Page 5 – Arkansas Community Foundation

The Community Foundation often gets reports back from grantees and donors. Some stories stand out and move us in a special way. Our staff were pleased to receive the following story from Emily Ironside with the Jones Center telling us about their newest launch and a special donor that helped make it happen.

This is part of Emily’s report.

We were thrilled to launch Every Child Swims last month – a program we are piloting with Jones Elementary’s third grade class located in Springdale. The pilot program focuses on teaching students from across the school district to swim. Jane Hunt was so gracious with her time and attended the launch and initial swim test.

The initiative began with a swim proficiency test Tuesday at the Jones Center. 80% of the students did not pass the swim proficiency test and will be enrolled in free swimming lessons this semester. These classes, in addition to free teen and adult Learn to Swim classes this past year, have been made possible with Jane’s support.

One Jones Elementary student who attended came with his dad’s swimsuit–he had never owned a swimsuit his size. We knew swim gear might be a barrier to participating, so we were thrilled with Walmart Apparel’s team donated swimsuits and swim shoes for every child. The little boy with his dad’s suit beamed when he was presented with his very first swimsuit. It was a truly special moment.

At the launch last month, Jane shared her gift will be renewed again this year. That is wonderful news for the students of Springdale.

There are an estimated 4,000 fatal, unintentional drownings in the United States each year — about 11 per day, according to the Centers for Disease Control’s website. For children ages 5-14, drowning is the second leading cause of unintentional injury death after motor vehicle crashes, according to the CDC.

Almost 40 million adults — about 15% — in the U.S. don’t know how to swim and over half, 54.7%, have never taken a swimming lesson, the CDC reported in a May news release.

Arkansas currently ranks sixth in accidental drownings despite being a landlocked state.

The Jones Center leveraged Jane’s grant to secure additional funds from Step Into Swim, a national granting branch of the Pool and Hot Tub association. If successful, their vision is to expand to every elementary school in Springdale. They will work with SPS on additional funding to help grow the program, as well as seek private support through our channels.

Dr. Jason Williams, Senior Vice President, Chief Mental & Behavioral Health Officer, Arkansas Children’s

How are you doing today? This is a question that we ask in our casual conversations but do not always answer with the truth. If you ask our kids today how they are doing, you might not like the answer. Our youth today are struggling in ways we have not seen in a generation. Suicide rates are up, more kids report feeling depressed or anxious every day, and thoughts of self-harm are commonplace. Furthermore, the influence of social media exacerbates these struggles.

As a society, we have not addressed the mental health needs of our youth. We know that our mental well-being is critical to the overall health of our children and their families. It truly impacts every aspect of our lives including how we feel about ourselves; how we cope with stress or trauma; how we build meaningful relationships; and how we feel a sense of belonging in our community. Mental health encompasses our emotional, psychological, and social aspects of who we are, and it is an essential component of overall positive health. Because we continue to treat mental health as a separate construct from overall physical health, we see increased stigma and negative perceptions of those who seek services to address their mental health concerns.

To address this crisis, we must start to think more holistically about health. We need to move away from thinking about a culture of trying to close the division between mind and body, instead we should be focusing on healthcare and community programs that have an emphasis on the whole person and on the communities where kids and families live.

At Arkansas Children’s, we have taken the step of integrating mental health professionals into our primary care, specialty care and in many of our medical inpatient programs. By having mental health professionals as part of the “physical” health environment, we can provide a more holistic care model and are able to address both physical and emotional health in the same visit or clinic.

Additionally, to ensure that families have the needed resources to help raise healthy children, we have added community health workers to the team. These community health workers have a deep understanding of the community where families live and as a result are responsible for connecting families to resources for their unmet needs. This is a particularly crucial step, but it will not fully address all the needs that exist in our youth today.

Now is the time to think about how we view integration. Integration does not have to be unique to a hospital system nor does it need to solely focus on healthcare.

We all need to feel supported and connected to the community around us. Along with the Natural Wonders Partnership Council, we have started a series of community listening sessions across the state. We must create a space for communities to share their perspective and to help us understand their needs. One thing is clear from those conversations, we need to think more creatively about how we provide support to address the mental health crisis.

What if we start to think about the integration of physical and mental health at a community level? Think about how powerful it would be if we created teams of community members and professionals who could work collaboratively, in the very communities they live and serve, to offer comprehensive care along with needed community support to address the overall wellbeing of the children and their families!

