass away. A deferred fund allows a client to describe charitable intentions, including naming advisors and suggesting nonprofits to receive fund distributions, to guide the heirs through the client’s charitable legacy. Your client can name the fund, and even provide that the Community Foundation’s board of directors work with advisors to make grants and evaluate impact. A deferred fund agreement can be modified anytime before your client’s death.

More than half of the country’s GDP is generated by the 5.5 million family-owned businesses in the United States. Profits aren’t the only priority for most family businesses; indeed, the vast majority of family business owners report that other factors, such as culture, community, charity, and values, are also important to the business. Although it is not surprising that philanthropy is a vital part of the family business fabric here in Arkansas, setting up the right structure to leave a legacy is not a cakewalk. As you advise a business-owner client, consider sharing questions that might help your client create or grow an effective corporate philanthropy program within the family enterprise.

Getting organized

Does the company have a strategy or system for prioritizing sponsorship requests, charity event invitations, and requests for donations? Is the strategy based on the owners’ values, along with employee input? What is the communication strategy for maintaining positive relations with the charities whose requests the company turns down? How are requests from employees handled? Could a corporate donor-advised fund at the Community Foundation help streamline administrative load? Is there a corporate foundation in place and if so could it be streamlined into a corporate donor-advised fund to save administration hassles and better leverage tax strategies?

Getting employees engaged

If the company has a community engagement program, how popular is it? For example, is there a matching gifts program and is that program being utilized as expected? Are employees eager to attend community events to sit at the company’s tables, or is it sometimes hard to fill seats? Are there opportunities for employees to volunteer together at local nonprofits? Has the company surveyed employees to learn about their favorite causes and the ways they prefer to give back (e.g., donate money, volunteer, serve on boards)?

Getting the word out

How is the company letting employees and other stakeholders know about its community commitments? Is it a priority to share civic engagement with the outside world, such as through a page on the company’s website, or is the company’s approach to stay under the radar? Do the employee handbook and recruiting materials describe community engagement opportunities for employees?

Related, and importantly, it is wise to remind your clients that the sale of a closely-held business creates strong opportunities for tax-savvy charitable giving–and that it is critical for the business owner to plan ahead.

Helping your clients ask the right questions can make a big difference in the success of their corporate giving programs. The team at Arkansas Community Foundation is here to help YOU help your client think through these important questions. We can help by setting up a corporate donor-advised fund, assisting with a matching gifts program, creating donor-advised funds for employees, collaborating on a philanthropic component of a business sale, and much, much more. Contact Ashley in Little Rock or Jody in Northwest Arkansas to get started.

Deborah and Steve Nipper of Magnolia use their deep roots and longstanding relationships to help define and model community leadership for good causes in south Arkansas.

“Community leadership is really about people who just want to help and find a way to solve problems. They are the helpers,” Deborah said. “Steve and I both have this desire. We like being part of solutions for Magnolia. And when we got married in 1996, we agreed that what one does, the other would do too, so we are a two-for-one deal,” Deborah said.

“I was born and raised here and then went to the University of Arkansas. I came back to Magnolia to work in banking. I know lots of business owners and local community leaders,” Steve said. “But Deborah taught Kindergarten in Magnolia for 37 years, so she is like a celebrity.”

Steve and Deborah have both held seats on the Columbia County Community Foundation board, as well as dozens of other local boards in the area. Between Rotary, their church outreach, a recent COVID hotline, a local food distribution program called the Stewpot and many other causes, the Nippers are often found volunteering and showing up to help.

But alongside the various organizations and causes they support, Steve credits the Community Foundation for showing him what he calls the “miracle of endowment.”

Deborah and Steve Nipper are strong supporters of the Magnolia Arts Center.

“Magnolia is a generous community. In 2006, the Columbia County Community Foundation Affiliate opened 40 family endowments from local donors,” Steve said.

“Those funds are still providing funds to local nonprofits 15 years after they were started. An endowment is one of the most lasting ways to help causes we care about.”

One of the couple’s passions is supporting the Magnolia Arts Center — where they can sometimes even be seen on stage for local productions. “We both love the arts and love what the Magnolia Arts Center is providing this community,” Steve said. “I helped the Center acquire the building. Once it had a physical presence downtown, the growth was phenomenal. You may not expect a town with a population of 11,500 to have a robust visual and performing arts scene, but Magnolia does.”

