Just as each of your clients has a unique estate plan and financial plan to meet the client’s particular situation and goals, each of your philanthropic clients needs a unique charitable giving plan. For example, for some clients, giving shares of highly-appreciated stock consistently every year to their fund at the Community Foundation makes the most sense for their charitable goals and their mix of assets. For other clients, leaving a bequest to the Community Foundation to support specific areas of interest is the best fit for the client’s financial situation and community priorities.  

The Community Foundation offers charitable giving vehicles to meet a wide range of clients’ needs. In many cases, a single client can benefit from setting up multiple funds of different types. 

Here’s a quick primer on a few of the most popular fund types.

Donor advised Fund

A donor advised fund enables your client to establish a specific account for charitable giving. Your client makes tax-deductible contributions of cash (or, ideally, stock or other highly-appreciated assets) to the fund, and then recommends grants to favorite charities. 

Field-of-interest Fund

Clients who want to target their giving to specific areas of community need (such as education, health, environment, or the arts) can set up a field-of-interest fund to establish parameters for grant making under the ongoing guidance and expertise of the Community Foundation’s staff.  

Designated Fund

A designated fund allows a client to direct giving to a specific agency or purpose. Over time, the Community Foundation’s staff manages the distributions from the fund according to the terms established by your client.

Organizational Fund

An organizational fund is similar to a designated fund, except in the case of an organizational fund, the source of the initial contribution is the beneficiary nonprofit organization itself. If your client serves on boards of directors of charities, they’d likely be interested in learning more about organizational funds. Indeed, if you represent nonprofit organizations and their board members in your practice, it’s helpful to keep in mind that organizations frequently establish organizational funds at the Community Foundation to set aside endowment reserves or rainy day funds. The team at the Community Foundation is adept at navigating the specific accounting standards that are unique to this type of arrangement.

Scholarship Fund

Clients can set up funds to support students’ educational pursuits based on the parameters and application requirements they outline with help from the experts at the Community Foundation. 

Unrestricted Fund

The Community Foundation has its finger on the pulse of the community’s most pressing issues. An unrestricted fund gives your client the opportunity to support community needs that can’t be identified until the future. One of the biggest benefits of a Community Foundation is its perpetual structure that allows clients and their families to offer support to nonprofits that evolves over time as priorities in the region shift. 

Here’s a pro tip: If you represent clients who are age 70 ½ and older, consider recommending a Qualified Charitable Distribution from a client’s IRA to a fund at the Community Foundation. All of the fund types noted above are eligible recipients, with the exception of only the donor advised fund.

We look forward to working together to discover the type of fund (or funds!) at the Community Foundation that could be a good fit for each client’s unique charitable giving needs. 

Tax time has its silver linings! Going over a tax return with a client helps start a productive conversation about ways to plan gifts to charity more effectively. As you scan 2023’s charitable contributions, talk with the client about whether those charitable gifts were made with cash or with other assets and then steer the conversation toward discussing the most effective assets to give to charity during 2024 and beyond. 

Here is a four-point checklist that can help you advise your clients about the range of charitable giving options. 

–Remind clients that cash is not king when it comes to charitable giving. Cash is typically not the most tax-effective form of charitable giving. Instead, encourage clients to consider giving highly-appreciated assets, including publicly-traded stock, to their fund at the Community Foundation to support their favorite charities.   

–Think beyond stock. Encourage clients to explore not only highly-appreciated stock as a potential gift to charity, but also the various forms of “noncash” assets that can make great charitable gifts. After all, American households’ most valuable assets are retirement accounts and personal residences, not cash. Examples of assets that could be excellent charitable gifts depending on the client’s circumstances include gifts of real estate, closely-held stock, and, for clients who are age 70 ½ and older, direct transfers from an IRA (known as a Qualified Charitable Distribution) to a field-of-interest or unrestricted fund at the Community Foundation. 

–Make it easy on yourself and your client. Reach out to the team at the Community Foundation for assistance! We are happy to help you and your client evaluate the best assets to give to a donor advised or other type of fund at the Community Foundation to achieve the client’s charitable goals.

–Close the loop on IRS reporting. Remember that the reporting requirements are different for noncash gifts to charity versus cash gifts. Make sure you are familiar with IRS Form 8283, which must be filed with any tax return claiming a deduction for noncash assets valued at $500 or more. The IRS expects strict adherence to the terms of the form, especially the requirement for a qualified appraisal. On our end, the Community Foundation will handle the confirmation of receipt and a commitment to document and notify the IRS if disposition occurs within three years.

