Advisors

The Community Foundation works directly with you to create a flexible, effective philanthropic strategy for your clients.

By presenting philanthropy as an essential element of your practice, you’re helping your clients to invest their resources in ways that connect their passions with the needs of our local area. As an advisor, you are an essential stakeholder, and the Community Foundation is eager to help you share all the philanthropic options here in the Hill Country. The Community Foundation works directly with you to create a flexible, effective philanthropic strategy for your clients.

We are available for consultation about a specific circumstance, and we are also available to meet in person with you and your client to discuss philanthropic options. The Community Foundation’s staff is also available to speak to professional and civic groups on topics related to philanthropy, charitable planning, and community development.

the last puzzle piece

Work With Us

Donors may recommend an investment advisor to manage the assets of their Community Foundation fund; the minimum endowed balance required is $250,000. The Foundation retains the donor-recommended investment advisor as long as the advisor is qualified, meets the Foundation’s due diligence criteria, and adheres to the Foundation’s investment policy.

Investment Strategy

Targets

To achieve its philanthropic objectives, the Community Foundation requires a total rate of return in a range of 4% to 6%, net of fees, within a 20-quarter time horizon.

Allocation

To minimize the effect of negative results produced by one asset class, investments are diversified. The Community Foundation sets long-term asset allocation ranges and reviews them with regularity. Re-balancing of the allocation of assets is considered at least annually to ensure that they are within the Foundation’s investment policy guidelines.

The Foundation is willing to take a moderate risk position, knowing that it will miss some opportunities for growth, in an effort to minimize market losses. The asset allocation strategy below meets the Foundation’s current needs.

  • 50-65% Equities
  • 25-40% Fixed Income
  • 0-20% Alternative Investments
  • 1-20% Cash

Investment Committee

Investment Committee Members
The Community Foundation’s Investment Committee is made up of members of the Board of Trustees and the community. They meet quarterly to review the Foundation’s investments.

Jim McAfee, Committee Chairperson
Joseph Financial Partners

Molly Adams
Security State Bank & Trust

Austin Dickson (Ex Officio)
Community Foundation of the Texas Hill Country

Charlie Givens
Davidson, Freedle, Espenhover & Overby, P.C.

Mark Haufler
Wells Fargo Bank

Karol Schreiner
Community Volunteer

Michael Waldrop
Fort Sam Houston, U.S. Army

Investment Performance

The Community Foundation regularly updates its stakeholders on the performance of its investment portfolio. Through September 30, 2020, the Foundation's diversified portfolios have a rate of return of 1%.

The Foundation’s five-year rate of return is 6%. Its 10-year rate of return is 7%. All of these figures are net of all fees.

Investment chart updated

If you have questions about specific holdings of the Community Foundation, please contact us.

IRA Information

Doing Good With Your IRA

The IRA charitable rollover provision, which became permanent in 2015, allows tax-free distributions of up to $100,000 per taxpayer per taxable year to an eligible charitable organization, such as the Community Foundation of the Texas Hill Country, from an IRA held by individuals age 70½ or older. Because the distribution goes directly to a qualified charity (the Foundation), the amount will neither be counted as income nor subject to income tax. Using IRA assets to make a gift during your lifetime, as opposed to giving via bequest in your will, enables you to experience the joy of making a major gift.

How to Begin

Contact your IRA administrator and ask for instructions for executing an IRA charitable rollover. If needed, the Community Foundation can provide you with a sample letter that you can send to your provider to initiate the rollover gift.

IRA transfers to the Community Foundation address a broad range of current and future needs. We evaluate all aspects of community – the arts, aging and elder care, basic needs, education, environment, health and well-being, etc. – and awards grants to select projects and programs. The transfer can be a direct donation or as a gift to an established or newly created fund. IRA rollover gifts cannot be made to donor-advised funds, but they can be made to field of interest funds or designated funds.

Up to $100,000 Annually

You can transfer excess retirement assets up to $100,000 per year directly and easily to the Community Foundation. The transaction incurs no federal income tax, and the asset is no longer part of your estate for tax purposes. You can choose to give during your lifetime so that you (and the community) can see results sooner than if your gift had been made through a will.

