Create a Named Fund & Grow Your Gift Over Time

Jim Henry has been involved in the work of Pine Castle and supported its programs since the early 1990s. Serving multiple board terms as President, he's now a Board Member Emeritus, a "lifetime membership!" Asked recently about his community involvement and philanthropy, Jim was unequivocal - "I've supported various worthy causes in the past, but at this time in my life, I'm focusing 100% on Pine Castle!"

Jim has supported Pine Castle financially through various means over the years. He's given through a donor advised fund [DAF] that enabled him to save on taxes when he sold a business. Contributing to the DAF allowed him to get a big one-time tax deduction. He could then make "grants" to his charities of choice over time for causes and projects he cared most about.

Jim and his wife Sue, also a longtime supporter of Pine Castle, are now using another beneficial vehicle for charitable gifts to Pine Castle that is equally strategic - using a "qualified chartable distribution" [QCD] annually from his individual retirement account [IRA]. Since everyone over the age of 72 is required to take a percentage from their IRA each year this adds to their taxable income. Using the QCD, Jim can bypass taking the taxable income distribution ["Required Minimum Distribution"], and give it directly to Pine Castle with no tax liability. As Jim explained - "This makes the most sense for us right now. It actually allows us to give more annually than taking the money as income and then cutting a check to Pine Castle and paying extra taxes. It's a win-win for everyone!"

The Henrys like knowing their annual gifts to Pine Castle will address the things needed most right now. They decided to make sure their gifts were going to make the greatest impact, grow over time but not be tied up perpetually in an endowment. So, when the idea of creating a semi-endowed "named fund" came up, they were all in. The fund can be contributed to annually through Jim's IRA, focused on the greatest need and grow with other Pine Castle investments. This is called a "semi-endowed fund." The money is kept in investment accounts, the growth tracked by fund name and used by Pine Castle as the donors have directed.

Jim and Sue decided to name this fund the "Pine Castle Forever Sustainability Fund." Jim liked this because he knows emergencies often take away from Pine Castle's vital services, and emergent opportunities can go by the wayside. This fund creates an unrestricted source of income and can help Pine Castle where needed most. The board of directors at the CEO's request can approve use of the funds for whatever is needed most and keep the rest in the fund to grow over time.

The Henrys' vision to name a fund they can help grow over time using Jim's IRA QCD is what we call "giving smarter." It allows our partners to give even more in the way best for them. Not naming it after their family invites others to join them in this effort - to give smarter and build sustainable funding for years to come. As Jim said, "We hope others will join us in this project and grow the fund. Not having our name on it makes it everybody's fund!"

We are grateful to Jim and Sue for sharing their personal story with our many valued supporters. As Jim reminds us, "The important thing is to do our part the best we can. That will ensure that the folks Pine Castle serves will be able to do the very best they can too!"