It doesn’t take much to get Becky and Jim Gifford of Hot Springs Village on board with a good cause and good conversation. Jim, retired from the aviation industry, and Becky, a librarian by trade, don’t hesitate to offer guests in their home a cup of hot tea, share stories about their world travels and show passion for causes they care about. With Jim serving on the Hot Springs Village affiliate board, the couple stepped up in 2020 to help their local community schools. They learned some important lessons along the way.

“Seeing the Foundation’s CEO at the Governor’s press conference made me very proud to be a fundholder with the Foundation,” said Jim. During the early days of the pandemic in Arkansas, people were seeking a way to help. Gov. Asa Hutchinson endorsed the Community Foundation as the best place for Arkansans to give.

Becky and Jim Gifford

“The events of 2020 changed my whole outlook on philanthropy,” said Jim. “We have always tried to give generously. My wife and I both have chronic illnesses, and we support what affects us personally and many other causes. But when the pandemic hit, it really changed my working philosophy on not just where to give, but how to give.”

The Community Foundation staff has helped the Giffords for years with their current and planned giving. “Your Development team makes it easy. Once we learned about the different giving options through the Foundation, we just send an email and ‘boom’ it’s done!” said Becky.

“When we recently updated our estate plan, we changed some of our giving percentages so that the Foundation would have a greater unrestricted amount for their Giving Tree program,” Jim said.

Unrestricted donations are what made it possible for the Foundation to create the COVID-19 Relief Fund in March of 2020. After activating the fund, 799 grants were made to Arkansas nonprofits in four months.

“We wouldn’t have made that kind of decision about our charitable dollars if it hadn’t been for our relationship with the Foundation staff,” said Jim. Relationships are important to the Giffords. In the spring of 2020, their efforts in the Village with local schools through the affiliate office had already laid the groundwork to help mobilize funds when the need arose.

“We know that a gift to the Foundation is an investment to help with the most important issues facing Arkansans. An unrestricted gift provides the Foundation with more flexibility,” Jim said. “I have great confidence in knowing that my charitable dollars are having deep impact across the state.”

A donor-advised fund is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about.  Donor advised funds allow you (and others you choose) to recommend grants to a variety of charitable causes. Each year, you can identify new causes to support or continue to be involved with charities you’ve supported in the past. Donor advised funds are the best option for donors who like to take a hands-on approach to giving or who want to involve the whole family in decisions about giving.

Arkansas Community Foundation opposes payout requirements of DAFs, as does the Council on Foundations. Individuals who utilize Donor Advised Funds are already distributing far more than the 5% that is required of ultra wealthy donors who utilize a private foundation for their philanthropy. In fact, we keep close tabs on our statistics here at the Community Foundation and our current payout rate for non-endowed funds is over 14%. 

With regard to the proposed requirement of disbursing funds within 15 years, we consider this requirement unnecessary. Many community foundations, including Arkansas Community Foundation, have much stricter internal policies. Here at the Foundation we require all funds to disburse grants every 36 months at minimum.

And finally, disbursements from DAFs at Arkansas Community Foundation continue to grow, significantly, year over year.  We saw an increase of 17.5% (+$5,879,956) in grant distributions from DAFs in 2020 over 2019.

For more information about this topic the Council on Foundations has created a comprehensive issue paper to help guide you.

You can also download this one-pager to learn more about establishing a donor advised fund at Arkansas Community Foundation and read more about the benefits of creating a donor advised fund.

“The pandemic has been hard on all. It isn’t easy to lose your job, normalcy and sense of security. But we are an innovative society, and inherently, people are good. We can guide ourselves and each other to solutions for staying healthy,” said Dr. Omar Atiq, longtime fundholder with Arkansas Community Foundation. He and his wife Mehreen care deeply about the Pine Bluff community where they have raised their children and lived for most of their lives.

One area he and Mehreen have focused on is education. According to Dr. Atiq, “Education is the best investment we can make to better our society, the earlier we start the better. The more we can help all children in our communities, the better we all are.”