Make the Community Foundation Your IRA’s Beneficiary

When you give your IRA to charity, your heirs are not burdened by the taxes associated with receiving your IRA upon your death. Instead, you can leave them other assets that have a more favorable tax treatment. Larger estates face tax rates that significantly reduce the amount left to their heirs (other than a spouse). Any amounts left in an IRA when an individual dies may be taxed as income to the beneficiary and are also considered assets for the purpose of calculating that person’s estate tax liability.

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Need more information? Please let us know how we can help.
The Community Foundation’s EIN is 74-2225369.

Fund Types

We have a variety of different fund types available to help meet specific donor objectives. We are happy to provide advice, assistance, and materials to help donors and their advisors understand their options – from funding assets and vehicle structures to investment portfolios and grantmaking.

Donor-Advised

Jimmy Carmen and wifeStay actively involved in the grantmaking process. Some donors wish to support multiple organizations and programs throughout the year. Other donors wish to build up a fund balance over multiple years before making charitable distributions. The Community Foundation identifies appropriate nonprofits and programs, ensures their charitable status, and provides grantmaking and administrative support. These funds offer an immediate tax benefit while allowing the donor to make grants over time to their favorite nonprofit organizations. Donor-advised funds are also a cost-effective alternative to creating a private foundation.

Click to view: Sample Donor Advised Fund Agreement

Unrestricted

Unrestricted funds allow donors to ensure their gifts support the most pressing community needs, however they may change over time. The Community Impact Fund (linked) is an unrestricted fund that provides a simple and efficient giving mechanism for donors who want to focus their gifts on the greatest needs of the Hill Country. The Fund annually reviews grant requests and makes awards.

Donors can also make fully tax-deductible, unrestricted gifts to the Community Foundation itself. Such unrestricted contributions support the greatest needs of the Community Foundation. Many donors choose this type of unrestricted giving by naming the Foundation as the beneficiary of a charitable remainder trust.

{Sample Unrestricted Fund CRT Language}

Designated

Designated funds name a specific organization(s) to be supported on an annual basis. Grants from these funds provide a reliable income stream to one or more of a donor’s favorite organizations. If the charity ceases to exist, another charity serving the same needs will benefit from the endowment.

The Foundation applies its annual spending rate – ranging from 3% to 5% in a given year – to the fund balance which determines the grant amount to be distributed. A donor may also select a specific dollar amount to be annually distributed.

Donors may also select a field of interest fund, one in which the Foundation staff select the specific grantees in a given year. For instance, if the field of interest is animal welfare in a certain city, county, or region, the Foundation will assess local organizations, then make grants with available funds. Field of interest funds differ from designated funds because they do not name specific nonprofit organizations, only a general field(s) of interest.

Both designated and field of interest funds are popular giving vehicles for:

  • Donating a portion of an Investment Retirement Account’s Required Minimum Distribution.
  • Serving as the beneficiary of a charitable remainder trust.
  • Making a charitable gift(s), but not wishing to be involved in annual distribution decisions.

meals on wheels kitchen
The Louise Livingston Fund is a designated fund with five named beneficiaries. The Dietert Center in Kerrville receives an annual distribution from the Fund to support essential programs like Meals on Wheels.

{Sample Designated Fund Agreement}
{Sample Designated Fund Will Language}

Scholarships

A scholarship fund lets donors establish criteria and determine their own degree of involvement while supporting students of any age, background, or education level. The Community Foundation administers scholarship funds for donors, nonprofit organizations, civic clubs, and businesses.

Click to view: Sample Scholarship Fund Agreement
Click to view: Sample Scholarship Fund Language for a Will

Asset Types

CoFo_PhilanthropicResource_Graphic_v1

The Community Foundation accepts a wide range of asset types, including ones that many commercial brokerage firms are unable to accommodate. Often donors may not even be aware of the options available to them. We specialize in simplifying the process of converting assets into contributions.

Cash

Cash gifts allow donors to claim a current tax deduction and carry forward contributions exceeding annual limits for up to five subsequent tax years.