Additionally, we must get creative about alternative places where these supports are accessible. We need to be connecting and working closely with schools, the faith-based community, boys and girls clubs, social clubs, and any other community organizations who are willing to be at the table. By integrating services into the community, we start to break down the stigma of mental health and, with time, increase the overall wellness of the child, as well as the entire community.

We must not only invest in programs that have solid evidence, but also new ways of promoting this type of integrated approach to health. We can do this by partnering with like-minded organizations and investing in innovative ideas, technologies, and care models. And, most importantly, amplify the voices of youth and families in our communities. At Arkansas Children’s, we are committed to championing children by making them better today and healthier tomorrow. Will you join us?

References:
Benjamin F. Miller, PsyD, Emma C. Gilchrist, MPH, Kaile M. Ross, MA, Shale L. Wong, MD, MSPH, Larry A. Green, MD. Creating a Culture of Whole Health: Recommendations for Integrating Behavioral Health and Primary Care. February 2016.

Protecting Youth Mental Health. The Surgeon General Advisory, 2021

n a world where homelessness and extreme poverty cast long shadows over countless lives, organizations like Arkansas’ Our House stand out as beacons of hope, striving to create lasting, positive change for those in need.

Executive Director Ben Goodwin paints a vivid picture of their ambitious vision — one where individuals can leave behind the specter of instability and focus on goals, hopes, and dreams for themselves and their children.

“We want them to be able to put homelessness and instability in their rear-view mirror, and then keep their eyes on the prize,” said Goodwin.

His insights shed light on the multifaceted nature of homelessness, revealing that it is not just about lacking a physical shelter, but also encompasses the absence of a job, transportation, childcare, and more. This holistic understanding serves as the foundation for Our House’s approach, where every aspect of a person’s well-being is carefully considered and nurtured.

“You need a lot to get out of homelessness, to go from that place of great instability, to a greater place of stability,” said Goodwin. “And to get there, you’ve got to have so much confidence, resilience, determination, coping skills, relationship skills, and self-awareness. And that is a tremendous accomplishment that exceeds what probably most of us will ever achieve in our lives.”

Goodwin explains that at the core of Our House’s mission lies a deep commitment to serving the community — from providing shelter for 80 to 90 residents each night to offering programs that cater to every member of the family.

The focus on children is particularly poignant, with early childhood education initiatives and a robust children’s program that engages with 300 young people daily. By investing in the youngest members of society, Our House is doing its part to ensure that the cycle of poverty is disrupted at its roots.

Recognizing the profound impact of mental well-being on one’s journey out of homelessness, Our House’s dedication extends beyond physical needs and includes a comprehensive mental health program that empowers individuals with the resilience, determination, and coping skills needed to navigate life’s challenges.

“We want to be the partner to people who are going through a hard journey, achieving great things, that are going to help themselves and their families, and turbocharge that with our mental health services,” he said.

In a world where barriers to healthcare can be insurmountable, Our House stands out for its “low to no barrier” approach, ensuring that residents receive the support they need without unnecessary obstacles.

Through strategic partnerships with healthcare providers and organizations, Our House has created a seamless network of care that meets people where they are and guides them towards a path of transformation and empowerment.

“The journey towards a brighter future is not without its challenges. But it’s our belief in the transformative power of our approach that drives us forward, propels us to find innovative solutions and cultivates a community of support around our mission.”

By providing accessible, supportive, and impactful programs and services, Immerse Arkansas helps young people who typically have a difficult time accessing mental health resources overcome the challenges they face as they transition into adulthood.

Eric Gilmore is the executive director of Immerse Arkansas. During Mental Health Awareness Month in May, he shared with Arkansas Community Foundation staff and donors the mission of Immerse Arkansas and its unique approach to addressing the mental health needs of young people in foster care.

“Our big goal is to create an expansive pathway to healing that would be available to every Arkansas youth in crisis,” said Gilmore. “And specifically, we zoom in on a critical decade, ages 14-24, in the lives of youth who’ve suffered trauma and have more mental health needs.”

Understanding the profound impact of trauma on young people’s identities, relationships, and resilience, Immerse Arkansas strives to provide holistic support that is deeply rooted in building unconditional relationships, providing tools and resources to meet their needs and instilling a vision for each youth’s restored future.

Gilmore added, “Mental health services need to be readily available to these youth, along with a clear understanding of how to access these services. After that, we have to support them in getting on a path to address and manage mental healthcare longer term.

“One of the most pivotal programs we offer is a youth center that provides assistance to young people in crisis situations,” he said. “We also run a transitional living program that fosters a sense of independence and helps individuals develop essential life skills.”

