The East Bay Community Foundation

Dear Friend of the East Bay Community Foundation,

Dear Friend of the East Bay Community Foundation,

As a valued colleague and professional in the financial advising and philanthropic sector, you understand that 2009 presented us all with many challenges. But we hope, as you hope, that 2010 will bring new opportunities for economic recovery and stability - especially in the dramatically impacted East Bay.

For those of us who facilitate philanthropy working with individuals, families, organizations - and with professional advisors, such as you - we must emphasize that charitable giving is now more important than ever.

In this issue, we bring to your attention four important topics. Two are proposed changes to the legislative landscape. The third is a glimpse into a successful collaboration that will result in college scholarships for an underserved community.

The fourth and final topic of this newsletter is related to the fact that we cannot be effective doing our work without unrestricted gifts that enable us to help those in need and to facilitate key collaborations and community partnerships producing jobs, healthier families and educational opportunities. We are asking for your support so that we can continue to change lives in the East Bay.

As always, we're here to work with you to ensure your clients become gratified philanthropists. The timing for their philanthropy couldn't be better.

Sincerely,

Nicole Taylor
President & CEO

Fate of Estate Tax Uncertain

The House of Representatives has approved keeping the current estate tax permanent at 45 percent for individual estates worth more than $3.5 million, but it's not certain whether the Senate - preoccupied by health care - will be able to do much more before a Dec. 31 deadline than pass a one-year extension of current law, thus delaying the issue until next year.

According to an article in the Washington Post, if "Congress does not act, the estate tax will disappear in 2010, then return in 2011 under the higher rates - 55 percent and a $1 million exemption - that existed before President George W. Bush took office."

Some Democrats in both the House and Senate prefer higher estate tax rates in order to provide the federal government with needed revenue. Most Republicans in both the House and Senate oppose the estate tax and want it abolished.

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IRA Tax Break

There is still time for people to withdraw funds from their Individual Retirement Accounts and donate the money to a charity tax free.

There is a provision that allows individuals 70-1/2 and older to do so, but the provision expires on Dec. 31. Up until then, you can transfer up to $100,000 from your IRA to the charity of your choice tax free.

According to an article in The Wall Street Journal, "there's a push on Capitol Hill to keep the tax break - and even to broaden it. If the IRA-giving provision is allowed to lapse on Dec. 31, then no one will be able to re-direct IRA money to charity without first paying taxes on that money."

The provision, originally enacted in 2006, has generated an estimated extra $140 million for charity.

If Congress - preoccupied with health care - can't renew the provision before the end of the year, it's possible it could pass a provision next year retroactive to year-end 2009, according to congressional aides contacted by The Wall Street Journal.

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Together We Can Meet Urgent Needs

After decades of grantmaking and leadership, the East Bay Community Foundation knows the challenges facing local communities. Today poverty and hunger are increasing, high-school graduation rates are falling, and thousands of homes in the East Bay are in - or at risk of - foreclosure. The vital work we do requires a strong infrastructure and fiscal flexibility - both of which are made possible by our Community Leadership Fund.

We depend on these unrestricted funds to conduct local research, create vital partnerships, and ensure results and impact. The Fund gives us the flexibility to make direct grants to meet urgent needs of at-risk children, families and adults. We need your help to ensure a strong future for our Foundation so we can sustain strong communities together.

For example, we have partnered to:

• Promote reading by grade level at third grade by supporting parents, and by providing books to schools and families, one-on-one tutoring, and reading nights to 6,000 children and families.
  
• Support 2,000 individuals with academic and career training that improves child care for infants, toddlers, and pre-schoolers.
  
• Fund programs providing 3,000 people with financial literacy training and workshops.
  
• Support the launch of a major Green Jobs program in Alameda and Contra Costa counties.
  
• Fund programs for 1,000 entrepreneurs wanting to start or expand small businesses, thus creating sustainable jobs in our communities.

You can donate online at www.eastbaycf.org, contact us at 510.836.3223, or mail your check to us at the East Bay Community Foundation, De Domenico Building, 200 Frank H. Ogawa Plaza, Oakland, CA 94612.

Thank you for your continued support. Together we are the power of many.

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