Guide to Giving - Berkshire Taconic Community Foundation

Guide to GivingStrengthening Our Community Through Charitable Giving

You can make a difference.We can help.Guideto GivingCharitable giving is a powerful way to help make our worlda better place to live – whether you support your local food bank,your library, your school or any cause that is important to you.When you want to make a difference, Berkshire Taconic CommunityFoundation gives you easier and more effective ways to do it.We can help you make a difference – whatever you support,wherever you give, whenever you want.3579111216182627293132What is Berkshire TaconicCommunity Foundation?Why Give Through BerkshireTaconic Community Foundation?What You Can DoBecoming a DonorWhen to GiveWhat to GiveWhat to SupportTypes of FundsCompare the OptionsInvestments & Administrative FeesFrequently Asked QuestionsReasons to Give Through BTCFMap of Berkshire Taconic Regionberkshiretaconic.org 1

What is Berkshire TaconicCommunity Foundation?Berkshire Taconic Community Foundation (BTCF) is a tax-exempt public charity founded in1987, created by and for the people of the Berkshire Taconic region. For over 25 years, we havebeen helping people establish charitable funds to make life better in the communities they love.We work with individuals, families, financial advisors and nonprofits. We can help you too.YOUOur mission is simple: to strengthen the communities and improve the quality of lifefor all residents in Berkshire County, MA; Columbia and Northeast Dutchess County,NY; and Northwest Litchfield County, CT.We accomplish our work in several ways:expert givingadvicegivingpersonalizedpersonalizedserviceBTCFlocal localknowledgeworld world class classinvestmentsWE HELP YOU FULFILL YOUR CHARITABLE VISIONBTCF makes it easy for donors from all walks of life and with all levels of assets to fulfilltheir charitable goals. Because we know the communities we serve, we can identifyopportunities to support good work locally. You can choose to give to an existing fund orestablish one of your own.educationhousingartsenvironmentWE CREATE PERMANENT COMMUNITY RESOURCESBTCF creates permanent resources to meet long-term community needs. For example, we havecreated local Area Funds serving nearly every town within our catchment area, each focused onimproving the quality of life within a particular area and advised by committees of local residents.BTCF has also created educational enrichment funds in school districts throughout theregion, expanding innovative learning opportunities for our public school children.healthhuman servicesYOU + BTCF =A STRONGER COMMUNITYWE PROVIDE VISION AND LEADERSHIP TO TACKLE REGIONAL ISSUESBTCF identifies current and emerging community issues and develops resources to address them. We launchedHousingUs to increase affordable housing options for seniors and working families. We established a collaborativemarketing initiative among the region’s cultural nonprofits. And during these difficult economic times,our Neighbor-to-Neighbor program provides emergency assistance for local families in need.WE STRENGTHEN NONPROFIT GROUPSBTCF’s Center for Nonprofit Excellence offers a broad range of services that help the boards, volunteers and staffof nonprofits think strategically, govern effectively and operate efficiently. BTCF also helps establish endowedfunds for the benefit of nonprofits.YOU CAN BUILDa stronger community through charitable giving‘‘Without the support of our donors, we would not be able to feed thenearly 1000 families that come to us for help each month.”BARBARA POGUE, CO-PRESIDENT, OWL’S KITCHEN FOOD PANTRY, LAKEVILLE, CTberkshiretaconic.org 3

Why Give Through BerkshireTaconic Community Foundation?LOCAL EXPERTISEYou can benefit from our in-depth understanding of community needs and the organizations addressing them,derived from current research and long-term experience. We can help you learn about local nonprofits andprograms that make a difference to the issues that you care most about. With a fund at Berkshire Taconic, yourgiving can be more effective and make a greater impact where you live.$100millionPERSONALIZEDGiving back is a highly personal investment in the issues and organizations that matter to you – we can helpyou develop an approach to giving that reflects your personal values, interests and concerns.We offer a variety of charitable funds that enable you to give now or through your estate. A popular andpowerful choice for many BTCF donors is a donor-advised fund, which makes it easy to support nonprofits andschools anywhere you want, any time you want. You can name your fund after your family, honor someone, orhighlight an issue of special concern. You can make giving a part of your legacy, ensuring that your generositywill be felt for many generations. You can involve your family in your tradition of giving back. You can giveanonymously, if you want. We will work with you and your attorney, accountant, or other advisor to ensure thatboth your financial and charitable goals are met.Amount BTCFhas distributedto strengthen ourcommunity inour first 25 yearsFINANCIALLY SMARTBTCF provides powerful financial benefits and expert giving advice to its donors. You receive the mostadvantageous tax benefits available for charitable giving. You benefit from world class investment performanceand the expertise of BTCF's Investment Committee, comprised of seasoned investment professionals who overseea highly diversified portfolio of investments. And you can contribute a variety of assets to your fund, includingcash, appreciated securities, life insurance, real estate, closely held stock and more.EASYYou focus on your giving. We handle all the administrative aspects, including investments, annual tax reporting,due diligence about the organizations you want to support, and making sure your giving complies withcurrent laws and IRS regulations. This makes giving through BTCF a compelling alternative to a privatefoundation. Through our online site for donors (DonorCentral), you can easily track your fund and make grantrecommendations.We are here to help you make a differenceYOU CAN CREATEa lasting impact for our future‘‘Berkshire Taconic’s education enrichment funds have altered thelandscape of opportunity for hundreds of public school children in our region –exposing their minds to rich new ideas and experiences.’’CATHERINE MILLER, DONOR & FOUNDER OF THE EAGLE FUND, SHEFFIELD, MAberkshiretaconic.org 5

