John Green is a successful business executive who worked his way up the corporate ladder. For John and his wife, Evelyn, finding ways to help others in their community has been a way of life. For the last several years, they have volunteered in the local Big Brothers and Big Sisters program. They also contribute their time and money to a local organization that helps homeless and disadvantaged people build skills to enter the job market.

During the past year, John’s company grew significantly, and he expects to receive a sizable bonus in late December. As John and Evelyn began their year-end tax planning, their accountant suggested that they consider increasing their charitable contributions this year. He knows that “giving back” is an important piece of the Greens’ lives, and it will help reduce taxes in this year of high income.

John and Evelyn agreed with the advice, but expressed concern about not having much time to consider which community organizations to support with their gift. They also had misgivings about donating a large sum of money to one charity. “If we give it this year, they may expect as much or more in years to come,” John said. The Greens’ accountant encouraged them to consider using their community foundation as a flexible vehicle that will allow them to fulfill their varied charitable interests.

Personalized Giving. After meeting with their community foundation’s staff to discuss giving choices, the Greens elected to establish a donor-advised fund in the name of their family. This will allow them to stay actively involved in suggesting uses for their fund for years to come, while providing an immediate tax deduction in the year their gift is made. The Greens can recommend distributions from their fund to their favorite charities. They can even involve their son and daughter in the distribution process, actively sharing their community values with their children.

Fostering Community. Through their community foundation, John and Evelyn Green found a way to extend their personal commitment to the people in their community and to act on their charitable interests in a very meaningful way during their lifetimes.

Each year, the Greens will meet with community foundation staff to make grant recommendations from their fund. For instance, one year they might suggest a grant to the local Big Brothers and Big Sisters organization, which is a cause they have always supported. The next year they may choose to support other organizations that match their interests, such as helping to start up an after-school children’s program, or contributing to a career development resource center for low-income families.

Tax Benefits. Because the community foundation is a public charity, it offers the Greens the highest level of tax benefits for charitable giving. The Greens can match high-income years with high charitable tax deductions that generate long-term community benefits. In addition, the Greens can add to their donor-advised fund any time they wish, and integrate future contributions within their overall financial and estate planning framework.