IN THIS ISSUE

FOUNDATION NEWS
A Message from our President & CEO
CFAAC Achieves Its Goal of Securing $20 Million in Assets by 2020

MAKING A DIFFERENCE
Welcome to CFAAC
Charting Careers Builds a Mentoring Community for Annapolis Youth
10 Ways to Make a Year-end Charitable Gift in 2020 with CFAAC
Endow Maryland: Get a tax credit today; help Maryland forever

COMMUNITY IMPACT
Now is the Time to Join CFAAC’s Community Leadership Circle 
One Annapolis Virtual Fashion Show

STRENGTHENING NONPROFITS
CFAAC Crisis Response Fund Phase II with Federal CARES Act Funds: Grant Application Deadline 12/15

NEWS FOR PROFESSIONAL ADVISORS
Taking chances: Will hindsight point to 2020 as the year to maximize giving?
Charitable legacies: What’s on tap for bequests?
Advice to advisors: Seek clarity about clients’ commitment to community

FOUNDATION NEWS

Mary Spencer
President & CEO

CFAAC Secures its Ability to Serve Nonprofits by Exceeding Goal of $20 Million in Assets by 2020

In 2016, the Community Foundation of Anne Arundel County (CFAAC) convened to formulate its strategic plan for the next three years, 2017-2020. Among the objectives was to set a lofty goal of increasing the foundation’s assets from $10 million to $20 million dollars by the year 2020. This November, thanks to donors, board members, and staff, that goal was exceeded. This means that CFAAC can have even more impact on the community it serves, said CFAAC President & CEO Mary Spencer.

“We are immensely grateful to all of our donors, including Ed and Angie Ponatoski for a  $1 million gift to their Donor Advised Fund and Crosby Marketing Communications for a $500,000 gift to the company's Corporate Advised Fund at CFAAC, which helped us exceed our goal of $20 million in assets by 2020 in November,” Spencer said. “No one had anticipated that 2020 would be a year of such challenges and we are so proud of our community for continuing to support CFAAC’S mission. Reaching our goals mean that we can provide even more resources to local nonprofits that are on the frontlines helping others.”

When formulating its 2017-2020 strategic plan, CFAAC Board members and staff set several strategic priorities to make a difference in strengthening communities and improving the life for all Anne Arundel County residents. The priorities were as follows: Community Impact, which included increasing fund and endowment assets, as well as annual grant and scholarship distribution; provide donor-centered philanthropy and services; provide community leadership by increasing awareness and fostering dialogue, partnerships, and collaboration around critical community issues; ensure organizational excellence and sustainability; and attract, engage, and retain excellent board members and staff.  According to Spencer, and backed up by statistics, all objectives were achieved or surpassed. Since 2017, there has been a 74% increase in the total amount of grants dollars CFAAC has distributed, and a 250% increase in CFAAC’s annual revenue, resulting in a 160% increase in assets.   

“Through its Donor Advised Funds, Endowment Funds, and Grant Programs CFAAC can continue to be a source of nonprofit funding in Anne Arundel County for years to come,” added Spencer. “Exceeding this goal of $20 million in assets by the year 2020 was something we believed with all our hearts that we could accomplish. Even with the challenges of the pandemic this year, with careful planning and strong relationships with our donors, our community collectively came through.”

MAKING A DIFFERENCE

Welcome to CFAAC

The Community Foundation of Anne Arundel County is thrilled to welcome the following to our family of funds:

• Center of Help Endowment Fund- A permanently endowed Agency Fund to support the Center of Help's mission is to empower, educate, and connect immigrants with resources to promote self-sufficiency and to advocate for the successful integration of the immigrant community into Anne Arundel County and the surrounding areas.
• Mathias Family Foundation- A Donor Advised Fund established to support the philanthropic interests of the fund advisors.
• Teach 4 Anne Arundel Fund- A permanently endowed Agency Fund designated for the support of 21st Century Education Foundation, a nonprofit organization created to support the students and teachers of the Anne Arundel County Public School System. The purpose of the fund shall be to receive and administer funds to provide in-state tuition for Anne Arundel County Public School graduates who are interested in earning their teaching certificates and returning to the county to teach in one of the county's public schools.
• Three Cones Fund- A Donor Advised Fund established to support the philanthropic interests of the fund advisors with an interest in immigration, justice, and hunger. 

Charting Careers Builds a Mentoring Community for Annapolis Youth

Local nonprofit, Charting Careers, has a bold vision to build a network of support around our youth and develop Annapolis as a city of mentors. At a time when many young people face systemic inequities and resulting opportunity gaps, supportive mentoring relationships and the connections and opportunities they bring can be life changing, said Erin Snell, Ph.D. Executive Director of Charting Careers.

Founded in 2018 as a 501(c)3 nonprofit organization, Charting Career’s mission is to break the cycle of poverty and inequity in Annapolis through goal-focused mentoring, college and career readiness, and family partnerships so that youth impacted by adversity can chart their own course to fulfilling lives and careers. Charting Careers currently serves more than 35 students and their families. They begin their program model by tutoring and mentoring 3rd-5th grade students who are behind in reading, and then supporting and mentoring these same students and their families through middle school, high school, and beyond.

In 2019, Charting Careers created an Agency Endowment & Designated Fund with the Community Foundation of Anne Arundel County (CFAAC)  to further its sustainability so that its future looks as bright as the one they envision for the children they serve. “We decided to invest with CFAAC because they are a trusted entity in the community and provide important connections to other community members and potential donors,” said Snell. “CFAAC’s management of our Agency Fund endowment is very helpful. Each year we will be able to draw from our fund to give scholarships to our students. We appreciate the clear and helpful quarterly reports and responsiveness to any questions. Additionally, through our involvement with CFAAC, we have met other potential donors and learned more about individuals and organizations doing good work in our community.” Learn more…

Pictured: Charting Careers participant, Armani, with her mentor, Dalonda

10 Ways to Make a Year-end Charitable Gift in 2020 with CFAAC

As we move into the last month of this challenging year, there are some additional ways to maximize your charitable giving through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that are only available through the end of 2020.

