Greetings Noah!

As always, we hope this newsletter finds you well, in all senses of the word.

The Foundation's Board, committees, donors, and staff spend a great deal of time and energy on the ideas of community wellbeing and quality of life. In welcoming each charitable fund and grant application that comes through our doors, we seek to answer one central question: "how will this benefit the people who call our community home?" As we prepare to close out 2023 with more than $2 million in newly awarded grants, we're reflecting on a year filled with hopeful answers.

Since January, generous donor gifts have been reinvested into grant-funded projects that bring friends and neighbors together at local events, engage youth in meaningful enrichment and mentoring programs, celebrate the arts, and strengthen our community's care network of health, housing, and food security support. Significant awards in the areas of education, recreation, and conservation aim to benefit residents today and generations into the future.

We are grateful to our local nonprofits who are leading these quality of life projects with their expertise, hard work, and commitment to the people and places that bind us together.

Read on for more news and updates about how we're continuing the work of Building Community this fall and into the new year.

As a reminder, we will continue to ask grant seekers to begin each proposal by completing our brief Letter of Intent form. This helps the Foundation plan for our committee meetings while confirming that eligible organizations and projects meet the criteria for one or more of our available grantmaking programs.

This quarter, we're highlighting two anonymous donors to the Foundation who established "field of interest" funds to benefit places that are near and dear to their hearts.

The Saluda Community Fund was created in 2006 to celebrate community life in Saluda and honor the donor's family. The donor felt Saluda is “the most unique place on the planet; there is a sense in people of being where they belong.”  Over the past seventeen years, the fund has supported a host of community events as well as educational, conservation, beautification, and other local projects.

More recently, another generous donor created the Landrum Community Fund in celebration of the citizens of Landrum and seeks to support projects that serve Landrum residents.

In establishing the funds, the donors wished to not only help their towns thrive, but to inspire others to consider joining the effort as well. Anyone can give to the Landrum Community Fund or the Saluda Community Fund and anyone can establish new funds to focus their giving on one of the many special places throughout our community.

Both of these funds complement the Foundation's general grantmaking dollars, allowing our Committee and Board to match worthwhile projects in Landrum and Saluda with the support needed to help them succeed. In doing so, we continue the important work of honoring our donors' wishes by keeping the promises we've made to them in perpetuity.

A Note for Donors

Sometimes it’s challenging to clearly articulate your philanthropic goals or choose the “perfect” causes to support. Many new and experienced donors alike have been inspired by the variety of funds that are already at work in the community through the Foundation. Some may closely align with the areas you feel drawn to support and provide a model for making your own charitable dreams come true.

We'll continue to feature funds that might be appealing to our community of donors in future newsletters. In the meantime, if you’re interested in starting a new fund or contributing to existing funds like the ones highlighted above to allow them to have an even greater impact, please reach out to our President & CEO, Sara Bell at 828-859-5314 or sbell@polkccf.org.

Since 2018, the Foundation has been honored to fund the annual "Do Not Lose Hope" Walk and Remembrance event at Harmon Field. As we reflect on our mission and what it means to improve the quality of life for all in our community, we acknowledge that too many of us are touched by the struggles of mental health, addiction, and suicide. This undeniable reality is one of the reasons we and so many others throughout Polk County are committed to the work of community building.

We all need the connection that comes from caring relationships and we know from the world's longest-running study on human happiness that it's those relationships that matter most when it comes to leading happier, healthier, and longer lives. We may all want a sense of community, but it's in the building of it, sometimes one connection at a time, that can change and even save lives.

Thank you to the Polk County Health & Wellness Coalition, event founders Tamara Black and Mary Prioleau, and everyone else who helped make this year's Walk and Remembrance a success.

Photos courtesy of Tryon Daily Bulletin/Grant Langston

How to Get the Biggest Bang for Your Charitable Buck!

It’s October, which means leaves are falling, temperatures dropping and its charitable giving season! You only have a couple months to finalize your charitable intentions for 2023. The stock market is up year-to-date which means your investment accounts should be as well. So how do you make the most of your charitable dollars while also ensuring you receive the maximum tax benefit? Here are three charitable giving strategies to consider:

1. Consider making a QCD from your IRA. (Insert your own jargon-joke here😊)

If you are over the age of 70.5 and you have an individual retirement account (IRA), you are allowed to make a qualified charitable distribution (QCD) from your IRA up to $100,000 per year. This is generally the best strategy for those not itemizing deductions any longer which is most of us since the standard deduction is so high ($27,700 in 2023). If you think you might have more than $27,700 in itemized deductions (think big medical expense year or you are considering making a substantial charitable gift) then you may benefit by jumping to suggestion #2 below. Ask your financial advisor or custodian for a checkbook so you can write checks directly from your IRA to charity of choice. But take good notes come tax time, since your financial institution will not remind you that some of your distributions were QCDs. The burden is on you when it comes time to file your taxes. Consult your tax advisor for more information.