Dr. Omar Atiq and his wife, Mehreen Atiq

When asked about staying healthy right now, Dr. Atiq believes that even small things can have a big impact. “We can make small choices every day to stay safe, healthy and to protect ourselves. By protecting yourself, you protect others. We still need to eat right, exercise, avoid tobacco… but now we should do a little more like frequent handwashing, wearing a mask and social distancing.”

“There are new tools for virtual connectivity that we need to utilize to stay connected to those we care about. We should never underestimate the value of saying ‘hi’ to strangers, doing random acts of kindness or just smiling behind our masks. These small things matter. They matter to the recipient on the other end, but they matter to us for our own emotional health and wellness.” 

Little Rock, Ark. (Nov. 20, 2020) – Mattie P. Collins of Pine Bluff is the 2020 recipient of the Lugean L. Chilcote Award, given by the Arkansas Community Foundation board of directors for outstanding service to philanthropy and community. Collins received the award at the Nov. 19 meeting of the board.

“This prestigious award named for a former board member is not given every year, and the last time was 2018,” said Heather Larkin, President and CEO of the Community Foundation. “Mattie exemplifies the spirit of the award through her lifetime of service in Pine Bluff and throughout our state. She is a champion of education and opportunity for all.”

A Pine Bluff native, Collins is a retired teacher with 39 years of experience in Gould and Pine Bluff. She is the president and founder of the Ivy Center for Education, a nonprofit college readiness and youth mentoring program in Jefferson County.

She graduated from AM&N College (now the University of Arkansas at Pine Bluff) with a B.A. in history and political science. Her M.A. in educational administration was earned from the University of Arkansas at Fayetteville. Collins and her husband Kenneth have two children and seven grandchildren.

Among many awards, Collins received the 2020 Educational Achievement Award; 2019 Alpha Kappa Alpha Golden Soror of the Year/South Central Region and other AKA awards; American Red Cross Hero Award; NAACP Dove Civil Rights Award; Kappa Alpha Psi Outstanding Community Service Award; Omega Psi Phi Citizen of the Year Award; UAPB Chancellor’s Benefit for the Arts Outstanding Educator Award; Joseph B. Whitehead Educator of Distinction Award; Arkansas Education Association Human Rights Special Achievement Award; and the Pine Bluff Festival Association Service Award.

Collins is a member of Barraque Street Baptist Church and a life member of Alpha Kappa Alpha Sorority, Inc. With many instances of board service throughout her career, she currently serves as advisor to YAC (Youth Advisory Council) of the Pine Bluff Area Community Foundation; Closing the Achievement Gap State Commissioner; Ivy Center for Education ACT Boot Camp; Partners: Go Forward Pine Bluff; and the UAPB STEM Academy and IT Department.

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Arkansas 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 Community Foundation supports charitable programs that work for Arkansas and partners to create new initiatives that address the gaps.  Since 1976, the Community Foundation has provided more than $310 million in grants and partnered with thousands of Arkansans to help them improve our neighborhoods, our towns and our entire state. Contributions to the Community Foundation, its funds and any of its 29 affiliates are fully tax deductible.

Little Rock, Ark. (Nov. 17, 2020) – Shannon Williams has been named Arkansas Community Foundation’s affiliate officer. With $442 million in assets, the Community Foundation is a statewide grant-making organization providing tools for charitable giving to all 75 counties through its network of 29 affiliate offices statewide. 

“Shannon is passionate about serving and advocating for nonprofits, communities and underserved populations. His education and experience make him a great fit for working with our affiliate network across Arkansas,” said Heather Larkin, Community Foundation president and CEO.

A native of Lake Village, Williams administers statewide outreach through the affiliate program and provides liaison support between the central office and local affiliate staff and advisory boards. He is excited to contribute his knowledge and talents to help respond to Arkansans’ needs and achieve the mission of Arkansas Community Foundation to engage people, connect resources and inspire solutions to build community throughout the state.

He most recently served as an organizational development consultant for the University of North Texas System. Before that, he served as an organizational development specialist for Baptist Health System and as the retention counselor for the University of Central Arkansas College for Education’s Partnership for Transition to Teaching Grant Program.

