Instructions for Making a Gift to the Sharing God S Gifts Campaign

Endow Iowa Tax Credit Program Instructions for making a gift to the Sharing God’s Gifts Campaign through the Catholic Foundation of Southwest Iowa

After making a pledge to the Sharing God’s Gifts Campaign through your parish, gifts may be made to the Endow Iowa Tax Credit Program.

1. Write a CHECK to the COMMUNITY FOUNDATION OF GREATER DES MOINES. 2. Indicate CFSWI SGG (Catholic Foundation of Southwest Iowa – Sharing God’s Gifts) on the memo line of your check. 3. Mail your check to: Community Foundation of Greater Des Moines 1915 Grand Avenue Des Moines, IA 50309 4. The Community Foundation of Greater Des Moines will record your gift and send you a charitable gift letter. They will enclose an Endow Iowa Tax Credit Application. Complete the left-hand column of the Endow Iowa Application including social security number and signature. 5. Return the application to the Community Foundation. 6. The Community Foundation will submit the application to the State of Iowa and your tax credit documents will be issued by the State. 7. The Diocese of Des Moines will apply any gifts made to the Endow Iowa fund to your account at the end of each calendar month.

If a donor wishes to gift STOCK to the Endow Iowa Program for the Sharing God’s Gifts Campaign, please following these instructions.

1. If the stock certificate(s) are held by a brokerage firm or financial institution you should provide the information below to your broker or financial institution. 2. Charles Schwab’s DTC number is 0164, Code 40. 3. The official name of the Diocesan account is: Community Foundation of Greater Des Moines. 4. The Community Foundation’s account number is: 3067-5865. 5. Donors must notify Karla (515-883-2701) or Kris (515-447-4200) at the Community Foundation of your name, the stock information (# of shares and name of stock), and that the gift should be credited to Catholic Foundation of Southwest Iowa Endow Iowa Fund. 6. For additional communication, please send an e-mail or call Joan Bindel at (515) 237- 5083 or [email protected] at the Diocese to insure the gift is received and credited. 7. An Endow Iowa application will be mailed to you after the stock transfer is complete. Refer to steps 4-7 above. 1 Frequently Asked Questions

How does the Endow Iowa Program work? See the attached information detailing how the program benefits donors and nonprofit organizations throughout the state of Iowa.

Are there still tax credits available? There are $6 million in tax credits available in 2014. These credits are shared by 15 accredited community foundations throughout the state of Iowa. All applications for tax credits are received and issued by the State on a first-come, first-served basis. A running total of available tax credits is not available. If the credits run out for 2014, donors will still receive a charitable deduction for the tax year 2014 and the tax credit application will be first in line for 2015 Endow Iowa tax credits.

Can I make a pledge to reserve tax credits? No. Since the credits are shared throughout the state, there is not a system of reserving or holding tax credits. To insure receiving tax credits for the current year, payments should be made early in the year, preferably prior to the last quarter of the year.

Why do I need to include my social security number? The state of Iowa requires your social security number for the purpose of issuing your tax credits.

Do I need to complete an application each time I make a gift/payment on my pledge? Yes. If you are making monthly payments through Endow Iowa, an application must be completed and submitted each month. There will be no guarantee that monthly payments received near the end of the year will receive a current year tax credit.

May I set up an automatic withdrawal from my checking account for Endow Iowa? The Community Foundation of Greater Des Moines does not offer automatic withdrawal from a checking account for an Endow Iowa gift.

Do I need to make my entire gift to the Endow Iowa Program? No. Your pledge to the Sharing God’s Gifts campaign can be completed through gifts directly to the Diocese of Des Moines or through the Endow Iowa Program. The Diocese also accepts a variety of gifts through stock, appreciated assets, and grain.

Will the Diocese of Des Moines know I made a payment through Endow Iowa? Yes, each month, the Diocese receives a report of all gifts made to the Endow Iowa Fund. At that time, your payment will be applied to reduce the balance of your pledge at the Diocese.