What You Can DoThere are many ways to partner with us to strengthen your community or support a cause you care about:CREATE A FUNDSupport a cause or place you care about passionately. Create a family tradition of giving. Honor a loved one’smemory. There are many reasons you might be inspired to start a fund at Berkshire Taconic, and many optionsfor the types of fund you can create. With a donor-advised fund, you can play an active role in grantmaking.With a field of interest fund, you can direct your gift to a specific area of need or interest. With a designatedfund, you can direct annual income to a particular nonprofit. We are always available to help you find the bestway to fulfill your philanthropic vision and financial goals.LEAVE A LEGACY500+Number number of funds atBTCF for just aboutanything you’d liketo support fromanimal welfare tobasic human needsMembers of our Legacy Circle have included Berkshire Taconic in their wills or estate plans, ensuring thattheir charitable vision will endure forever. The Legacy Circle is a way for us to recognize and thank you nowfor your foresight and commitment to a better future for our communities. If you intend to leave a gift toBerkshire Taconic, please let us know so that we can include you in our Legacy Circle.MAKE A DONATIONBerkshire Taconic manages hundreds of funds that make grants to support specific places, organizations orareas of interest, including education, the arts, elderly services, health care and environmental protection. Bymaking a contribution to one of these funds, you are investing in the future of a community or cause you careabout. For a full list of funds that you can donate to, please visit our website at: www.berkshiretaconic.org.SUPPORT YOUR COMMUNITYWhen you give to Berkshire Taconic's community leadership funds, you help us meet critical needs right nowwhile anticipating those of the future. The Community Fund allows us to address changing regionalchallenges, while the Endowment for the Foundation supports our operations and leadership initiatives. A giftto our Center for Nonprofit Excellence helps us provide training and other services that make local nonprofitsstronger and better able to accomplish their mission. Your support of HousingUs helps support housing forseniors and working families. And our Neighbor-to-Neighbor Fund provides one-time emergency assistanceto people who have exhausted all other financial resources.YOU CAN CONNECTto the causes you care about‘‘The small towns and villages that make up our community have many diverse needs.Berkshire Taconic helps donors support libraries, fire companies, theatres, and just about anyother type of organization that strengthens the fiber of small town living.’’LAEL LOCKE, DONOR ADVISOR, CHATHAM, NYberkshiretaconic.org 7

Becoming a DonorGETTING STARTEDCharitable giving is one of life’s most rewarding endeavors. Berkshire Taconic CommunityFoundation can help you create your own legacy with a giving plan that makes sense nowand in the future.TOP25%1. THINK ABOUT YOUR GOALSA conversation with family members or a professional advisor is a good place to start. BerkshireTaconic staff members can join in these confidential conversations if you choose and helpyou explore options for giving.2. DECIDE WHEN TO GIVEBased on your needs and interests, we can help you decide if it is appropriate to establish afund now, or later through your will, or through other planned giving strategies.BTCF is rankedin the top quartileof foundationsnationwide forinvestmentperformanceover the long term3. DECIDE WHAT TO GIVEWe can talk with you about the different assets you can use to establish a fund. While mostpeople establish a fund with cash or appreciated securities, you may also make a gift of realestate or other assets.4. CHOOSE WHAT YOU WANT TO SUPPORTProfessional staff at the Foundation can help. Whether you are interested in a specific cause,organization or area of need, we will do research and provide information to help you refineyour ideas.5. TALK WITH USWe’ll help you think through options, including a variety of existing funds that enable youto start giving immediately. Or we can help you develop giving strategies that will make giftsto your fund later. You may choose to do both. Talk to us. We’re here to help you.YOU CAN SUPPORTthe needs of your community“It only takes a few minutes to start a donor advised fund at Berkshire Taconic.It is a useful alternative for efficient tax planning and provides vital support to ourwonderful community. We strongly encourage others to join us.’’TOM QUINN, DONOR ADVISOR, SALISBURY, CTberkshiretaconic.org 9

Decide When to GiveBerkshire Taconic Community Foundation offers you an easy and flexible way to accomplish your charitablegoals and receive the maximum tax deduction allowed by law.GIVE NOWGive to an existing fund - You can contribute to one of the many existing funds at Berkshire Taconic to addressspecific issues including: the Area Fund that supports nonprofits in your community; scholarship funds;educational funds for the public schools in our region; or hundreds of funds that improve the quality of life inspecific fields of interest (health, education, environment, arts).Create your own fund - You may wish to establishyour own fund naming it whatever you wish,focusing on a particular organization, an idea, acommunity or leaving it open to change overtime. You can set up a fund to support causes youcare about during your lifetime and endow it tocontinue your vision for future generations. Youand others can contribute to your fund at anytime.Join OurLEGACYCircle$2.1millionAmount BTCFhas granted inscholarships over25 years – helping1800+ studentsthrough collegeGIVE LATERCreate a charitable estate plan - You can makearrangements to give after your lifetime. A keyfeature of many estate plans is a tax advantage toyou now for the commitment of a charitable giftlater through your will or trust. Your retirementplan assets are an ideal charitable tool – 100% taxfree when donated to the charitable causes youchoose.BTCF’S LEGACY CIRCLE HONORSthose who have chosen to shape theirlegacies through a future gift to BTCF.Membership gives the communityfoundation a chance to thank you now,providing recognition as well asopportunities to attend special events.Please contact BTCF if you have set asidea gift and wish to join our society offorward thinkers – donors who areplanning for our community’s future.YOU CAN GIVEa lasting legacy‘‘For many of my estate planning clients, Berkshire Taconic provides just the right vehicle toprovide for their favorite causes in perpetuity. BTCF helps donors articulate their goals, then makesit easy by customizing a fund to the client’s wishes. BTCF is a deep and knowledgeable resource.”VIRGINIA STANTON SMITH, ESQ., PARESE SABIN SMITH & GOLD, LLP, PITTSFIELD, MAberkshiretaconic.org 11