Opening up the full range of charitable giving options for a client can help you structure a holistic estate and financial plan that meets the client’s objectives for family wealth, philanthropy, and tax effectiveness. Reach out anytime to the team at the Community Foundation to discuss techniques and strategies. 

Before getting married, the Johnsons made agreements about where and how to raise their children. It landed them in Greenwood, Arkansas.

“It was love at first sight for me, but it took him a little longer,” said. Sandy Johnson M.D., cofounder of Johnson Dermatology. “He came around quickly though.” Sandy and her husband, fellow dermatologist Brad Johnson, M.D., established their clinic in nearby Fort Smith in 2006.

“I’m originally from Ohio. And Brad comes from a long line of community activists that are well known in Greenwood,” said Sandy. “Many in his family were educators and believed in giving back to their community. My family also held similar values, but both of our families did their charity work through the church. Brad and I wanted to be a little more intentional about our giving — make a different kind of impact more specific to our passion.”

The Johnsons established the Brad and Sandra Johnson Endowment in 2002 at Arkansas Community Foundation. They’ve made several grants every year since then.

“Brad and I used to live in Little Rock, and one of the things we loved most about the city were the walking trails,” said Sandy. “We knew we wanted to have the same kind of trails where we were raising our family.”

Both runners, Sandy and Brad are proponents of a pedestrian-friendly lifestyle. They believe that when kids — or anyone for that matter — can be outside more and feel safe outdoors, it helps improve communities.

“When we first moved here, our kids couldn’t walk to school,” she said. “They are in college now, but now walking to school is possible for more local students. Our ultimate goal, which is why our fund is endowed, is for all the area’s schools to be connected by walking trails.”

That goal is on its way to becoming reality. Because of the many donations made to Greenwood Parks and Recreation, nature walks can be found all over the Greenwood and Fort Smith communities. The Johnsons have funded trails, sidewalks, path lighting and various other small projects to make nature walks accessible for more people. They are deeply involved. More than funders, they review drawings, attend planning meetings, and are committed to making sure implementation is right.

“Greenwood is well-known for its good education system, and that was a huge reason why we raised our kids here,” said Sandy, “But from the beginning of our relationship, we’ve enjoyed the outdoors and being in nature. It’s always been as important as just about anything else.

“Over time, we have learned that our marriage is better when we go on walks, simple as that,” she said. “Nature has been good for our family. And we want for more people to enjoy it, too.”

In 2023, EAST applied for and was awarded a three-year grant from the IMPAC Endowment through Arkansas Community Foundation. This grant helped provide technology training and professional development to EAST facilitators throughout Arkansas for their 2023 seminar held at Oaklawn.

The “Off to the Races” event was three full days including 39 unique breakout sessions with 45 presenters for 215 EAST facilitators, including on-demand participants. The on-demand option afforded individuals who may be affected by time or travel barriers the opportunity to participate and still receive quality training at their convenience.

“I loved every session I attended,” said one participant. “I loved that other facilitators presented their best practices. This was one of the best seminars you guys have put on!” Another teacher said, “The most valuable part of EAST Seminar is the networking and camaraderie we develop with other facilitators. Once I return to my classroom, I now have 8-10 new friends to reach out to for questions and advice.”

Learn more about the EAST Initiative mission here.

Attendees received 2,848 hours of professional development from the live event and 712 hours was received by on-demand participants. Of the 39 sessions, 32 were technology focused, including topics such as cyber security, data science, technology repair, environmental science, tech certifications, engineering, 3D printing, AI, eSports, ArcGIS, videography and podcasting.

The event had a variety of ways to engage, including a wide array of exhibitors present to provide information about the field, morning posts designed to energize attendees, prizes for participants, staff recognition and networking groups and events.

Following the Seminar and thanks to survey results from attendees, 98% of facilitators felt better prepared to lead their classroom, 82% improved their understanding and skills with technology, and 95% felt better prepared for the new school year. They also identified areas to explore in the future like AI workshops, classroom management, 3D printing, design software, among others.

The purpose of the EAST Seminar was to create a relevant educational experience for EAST facilitators intentionally designed to inspire and recharge, cultivate networking and collaboration, and encourage continuing professional development and growth.

The Seminar was also made possible through generous sponsors, including the IMPAC Endowment, University of Arkansas, Avad3, ArcBest Technologies, Acxiom and Tesla Software.

When asked if EAST accomplished this goal, teachers responded with a resounding “Yes!”

“The breakouts were great, informative, and gave me ideas to take back this year,” said a local teacher. “I am glad some of the sessions I wanted to see were recorded! I love the network piece and getting to know other facilitators. It is one of the best seminars I attend that prepares me for the upcoming school year.”