When will my parish receive 50 percent of my payment? After a parish reaches 70 percent of its campaign goal in pledges, it will begin receiving 50 percent of all funds collected. While your gift to Endow Iowa is restricted in a permanent endowment, the Diocese will honor your payment and return 50 percent of your payment back to your parish at the end of the quarter in which it was received.

2 Can I make a gift of stock to the Endow Iowa program? Yes. Stock gifts can provide valuable tax advantages to donors. Stock gift instructions can be found in this document.

Who will provide a letter regarding my charitable gift for tax purposes? The Community Foundation of Greater Des Moines will acknowledge your gift to the Catholic Foundation of Southwest Iowa Endow Iowa Fund shortly after receiving your payment.

When will I receive my tax credit letter? The State of Iowa issues all tax credit letters. It can take several months before a certificate is mailed to you.

How do I use my tax credit? Consult your tax advisor on where to indicate your tax credit on your state of Iowa tax form.

Who should I contact if I have specific questions about the ENDOW IOWA program? Wade Den Hartog at the Community Foundation of Greater Des Moines will answer all questions related to Endow Iowa, charitable gift letters, and tax credit letters. She can be reached at: (515) 244-0020.

Who should I contact if I have questions about the Sharing God’s Gifts campaign? Call the Diocesan Development Office at (515) 237-5049.

3 ENDOW IOWA TAX CREDITS Sharing God’s Gifts Campaign for the Diocese of Des Moines/Catholic Foundation of Southwest Iowa The Community Foundation of Greater Des Moines is a qualified community foundation that provides access to Endow Iowa Tax Credits. The Diocese of Des Moines has partnered with the Community Foundation of Greater Des Moines to provide a way for donors to use the Endow Iowa Program to make their gift. Endow Iowa allows taxpayers to receive a 25% Iowa tax credit in addition to normal federal charitable income tax deductions for certain charitable gifts. Approximately $6 million in Endow Iowa Tax Credits will be awarded in 2014.

The charitable gifts must be made:  Through a qualified community foundation. Checks are made payable to the Community Foundation of Greater Des Moines.  To a permanent Catholic Foundation of Southwest Iowa endowment fund which limits distributions to 5%.  For the benefit of one or more Iowa charitable causes.  By individuals, businesses or financial institutions.

This is an exciting program that benefits both donors and charities. Below is an approximation of the net after-tax costs of establishing a fund:

Cash Gift (examples of different gift amounts) $1,000 $10,000 $100,000 Less tax benefits:  Net federal tax savings - 350 - 3,500 - 35,000 (approximated assuming maximum tax bracket)  Endow Iowa Tax Credit -250 -2,500 - 25,000 (before federal tax effect) Net cost of contribution $400 $4,000 $40,000

Gifts of appreciated assets: The net cost could be even lower if capital gains taxes and/or alternative minimum taxes are avoided.

HOW IT WORKS:  A variety of gifts quality for Endow Iowa Tax Credits including cash, real estate, appreciated securities and outright gifts of retirement assets.

 Tax credits of 25% of the gifted amount are limited to $227,590 in tax credits per individual for a gift of $910,362 or $455,181 in tax credits per couple for a gift of $1,820,724 if both are Iowa taxpayers.

 Eligible gifts will qualify for credits on a first-come/first-serve basis until the yearly appropriated limit is reached. If the current available Endow Iowa Tax Credits have been awarded, qualified donors will be eligible for the next year’s Endow Iowa Tax Credits. The Community Foundation encourages donors to act early in the year to ensure they receive Endow Iowa credits.

 All qualified donors have five years to use their Endow Iowa Tax Credits.

 Endow Iowa Tax Credits allow donors to have even greater impact on their philanthropic interests in Greater Des Moines now and into the future.

 We encourage donors to consult with a tax advisor to review their individual circumstances.