What to Give NowWhat to Give LaterYOUR LEGACYBENEFITS TO YOUGive as much or aslittle as you wantCombine multiplegifts to establish a fund12 berkshiretaconic.orgGifts to Berkshire Taconic Community Foundation come in all forms. Cash, securities, closely-held stock,business interests and real estate are all assets that have been used to establish charitable funds – or giveto an existing fund at Berkshire Taconic.CASHA cash gift is the most popular type of charitable gift because of its simplicity. With a gift of $25,000or more, you can establish an endowed fund of your choice that will begin generating income forgrants or scholarships immediately and continue in perpetuity. With a gift of at least $10,000, youcan establish a donor advised fund. You can also donate any amount of cash to an existing fund.STOCKS, BONDS, MUTUAL FUNDSGiving gifts of long term appreciated property in the form ofstocks, bonds or mutual funds will provide greater tax benefitsthan a cash gift of equivalent value, especially if they havea low cost basis. You will receive a charitable deduction for thefull market value of your property – even if you initially boughtit for far less. You will also avoid capital gains tax – money you’dhave to pay if you liquidated the property. A gift of closely-heldstock is also an option for giving.BENEFITS TO YOUGain a charitable deductionNo capital gains taxRecognizable tax savingsReduces your taxable estateRelieves you and your heirs ofthe burden of selling the propertyREAL ESTATE & PERSONAL PROPERTYA home…a farm…business property…undeveloped land. If you have realestate assets that you would like to use for a charitable gift, Berkshire TaconicCommunity Foundation can help. We accept the gift outright, or showyou how a charitable trust can be used to convert your asset into a gift thatalso produces income. Because each gift of real estate is unique, a Foundationstaff member will be happy to meet with you to discuss the process and detailsof making such a gift. You can also give tangible personal property (e.g.art, antiques, rare books, jewelry, gems, collections, etc.).CONVERTING A PRIVATE FOUNDATIONTO A COMMUNITY FOUNDATION FUNDMany families establish private foundations to create a charitablelegacy without realizing the complexities and expense of administration.A number of private foundations have chosen to convertto a fund at Berkshire Taconic so that the advisors can focussolely on the work they love – grantmaking! Please see page 26for a chart comparing options.BENEFITS TO YOUGain a charitable deductionNo capital gains taxCombine multiple giftsRecognizable tax savingsReduces the size of your estateBENEFITS TO YOULower administrative costsGreater tax benefitsNo payout requirementGreater privacyWhether you want to simply remove assets from your estate to save estate taxes, avoid taxes on capitalgains or establish a life income, Berkshire Taconic Community Foundation can help. Our staff is happy tomeet with you to discuss giving alternatives and opportunities.CHARITABLE BEQUESTSYou can, through a bequest, establish any kind of fund or give to an existing fund.Gifts provided through wills or trusts have become the foundation of the Americanphilanthropic tradition. Such gifts enable you to make significant contributionsthat may not have been possible during your lifetime.When you remember Berkshire Taconic Community Foundation in your will, youmay reduce your estate taxes while supporting your community. You may give a specificdollar amount, property, or a percentage of your estate. You may also give a remainderof your estate after bequests to family and friends.When planning a bequest to Berkshire Taconic Community Foundation, be sure to talk with a member of ourstaff. We will help ensure that your wishes are clearly understood so that they can be carefully carried out inthe future.*RETIREMENT ASSETSRetirement plan assets are some of the mosttax-efficient assets to transfer to charity uponyour death. Deferred income tax and estate taxcan erode the value of retirement assets; in somecases, the combination of taxes can reach ashigh as 80 percent, leaving very little for yourheirs. By leaving retirement assets to your fundBENEFITS TO YOUAvoid all income & estate taxesDeploy 100% of your retirement assets towardyour charitable goalsCreate a charitable legacy today by indicating yourintentions for the fund after your passingBENEFITS TO YOUDivide property between loved onesand your charitable interests inwhatever way you chooseReduce your taxable estateCreate a charitable legacy today byindicating your intentions for the fundafter your passingat Berkshire Taconic Community Foundation, you can preserve 100% of your hard-earned assets for the goodof the community – forever.**Naming BTCF as beneficiary in your will or of your retirement assets is as easy as adding a few lines: “I leavex% of my assets to Berkshire Taconic Community Foundation (BTCF), a nonprofit corporation of Connecticut,to be used to enhance (or create) a component fund (to be) known as the ___________ Fund.”PRIVATE FOUNDATION CONVERSIONMartha Boschen Porter, of Salisbury, CT, lived along and creative life as an artist, fashion designerand photographer/journalist. Her creativity was accompaniedby a deep interest in helping other creativepeople. Martha believed the world is made a betterplace if artists are given the resources they need tocreate work, have it made available to the public, andare given the chance to imagine their future.In 2006, Martha dissolved her private foundation andestablished the Boschen Fund at Berkshire Taconic,allowing her the joy of supporting artists in the regionwhile BTCF handled all the legal and administrativework. She and the original board continued as advisorsto the fund. Upon her death in 2011, Martha lefta portion of her estate to the fund so that its workwill continue in her name long into the future.berkshiretaconic.org 13

