Horicon Area Foundation
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Contact Information
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Horicon Area Foundation
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c/o Christine Stam
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P.O. Box 73
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Horicon WI 53032
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What is the Horicon Area Foundation
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It is a depository for gifts and funds given at various times by donors, either individuals or corporations, to meet community needs of an emergency, new or innovative nature. Generally, such gifts and funds will be for the benefit of the community in educational, literary, scientific, recreational, civic, public, cultural and other charitable fields.
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Established in perpetuity, it is an independent, non-profit, publicly-supported, tax-exempt, philanthropic trust designed to receive gifts, endowments, real estate, bequests, annuities or cash donations to be administered for the benefit of the whole community.
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"The Spirit of Horicon"
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The Horicon Area Foundation springs from a state of mind, "The Spirit of Horicon". Born on the shores of the Horicon Marsh, nurtured by its European immigrants, colored by the beauty of its ponds and cattails and tempered by its seasons, it is the spirit of caring, sharing, helping and working together to make the Horicon area a better place to live. This is the Spirit of Horicon. It is the spirit that has served so well to develop the physical and economic abundance around us. From the growth of metal working industries centered around the iron ore deposits of the "iron ridge", to the rich farmlands surrounding the Marsh, to the arrival of the wild geese in great numbers after World War II the Spirit of Horicon has been there. Now we have the Horicon Area Foundation to share our abundance. A charitable foundation, where all the principal and income will be used to make the Horicon area an even better place to live and where each of us imbued with the Horicon Spirit of caring, sharing, helping and working together has a place to put into action what we feel in our hearts by making tax exempt gifts and remembering the Foundation in our wills.
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Be a part of the Spirit of Horicon and support the Horicon Area Foundation.
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Why was the Trust Fund Created
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In 1986 the Horicon Community Development Corporation organized and chartered the Horicon Area Foundation to provide a vehicle through which public spirited citizens could make lasting gifts for the long term needs of the community.
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Are contributions tax deductible
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Contributions are tax deductible up to certain maximum limitations. There is no gift tax on donations to the Foundation.
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How is its purpose accomplished
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The wise distribution of money for community philanthrophy is the only goal of the Foundation, which assures donors that gifts received and distributions made from the Foundation are based on the following principles:
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"Meeting the greatest needs in the most constructive way."
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"Guaranteeing flexibility." If the original purpose for which a gift was made becomes obsolete, the flexibility of the Foundation assures the donor that his/her intentions will be carried out but adapted to changed conditions.
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"Permanent administration of funds." Funds are invested under the direction of community leaders who serve as trustees. Financial consultants may be employed to handle the Foundation investments.
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"Obtaining maximum tax advantages for the donor, the donor's heirs and estate."
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"Perpetuating a Memorial." The name of one so honored will be kept visible to the public in perpetuity.
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"Simplified gift-making." A gift may be made or a fund established with a minimum of legal complexity, report making and other entanglement. A donor simply passes his gift of stocks, bonds, real estate or cash to the Foundation with a letter stating the nature of the contribution.
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Who benefits
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The Foundation is uniquely equipped to serve both those who give and those who receive. It offers to both parties the greater efficiency and saving in time and money which result from the combining of many funds in one centrally managed enterprise. The person with limited funds to give, as well as those contributing substantial amounts, can give with assurance that their gifts will receive efficient management at minimum cost to the Foundation and with maximum usefulness as part of a large fund. Those seeking support for good causes can find in one place the information they need and the careful consideration of their requests which they deserve. The community as a whole gains from the existence of a reservoir of uncommitted philanthropic funds, flexible in scope and capable of responding to its changing needs.
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Who runs the Trust Fund
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It is operated and controlled by a board of at least seven trustees, selected because of their demonstrated knowledge of the Horicon area and their dedication to its growth and advancement.
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Does the Foundation distribute its capital
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Not ordinarily, although this will be done to comply with the specific desires of a designated gift or the provisions of a will.
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What types of gifts are usually received
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The Foundation was set up in perpetuity to receive gifts, endowments, bequests, real estate, cash donations. stocks, bonds, private foundations, insurance policies or any other type of contribution.
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A donor may write a check to the Foundation, endorse stock certificates or make a conveyance of real estate or other property of any kind.
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Or, the person may provide through his/her will that a cash sum or a portion of his/her estate shall pass to the Foundation.
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What are the donor's advantages
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(1) Flexibility, with continuity and stability.
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(2) Economy of operation.
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The uniqueness of a community trust fund has attracted strong support in the United States since the establishment of the first foundation in Cleveland in 1914. Thoughtful donors appreciate the wisdom of a permanent endowment fund with resources available to all philanthropies at a minimum cost of operation.
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"Tax Savings" Gifts made to the Foundation may enjoy a tax allowance, which could be as much as 50% of adjusted gross income. Testamentary bequests are free of estate and inheritance taxes.
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"Appreciated Values" Present tax laws permit the donor to use the present market value of securities or real property as a basis for gifts rather than the original cost.
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"Memorials" The Foundation presents many opportunities for dignified, lasting memorials to perpetuate family names in the community
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"Freedom of Choice" The Foundation provides a donor the utmost freedom in the selection of a beneficiary for his/her charity so long as the ultimate recipient qualifies for the legal definition of "charitable".