“This town provides great opportunities for everyone here to experience the arts. We strive for inclusivity. Magnolia Arts thrives with great volunteers like the Nippers, support from the Community Foundation, local businesses and donors, members, partnerships with Southern Arkansas University, and The Magnolia School District Performing Arts Department,” said Janet Rider-Babbitt, director for Magnolia Arts and the Columbia County Community Foundation affiliate executive director.

“Steve and Deborah are a huge part of why the Arts Center is successful, but they are part of something bigger for the town of Magnolia. They epitomize community leadership by setting an example, using their influence, and showing up when help is needed.”

Late last month, the White House released a proposed $1.75 trillion revenue package, putting to rest (at least for now) some of the uncertainty as to how sweeping tax reform could upend wealth planning strategies via changes to top marginal rates, a restructuring of the capital gains tax, and lower estate and gift tax exclusions, all of which have been heavily discussed and debated over the last several weeks. For now, those particular big changes appear to have been dropped.

Attorneys, accountants, and financial advisors who represent high-net worth clients are, however, keenly aware of how the just-proposed legislation still could pack a punch:

Where charitable giving is concerned, the proposed new surtax (modified from earlier versions) is not something that can be avoided or reduced through charitable deductions. That is because the proposed 5% surtax on taxpayers with more than $10 million in adjusted gross income is assessed on just that–adjusted gross income. Below-the-line deductions won’t help. Furthermore, an additional 3% surtax has been proposed for taxpayers with more than $25 million in AGI.
In addition, under this new proposal, pass-through entities, such as S corporations and partnerships, are still the subject of a 3.8% Net Investment Income Tax, as was the case under the prior version of the revenue package. Under the new proposal, this tax would be expanded to taxpayers with taxable income of $400,000 ($500,000 for joint filers) or more.
Of interest to advisors who represent businesses and business owners, under the proposed new law, a 15% “corporate minimum tax” would apply to “book income” of corporations earning profits greater than $1 billion. For your clients who’ve historically relied on income tax credits, this is an important provision to watch because income tax credits would not be as valuable as they are now.
Related, look out for a parallel increase to the global minimum tax rate, especially for corporate clients who have an eye on relocating headquarters to foreign countries. And under the new proposed laws, when a corporation buys back its own stock, it would be taxed like corporate dividends–plus a new 1% excise tax.
Finally, effective as of September 13, 2021 if the legislation is passed as written, high net-worth clients could be significantly impacted by the proposed limitation on “stock exclusions” under Internal Revenue Code Section 1202. For taxpayers with adjusted gross income of $400,000 or more, and for estates and trusts, only the 50% exclusion provision would remain. The 75% and the 100% exclusion would no longer be available.

Little Rock, Ark. (November, 2021) –Wayland Holyfield, the singer and songwriter of “Arkansas, You Run Deep in Me,” one of the Arkansas State Songs, donated the rights to the song to Arkansas Community Foundation.

“I want my song to continue to inspire Arkansans for years to come. Gifting the rights to Arkansas Community Foundation ensures the songs legacy, and will hopefully inspire Arkansans to appreciate our state, its generosity and the support of essential nonprofits,” said Holyfield. “I’m so pleased the Community Foundation has found a way to use my words and music in their efforts.”

The Community Foundation is producing a video using the song that portrays the many ways Arkansans and Arkansas nonprofits help each other build their communities. The video will be distributed during the Thanksgiving season to thank donors nonprofits and other Arkansas supporters.

The “Arkansas, You Run Deep in Me” Video Premiere is planned for 5 p.m. Nov. 18 at the Central Arkansas Library System Ron Robinson Theater in Little Rock. Holyfield will appear at the event, which is free to the public. Reservations can be made at Kbland@arcf.org.

“We’re rolling out the red carpet for the Mr. Holyfield, our donors and all those who work hard to build our state,” said Heather Larkin, President and CEO of Arkansas Community Foundation. “Wayland’s song sends the perfect message about our state’s beauty and culture. Mixed with beautiful footage of our state and its people working together for good, the video will be seen first on the big screen and the next day it will go online on multiple platforms.”