What to Give LatercontinuedBENEFITS TO YOUSimple & inexpensive way tocreate a significant futurecharitable legacyCharitable deduction at timeof gift on the current value ofyour paid-up policyIf a premium-due policy isdonated, receive an additional taxdeduction for annual gifts to charityfor annual premium paymentsLIFE INSURANCE POLICIESGiving a life insurance policy is an inexpensive way to make a substantial contribution toBerkshire Taconic Community Foundation. Many people find in later years that they don’tneed all the insurance they did when they were younger, or they may choose to purchase anew policy to donate in order to leverage their gift. Three common methods allow you to turnlife insurance policies into a charitable gift:OPTION 1: List Berkshire Taconic Community Foundation as the beneficiary when purchasinga new life insurance policy, or execute a simple change of beneficiary form on a currentpolicy. Upon your passing, your estate receives a charitable deduction and the deathbenefit passes to BTCF tax-free.OPTION 2: You may donate an existing, paid-up life insurance policy to Berkshire TaconicCommunity Foundation or purchase a new paid-up policy in BTCF’s name. You should receivea current income tax deduction equal to the lesser of your basis in the policy or the policy value.into a trust, which distributes an annual income for life orfor the duration of the trust to the income beneficiary. Thepayments can be a fixed dollar amount (an annuity trust)or a percentage of the principal (a unitrust).Charitable remainder trusts offer a great deal of flexibility.Payments may be made to you throughout your life,and then directed to your spouse or other beneficiaries afteryour death. Or, the trust may be set up by your will, benefitinga loved one for his or her lifetime. The eventual distributionto Berkshire Taconic Community Foundationwill take effect only at the end of the trust term.Minimum to establish a charitable remainder trust:$250,000BENEFITS TO YOUMake a significant gift to charityProvide a lifetime income for yourself and/or your beneficiariesReduce your taxable estateAvoid immediate capital gains tax when the gifted asset is soldRealize an income tax charitable deductionIncrease income by converting low yield assetsOPTION 3: You may transfer an existing insurance policy or purchase a new policy on your life and nameBTCF as the owner. Every year you donate sufficient funds to BTCF to pay the annual premiums.CHARITABLE LEAD TRUSTA charitable lead trust allows you to “donatethe fruit and keep the tree”: make significantcharitable gifts now while later transferringwealth to your heirs at reduced tax values.Through the trust, you determine howmuch will be paid to BTCF and for how long.The principal that remains after the trust terminateswill revert back to you or pass to anotherdesignated individual.Charitable lead trusts are an effective tool forexcluding assets – and subsequent appreciationon those assets – from your taxable estatewhile ensuring your favorite causes receive significantcharitable support and providing foryour loved ones at the end of the trust term.Minimum to establish a charitable lead trust: $250,000BENEFITS TO YOUTransfer appreciated property to family membersat low costReduce burden of gift taxes, probate costs& estate taxesUseful in a year which you have a large amount oftaxable income – use as a large currentincome tax deductionEstablish a donor advised fund to receive theincome payments, then enjoy recommending grantsto your favorite charities over timeCHARITABLE REMAINDER TRUSTGiving through a charitable remainder trust (CRT) can support Berkshire Taconic’s future grantmaking whileproviding you, or someone you select, with income for life or a specified number of years. This option allowsyou to “donate the tree, and keep the fruit.” You do this by placing cash, property or other assets irrevocablyGreat Philanthropists...Our Teachers!Although legally blind for more thanhalf of her 50-year teaching career,Violet Simmons had a clear vision for herstudents: “I am old fashioned enough tobelieve that we get from our students onlywhat we demand. If we accept mediocrity,that is what they will give...it is my sincerewish that Webutuck will continue to emphasizegoals of high scholastic achievement.”Former students of this inspiring teacher established the Violet H. SimmonsScholarship Fund in her honor in 1982. Miss Simmons becamechairman of its advisory board and helped set the high standards for aSimmons Scholar. Just before her death in 2001, at the age of 90, VioletSimmons established an endowment for the scholarship fund namedin her honor and left it a significant bequest.The scholarship perpetuates Miss Simmons’ vision and values: thatevery child can learn; that every individual, regardless of his/her circumstances,should strive for excellence; and that anything worthdoing at all is worth doing well.Since its inception, the Violet Simmons Scholarship Fund has awardedover $175,000 to graduates of Webutuck High School in Amenia, NY.Margery Barrett (1910-2000) grewup in Adams, MA and was an integralpart of the community she loved. Shegraduated from the former Adams HighSchool and from the North Adams NormalSchool (now the Massachusetts Collegeof Liberal Arts) in 1929. She was ateacher in the local schools as well aspresident of her church guild, a Sunday school teacher, member ofthe Adams’ Girls Club and an accomplished photographer. Margerymarried William Barrett, with whom she shared her life with until hisdeath in 1969.Margery established the Fund for Adams, Cheshire and Savoy to supporta better quality of life in the towns she cared about, using SpecialtyMinerals stock inherited from family. The Fund supports elderservices, arts programs, after school activities, environmental protectionand a wide variety of community education programs.Margery established the fund and increased her income during herlifetime by creating a charitable remainder trust. The Fund awardedgrants anonymously for several years, giving her the joy of seeing hergenerosity support organizations around her. Upon Margery’s death,the remainder of her trust was added to the Fund and at her instruction,her name was publicly announced for the first time.14 berkshiretaconic.orgberkshiretaconic.org 15