Immerse Arkansas recently opened a new shelter dedicated specifically to young adults called The Station. The 15-bed shelter will give each person his/her own unit with a bedroom and bathroom so the residents have their own space to start the healing process.

Gilmore also looks to expand the group’s impact by establishing Arkansas’ first statewide network dedicated to serving youth in crisis in the 14 to 24 age range. By extending its reach beyond Little Rock, Immerse Arkansas aims to provide essential support to young people and families across the state, recognizing the unique needs and challenges faced by those in rural areas.

“Our pursuit for healing is driven by our hope to change lives,” Gilmore said. By advocating for mental health strategies that are relationship-first,
trauma-informed, and focused on promoting a restored future, Gilmore believes they can revolutionize mental health support for vulnerable youth in Arkansas. This will transform their experiences and challenges into opportunities for healing and success.

On August 24, 2024, United States Surgeon General Dr. Vivek Murthy released an Advisory on the Mental Health and Well-Being of Parents, highlighting the urgent need to better support parents, caregivers, and families to help our communities thrive.

• 33% of parents report high levels of stress in the past month compared to 20% of other adults
• Additionally, 48% of parents reported that most days their stress is completely overwhelming
• Nearly 70% of parents say parenting is now more difficult than it was 20 years ago, with children’s use of technology and social media as the top two cited reasons

The stressors vary: financial strain and economic instability, time demands, concerns over children’s health and safety, parental isolation and loneliness, difficulty managing technology and social media and cultural pressures.

When parents are stressed, their children feel it. Data shows the impact on high school youth. According to the U.S. Department of Health and Human Services:

• 40% of high schoolers experienced persistent feeling of sadness or hopelessness (up from 30% in 2013)
• 20% of high schoolers seriously considered attempting suicide (up from 17% in 2013)
• 1 in 5 youths, (ages 13-18) either currently or at some points have experienced debilitating mental illness.

Read the U.S. Surgeon General’s full Advisory here:

As you’re looking ahead to year-end giving, you’re likely thinking about transferring cash or appreciated stock to your donor advised fund to maximize tax benefits and support the charities you love. A donor advised fund can be a fabulous component of your overall charitable giving portfolio.

Consider thinking beyond donor advised funds, though, especially at year-end. The Community Foundation offers a wide variety of funds to meet your charitable giving goals and help you maximize your tax and financial planning efforts.

Two excellent fund types that are sometimes overlooked are designated funds and field of interest funds.

A field of interest fund at the Community Foundation, sets aside charitable dollars for a specific charitable purpose and/or community. For example, you might decide to set up a field of interest to support research for rare diseases, to support organizations that assist homeless families in getting back on their feet, or to enable art museums to acquire works that celebrate the region’s diversity. With a field of interest fund, you entrust the knowledgeable team at the Community Foundation to distribute grants to achieve your wishes. As is the case with a donor advised fund, you’ll choose a name for your fund, whether you wish to use your own name (e.g., Samuels Family Fund or Samuels Family Fund for the Arts), maintain anonymity (e.g., Maryville Fund for the Arts), or something else altogether (e.g., Bettering Our World Fund).

A designated fund is a good choice if you know you want to support a particular charity or charities for multiple years. This is useful so that the distributions can be spread out over time to help with the charity’s cash flow planning. A designated fund also allows you to potentially benefit from a larger charitable tax deduction in the year you establish the fund if Your designated fund document allows you to specify the charities to receive distributions according to a spending policy you select.

Last but not least, if you are over the age of 70 ½, both designated funds and field of interest funds are eligible to accept “Qualified Charitable Distributions” from IRAs–up to $105,000 per person in 2024! As always, thank you for the opportunity to work together!

If you’ve been working with the Community Foundation for a while, you know that it’s easy to contribute to your fund. And by now, you likely know not to automatically reach for your checkbook! The team at the Community Foundation is happy to work with you and your tax advisors to review the options for types of gifts. Here’s food for thought:

Marketable securities

Gifts of appreciated stock to a donor advised or other type of fund at the Community Foundation is always one of the most tax-savvy ways to support favorite charitable causes because capital gains tax can be avoided. Gifts of publicly-traded stock, for example, are easy to transfer to a fund. The Community Foundation team provides transfer instructions to make the process simple.

