Navigating the New Normal

Robert R. Kiser, CPA • Partner, Moore Colson

In these turbulent times that some have termed “The New Normal,” we are all experiencing dramatic changes in how our communities, our regions, and even our country functions. So it is especially heartening to know that, according to the Giving USA 2008 report released in June, 2009, charitable giving by individuals and corporations in 2008 exceeded $307 billion dollars, which was only a 2% decrease from the previous year. Even more significant is that this level of giving was occurring while the U.S. was mired in the worst recession since the Great Depression. Individuals still comprise the largest group of charitable contributions, and those gifts totaled an estimated $229.28 billion, or 75% of the total giving in the U.S.

The Cobb Community Foundation (CCF) reflects many, but not all, of these same factors. One important difference is that both the total number of CCF donors as well as the total number of CCF Funds has continued to grow throughout 2008 and 2009. Additionally, total grants distributed from all of the CCF Funds in 2009 are projected to reach and possibly exceed $1MM dollars – a new CCF benchmark, despite the negative impact of the economy on our investment portfolio. The good news is that the financial markets have been steadily improving over the last two quarters, and we’re hoping to end the year with positive returns on all of our Funds.

Community Foundations take pride in being the charitable giving partner for their donors, and working with them and their families in implementing specific giving plans. Establishing a CCF Fund is a very “user-friendly” process in which the donor or donors decide on the name of their Fund (including “Anonymous” if the donors wish to be protected from all recognition), the mission of the Fund, a succession plan, and what type of asset will be used to open the Fund.

Almost any kind of asset can be used to open a Fund – including cash, securities, real estate, life insurance, tangible personal property, and private foundation assets. Each gift is fully tax-deductible to the donor under CCF’s 501 c-3 tax status, and grants from donors’ Funds can be made as often as weekly. CCF handles all of the administrative functions, including investment management, regular reports to donors and the IRS, and assistance with grantmaking. Let us know how we can help you, your family, your business, or service organization whenever you’re ready for a charitable giving partner like CCF!