Choose What You Want to SupportBerkshire Taconic Community Foundation connects you withtangible ways to make a difference on specific issues you care about –in areas that help our community thrive.Sheltering victims of domestic abuse • Helping immigrant familiesMeals for senior citizens • Strengthening childcare centersFunding area hospitals, mental health facilities, substance abuseprograms and hospice careScholarships & travel grantsArtists and speakers • Performances • After-school programsField trips • Art, athletic, robotics & nutrition programsProtecting our most vital resources • Building trailsPreserving forest lands and open space • Protecting our watershedSupporting local farms and community gardensFunding cultural institutions • Supporting new programsProviding grants to individual artists • Supporting historic preservationPreserving and sustaining our region’s extraordinary cultural lifeHEALTH & HUMAN SERVICESEDUCATIONENVIRONMENTARTS & CULTUREYou can provide a safety net for the most vulnerableamong us including senior citizens, immigrants andyoung children. As the cost of basic necessities risesfaster than wages, individuals and families may beunable to make ends meet. Together, we can see thateveryone has the opportunity to thrive – not simplysurvive – in our community.You can transform good educations into great ones forour children. BTCF has established education enrichmentfunds in the region’s school districts for programs notsupported by tax dollars, opening a world of opportunityand experiences for local students every year. Scholarshipfunds established through BTCF have helped hundreds ofstudents realize their dream of higher education.You can protect our environment and create a thrivingregion now and in the future. By working to preservethe health of the Berkshire Taconic landscape, engagingresidents in environmental issues and promotingsustainable growth, BTCF donors act as stewards of ourvital resources for generations to come.You can support an important aspect of a thrivingcommunity. The arts generate jobs, business and tourismand make a critical contribution to the quality of life inthe Berkshire Taconic region. BTCF has a rich history ofstrengthening arts and culture by supporting ourvenerable – and emerging – cultural institutions.Turn your passion into action16 berkshiretaconic.orgberkshiretaconic.org 17

Types of FundsDESIGNATEDFUNDSNONPROFITENDOWED FUNDSYOU CAN ENSUREyour favorite nonprofit’slong-term financial stabilityYOU CAN BUILDyour nonprofit’s endowmentand ensure lasting supportfor its missionFUND SPOTLIGHTFUND SPOTLIGHTRUTH AND NICK BORASKI are thedefinition of good citizens. They settled inPittsfield, MA, 35 years ago, raised three children andwere active in the community. One organization closeto Ruth’s heart was Girls, Inc., which has served thegirls of Berkshire County for 100 years. TheBoraskis established an endowment to provide collegescholarships for promising, underprivileged girls.In 2011, Girls Inc. launched a campaign to raise onemillion dollars for a permanent endowment. Ruth andNick asked BerkshireTaconic CommunityFoundation toestablish a designatedcharitable fund withGirls Inc. as the solebeneficiary.“I’m not immortal,” says Nick. “I selected BerkshireTaconic because I knew they would handle ourmoney intelligently and it would support Girls Inc.long after we’re gone.” Sadly, Ruth Boraski died justas the fund was established. But to her husband of54 years, “this is Ruthie’s fund,” one that will supportBerkshire County’s girls for generations to come.Donors with strong ties to a particular organization oftenestablish a designated fund for its benefit. Your gift becomes anendowed fund of BTCF, which will support the charities ofyour choice as long as they exist.Designated funds can provide much-needed income to schools, historic sites,houses of worship, arts groups, town activities, animal shelters and many otherkinds of organizations and causes.If the designated organization ceases to exist, loses its tax-exempt status orchanges its mission, BTCF can redirect support for a purpose as close aspossible to your original intentions.A designated fund is an excellent way for you to make a significant gift to anonprofit without burdening that organization with the management of anendowment. It also ensures you that the designated fund remains intact as anendowment and is never spent out.Minimum to open an endowed designated fund: $25,000Berkshire Taconic has a world class investment portfolio withtop-quartile returns among foundations nationwide. In orderto make this resource accessible to our region’s nonprofits,the Foundation invites organizations to open a NonprofitEndowed Fund.This is a simple and efficient way to build an endowment – and help createsustainability – for your nonprofit organization. A permanent endowmentfund affords organizations the opportunity to generate investment income,year after year. The stability of an endowment fund is appealing to yourdonors who seek the enduring value of a dedicated source of income tosupport the organization they love, today and forever.BTCF handles investment management and the administrative responsibilitiesrelated to the endowment, so that your organization’s staff and volunteerhours are concentrated on fulfilling your mission.Berkshire Taconic has managed endowments for nonprofits, individuals andfamilies since 1987. BTCF’s Investment Committee is comprised of leadingexperts in investment management who provide oversight and guidance to allour funds. With more than $100 million in assets, nonprofit endowmentsbenefit from substantial economies of scale and diversification of invested assets.Minimum to open a nonprofit endowed fund: $25,000THANKS TO THE FORESIGHT ANDgenerosity of local landowners and partnershipswith the community and government agencies, theDutchess Land Conservancy (DLC) based inMillbrook, NY, has protected more than 35,000acres of critical farmland, wildlife habitats,wetlands, forest lands and scenic views for futuregenerations.Farmer Elton BaileyThe DLC has chosen to partner with BTCF to growits nonprofit endowment fund because, says BeckyThornton, President, "Berkshire Taconic is a terrificresource to us as nonprofits. The Foundation’sexpertise in so many areas makes us feel proud tobe their partner. Putting our endowment at BTCFmakes us feel that our organization will be asfinancially sustainable long into the future as theland we work so hard to protect.”20 berkshiretaconic.orgberkshiretaconic.org 21