Williams earned a Ph.D. in Interdisciplinary Leadership Studies from the University of Central Arkansas and a master’s degree in Higher Education and three bachelor’s degrees from the University of Arkansas at Little Rock. He is a certified StrengthsFinder Facilitator and a trained coach.

For more information about the Foundation’s affiliate network, visit www.arcf.org/affiliates or call 501-372-1116.

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Arkansas 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 Community Foundation supports charitable programs that work for Arkansas and partners to create new initiatives that address the gaps.  Since 1976, the Community Foundation has provided more than $310 million in grants and partnered with thousands of Arkansans to help them improve our neighborhoods, our towns and our entire state. Contributions to the Community Foundation, its funds and any of its 29 affiliates are fully tax deductible.

Appreciated stock, anyone?

  • Yes, 2020’s stock market has been a rollercoaster, but as you guide your clients into year-end, don’t forget the powerful benefits of giving appreciated securities to a donor-advised fund at the community foundation. Now is the time to start helping your clients with tax planning. Remember, not all stock is down! For many clients, 2020 is an excellent year for year-end giving.

Closely-held business exits

  • Clients who are preparing to sell a business should start thinking ahead about charitable planning. Before any deal is struck, or any binding commitments discussed, encourage your client to consider the benefits of making a gift of their closely-held stock to a charitable entity, such as a donor-advised fund at the community foundation. Remember, though, that the “step transaction” doctrine is still very much alive and well. The IRS could argue that the transfer of stock to a charity should be treated as “combined” with the sale of the stock, thereby eliminating the tax benefits of the charitable transaction. The IRS could win this argument if the facts indicate that the multiple “steps” in the process were really just a single-step transaction when considering the intent and economic reality of the taxpayer’s actions. 

Back door Roth IRA conversions

  • Last but not least, consider the step transaction doctrine when you are advising your high income-earning clients on whether to pursue the so-called “back door” Roth IRA planning strategy. When a client’s modified adjusted gross income crosses the IRS’s designated phase-out thresholds, contributions to a Roth are no longer permitted. Contributions to a traditional IRA, however, are not subject to income limitations. In addition, there are no income limits on who can convert from a traditional IRA to a Roth. So, with the “back door” strategy, your client makes a contribution to a traditional IRA using after-tax dollars and then executes a tax-free Roth conversion. Consider carefully researching these issues and even advising clients to wait several months between the contribution and the conversion, just in case.

This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.  

The significant community needs arising from the events of 2020, coupled with recent tax law changes, make it very important that you help your clients plan their charitable giving strategies.

For the last couple of years, your clients likely have been hearing about a tax-efficient charitable giving strategy called “bundling” or “bunching.” The popularity of this tool increased significantly under the Tax Cuts and Jobs Act provisions that reduced the incentive for taxpayers to itemize deductions on their income tax returns, starting with tax year 2018, because of the now doubled standard deduction. In other words, your clients now have to give a lot more to charity to reap the tax benefits. 

“Bundling” or “bunching” can involve using a donor-advised fund to separate the tax event of the charitable gift itself from the financial support of charities. Because contributions to a donor-advised fund at the Arkansas Community Foundation are immediately deductible for tax purposes–but not required to be granted out of the fund to charities right away–your clients can “frontload” donations into a donor-advised fund at a level where they will be able to take advantage of itemizing deductions. Then, your client can recommend grants from the donor-advised fund to their favorite charities according to the timeframe that aligns with their targets for providing philanthropic support to community organizations. 

Finally, as you are assisting your clients with their charitable plans, bequests are critical. A report issued by FreeWill cites a 400 percent increase in the number of wills with bequests in March 2020 compared with March 2019. Encourage your clients to think about their legacies, especially as they reflect on the ways 2020 has put a spotlight on just how important it is for communities to be able to rely on sustainable nonprofit organizations to work toward their missions.

This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.  

The Community Foundation is a statewide nonprofit organization that offers tools to help Arkansans protect, grow, and direct charitable dollars while learning more about community needs. Arkansas Community Foundation engages people, connects resources, and inspires solutions to build community. You understand your clients’ charitable goals. We understand smart giving. Partnering with the Community Foundation, you stay in control of your client relationships while we provide the tools and resources to make the philanthropic process simple, flexible, and efficient. As Planned Giving Director, I am your primary point of contact.