The IMPAC Endowment that helped fund this seminar exists to provide research, development and implementation of computer technologies in Arkansas schools. To help increase the impact of this endowment, click here to make a donation.

Little Rock, Ark. (Feb. 7, 2024) – Scholarships are now available for eligible Arkansas students through Arkansas Community Foundation.

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. Each scholarship has its own eligibility criteria. 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, provides a scholarship for female students pursuing a business degree at a college or university in Pulaski County

·        Advancing Women in Transportation Scholarship, provides a scholarship to female students who plan to pursue a career in a transportation related field in Arkansas

·        Anne Pressly Scholarship, to memorialize the legacy of Anne Pressly and support a graduating high school senior woman who plans to pursue a career in Journalism

·        Arkansas Service Memorial Scholarship, for students who are children of Arkansans who lost their life in service in the state, nation or community

·        Barbara Mashburn Memorial Scholarship, provides a scholarship for a graduate of an Arkansas high school pursuing an education as a vocalist

·        East Student Scholarship, provides a scholarship to a graduating senior who attends any high school with an EAST program

·        Elizabeth G. Redman Republican Party of Arkansas Scholarship, for students who are members of or active in the Republican Party of Arkansas

·        Herchel and Melba A. Fildes Scholarship, 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, for students who are members of the Arkansas Federation of Young Republicans or are active in the Republican Party of Arkansas

·        Marie and Bob Marshall Republican Party of Arkansas Scholarship, for students who are members of or active in the Republican Party of Arkansas

·        Merwin T. and Agnes Bowman Nursing Scholarship, for students seeking a Bachelor of Science in Nursing or equivalent degree from a qualified institution

·        Poultry Federation Scholarship, 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, provides a scholarship to students pursuing an advanced degree with an emphasis in healthcare and/or hospital administration

·        Ryan Mondy D.A.S.H. Memorial Scholarship, provides scholarships to graduating seniors whose lives have been affected by cancer

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

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

Arkansas Community Foundation, a statewide nonprofit organization, provides resources, insight and inspiration to build better Arkansas communities – communities where our kids will want to raise their kids. The Community Foundation is the largest grantmaker in the state in the number of grants made each year. Since 1976, the Foundation has provided more than $393 million to nonprofits. The Foundation staff works directly with donors, professional advisors and nonprofits to help strengthen Arkansas communities through strategic philanthropy and focusing on local needs. Its assets rank among the top 60 out of more than 800 community foundations in the United States. Serving statewide and local initiatives, the Community Foundation helps connect those who want to give to causes they care about. Contributions to Arkansas Community Foundation, its funds and any of its 29 affiliates are fully tax deductible.

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Greetings! I just wanted to take a moment to give a huge thank you to all the incredible people who have helped make the Arkansas Community Foundation the strong organization it is today. From our donors and nonprofits to businesses, professional advisors, volunteer board members, and staff members – you all deserve a round of applause.

Alyson Bradford

Together, we’ve had an amazing year, granting over $47.4 million to Arkansas nonprofits. That’s a massive impact! Our focus is on making a difference in important areas like early childhood literacy and food security through our grantmaking efforts. And let’s not forget the hundreds of grants we make each year through donor advised funds, supporting causes like early childhood development, education, animal welfare, medical research, and financial literacy and more.

In fiscal year 2023, we raised over $1.2 million in donations to help with the long-term recovery after the tornadoes in Central Arkansas and Wynne. Our flagship grantmaking program, Giving Tree, made an amazing 499 grants totaling over $866,000.

Despite the challenges our state faces, the people of Arkansas, especially those in the Community Foundation family, continue to choose hope. We’re ending the year stronger than ever, and I truly believe the future is bright.

We’re so grateful for our partnership with trusted financial advisors who help their clients find the perfect home for their philanthropy. And a special shoutout to all our grantees who work tirelessly to serve our fellow citizens and advocate for positive change. We couldn’t do it without you.

I also want to give a personal thanks to our exceptional team at the Foundation. They’re absolute rockstars – talented, hard-working, and caring. On behalf of the board of directors, I want to express our deep gratitude for everything they do to make Arkansas a better place for all of us.

So, take a moment to dive into our fiscal year 2023 annual report and join me in thanking everyone who’s working tirelessly to fulfill our mission of building strong Arkansas communities. You’re all incredible!

