KLA Hears About Philanthropy
July 28, 2016 at 4:25 p.m.
By Staff Report-
The three panelists, Peggy Michel, Suzie Light and Rich Haddad, shared stories of planned giving on an individual, corporate and community levels.
Michel, vice president and trust officer at Lake City Bank, covered the role of philanthropy in estate planning and the different types of wills, power of attorney and trusts. She shared that almost 70 percent of people don’t have estate planning and listed the contents of a basic estate plan and a death plan.
Michel related a number of stories to emphasize the importance of estate planning.
She told the story of the famous comedian Groucho Marx who had no estate plan. As a result, the end of his life became a public circus from battles over the control of his estate.
Another situation involved a mother killed in an auto accident with her spouse dying a year later. This left three minor children with no estate planning and no will covering guardianship. The 10-year-old son had to file for bankruptcy and the life insurance company wouldn’t pay until the estate was settled.
The final story focused on a widow remarrying and transferring ownership of assets to her new spouse. When the wife died, the new husband got everything and the children were disinherited.
Michel concluded with the stories of two individuals who had set up charitable trusts. One was a lifelong resident of Leesburg whose trust has helped a church, the town of Leesburg and an animal shelter.
Another was the mother of a Down’s Syndrome male. She left an endowment to fund a pizza party at the end of each year’s Special Olympic event.
Michel finished by encouraging and challenging the students to have an estate plan and to include charitable giving in that plan.
Light, executive director of KCCF, started with the definition of philanthropy, “the sharing of your time, talent, and treasure” and gave examples of all three.
Light referenced KLA as one example of giving time. Students learn more about the community and produce white papers to benefit the community.
Volunteering was another example of giving time. She shared about an expert knitter who used her knitting talent to make items for sale with the proceeds going to a KCCF fund, Turtle Toes Fund. This fund helps children and adults who have need as a result of an injury, disease or medical condition.
Light proceeded to give an example of a young lady who set up a Jem Fund to meet needs of county school children for needs that can’t be met by other agencies or funds.
She stated that KCCF has about 800 donors a year whose gifts are tax deductible. Light explained that KCCF “offers a vehicle to help people engage in philanthropy”, sharing that an endowment is a legacy gift that goes on forever.
Upon closing, she referred to an interview in which an author shared that Apple Co-Founder Steve Jobs “didn’t have time for philanthropy.”
Light ended by emphasizing, “We all have time, talent, and treasure. Some of us have more, some of us have less.”
The final speaker was Haddad, executive director of the K21 Health Foundation. He began by stating “every solid financial planner will tell you to give” and said it was “a key component to living a fulfilled life”. Haddad then challenged the students to put giving at the front end of their decision making and not relegate it to a leftover decision.
He said that a foundation is a way to extend one’s giving beyond themselves. Haddad went on to explain the differences between a community foundation and a private foundation. Community foundations have more flexibility in grant giving, have no taxes imposed on them, and are generally donor advised funds. Whereas, private foundations are taxed on their income, have to give money away or be penalized, and a passion/mission focused board directs the fund giving.
He went on to give the history of the formation of the K21 Health Foundation and the Pavilion stating that the concept originated from a KLA white paper. Its initial fund of $66 million came from the sale of Kosciusko Community Hospital in 1999. Haddad explained that the purpose of the foundation is to remain focused in health, hence the change to include “health” in their name now.
He shared that in almost 12 years more than $24 million in grants has been given out with some going for infrared cameras for firefighters, water safety rescue equipment that actually saved a girl from drowning on Tippecanoe Lake, and helping the YMCA purchase the Racquet Club.
Haddad said that the Pavilion covers 30,000 square feet with eight organizations housed there offering 14 services. Some of the organizations include Beaman Home’s administrative offices, Heartline Pregnancy and WIC. To save money, they have a central waiting area and phone system. A services liaison/health concierge is also on hand to guide people with needs to the correct service provider.
The session ended with a group question-and-answer period.