As the holidays are upon us, giving is in the forefront of many of your clients’ minds. As any nonprofit will tell you, it is always a good time to give, but the pandemic has made now an especially needed time for it. To encourage that giving, Congress included a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, signed into law on March 27, 2020, to provide some relief for charitable organizations. The benefit for you and your clients? Taxpayers might receive a bigger impact for their charitable giving if they do it before the end of 2020.

  1. Clients who take the standard deduction can claim a reduction in adjusted gross income for charitable contributions up to $300 per taxpayer filing unit (see below for qualifying information).
  2. Clients who itemize deductions can elect to deduct donations up to 100% of their 2020 adjusted gross income instead of being capped at 60% (see below for qualifying information). For corporations, the CARES Act increased the cap from 10% to 25% of taxable income (see below for qualifying information).
  3. For many clients, the waiver of the Required Minimum Distribution for 2020 could create an economic incentive to redirect tax savings to charitable giving.

The Boundaries of Qualified Giving

A qualified charitable contribution for purposes of Sec. 62(a)(22) is a charitable contribution (as defined in Sec. 170(c) (Sec. 62(f)(2))) made in cash for any charitable purpose—not just contributions to charities related to the COVID-19 crisis—made directly to charitable organizations. Cash contributions are any contributions paid with “cash, check, electronic fund transfer, payroll deduction, etc.” (IRS Publication 526, Charitable Contributions). A qualified charitable organization is any organization that qualifies as a public charity under Sec. 170(b)(1)(A) (Sec. 62(f)(2)(C)(i)). The contribution cannot be made to a supporting organization described in Sec. 509(a)(3), a family foundation, or to a donor-advised fund. At the Arkansas Community Foundation, we can set up designated funds for charitable giving that will qualify for the tax incentives.

$300 Above-the-Line Deduction

The U.S. wants to keep altruism contributing to communities’ needs, so the CARES Act (Section 2104) permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an “above-the-line” deduction, i.e., as an adjustment in determining adjusted gross income (AGI), for tax years beginning in 2020. The deduction reduces taxable income after the donor’s AGI has been calculated. Because it is considered an above-the-line deduction, the IRS applies it when calculating AGI. So, your client can donate up to $300 in cash to a qualified organization and have his or her AGI reduced by up to $300 all while claiming the standard deduction.

100% of AGI Deduction

The CARES Act included a provision designed to encourage the nation’s wealthiest taxpayers to increase their charitable giving during the COVID-19 pandemic. The Tax Cuts and Jobs Act (TCJA) had capped the deduction for cash contributions to public charities at 60% of a taxpayer’s AGI, but the CARES Act raised that limit to public charities (other than those mentioned above) to 100% for 2020. For many philanthropically inclined individuals, the change provides an incentive to maximize qualifying charitable giving during this crisis year. Charitable contributions of more than 100% can be carried forward for five years subject to the 60% of AGI limit in those years.

Also, the limit on charitable deductions for corporations has increased. Under the CARES Act, a corporation’s qualifying contributions, reduced by other contributions, can be as much as 25% of taxable income (previously 10% of modified taxable income).

Required Minimum Distribution Option

The CARES Act did not change the rules around the qualified charitable distribution (QCD), which allows individuals over 70½ years old to donate up to $100,000 in IRA assets directly to charity annually, without taking the distribution into taxable income. However, under the CARES Act, an individual can elect to deduct 100% of their AGI for cash charitable contributions. This allows individuals over 59½ years old the benefits similar to a QCD—they can take a cash distribution from their IRA, contribute the cash to charity (through a fund with the Arkansas Community Foundation, for example), and may completely offset tax attributable to the distribution by taking a charitable deduction in an amount up to 100% of their AGI for the tax year. If your clients are planning a large donation in 2020, this may be a smart strategy if they are between the ages of 59½ and 70½ and are not dependent on existing retirement funds.