Alyson Bradford 

Board Chair

Many Community Foundation donors have updated their estate plans, leaving bequests to their donor advised or other charitable funds. A “specific bequest” designates a set amount from the donor’s estate or trust, for example:

“I bequeath $15,000 to The Community Foundation (tax ID and/or address), a tax-exempt organization under IRS Section 501(c)(3), to be added to [Name of Your Fund], a component fund, and I direct that this bequest become part of the Fund.”

The Community Foundation is ready to receive such bequests, usually once the estate is settled.

Alternatively, a “residuary bequest” designates a portion of the remaining estate after specific bequests, expenses, and taxes are paid:

“I leave all the rest and residue of my property, both real and personal, to The Community Foundation (tax ID and/or address), to be added to [Name of Your Fund], and I direct that this bequest become part of the Fund.”

The amount of a residuary bequest is determined after settling the estate, and the designated charity (e.g., your fund at the Community Foundation) receives the full amount once the estate is completely settled. Typically, a “partial distribution” is made by the estate’s representative as soon as they have sufficient information about assets and liabilities.

When leaving a residuary bequest to your Community Foundation fund, our team assists at various steps during estate administration. We receive updates on assets, expenses, taxes, and periodic accountings, executing documents like receipts for distributions.

Our team welcomes the opportunity to work with you and your advisors to establish bequests that create a charitable legacy.

Addressing money, mortality, and family relationships can be challenging on their own, let alone together. Many people delay setting up or updating estate plans, considering it expensive or inconvenient. However, establishing a will, trust, and beneficiary designations is a valuable gift to heirs, sparing them stress during an already emotional time. Updating your estate plan also enables you to allocate gifts to charities upon your death.

Supporting charities through beneficiary designations in an estate plan is common. When working with advisors, review insurance policies and retirement plans, particularly tax-deferred ones like 401(k)s and IRAs. While spouses are typically primary beneficiaries, consider a charity, such as your fund at the Community Foundation, as a secondary beneficiary for tax-efficient and streamlined gifting, avoiding both estate and income tax on plan distributions.

Connect with the Community Foundation team during estate planning to:

1. Explore tax benefits of naming your fund as a retirement account beneficiary.

2. Obtain bequest language for your will or trust, accurately describing your fund.

3. Update donor advised fund terms so that your wishes are carried out following your death,, whether specifying charities or naming successor advisors.

Estate planning documents, including wills, trusts, and beneficiary designations, represent generous acts of clear distribution and conflict avoidance. An estate plan allows you to demonstrate how much you care about the people in your life as well as your charitable passions. 

We’re here to help!

Opinion piece by Mitch Daniels
Originally published in the Washington Post on January 29, 2024
The original Washington Post article can be found here.

Top-down, nationalized government continues demonstrating its ineptness and scandalous incompetence. The examples keep piling up: The Government Accountability Office reported last September that more than $100 billion was likely misspent or fraudulently stolen in pandemic relief programs, and the Education Department botched the rollout this winter of the new Free Application for Federal Student Aid, delayed for months and marred by a math error that could have cost students $1.8 billion in financial aid.

No wonder Americans regularly express far greater confidence in state and local governments than in the federal leviathan.

Our nonprofit sector should take notice. The massive foundations that command the headlines all too often squander fortunes on programs that produce no detectable improvements, “grand challenges” that remain no less grand after the money is spent.

Meanwhile, a very different category of charities steadily and quietly demonstrates the American “spirit of association” at which Alexis de Tocqueville marveled. The nation’s 900 or so “community foundations” arguably deliver more tangible, meaningful results than their vastly larger counterparts. And they do so in a participatory, ear-to-the-ground fashion that can preserve, or build, the social capital and sense of common purpose that is in distressingly short supply in today’s “bowling alone” America.

Community foundations are a Midwest invention and remain heavily concentrated in the heartland. The Cleveland Foundation, in 1914, is generally credited with being the first of its kind, but it was quickly followed by counterpart institutions in neighboring states. Although at least one can now be found in every state, one-third or more are in the Midwest, more than 200 in Michigan, Ohio, Illinois and Indiana alone.

These organizations leave worrying about ocean-boiling to the Fords and Gateses, aiming instead at the nitty-gritty problems that afflict their localities. Calls to foundation offices in my home state of Indiana produced a host of examples.

At the Owen County (population 21,482) community foundation, Karah described the successful construction of a bike and hiking trail from the county seat, Spencer, to the nearest state park. But with equal pride she recalled bailing out members of the Lions Club when their fish fryer failed on the eve of the county fair.