Types of FundsSUPPORTINGORGANIZATIONSSCHOLARSHIPFUNDSYOU CAN CREATEan excellent alternative toa private foundationYOU CAN CHANGEthe life of a studentFOUNDATION SPOTLIGHTFUND SPOTLIGHTTHE FOUNDATION FOR COMMUNITYHEALTH (FCH) invests in people, programsand strategies to improve health in our communities.Berkshire Taconic Community Foundation playedthe leading role in establishing FCH with the assetsof Sharon Hospital which was sold to a for-profitcompany in 2003.As a supporting organization, FCH receives investmentand financial services from BTCF and the twoorganizations often collaborate on health-relatedgrantmaking. Says FCH Executive Director NancyHeaton, “Berkshire Taconic’s financial and investmentexpertise has allowed us to focus on what we dobest: funding programs, such as school-based dentalservices; bringing people together to solve problemslike the lack of adequate transportation services; andraising awareness about health issues important toour rural communities. The public charity status ourrelationship confers has also enhanced our ability tobring additional resources into our communities.”Since inception, FCH has awarded nearly $5 millionin grants that have helped improve the physicalhealth and well being of the residents of easternDutchess and southeastern Columbia Counties inNew York and the northwestern corner of CT.Established by an individual, family or business with a gift ofat least $1 million, a supporting organization is a separatenonprofit corporation that operates under Berkshire TaconicCommunity Foundation and qualifies as a public charity.A supporting organization is an excellent alternative to a private foundation,with only a fraction of the administrative responsibilities and lower costs.You select some board members, which may include family members, maintainpersonal involvement, retain your identity and support cherished causes. Weprovide an array of philanthropic and administrative services to make thegiving experience simple and enjoyable.Minimum to establish a supporting organization: $5 millionFoundation for Community Health$15,000,000 value in 2003$24,000,000 value in 2012$5,000,000 grants since 2004Higher education has long been seen as one of the surest pathsto increased opportunity. Unfortunately, many people whocould benefit the most from a college education are least ableto afford it. Scholarship funds can help these students on theirpath to higher education.Berkshire Taconic is the region’s largest provider of scholarships and has helpedhundreds of students from all walks of life attain the goal of a college educationand, in some cases, a graduate degree. Your fund can help propel promisingstudents toward academic and professional success.We hold funds for aspiring artists, engineers, musicians, doctors, teachers andothers. Our program team can assist you in establishing the selection criteriathat match your goals and expectations.Selection committees, comprised of responsible and knowledgeable communitymembers, help screen and select candidates. Awards are decided based on acompetitive process, which may consider academic achievement, extracurricularactivities, a statement of the applicant’s personal aspirations and goals, and/orfinancial need.Scholarship funds are endowed, and may be named to honor your family orloved ones.Minimum to open a scholarship fund: $25,000ALOCAL LEGEND KNOWN for her kindand eccentric nature, Dr. Josephine Evarts(1901-1983) "Dr. Jo",cared for thousands ofpatients in her 54 yearsas a doctor in theHarlem Valley, NY. Shemarried Gilbert Tabor,an E.N.T. specialist who died in 1957. In his memoryshe established The Tabor Foundation to help localstudents attend institutions of higher learning.When Dr. Jo died, a portion of her estate was setaside to provide income for life to her secondhusband Charles Demarest. After his death, theremainder of the estate went to the Foundation.Millerton attorney and Tabor Foundation boardmember Ed Downey recalls, "We concluded we weretoo small to do much by ourselves. We needed bothinvestment and administrative expertise." The boarddecided to create the Tabor Fund by dissolving theprivate foundation and transferring the assets toBTCF. Says Downey, "With the help of the skilled staffat BTCF, we have returned to our roots and nowprovide financial assistance to students every year tocontinue their education in any field of health care."22 berkshiretaconic.orgberkshiretaconic.org 23

Community Leadership FundsYOU CAN HELP STRENGTHEN YOUR COMMUNITYFor over 25 years, Berkshire Taconic has been a proactive leader in the region,finding ways to build resources for communities and create opportunitiesfor charitable giving where none existed. We invite you to support theseimportant initiatives. They are making a difference and you can too!$3.5millionAmount BTCF’s29 educationenrichment fundshave awarded toprojects for kids inour public schoolsENDOWMENT FOR THE FOUNDATIONSupport the leadership work of your community foundation - Berkshire Taconic’s operations are supportedprimarily by the fees it charges to all its funds. The Endowment for the Foundation provides support for staffto implement community leadership initiatives above and beyond the ongoing stewardship of the funds wemanage. This fund supports our research and our development work with communities throughout the region.THE COMMUNITY FUNDAddress urgent needs in your community with BTCF’s only unrestricted fund - The Community Fundallows Berkshire Taconic to identify needs and opportunities in the region and target dollars where they are mosteffective. The Community Fund supports long-term solutions to problems such as hunger, homelessness, childwelfare and public education. It has been the source of initial funding for several of the Foundation’s strategicinitiatives.CENTER FOR NONPROFIT EXCELLENCEHelp nonprofits think strategically, govern effectively and operate efficiently - The Center for NonprofitExcellence (CNE) offers seminars in best practices in nonprofit management, scholarships to top-flight academicprograms and intensive training for board and staff leaders. CNE also provides access to an online nationalgrants database and free use of our three conference rooms.HOUSINGUSIncrease the rate of affordable housing options in our region - A healthy community is home to people ofwide-ranging talents, backgrounds and ages. The rich and diverse fabric of our communities is in gravedanger of unraveling: the lack of reasonably-priced housing is the reason.HousingUs is a tristate collaborative effort of nonprofit organizations and community leaders to promote broadbasedaffordable housing options in towns throughout the northwest corner of CT, northeast Dutchess andColumbia Counties in NY and southern Berkshire County.EARLY CHILDHOOD DEVELOPMENT FUNDImproves the lives of our children - BTCF’s Early Childhood Development Fund is an initiative whose visionis that children from birth to five years in our region develop in a wholesome, healthy, learning-rich environmentso that they are ready to learn when they enter kindergarten.AREA FUNDSSustain the quality of life in a beloved town or geographic region - Many of us feel strong ties to a town orcommunity that we would like to support. If you feel this way, you may want to contribute to one of our AreaFunds. Please see our map on page 32.Area funds are permanently endowed and cover a specific geographic sector of the tri-state area we serve. Thefunds support programs and services in the arts, education, health, human services and the environment. EachArea Fund has an advisory committee made up of local residents who understand the needs of the community,oversee fundraising and award grants annually.EDUCATION ENRICHMENT FUNDSHelp turn a good education into a great one - Berkshire Taconic has worked for over 15 years to createeducation enrichment funds in 29 public school districts in our region. These funds support a wide variety ofprograms not covered by tax dollars. Each of these education enrichment funds are resources for any student,teacher, staff or community member who has an idea for an exciting project. Because these funds are endowed,they will remain a permanent source of support for remarkable learning experiences for our public schoolchildren for years to come.NEIGHBOR-TO-NEIGHBORHelp local families in economic distress - Neighbor-to-Neighbor provides emergency assistance for localresidents who are in economic distress, making small grants to help those with overdue utilities, medical bills,short-term housing costs and transportation problems. Donors may restrict their donations to specific towns orcommunities. BTCF awards emergency funds to hundreds of struggling community members each year.$1.2millionAmount BTCF’sNeighbor-to-Neighborprogram hasdistributed toindividuals ineconomic distress24 berkshiretaconic.orgberkshiretaconic.org 25