As is the case with a cash gift, the Community Foundation will provide a receipt for tax purposes, and the gift of stock will be valued at the shares’ fair market value on the date of transfer. When the Community Foundation sells the shares, the proceeds flow into your fund without any reduction for capital gains taxes. This is because the Community Foundation is a 501(c)(3) charitable organization and therefore does not pay income tax. That would not have been the case, however, if you had sold the stock first and then transferred the proceeds to your fund; you would owe capital gains tax on the sale. Especially in cases where you have held the stock a long time and it’s gone up significantly in value, the capital gains hit can be big.

QCDs from IRAs

As always, keep in mind that the Qualified Charitable Distribution (“QCD”) is a very smart way to support charitable causes. If you are over 70 ½, you can direct up to $105,000 from your IRA to certain charities, including a field of interest, designated, unrestricted, or scholarship fund at the Community Foundation. If you are subject to the rules for Required Minimum Distributions (RMDs), QCDs count toward those RMDs. That means you avoid income tax on the funds distributed to charity. Plus, keep in mind that leaving your IRA to your fund through a beneficiary designation is a very tax savvy move, so be sure to discuss this option with our team and your tax advisors.

Real estate

You can give a tax-deductible gift of real estate, such as farmland or commercial property, to your fund in a variety of ways. An outright gift is always an option; lifetime gifts of real estate held for more than one year are deductible for income tax purposes at 100% of the fair market value of the property on the date of the gift, which also avoids capital gains tax and reduces the value of your taxable estate. Other ways to give real estate include a bargain sale or a transfer to a charitable remainder trust which produces lifetime income for you and your family.

Life insurance

Don’t overlook life insurance as an effective charitable giving tool, whether by naming your fund at the Community Foundation as the beneficiary or, in the case of whole life policies, naming the fund as beneficiary and transferring the policy itself. If you transfer a policy, you may be able to make annual, tax-deductible contributions to the Community Foundation to cover the premiums.

We look forward to working with you to explore all the options!

It probably would not surprise you to learn that over 42% of Americans own an IRA. In many cases, IRAs–especially for people who have rolled over one or more employer retirement plans–represent a significant portion of a household’s net worth. When it comes to charitable planning, IRAs should never be ignored. In fact, your IRA may offer some of the best opportunities to support the causes you care about.

For starters, no matter what your age, consider the benefits of changing the beneficiary designation on your IRA to name your fund at the Community Foundation as the recipient of all or a portion of the account. This is an easy, tax-effective way to leave a bequest to support the causes you care about. The Community Foundation can help you structure the terms of your fund to match your intended charitable legacy. For example, you can name your children to serve as advisors on the fund, or leave it to the Community Foundation to recommend grants to support your particular areas of interest.

The reason an IRA beneficiary designation is such an ideal form of charitable bequest is because of the tax advantages. Dollars flowing to the Community Foundation from an IRA upon your death are not subject to estate tax. In addition, as a public charity, the Community Foundation does not pay income taxes on the IRA assets it receives. By contrast, if you were to name your children as beneficiaries of the IRA, those IRA distributions to the children are subject to income tax, which can be hefty given the tax treatment of inherited IRAs. Plus, the IRA assets would be included in your estate for estate tax purposes.

Exploring ways to give your IRA to charity can also serve as a helpful reminder to review all your beneficiary designations. Although they may appear to be innocuous and may even be easy to overlook, those beneficiary designation forms represent critical components of your estate plan

Finally, if you have reached the age of 70 ½, you can make what’s known as a Qualified Charitable Distribution (“QCD”) from your IRA directly to charity, including a designated fund or a field of interest fund at the Community Foundation–up to $105,000 per year per spouse. You won’t pay income tax on the distribution and, happily, if you’ve reached the age for Required Minimum Distributions, your QCDs count toward those distributions.

The upshot? Next time you review your financial and estate plan with your advisor, take a close look at your IRAs. If you intend to leave a charitable legacy, or if you’d like to support your favorite organizations during your retirement years, your IRA may be your best bet to make a big difference in the causes you care about.

Our team keeps a finger on the pulse of current events and legal developments that could impact the way you work with your charitable clients. Below are three notable items that you’ll likely want to keep in mind this fall.

Election year implications

Naturally, as a financial, legal, or tax advisor, you’re very interested in how the results of the November elections could impact tax laws. What you might not know, though, is how significantly an election cycle can impact nonprofits’ fundraising efforts. Keep this dynamic in mind as you meet with clients who are charitably inclined as well as those who serve on nonprofit boards. They’ll appreciate the fact that you’re aware of the challenges. They’ll also be glad to know that you’re happy to loop in the Community Foundation team as a resource to structure and accept complex gifts as charities double down on fundraising efforts this year.