Lisa in Steuben County, home to 101 lakes (about one for every 340 people), cited her foundation’s funding of regular water-quality testing that maintained public confidence and tourism attendance over recent years. In Montgomery County, recent grants renovated two public parks and created badly needed child-care capacity.

But the good these brave little organizations do might be secondary to the way they do it. In this era of social atomization, many once-vibrant towns have seen the departure of major employers, along with the consolidation of their schools, banks and hospitals. These erosions, however rational their intent, damage the civic engagement and sense of empowerment on which self-governance depends.

Leaning against these trends, community foundations seek out and draw together as many of their neighbors as they can enlist in conceiving and deciding on their investments, serving as vehicles of consensus and cohesion.

Karah describes how a group of eight volunteers actively canvasses the county three times each year for requests and ideas. Kelly in Montgomery County works with a 13-member board to hold regular “listening sessions” and sees her office as the county’s “eyes and ears.” Tellingly, two of the three counties cited here are home to private colleges, but neither reports any of the town-gown conflicts that are all too common where two different cultures coexist in close quarters.

The profusion of these foundations in some places is the result of enlightened philanthropy by larger entities that jump-started the movement in states such as Iowa, Kansas and Indiana. The Lilly Endowment, faithful to that section of its founder’s assignment to promote community development in its home state, launched a major effort in 1990 to midwife new foundations in even the smallest of Indiana’s 92 counties.

N. Clay Robbins, then the endowment’s outside attorney and now its chairman and chief executive, recalls pushback from philanthropy experts who derided the plan, predicting it would lead to redundant administration costs and recommending one statewide organization. One suspects the criticism included a measure of doubt that, left in charge of the money, those local rubes wouldn’t make wise decisions.

The venerable principle of subsidiarity holds that decisions should be made as locally as possible. Both social progress and social harmony could be strengthened by the principle’s broader application. Stewards of both public and nonprofit funds should take notice.

The writer David Brooks has argued that the way back to a society more confident in its institutions is to encourage and strengthen localized activism. In 2018, he wrote, “Federal power is impersonal, uniform, abstract and ruleoriented. Local power is personalistic, relational, affectionate, irregular and based on a shared history of reciprocity and trust.”

Brooks was thinking about public-sector action, but his insight and the work of community foundations apply equally to the uniquely and proudly American philanthropic private sphere as well.

When Jared Smith, the CEO of Kitestring, says that giving back to the community is core to the company’s mission, he means it. You can see it in the culture, the annual budget, and the number of hours his employees have volunteered locally.

Every year, Kitestring, a technology consulting group, puts 10% of the company’s profits into a donor advised fund with Arkansas Community Foundation. “I saw a TED Talk once where the speaker said, ‘doing good is good business.’ For me, that means success should not be measured solely by profit but by the positive impact a company can have on its employees and community,” said Smith. “We talk about it every month and consider it core to our overall performance. The fund helps hold us accountable.”


KITESTRING’S PHILANTHROPIC MISSION “We will support programs that assist the under-represented in order to provide greater access to opportunities and a higher quality of life.”

Based in Bentonville, Kitestring has more than 150 employees nationwide with 56 residing in Northwest Arkansas. In 2023, employees logged more than 400 volunteer hours.

“Some companies have annual or quarterly opportunities to volunteer, but we have options for our staff to volunteer every month,” said Sapna Ramachandran, Vice President of Talent, Experience and Culture. “It gives people a sense of purpose at work, and it helps strengthen the bonds between our staff and our community. Our employees tell me that our company’s commitment to supporting the local community through volunteering and financial donations is one of the most meaningful aspects of working here.”

Kitestring was founded in 2020 with a vision to be the most trusted partner in technology consulting. After 23 years of growth in Bentonville and nationwide, the group is also trusted to show up when help is needed.

“We’ve volunteered and donated to several organizations [including] Feel the Love Food Truck, Habitat for Humanity, we help pick up litter, worked with Canopy to provide refugee support, among others,” said Ramachandran. “I hope this is just the beginning. I want to initiate volunteer opportunities for our staff nationwide, even those that are remote.”


Sapna Ramachandran, Vice President of Talent Experience and Culture and Jared Smith, President and CEO

Long term, Kitestring seeks to bring the technology it provides its clients to help build capacity for nonprofits, too. “We are doing this in small doses now with TheatreSquared,” said Smith. “We helped them with their fundraising page and website design.

“But in the future, I’d like to see us use our technology to train people up and expand employment opportunities for the underserved. Until then, we are doing what we can as often as we can. I am proud of the culture we’ve built and what Sapna is leading,” he said. “She’s made our commitment to charity and service more than something we discuss and turned it into action we take.”