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.

Heber Springs, Ark. (Oct. 6, 2020) – Susan R. Vowels of Heber Springs has been named executive director of Cleburne County Community Foundation, an affiliate of Arkansas Community Foundation. Founded in 2004, Cleburne County Community Foundation makes grants to improve the quality of life in Cleburne County and partners with individuals, families and companies to build its community through philanthropy.

“A 10-year resident of Heber Springs, Susan’s experience in education and marketing will be of great value to the Foundation,” said Heather Larkin, President and CEO of Arkansas Community Foundation. “The Cleburne County affiliate office has a long history of strong leadership and I’m thrilled to continue that tradition. Susan is a wonderful asset for the affiliate office and the community.”

A native of Kennett, Missouri, Vowels received a Bachelor of Science in Elementary Education from Southeast Missouri State University in Cape Girardeau and a Bachelor of Science in Marketing Management from Arkansas State University in Jonesboro. Among other jobs in Mountain Home and in Missouri, she previously was a music educator in the Mount Vernon-Enola School District and the Heber Springs School District.

The mission of the Cleburne County Community Foundation is to engage people, connect resources and inspire solutions that build community so that Cleburne County will remain the kind of place that residents want to raise their children. To learn more about the funds, endowments and activities happening with the Cleburne County Community Foundation office, visit https://www.arcf.org/affiliates/cleburne-county/ or call 501-691-1906.

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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 $314 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.

By Paul Wellenberger

Paul Wellenberger is the former mayor of Fairfield Bay. The Fairfield Bay community was awarded the first Arkansas Rural Connect (ARC) broadband grant.

Fairfield Bay is a resort community on Greers Ferry Lake where people often relocate (you won’t find many third generation residents in our city.) It became obvious to our Imagine Fairfield Bay 2035 team that potential residents now consider great broadband a given just like electricity and water. Without it, folks seeking to relocate here expect it.

With the help of a small grant ($10,000) from the Fairfield Bay Community Fund with other contributors, a study was conducted to assess what it would take to get all of Fairfield Bay to 25/3. (The official FCC broadband definition is a minimum of 25 Mbps download and 3 Mbps upload.) Armed with this critical information, we met with the three internet providers to see what could be done. There was still a major area that was very underserved. 

We teamed up with Arkansas Telephone Company from Clinton to submit an Arkansas Rural Connect (ARC) grant request and won. The $1,568,750 grant that was recently awarded addresses our least served areas. The project runs 27 miles providing fiber to the home to over 750 structures and is projected to be completed by the end of 2020. 

Fairfield Bay, Arkansas

“This is the first of many projects to be awarded to rural Arkansas communities,” Secretary of Commerce Mike Preston said in a statement. “The ARC grant program is important for the long-term success of our state’s economy.”

Broadband funding was provided through the federal CARES Act, and the state CARES Act Steering Committee and Arkansas General Assembly have approved $19.3 million for ARC grants to be spent by Dec. 30, 2020. An additional $4.7 million in funding is available for projects that extend past that deadline.

This small Fairfield Bay Foundation study grant was the impetus that got the ball rolling. The importance of the Fairfield Bay Community Fund cannot be overstated. Without it, many projects that improve the quality of life in our community could not be done. We deeply appreciate the assistance we received from the Arkansas Community Foundation. They helped us establish the fund and assisted us with the administration and legal compliances required to be successful.

To learn more about the Fairfield Bay Community Fund, visit https://www.arcf.org/our-impact/community-funds/fairfield-bay-community-fund/


Curt Stamp is Vice President of the Arkansas market for Cox Communications. Cox is the largest private telecom company in America, serving six million homes and businesses across 18 states.

The COVID-19 pandemic has illuminated many important needs – some new, some ongoing – for Arkansans to remain safe, productive and engaged while learning and working from home. Our efforts to physically distance and slow the virus’ spread created both challenges and opportunities for families, students, consumers and businesses, including broadband providers such as Cox, the state’s largest cable broadband provider.

One of Arkansans’ critical needs is internet: access to fast and reliable broadband has become not just a luxury but rather an essential service. Especially now, a home broadband connection is more than just entertainment. It allows Arkansans to learn, receive healthcare, connect with loved ones, conduct domestic and international business, and much more. Now, collectively, we must address the three critical barriers to connectivity: availability, adoption and devices.

Availability is a major concern due to the rural nature of the state. According to a recent study from Boston Consulting Group and Common Sense, 46% of Arkansas students are without an adequate high-speed internet connection, which is defined by the Federal Communications Commission (FCC) as a minimum speed of 25 Mbps download/3Mbps upload. Building robust, state-of-the art networks to provide internet availability is capital intensive. The private sector, including Cox, has invested billions of dollars throughout the nation to bring broadband to Americans. Unfortunately, many of the areas which lack service today would be uneconomical to serve without some level of government support.

Broadband adoption is another piece of the puzzle, particularly for low-income households. According to the Brookings Institute, while 73% of Arkansas families with access to broadband subscribe to it, that number falls to 49.8% in households making less than $20,000 per year. Any serious effort to increase the number of Arkansans connected to broadband must include programs that facilitate and support adoption, especially for low-income households. Without these programs, the digital divide will widen. Cox has long focused on this issue; for nearly a decade we have offered a low-price internet solution, Connect2Compete, that helps support broader adoption. Priced at $9.95/month with a free modem and no installation fees, Connect2Compete is available to qualifying families who receive government assistance. More than 90% of families with Connect2Compete indicate it helps set their children up for success and simplifies communication with educators.

