Ep 2 Annie Burndrett Maximizing Your Philanthropy: Charitable Giving Through the Greater Kansas City Community Foundation

voice over: [: 00:00:00

Now your hosts.

Jeb: Welcome to Metcalf Money Moment, the podcast. My name is Jeb Graham, managing partner at Metcalf Partners Wealth Management with co hosts and partners, Ethan Hutcheson and Eric Wymore. And today we have a special guest. It is Annie Berndrette from the Greater Kansas City Community Foundation. Uh, so Greater Kansas City Community Foundation is here in Kansas City.

bout the Greater Kansas City [: 00:01:00

Annie: Yeah, thanks, Jeff. Um, well, I'm happy to be here to talk about charitable giving with you for your clients.

And ultimately Greater Kansas City Community Foundation and community foundations at large are designed to help. Support a specific group of people. So here in Kansas city, our mission is to help connect our donors with causes that they care about and help to grow their money so that they have more money to give.

Um, a quick note, we are actually the third largest community foundation in the country, and there are about 900. So, as far as assets, contributions, and grants out the door, um, we're the third largest. So, that really points to the fact that Kansas City is a center of philanthropy, which is really, I think, exciting.

Jeb: Well, that's super, super impressive, given Kansas City's size versus some other cities out there, that we would be third, third in the country. So

support of our donors is by [: 00:02:00

Awesome.

Jeb: Well, very good. So you, so you mentioned charitable funds, uh, tell us more about the kinds of charitable funds that the community foundation administers and why someone would use a fund for their giving. You know, I know we have a lot of clients that like to give to charity and I think a lot of them, I feel like the, the go to is they just pick a couple of charities and they send money to the charities.

Um, um, On their own, and I don't think a lot of people know about the different things that you can do to to either. I think you're going to talk about kind of front loading contributions to a chair to a foundation account. I also think that the clients just in general, uh. Aren't that educated on charitable giving?

So I think, uh, tell us a little bit about the different types of funds that you guys have.

the, the goal of giving. And [: 00:03:00

And so those can be paid out to any charity of the clients choosing. And so, uh, they, Invest the assets, they give the assets to the community foundation. We invest those, they grow on their behalf and then whenever they want to make grants out to their selected nonprofits, we administer those grants as well.

And so by. Saving for future gifting, you can grow the assets and have more to give. And so that's really, you know, the infrastructure that we've created in order to help support people's philanthropy. People can do that in a variety of different ways. So you had talked about front loading, you know, some individuals who are charitably inclined while they're saving for retirement, they're also saving for their giving and retirement.

the contributions into their [: 00:04:00

Um, tax savings, they don't have to pay capital gain on the appreciated stock. That stock can go into a donor advice fund and then of course via deduction for the fair market value of those stocks. So

Jeb: theoretically, I know Ethan, Eric and I were talking about this just the other day. Um, you, you could have, say you bought XYZ stock for 20, 000.

deduction basically for [: 00:05:00

Annie: Yes. The only caveat I would say that I'm not a tax advisor, depending on your tax situation, you know, all of those kinds of things, but absolutely.

Jeb: So, so is there any time that somebody has to give it to a charity buyer? Could that literally sit there for hundreds of years or is there, is there 10 years, 20 years?

Annie: It could. It could, it could sit there for hundreds of years, you know, we are a community foundation that is very dedicated to getting the money to work in our communities. And so we really do encourage people to identify charities that they want to support. We have philanthropic advisors that can help guide that as well.

If they want to set charitable goals, look at what they're wanting to achieve and have them. Philanthropic advisors within our organization, introduce them to, um, organizations that support those values. We have that, you know, so we have the full infrastructure to help the clients give.

ge over time who's directing.[: 00:06:00

The charitable fund as well, correct?

Annie: Yeah, absolutely. Yes. So we have successor advisors. Um, and so we do see, you know, family giving, you know, memorial funds, things like that, um, that grandparents started their kids continue to administer and now they're bringing in, you know, the 3rd or 4th generation with their grandkids, great grandkids.

It's beautiful to see.

Eric: Hey, Annie, there sounds like there's a lot of tax strategies that are involved with, with giving and with the foundation. Are there any unique strategies that you see your clients or our clients implement?

Annie: That's a great question, Eric. Anytime that there is a taxable event on the client's horizon.

be able to fund their giving [: 00:07:00

Um, we do specialize at unique assets. And so even business interest, private equity, you know, there's a lot of different types of assets out there that aren't your typical stocks, bonds, mutual funds. Um, and so at the community foundation, we specialize in those unique assets.

Eric: Nice. And you mentioned, um, appreciated stock that can be donated.