Comparing Your OptionsInvestment ManagementA BTCF Donor Advised Fund or BTCF Supporting Organization will help you support local nonprofitsin your community and may be less expensive and easier to manage.The pooled resources of BTCF’s many donors gives you access to a highly diversified portfolio with worldclass money managers that would not otherwise be available to individuals or many organizations on their own.OptionsBTCFDonor AdvisedFundTax Deductibility Administrative Costs GrantmakingFully deductible up to50% AGI* for cash gifts,30% AGI for gifts ofstock, real estate andclosely held stockCan be establishedimmediatelyNo administrationor tax reportingrequiredNo start up costs;fees starting at 1.5% ofassets and declining forlarger funds; $10,000minimum contributionFees re-invested intothe communityDeep knowledgeof local needs &nonprofits. No minimumannual payoutOur staff is available tohelp you identify whereyour gifts will have themost impactAs stewards of the charitable resources entrusted to us, we work meticulously to manageyour investments, overseen by our nationally recognized Investment Committee –a group of board and community members with deep institutional investment experience.BTCF’s investment strategy is to maximize return while preserving capital andliquidity, producing consistent and stable growth with low to moderate risk. Our goal is togrow your endowment so that you can grant more to the causes you care about.Learn more about our investment strategy and performance at berkshiretaconic.org.BTCFSupportingOrganizationFully deductible up to50% AGI for cash gifts,30% AGI for gifts ofstock, real estate andclosely held stockSeveral monthsto establishAdministration andtax reporting handledby BTCFSome start-up legal &filing costs; fees startingat 1% and declining forlarger funds; $1 millionminimum contributionFees re-invested intothe communityDeep knowledgeof local needs &nonprofits. No minimumannual payoutOur staff is available tohelp you identify whereyour gifts will have themost impactWE HELP YOUR FUND GROW...SO THAT YOU CAN DO MORE GOOD.$1,400,000 bequest in 1996*$1,700,000 value of endowment, 2012$900,000 in scholarships granted from 1997-2012PrivateFoundationCommercialGift FundFully deductible up to30% AGI for cash gifts,20% AGI for giftsof stockDeduction limited tocost basis for gifts ofreal estate and closelyheld stockFully deductible up to50% AGI for cash gifts,30% AGI for giftsof stockSeveral monthsto establishAnnual tax returnrequired includingdetailedfinancial schedulesCan be establishedimmediatelyNo administrationor tax reportingrequiredSeveral thousanddollars in legal,accounting & filing fees;1-2% excise tax on netinvestment incomeNot cost effectiveunless $10 millionor moreFees and minimumcontributions varyFees supportcorporate entity5% minimum annualpayout requiredYou must arrange andsupport your owngrantmaking structureNo knowledge of localneeds or nonprofits;Payouts may require amin. of 5% of net assetson a 5 yr. rolling basisMost do not offerpersonalized advice ongrantee selection* Adjusted Gross IncomeDONOR ADVISED FUNDSMinimum to open: $10,000Endowed minimum: $25,0001.5% per year on first $250,0001.25% per year on portion $250,000 - $1 million1.0% per year on portion $1 million - $3 million0.75% per year on portion $3 million and aboveOr 3% of grants given out, whichever is higherMinimum quarterly fee: $87.50*The McLaughlin Wilson ScholarshipAdministrative FeesEach fund pays a fee that covers handling costs and supports Berkshire Taconic’s wide range of community work.Fees are charged quarterly based on the average daily balance of the fund.DESIGNATED FUNDSMinimum to open: $25,0001.5% per year if balance is less than $250,0000.75% per year if balance is more than $250,000Minimum quarterly fee: $125NONPROFIT ENDOWED FUNDSMinimum to open: $25,0001.5% per year if balance is less than $250,0000.75% per year if balance is more than $250,000Minimum quarterly fee: $125SCHOLARSHIP & FIELD OFINTEREST FUNDSMinimum to open: $25,0002.0% per year on first $250,0001.75% per year on portion $250,000 - $1 million1.0% per year on portion $1 million - $3 million0.75% per year on portion $3 million and aboveMinimum quarterly fee: $12526 berkshiretaconic.orgberkshiretaconic.org 27