Snapshot of giving trends

If it feels like more clients are asking about giving techniques such as crowdfunding, using appreciated stock to support charities, and setting up donor-advised funds – you are not imagining it. These trends are real! It’s smart to stay up-to-date at a high level so that you’re generally aware of what’s going on in the philanthropic sector. Beyond that, the only information you need is the Community Foundation’s phone number! Our team is here for you! We are honored to be your first call anytime a client mentions that they’d like to launch or update a charitable giving plan. In most cases, the Community Foundation can provide tools and services that will help your client achieve their goals.

For your calendar

If you’re in search of tools to help motivate clients to move forward with financial and estate planning, October 21-27 2024 is National Estate Planning Awareness Week. It is a designated time to help the public understand the basics of estate planning and the reasons why it is so important. The original House of Representatives resolution includes key points that may spark messaging ideas for your client outreach. And of course, on all things related to charitable planning, please reach out to the Community Foundation. We’re happy to share best practices for encouraging clients to get serious about planning all aspects of their estates, including the legacies they’d like to leave to their favorite causes and the community they love.

“Nothing is so fatiguing as the eternal hanging on of an uncompleted task.”

–William James

Procrastination is a drain in ways that go far deeper than the incomplete task itself. We know this intellectually, but it can be so hard to break the procrastination habit. It seems that the more daunting the task, the harder it is to tackle. Certainly this is a major reason some clients put off important planning discussions. Of course, many of those discussions are tax-sensitive, which means year-end can get very hectic and stressful for clients who wait until the last minute.

As the year begins to wind down, consider tapping into your clients’ philanthropic interests as a catalyst to motivate them to start addressing year-end planning items now, rather than waiting until November or December. You may discover that the uplifting topic of philanthropy makes it easier to start a conversation. Then, the conversation can evolve to include not only charitable giving topics, but also other tax planning topics that need attention.

Here’s how this could work with a client:

–Reach out to the client to suggest that you meet–or at least jump on a call–to check in on 2024 charitable giving plans and other items.

–Open the conversation by briefly recapping the charitable planning components already in place and the client’s history of giving. Then ask the client about their plans for 2024.

–As you talk with the client about charitable intentions, bring up various charitable giving tools and opportunities that match those intentions. In each case, use the charitable discussion as a springboard for general tax planning items that need to be addressed before year-end.

–For example, if a client who is over 70 ½ mentions wanting to support a particular need or organization in the community, you can suggest that you loop in the Community Foundation team to potentially establish a field-of-interest or designated fund, which can then receive distributions from the client’s IRA up to $105,000 annually per spouse. This, in turn, opens the door to discuss Required Minimum Distributions and other elements of retirement planning in general.

–If the client mentions that they are already dreading gathering tax receipts for 2024 charitable donations, suggest that the client consider setting up a donor-advised fund at the Community Foundation to serve as a convenient and rewarding “hub” for charitable giving. Going forward, the client can conduct the bulk of their giving using the donor-advised fund and avoid the mad scramble for receipts. If the client already has a donor-advised fund, make sure they know how to use it most effectively, and reach out to the Community Foundation team for help. The topic of discussing charitable donation receipts presents a nice opening to remind a client about other paperwork that may need to be gathered or completed to meet overall estate and financial planning goals.

–When your client talks about charities they plan to support before year-end, remind your client not to automatically reach for the checkbook. Most of the time, highly-appreciated marketable securities (or other highly-appreciated, long-term assets) are ideal gifts to a client’s charitable fund because the client is eligible for a tax deduction at the assets’ fair market value, and the proceeds from the sale of the assets will flow into the client’s fund at the Community Foundation free from capital gains tax. That means more funds are available to support the client’s favorite causes. Conveniently, the conversation about highly-appreciated stock can segue naturally into a conversation about overall stock positions.

–Philanthropy topics can naturally lead into even more topics that are sensitive to year-end timing, such as annual exclusion gifts, estimated tax planning, and updating wills and trusts before the extended family gathers for the holiday or travels together overseas.

–Review the charitable components of the client’s estate and financial plans, including provisions in wills and trusts, beneficiary designations, donor-advised funds, prior years’ tax deductions, and historical gifts to favorite charities.

The Community Foundation team is here to help you serve your charitable clients every step of the way, every month of the year. We understand that late-December transactions are often unavoidable. The net-net is that we’re happy to work with you according to your clients’ schedules – whether that means getting a jump on a new year and processing stock gifts in February, helping you plan in September for year-end, or preparing fund agreements in December. It’s our pleasure to assist you whenever you need it!