Year-end giving is always important, but there is a true need to help our communities during the pandemic. Nonprofits play a critical role addressing needs, so the government has incentivized taxpayers to help meet the growing need. Funds created at the Arkansas Community Foundation are designed to improve our communities and provide tax benefits for the donor. We are available to discuss the opportunities and the needs for you and your clients.


As always, Arkansas Community Foundation can help you develop your clients’ charitable giving plans to maximize impact and tax savings. Contact us at 501-372-1116.

The Arkansas Department of Parks, Heritage and Tourism (ADPHT), the Arkansas Economic Development Commission (AEDC), and the Arkansas Department of Finance and Administration (DFA) received approval to proceed with a grant program utilizing $50 million in CARES Act funds for Arkansas businesses in industries significantly impacted by the COVID-19 public health emergency.  

Last week the Arkansas Legislative Council approved a business interruption grant for certain Arkansas businesses in the personal care, tourism, travel, recreation and hospitality industries. The grant will provide reimbursement for a portion of specific eligible expenses incurred by businesses in these industries between March 1 and Sept. 30, 2020.
 
The program will utilize $50 million in CARES Act funds for Arkansas businesses in these industries significantly impacted by the COVID-19 public health emergency. Arkansas small businesses having 250, or fewer, full-time employees located in Arkansas may seek reimbursement for expenses associated with COVID-19 mitigation or certain listed business interruption expenses due directly to local, state or federal government COVID-19 directives. Grants can be for up to $250,000 each.

Applicants will have plenty of time to plan an application with a Facebook Live question and answer session the week of Nov. 2 and an applicant help phone line opening on Nov. 9, one week before the application period opens. All applications will be completed online. 

A link to the application will be posted on www.ArkansasReady.com. 

Review frequently asked questions and answers here: https://arkansasready.com/site/assets/files/1887/faq_document_october_20_2020.pdf

You can find grant rules here: https://arkansasready.com/site/assets/files/1887/oct_14_2020_rules_business_interruption_grant.pdf

View a checklist for applicants here: https://arkansasready.com/site/assets/files/1887/checklist_for_applicants_october_20_2020_final.pdf

The grant application period will open Monday, Nov. 16, and close Wednesday, Nov. 25. Grants will be awarded on a prorated basis depending on the total number of applicants and the amount of reimbursement requested. The program anticipates making grant awards in late December.

At Arkansas Community Foundation, our tagline is “Smart Giving to Improve Communities.” In 2020, you have a unique opportunity to practice smart giving with a gift that is sure to improve communities.

While the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided significant funding for businesses, hospitals and schools, Congress also wanted to stimulate charitable gifts to support the important work of nonprofits. Therefore, the CARES Act included a universal deduction of up to $300 for charitable gifts made in 2020. Even taxpayers who do not itemize can receive an “above-the-line “deduction for cash contributions made to charities (excluding donor-advised funds and supporting organizations) in the 2020 tax year. The deduction is limited to each “tax-filing unit” so married couples who file jointly can only deduct $300. All taxpayers are eligible, including people who use the standard deduction.

We know that each community’s needs are unique and are constantly evolving and changing. And we know that the needs will remain great, even post-pandemic.

With a long history as a trusted partner to generous Arkansans, the Community Foundation staff and local boards have been at the forefront of responding to community needs through well-researched, impact-driven grantmaking. Since 1976 the Community Foundation, through our various charitable funds – including the 29 local  Giving Tree Endowments, has granted more than  $310 Million to issues such as:  hunger initiatives fighting food insecurity, educational programs ensuring a brighter future for our youth, and many other impact-driven nonprofits serving Arkansas communities.

Please consider making your “above the line” contribution this year to your local Giving Tree.

The Giving Tree is the Community Foundation’s signature grantmaking program. Gifts to the fund are pooled together for greater impact. The Giving Tree is an investment in our future—a seed planted and nurtured by local community-minded people like you. Your gift will be magnified by the collective power of other gifts, allowing the Community Foundation to award grants to a variety of programs that improve communities.

THANK YOU in advance for your support. Stay healthy, be well.