Frequently Asked QuestionsYOUR HELP can inspire students and teachers in building a better future for all of us.SHOULD I START MY OWNFOUNDATION?HOW DO I ESTABLISHA FUND?Not before talking with us first.If you have less than $10 million and arethinking of starting a privatefoundation, a community foundation isusually the more efficient andeconomically effective option –and offers you greater tax advantagesand less administrative work.By consulting your financial advisor and/orcontacting us directly to discuss your options.A fund may be created with as little as$10,000 and can be established within 2 days.You may donate different types of assets –cash, securities, real estate or other valuables.Establishing a fund is particularlyadvantageous if you own appreciated stock.YOUR PASSION can help protect our local environment and preserve land for future generations.DOES BERKSHIRE TACONIC ASSIST WITH ESTATE PLANNING?Yes. We will work with you and your financial advisor to review various planned givingoptions, such as bequests and charitable remainder trusts.HOW DOES BERKSHIRETACONIC AWARD GRANTS?ARE MY DEALINGSCONFIDENTIAL?YOUR INVOLVEMENT can energize your community and bring people together.Our professional staff oversees arigorous and competitive grantreview process. Guidelines forapplicants are publicly available atberkshiretaconic.org.Absolutely. You may choose whetheror not to be listed in our publications andgrants may be made anonymously.All financial information is keptstrictly confidential.berkshiretaconic.org 29

10 Reasons To Give ThroughBerkshire Taconic Community FoundationWe are aLOCAL ORGANIZATIONwith deep roots in the community.Our professional staff hasBROAD KNOWLEDGEof community issues and needs.We provide highlyPERSONALIZED SERVICEtailored to your individual charitableand financial goals.We handle all theadministrative details,MAKING IT EASYfor you to give.We offer diverse fund types whichhelp you invest in theCAUSES YOU CARE ABOUT MOST.We offer youMAXIMUM TAX ADVANTAGESunder state and federal law.We accept a wideVARIETY OF ASSETS,and we can facilitate even complexgiving arrangements.We invest & growENDOWMENT FUNDSthat create a lasting impact to benefit ourcommunity and help create personal legacies.We partner withPROFESSIONAL ADVISORSto create highly effective approachesto charitable giving.We are aCOMMUNITY LEADER,convening resources and ideas tocreate positive change.berkshiretaconic.org 31

BerkshireBTCF Taconic Area FundsCommunityFoundationSUSTAIN THE QUALITY OF LIFE IN A BELOVED TOWNOR GEOGRAPHIC REGION - Many of us feel strong ties to atown or community that we would like to support. If you feel this way,you may want to contribute to one of our Area Funds.AREA FUNDSGermantownClermontGreenportLivingstonValatieStuyvesantHudsonStockportKinderhookClaverackTaghkanicGallatinStanfordGhentWashingtonPhilmontPine PlainsMillbrookChathamAncramDoverPlainsCopakeMillertonNorth EastAmeniaAusterlitzHillsdalecolumbia county, nynortheast dutchesscounty, nyNew LebanonCanaanRed RockMountWashingtonSalisburySharonKentAlfordEgremontRichmondWestStockbridgeHancockStockbridgeGreatBarringtonSheffieldWilliamstownNewAshfordPittsfieldLenoxNorthCanaanCanaanCornwallWarrenLanesboroughLeeTyringhamMontereyNewMarlboroughGoshenNorfolkCheshireDaltonWashingtonStamfordClarksburgNorthAdamsAdamsHinsdaleSandisfieldBecketOtisFloridaWindsorPeruSavoyberkshire county, manorthwest litchfieldcounty, ctCummingtonFund NameJames and Robert Hardman FundFund for WilliamstownWilliam J. & Margery S. Barrett FundFund for Hancock & New AshfordPittsfield & Lanesboro FundCentral Berkshire FundSouth Berkshire County FundQuailwood FundFund for Columbia CountyNortheast Dutchess FundPRINTING: Quality Printing Co., Inc., www.qualprint.comDESIGN: Eric Haggard PHOTOS: John Dolan (inside cover L, p. 6, 8, 10, 16 L, 24 L & R, p. 25 R, p. 30 R2 far R, R4 L & middle) Jonathan Doster (p. 16 R, p. 30 R4 far R), Evan Estern (p. 33), Christopher Duggan (p. 17: Collage Dance Collective at Jacob's Pillow Dance Festival), Roman Iwasikwa (p. 28 bottom), and Rogerio Luz (p.4, p. 23)You can make a difference.We can help.32 berkshiretaconic.orgNorthwest Corner Fund

For more information on how you can make a difference,please contact us:You Can Make A Difference. We Can Help.800 NORTH MAIN STREET, PO BOX 400 SHEFFIELD, MA 01257-0400T: 413.229.0370 F: 413.229.0329 E: INFO@BERKSHIRETACONIC.ORGWWW.BERKSHIRETACONIC.ORGFIND US ON FACEBOOKBerkshire Taconic Community Foundation has been awarded the right to use the National Standards seal which signifies that BTCF is certified in compliance withthe National Standards for U.S. Community Foundations. It demonstrates BTCF’s commitment to maintaining the trust of our donors and the entire community.