A QCD allows taxpayers over age 70½ to make tax-free distributions directly to a qualified charity. Most 501(c)(3) organizations qualify as eligible recipients. However, donor-advised-fund sponsors, private foundations and supporting organizations are ineligible. Annual donations to a church or house of worship, support of a favorite college or university as well as contributions to local charitable organizations can generally be funded through QCDs. Distributions from IRAs to fulfill required minimum distributions (RMDs) are taxed as ordinary income. When fulfilling the RMD, a client can choose to direct some or all of his/her RMD to one or more eligible charities through a QCD. In doing so, the portion donated is tax free. (Note: the SECURE Act pushed back the RMD age from 70½ to 72; however, QCDs may still be made beginning at age 70½.)

A QCD reduces IRA income, which in turn reduces a taxpayer’s MAGI (Modified Adjusted Gross Income). Here are a few examples of when QCDs should be considered:

1. You are no longer able to itemize deductions, so your charitable contributions are no longer deductible.
2. Your RMD is pushing up your MAGI into a higher premium bracket for Medicare Part B and D (IRMAA).
3. You have medical expenses that would be eligible to itemize with a lower AGI. Medical expenses exceeding 7.5% of AGI are able to be deducted on Schedule A

2. Donate appreciated securities to avoid taxes on unrealized capital gains.

Another tax efficient strategy for charitable giving is donating highly appreciated securities. Specifically, securities held in a taxable (non-IRA) brokerage or trust account with significant long-term gains (a holding period of at least 1 year). A donation of appreciated securities (generally individual stocks, ETFs or mutual funds), triggers an eligible tax deduction for the market value of the gift. The donor also avoids paying capital gains tax on the unrealized gain. Donations of appreciated stock are limited to 30% of AGI. Securities with the most unrealized gain are the best candidates for charitable gifts given more opportunity to forgo capital gains tax.

3. Open and fund a Donor-Advised Fund (DAF).

A donor advised fund (DAF) is a charitable savings account allowing you to make a larger gift for tax purposes in one year, but you can distribute the funds out over time and at your discretion. For example, let’s say you pledged $30,000 to a charity over three years. Your itemized deductions this year ($10,000 of income and property tax plus $10,000 of the multi-year pledge) do not exceed the higher standard deduction. Instead of taking the standard deduction for the next three years, you could transfer $30,000 of highly appreciated securities into a DAF, which along with the $10,000 of income and property taxes would allow you to itemize and receive a charitable deduction for the pledge in one year. Although the deduction is taken in year one, you can decide the timing of when gifts are made out of the DAF. DAFs are most often funded with appreciated securities. Once the securities are sold within the DAF, capital gains are not realized. Funding a DAF with appreciated securities is an efficient way to trim a concentrated position within a portfolio without realizing capital gains. A donor advised fund is an excellent way to teach the younger generation principles of financial stewardship by engaging them in philanthropy. It can unite family members to make meaningful impact decisions together and to pass on charitable giving experiences from one generation to the next. Often the older generation will earmark a percentage of the family’s annual gifting to be directed by the younger generation. This not only teaches principles of financial stewardship, but also allows the younger generation to engage on a deeper level and continue the family’s charitable giving legacy.

The charity of your choice will appreciate the donation no matter what tactic you employ. Your financial advisor should be able to assist you in understanding which technique is in your best interest. Happy giving!

G. Michael Baughman, CFP®

Senior Financial Advisor, Principal

Modera Wealth

Tryon, NC

Modera Wealth Management, LLC (“Modera”) is an SEC registered investment adviser. SEC registration does not imply any level of skill or training. Modera may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. For information pertaining to Modera’s registration status, its fees and services please contact Modera or refer to the Investment Adviser Public Disclosure Web site (www.adviserinfo.sec.gov) for a copy of our Disclosure Brochure which appears as Part 2A of Form ADV. Please read the Disclosure Brochure carefully before you invest or send money.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Polk County just celebrated the inaugural Great Trails State Day on October 21, joining thousands of others on North Carolina’s amazing and diverse trail networks that span from the mountains to the coast.

The Saluda Grade Trail project received significant funding in the newly passed NC state budget. The budget includes $12 million over two years to purchase the portion of the rail corridor in North Carolina. 

Did you know that Polk County's Parks, Recreation & Maintenance Department maintains an online interactive Walking Map of our area? Click on the button below to access the map and visit polktrails.org to find local spots for leisurely walks, strenuous hikes, mountain biking, birdwatching, trail running, exercising the dog, or simply enjoying nature.