Uh, you mentioned unique business interests. What are some other, um, asset classes that can be contributed to a donor advice fund? Like I know cryptocurrency and Bitcoins, uh, taken off right now. Um, it can clients just cut a simple check and push cash through what, what is the, uh, abilities of, of, of those funds?

of [: 00:08:00

So, for any type of unique asset. Um, that a donor is looking at giving, we really try to work with them in order to be able to accept

Ethan: that. You know, Annie, I've been to several events with the Greater Kansas City Community Foundation, been involved in other charities that use their funds. Um, and one thing that keeps popping up a lot is the word bunching.

And I wonder if you could maybe spend a minute or two kind of explaining what bunching means.

Annie: Um, yeah, thanks for asking. That's a great question. So, of course, there are the large philanthropists who have a lot of money to give away and, and are, are having those assets at work. But for the everyday investor, bunching is a very common strategy that we see utilized in donor advised funds.

be every other, every third. [: 00:09:00

And so those assets are then invested and sometimes they're granting those out for the next year. So in other words, if somebody gives 10, 000 a year, they're putting 30, 000 a year every three years in and the other years they're itemizing their tax return.

Eric: And correct me if I'm wrong, but the year that they donate that 30, 000, even though they're going to split that into the next three years, they get the 30, 000 deduction.

Is that correct? You've

ccount that we offer, but we [: 00:10:00

And so designated funds are a fund that is designated to one charity or, um, one particular institution. So that could be a church. Or an area of interest for your donor and a scholarship fund is, of course, to support students at a very critical time in their life, really being able to lay the groundwork for their future.

It's very rewarding for donors, and it's wonderful for students. And as a quick note, we actually are in our application process. So we both accept the assets for scholarship funds. We also administer the application for. The scholarships, and we handle all of the communication with students. So right now, if any of your listeners have college students, grandkids, nieces, nephews, neighbors, anybody that they think could benefit, they can go to grow your giving dot org slash scholarships.

scholarship deadlines are in [: 00:11:00

Jeb: That's an awesome benefit. So, so real quick, how, how many different scholarships do you know?

Annie: We have hundreds and we actually have ones that are nationwide. Um, we are a nationwide community foundation. We do focus here in Kansas city, uh, but we have hundreds and, um, depending on the criteria, you know, they're not all Collegiate scholarships, many of them are, but, um, there's a wide range of scholarships.

So they're not all necessarily, um, yeah, scholastic base. There's just a wide range.

cholarship needs to be like, [: 00:12:00

Annie: The minimum account size for the overall scholarship fund needs to be 25, 000, but the scholarships out the door don't have that minimum. And so the actual account size that the investment needs to be is that minimum of 25, 000. A quick note here on how one can fund Fund that, um, qualified charitable distributions from IRAs are eligible in both designated funds and scholarship funds, whereas you cannot put that in a donor advised fund.

And so if you have a client who has an IRA and they're not meeting those required minimum distributions, they can do a qualified charitable distribution, a QCD, and put that into a scholarship fund or a designated fund.

go direct or when, when, and [: 00:13:00

Annie: Absolutely. So we have different avenues of investing. And so if the account is under a hundred thousand dollars, it can be invested in our low cost investment pools. And that's similar to a 401k. We have. Aggressive to conservative investment pools. So just like you, you do on your selection within a retirement plan like that, you can do a custom mix.

If it's over 100, 000, then you can use your financial advisor to manage those assets. And so that. They are selecting the investments within your, your designated fund scholarship fund or donor advised fund. Um, and you're working with your financial advisor to get that invested.

Jeb: So if it's, if it's under a hundred thousand dollars, they're going direct to greater Kansas city community foundation.

And if it's over, they can still go direct to Kansas city community foundation, or they can use their financial advisor to manage the funds as well. Correct?

ions, we have a donor portal [: 00:14:00

If you know that you give to your church each month or give to certain organizations on a monthly, quarterly or annual basis, or you can do one time grants on there as well. And you can give your financial advisor access to that portal. Um, or have that, you know, take care of that all on your own.

Jeb: Well, Annie, thanks so much for coming on today.

Uh, so just a reminder website for the greater Kansas city community foundation is grow your giving. org. So that's whether you want to go apply for a scholarship, whether you want to set up a donor advised fund or a direct fund, uh, I think you can go to grow your giving and at least check out greater Kansas city community foundation.

And, uh, yeah. Ethan, Eric, thank you. And this has been a great, uh, great few minutes that we got to got to spend together. And this is Metcalf money moment, the podcast, and we'll see you soon.

ast. We hope today's episode [: 00:15:00

Jim Graham, Ethan Hutchison, and Eric Wymore are registered representatives with and securities offered through LPL Financial member FINRA SIPC. Investment advice offered through WCG Wealth Advisors, a registered investment advisor, WCG Wealth Advisors and Metcalfe Partners Wealth Management is a, are separate entity entities from LPL Financial.

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