The lack of devices – laptop, tablet or other – also contributes to community members not being connected to broadband. Through partnerships with schools, community organizations and businesses, we can easily overcome the lack of devices. At Cox, we’ve formed a national partnership with PCs for People, which provides discounted, refurbished laptops and accessories to families that qualify for the Connect2Compete program.

Getting all Arkansans connected should be a shared goal for individuals and entities across the state. We, along with other broadband service providers, have long advocated for programs and policies that increase access to broadband. The state of Arkansas has established the Arkansas Rural Connect program using a combination of $4.7 million of state funds and $19.3 million of the CARES Act funds to provide grants to providers to extend broadband networks to Arkansans who do not have access today. We are encouraged by these efforts and urge leaders at the local, state and federal level to continue advocating for funding and solutions that provide all Arkansans the connectivity they need to be safe, successful and prosperous.

Little Rock, Ark. (Aug. 20, 2020) – A new study from the University of Arkansas Clinton School of Public Service, Arkansas Community Foundation, and UA Little Rock School of Public Affairs shows that Arkansas nonprofits have experienced significant financial distress and service disruptions due to the impacts of COVID-19. You can read the full report here.

Key findings from the Arkansas Nonprofit COVID-19 Impact Study include:

• Nonprofits have lost significant revenue due to the impacts of COVID-19, with 64% of surveyed nonprofits reporting a loss of fee-for-service revenue and 64% reporting a decline in individual donations.

• COVID-19 has also impacted nonprofit employment of paid staff in form of reduced hours, furloughs and layoffs. More than 30% of nonprofits surveyed have reduced employee hours, while 15% reported layoffs.

• Nearly 70% of nonprofits surveyed are operating at a reduced capacity, including complete program cancellations, and many have had difficulty obtaining needed supplies.

Shortages of volunteers, a lack of protective personal equipment (PPE), and adjusting to the shifting needs of clients in response to COVID-19 were among the other challenges that emerged from the study’s findings.

Many organizations also reported making efforts to adapt to the challenges of COVID-19 by finding new and unique ways to deliver their services, including implementing online programs, increasing operating hours to decrease crowds, offering drive-thru services, and increasing partnerships with other organizations.

The study was designed collectively by Dr. Nichola Driver, Assistant Professor and Faculty Director for the Office of Community Engagement at the Clinton School; Dr. Kirk Leach, Assistant Professor in the UA Little Rock School of Public Affairs; and Sarah Kinser, Chief Program Officer at Arkansas Community Foundation. Second-year Clinton School students Jaylin Sprout and Brittany Moody provided research assistance.

“Funding is the most critical challenge right now, since many nonprofits have had to cancel in-person fundraising events,” Dr. Driver said. “We also broke down the findings by program areas and budget sizes. The program areas that seem the most negatively impacted are arts, culture, humanities, health and education.”

The survey was administered between June 22 and July 10, 2020. A total of 316 nonprofit leaders representing small and large nonprofits responded to the survey. Respondents represented nonprofit organizations serving all 75 Arkansas counties and across all nonprofit program areas and budget sizes. Most respondents were from organizations with annual budgets under $500,000 and most operated with paid employees.

Survey respondents were also asked open-ended questions about the most urgent challenges they will face over the next three to six months. Among the responses were funding, lack of volunteer support, the need to move programs into online formats, adjustment to shifting toward client needs, lack of personal protective equipment (PPE), planning through uncertainty, and general health and wellbeing concerns for staff and clients.

“We have seen similar reports surfacing across the country and we felt it was important to have data reflecting what was happening in our state,” Dr. Driver said. “We wanted to get the word out to donors, funders, and policymakers to aid the discussion of next steps.”

A link allowing nonprofits to submit their answers was distributed through email lists owned by the Arkansas Community Foundation and the Clinton School of Public Service.

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About Arkansas Community Foundation

Arkansas Community Foundation is a nonprofit organization that 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 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.

About the University of Arkansas Clinton School of Public Service

The University of Arkansas Clinton School of Public Service gives students the knowledge and experience to further their careers in the areas of nonprofit, governmental, volunteer, or private sector service. The Clinton School is the nation’s first to offer a Master of Public Service degree, both in a classic campus setting and online. While learning valuable lessons in the classroom, Clinton School students also complete “hands-on” public service projects, ranging from local work in Arkansas communities to international projects on all of the world’s six inhabited continents.

About the UA Little Rock School of Public Affairs

The UA Little Rock School of Public Affairs brings together academic, applied research, and training units that share a focus on government, politics, nonprofit organizations, and public service. Whether you are looking for an undergraduate program that sets you on a path to make a difference in the world, a graduate program that can open up opportunities for you in government agencies or the nonprofit world, a graduate certificate or training program to improve your skills and bolster your resume, or assistance with applied research on public policy issues, the School of Public Affairs offers many opportunities to help individuals, agencies, and organizations to improve.