Real Estate

A gift of commercial, residential, farm, or ranch real estate owned for more than a year entitles the owner to a tax deduction for the property’s full fair market value while allowing the owner to avoid capital gains taxes.

Securities

Publicly Traded Securities & Mutual Fund Shares

Gifts of publicly traded securities and mutual fund shares qualify donors for an immediate charitable deduction of the full fair market value and an exemption from capital gains tax on the appreciation.

Interests

Partnership Interests and Mineral Rights

Donations of partial interests from an investment or business partnership permit donors to retain partial ownership of their business interests while also pursuing their charitable passions.

Many donors give mineral interests to the Foundation as well.

Retirement

Donating retirement plan assets assists donors in reducing or eliminating income and estate taxes while also supporting causes important to them. Click here to read more.

View Sample IRA Charitable Letter

Bequests

Bequests enable donors to support the community while retaining complete control over assets during their lifetime through a living trust or will while earning a full charitable deduction on estate taxes.

Sample Bequest Language (Link)

Complex

Other Complex Assets

We specialize in simplifying the process of converting complex assets into charitable contributions. From commercial real estate to partnership interests, we accept a broad range of asset gifts that many commercial brokerage firms do not have the ability or the experience to accommodate.

Create A Legacy

For decades, we have worked with donors to create a legacy of generosity. An art center’s theatre, a wellness program for seniors, general support for an animal shelter, a new fleet of vans for the recreation center – these gifts and many others have all been funded by legacy donors whose vision and generosity live on.

The easiest way to assist charities with an estate gift is to include a provision in a will. When someone has an up-to-date will that they don’t want to change, a simple codicil can be signed, witnessed, and attached to an existing will.

The Community Foundation offers the following samples of language for wills and bequests. We have dozens of examples to share with you, if nothing below meets your specific goals. The Community Foundation’s EIN is 74-2225369.

General Bequest

General Bequest is the simplest form of bequest whereby a person bequeaths a stated amount to the Community Foundation without any conditions attached and for the general support of Hill Country charitable causes.

"I give and bequeath to the Community Foundation of the Texas Hill Country, a public charity located in the State of Texas, [    ]% of my estate AND/OR the sum of $[           ] AND/OR the securities or other property described herein, namely, [                                           ], to be used for the general charitable purposes of the Community Foundation, as directed by its Board of Trustees."

Endowment Bequest

An Endowment Bequest establishes an endowment gift, in which the gift is invested and its investment returns support your charitable intent in perpetuity or for a set period of time.

"I give and bequeath to the Community Foundation of the Texas Hill Country, a public charity located in the State of Texas [ ]% of my estate AND/OR the sum of $[ ] AND/OR the securities or other property described herein, namely, [ ] to establish an endowment to be named the [______________] Fund and to be invested. The Fund will be made available for annual distributions for the general charitable purposes of the Community Foundation, as directed by its Board of Trustees.”

Designated Bequest

Designated Bequest provides a sum of money or percentage distribution for a designated endowment, project, or program of the Community Foundation.

"I give and bequeath to the Community Foundation of the Texas Hill Country, a public charity located in the State of Texas [    ]% of my estate AND/OR the sum of $[           ] AND/OR the securities or other property described herein, namely, [                                           ], to establish an endowment to be named the [______________] Fund and to be invested. The total return of the investments will be made available for annual distributions for [specify a field of interest; for religious, charitable, scientific, educational, artistic, or other causes], as directed by the Foundation’s Board of Trustees.”

Scholarship Fund Bequest

Scholarship Fund Bequest will support local students achieve their dreams.

"I give and bequeath to the Community Foundation of the Texas Hill Country, a public charity located in the State of Texas [    ]% of my estate AND/OR the sum of $[           ] AND/OR the securities or other property described herein, namely, [                                           ] to establish a scholarship fund to be named the [______________] Fund and to be invested. The total return of the investments of the Fund will be made available for annual distributions for academic scholarships, as guided by the established selection criteria, the Foundation’s scholarships advisory committee, and as directed by the Foundation’s Board of Trustees.” [Describe selection and renewal criteria. A list of commonly applied criteria is available from the Foundation office.]

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