The next KLA meeting will be Jan. 3 at the Orthopaedic Capital Center in Winona Lake.[[In-content Ad]]
The three panelists, Peggy Michel, Suzie Light and Rich Haddad, shared stories of planned giving on an individual, corporate and community levels.
Michel, vice president and trust officer at Lake City Bank, covered the role of philanthropy in estate planning and the different types of wills, power of attorney and trusts. She shared that almost 70 percent of people don’t have estate planning and listed the contents of a basic estate plan and a death plan.
Michel related a number of stories to emphasize the importance of estate planning.
She told the story of the famous comedian Groucho Marx who had no estate plan. As a result, the end of his life became a public circus from battles over the control of his estate.
Another situation involved a mother killed in an auto accident with her spouse dying a year later. This left three minor children with no estate planning and no will covering guardianship. The 10-year-old son had to file for bankruptcy and the life insurance company wouldn’t pay until the estate was settled.
The final story focused on a widow remarrying and transferring ownership of assets to her new spouse. When the wife died, the new husband got everything and the children were disinherited.
Michel concluded with the stories of two individuals who had set up charitable trusts. One was a lifelong resident of Leesburg whose trust has helped a church, the town of Leesburg and an animal shelter.
Another was the mother of a Down’s Syndrome male. She left an endowment to fund a pizza party at the end of each year’s Special Olympic event.
Michel finished by encouraging and challenging the students to have an estate plan and to include charitable giving in that plan.
Light, executive director of KCCF, started with the definition of philanthropy, “the sharing of your time, talent, and treasure” and gave examples of all three.
Light referenced KLA as one example of giving time. Students learn more about the community and produce white papers to benefit the community.
Volunteering was another example of giving time. She shared about an expert knitter who used her knitting talent to make items for sale with the proceeds going to a KCCF fund, Turtle Toes Fund. This fund helps children and adults who have need as a result of an injury, disease or medical condition.
Light proceeded to give an example of a young lady who set up a Jem Fund to meet needs of county school children for needs that can’t be met by other agencies or funds.
She stated that KCCF has about 800 donors a year whose gifts are tax deductible. Light explained that KCCF “offers a vehicle to help people engage in philanthropy”, sharing that an endowment is a legacy gift that goes on forever.
Upon closing, she referred to an interview in which an author shared that Apple Co-Founder Steve Jobs “didn’t have time for philanthropy.”
Light ended by emphasizing, “We all have time, talent, and treasure. Some of us have more, some of us have less.”
The final speaker was Haddad, executive director of the K21 Health Foundation. He began by stating “every solid financial planner will tell you to give” and said it was “a key component to living a fulfilled life”. Haddad then challenged the students to put giving at the front end of their decision making and not relegate it to a leftover decision.
He said that a foundation is a way to extend one’s giving beyond themselves. Haddad went on to explain the differences between a community foundation and a private foundation. Community foundations have more flexibility in grant giving, have no taxes imposed on them, and are generally donor advised funds. Whereas, private foundations are taxed on their income, have to give money away or be penalized, and a passion/mission focused board directs the fund giving.
He went on to give the history of the formation of the K21 Health Foundation and the Pavilion stating that the concept originated from a KLA white paper. Its initial fund of $66 million came from the sale of Kosciusko Community Hospital in 1999. Haddad explained that the purpose of the foundation is to remain focused in health, hence the change to include “health” in their name now.
He shared that in almost 12 years more than $24 million in grants has been given out with some going for infrared cameras for firefighters, water safety rescue equipment that actually saved a girl from drowning on Tippecanoe Lake, and helping the YMCA purchase the Racquet Club.
Haddad said that the Pavilion covers 30,000 square feet with eight organizations housed there offering 14 services. Some of the organizations include Beaman Home’s administrative offices, Heartline Pregnancy and WIC. To save money, they have a central waiting area and phone system. A services liaison/health concierge is also on hand to guide people with needs to the correct service provider.
The session ended with a group question-and-answer period.
The next KLA meeting will be Jan. 3 at the Orthopaedic Capital Center in Winona Lake.[[In-content Ad]]
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