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May I make a gift directly to the Foundation
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Yes... a donor wishing to benefit his community can make a donation in the following variety of ways:
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"Memorials" - Donor pays tribute to a departed loved one or friend
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"Charitable Remainder" - Donor and any other beneficiary receives income for life. When benefits to individuals terminate, the gift passes to the Foundation.
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"Designated Gifts" - Donor designates specific purposes which the Fondation follows to the fullest. A donor may also, under certain circumstances, reserve the right to "advise and consult" with the Foundation regarding disbursements from donor's contributions.
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"Restricted Gifts" - Donor requests his/her gift to be used in certain general fields, but leaves the selection of actual agencies to the Foundation's direction.
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"Unrestricted Gifts" - These are endowment or general funds which use is determined by the Trustees of the Foundation.
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Can funds be established in a designated name
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Yes... A family's name may be preserved in this manner. All grants from such a fund project the personality and intent, as well as the name of the donor.
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Must I decide how I wish my gift to be used and what if I should later change my mind
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The Trustees will be glad to receive the suggestions whenever donors wish to make or amend them. Any philanthropic purpose may be suggested.
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Are small contributions welcomed
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Definitely. No gift is too small, nor is there any upper limit.
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Where will my gift be used
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Unless you specify to the contrary, the Trustees will apply your gift to the general philanthropic activities for which the Foundation was established.
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Why should I use the Foundation when I can have my own private foundation
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The time and expense of organizing a private foundation, securing its tax exemption, filing the required federal returns, paying the federal taxes, managing the investments, making sure there are no conflicts of interest and assessing the merits of the many appeals for money can be avoided.
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The community foundation route has proved itself to be simpler, more economical, fully adaptable to the charitable wishes of donors and faithful in meeting the greatest needs at the least costs.
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May a Trust be established so that my heirs and I will receive lifetime benefits
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Yes... The donor and other beneficiary receives income for life. When benefits to individuals terminate, the gift passes to the Foundation.
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A donor may set up an irrevocable Charitable Remainder Trust either by a gift during life or in a will.
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An Annuity Trust provides for fixed annual payments to the life tenant of 5 percent or more of the fair market value of the property at the time it was put into the trust.
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An alternative is a Unitrust in which the income beneficiary receives annual payments of 5 percent or more of the trust property valued annually. In either situation, on the death of the income recipient(s), the remainder investment is distributed to the Horicon Area Foundation. A trust of this type will allow you to:
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- increase the return on your investments
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- avoid the tax on capitol gains
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- reduce your income tax
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- increase your spendable income
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- save estate tax
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- and make a generous gift to the community
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The Foundation can assist you in structuring a donation to comply with the provisions of the Wisconsin Marital Property Act.
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How are operating costs paid
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Partly from income and partly from special gifts which a number of donors have thoughtfully provided for this purpose. Operating expenses are minimal.
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Why make a gift to the Foundation rather than directly to some worthwhile purpose
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The Foundation funds are managed by a Board of Trustees who invest them for good returns and allocate them to the most current and critical community needs. Community needs and priorities will continually change and the Trustees can keep abreast of these changes. In this way, your money is always being used for the best community purpose. In addition, gifts to the foundation are tax deductible.
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Suggested Donor Forms
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The Foundation will make available to you, upon request, suggested donor forms for unrestricted gifts. These include forms for lifetime gifts as well as forms of bequests which can be included in your will. The Foundation will also furnish, upon request, forms for restricted gifts made during lifetime or through bequests.
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Advisory Funds
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A Gift of $5,000.00 or more may establish a foundation advisory fund named for the donor who may add other gifts and make suggestions as to its use. A donor may, over a period of time, accumulate receipts for gifts made to the Foundation and when that donor's total gift is $5,000.00, the donor is eligible to create an advisory fund. The Foundation, although not bound by suggestions, welcomes the opportunity to adopt the same, consistent with its trust agreement provisions governing gifts. The procedures, forms and other details are available to interested individuals and organizations.
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Professional Advise
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Legal counsel and professional tax advise is recommended for proposed gifts of securities, life insurance or real estate and deferred gifts reserving life income or subject to other terms. The Foundation will be pleased to consult with prospective donors and their counsel and to answer inquiries by mail or telephone.
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Donor Categories
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The Following lifetime gift categories have been established at this time:
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"Horicon Spirit Donor" - Any restricted donation.
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"Charter Donor" - A single contribution of $500.00 or gifts of $100.00 per year for the first five consecutive years of the Foundation's existence.
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"Benefactor" - A contribution of $1,000.00 or more made to the Foundation in a single gift or series of gifts.
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"Founder" - A contribution of $5,000.00 or more made to the Foundation in a single gift or series of gifts.
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"Life Donor" - A contribution of $10,000.00 or more made to the Foundation in a single gift or series of gifts.
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In Memoriam
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Any bequest or any gift of $1,000.00 or more made in memory of an individual will earn that individual recognition as a Memorial Benefactor of the Horicon Area Foundation.
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All donors may be permanently recognized in an appropriate location in our community.
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