The CARES Act is legislation designed to rescue the economy from the effects of the coronavirus pandemic. It was passed by Congress and signed into law by the President on March 27, 2020. Click here to read a summary of provisions applicable to charitable giving included in the Act. Learn more...

Now is the Time to Join CFAAC’s Community Leadership Circle

As we close out this challenging year, CFAAC feels honored that we have been able to continue to support the many nonprofits, who despite the pandemic, carried on to help the needy in our community. And, while the majority of CFAAC’s time is spent looking outward into the community and doing all we can to support county nonprofits, we also need to look inward to focus on ensuring that we meet our operational costs. CFAAC’s Community Leadership Circle, made up of generous donors who have committed gifts so we can continue serving our community in perpetuity, is an important part of that assurance. 

Through funds raised by the Community Leadership Circle Campaign, we can continue to make grants, attract donors, build endowments, offer philanthropic donor services, and present informative nonprofit programs. These funds can also help us to continue to be an advocate for local nonprofits and a catalyst for new ideas and community problem-solving.

One Annapolis Virtual Fashion Show

The Community Foundation of Anne Arundel County (CFAAC) is proud to partner with the Mayor's Office and City of Annapolis to accept donations for the One Annapolis Virtual Fashion Show. The event, which will be held on December 12, 2020 at 6:00 pm, is a virtual live-streamed fashion show fundraiser to benefit seven local nonprofits supporting women and families in the city of Annapolis who have been affected by the COVID-19 pandemic. To learn more about the event, visit their Facebook page. 

Event proceeds will be distributed to the following seven organizations: 

-Center of Help
-Immigration Action Network
-Street Angel Project
-Shadez of Excellence
-Grandmere’s Touch
-Co-op Arundel
-She’s Inc

STRENGTHENING NONPROFITS

CFAAC Crisis Response Fund Phase II with Federal CARES Act Funds: Grant Application Deadline 12/15

CFAAC, using $1 million in COVID-19 Relief Federal CARES Act Funding from Anne Arundel County, is administering this grant program to provide financial assistance to eligible nonprofits that sustained a loss of income or revenue AND/OR had an increase in expenses due to COVID-19 impacts on their operations and communities.

Applications are currently being accepted with grants awarded on a rolling basis. Grant requests of up to $10,000 will be reviewed on an ongoing basis, until the December 15th deadline or until the $1 million of funding has been awarded.  

Anne Arundel County 501c3 nonprofits can receive up to $10,000 through the program if they meet criteria and demonstrate a need for financial support, such as recently cancelled fundraising events, lower than expected fundraising support, lost program income or increased expenses due to state-mandated COVID-19 restrictions.

NEWS FOR PROFESSIONAL ADVISORS

Taking chances: Will hindsight point to 2020 as the year to maximize giving?

The November 3 election left wealth managers, tax professionals, and estate planners with a dilemma: Should advisors counsel their clients to implement planning techniques in anticipation of sweeping changes to the tax laws, or instead, assume the status quo will continue and stay the course with clients’ current plans? 

Here’s what’s going on and how the proposed changes might affect charitable giving strategies. 

Under President-elect Joe Biden’s proposed tax plan, taxpayers making more than $400,000 per year would be taxed at a top income tax rate of 39.6%, an increase from 37% under current law. That would mean charitable giving would become more tax efficient under the new law for some taxpayers.

However, a separate provision in Biden’s proposed plan would impose a 28% limit on charitable deductions for taxpayers who make more than $400,000 per year. This would mean that instead of avoiding income tax on charitable gifts at the rate of 39.6% as described above, these taxpayers would escape income tax only at a rate of 28%. (A similar provision was proposed, but never enacted, during the Obama Administration.) Read more...

Charitable legacies: What’s on tap for bequests?

Perhaps the component of President-elect Biden’s proposal with the biggest potential impact on ultra-wealthy philanthropists is Biden’s intention to raise estate taxes and change the way capital assets are taxed after death. 

Currently, the gift and estate tax exemption per person is $11.58 million and $23.16 million for a married couple. These amounts are effectively double what they were before the Tax Cuts and Jobs Act of 2017 (TCJA). The TCJA calls for an automatic sunset of these increases on December 31, 2025, at which point the exemption will drop back down to $5 million per person, as adjusted for inflation. Under Biden’s proposed tax plan, though, the estate and gift tax exemption and rates would be restored to the lower levels of more than a decade ago. Read more...

Advice to advisors: Seek clarity about clients’ commitment to community

The odds of President-elect Biden’s proposed tax plan becoming law depend on factors that won’t be known until Georgia’s run-off elections on January 5, which will decide whether the Democrats or the Republicans will control the United States Senate.

This uncertainty prevents advisors from having confidence about advising clients whether to implement planning strategies that would take advantage of the potential window of opportunity at the end of 2020, before new laws take effect. Should clients act now, betting that significant changes to the tax law are in store for 2021? Or should they hold off on taking action now but potentially trigger significant tax hits if tax laws do wind up changing? 

Despite the uncertainty about what might happen with the tax laws in 2021 and beyond, there are still opportunities for you to advise your charitable clients with conviction that they are doing the right thing for themselves and for the causes they care about. To that end, keep in mind that the CARES Act includes charitable giving incentives for 2020. Read more...