COMMUNITY FUND

2011 ANNUAL REPORT
Barnesville Area
COMMUNITY FUND
2011 SCHOOL FOUNDATION
GRANT AWARDS
SCHOOL FOUNDATION
More and more school districts
around the region are struggling
with budget deficits. It is becoming
increasingly more difficult for schools to
fund special projects, add new programs
or purchase new equipment.
In 2003, the Community Fund
recognized that the establishment of a
School Foundation could open doors of
opportunity to connect potential donors
with the unmet needs of the school
district.
The mission of the Barnesville School
Foundation is to enhance the quality
of education in the Barnesville School
District by providing funds for school
programs and activities. Staff and
School Foundation committee members:
Dale Rollie, Ryan Tonsfeldt, Bryan Strand, Julie
Cossette, Holly Inniger, Shari Grabow.
Not pictured are Mary Trowbridge and Mark Kava.
faculty are encouraged to apply for
funding through the foundation.
Donations made to the School
Foundation are tax deductible. In
addition, donors may designate that
their donation be used for a particular
department such as the arts, library,
science or technology.
2011 GRANTS AWARDED
During 2011, the School Foundation
awarded $5,736 to 11 projects at the
elementary and high schools.
The chart on the right shows
a complete list of projects
that were funded. The
school district’s recent
action to provide iPads
to every student K-12
creates more donor
opportunities to help
fund curriculum for
the iPads.
HALL OF HONOR
The School Foundation also
coordinates the Barnesville Public Schools
Hall of Honor, which annually recognizes
Barnesville High alumni in the areas
of Administration/Teachers, the Arts,
Athletics, Academics and Community.
Those selected will be recognized
at a banquet to be held as part of
Homecoming Week.
Nomination forms are available on
the Barnesville school district website at
www.barnesville.k12.mn.us. and should
be submitted by August 1.
‘‘
ENHANCING OUR
EDUCATIONAL
OPPORTUNITIES
Elementary Library furniture $200
6th grade trip to State Capitol
$310
3rd grade trip to LakeShirts
$175
1st grade trip to Chahinkapa Zoo $235
K-trip to Red River Zoo
$350
High School Library
$322
iPad for RTI Groups & Testing
$700
History department
$800
Special Education department
$335
Robotics team
$800
Youth Frontiers Bullying Program $1,000
Junior Achievement
$509
Grants provided by the School
Foundation make possible programs
that otherwise would not exist.
- Superintendent Scott Loeslie
Statement of Financial Condition
NEW ENDOWMENT FUND
IS ESTABLISHED
December 31, 2011
Loan Fund
405,517
Loans Receivable
65,717
Dollars for Scholars
139,906
General Fund
58,435
Grant Fund
7,840
Humanitarian Fund
11,878
School Foundation
4,943
Library of the Future
2,879
Endowment Fund
10,000
Restricted Funds
22,200
Pledges Receivable
48,743
TOTAL
$778,058
2011 Disbursements
Grant Fund
B’ville Post Prom
Community Ed
Hildebrand Hall
Main Street Program
Group WorkCamp
Other Grants
1,000
1,000
1,000
1,000
1,000
Habitat for Humanity
Barnesville Daycare
Barnesville Cemetery
Leadership Barnesville
2,500
81
250
1,657
Dollars for Scholars
29 Scholarships
$20,500
School Foundation
12 Awards
$5,736
Humanitarian Fund
4 Families
$21,179
In 2011, West Central Initiative (WCI)
announced their 25th Anniversary
Endowment Challenge to encourage its
component funds to create or increase a
permanent endowment fund by raising at
least $10,000 by Dec. 31, 2011.
The Barnesville Area Community
Fund was one of 15 component funds to
successfully meet the challenge; and as a
result, received $5,000 from WCI for its
endowment.
“Even though we don’t have a trophy
to hand out, we still want to recognize
the outstanding performance of the
Barnesville fund,” said Tom McSparron,
WCI’s Donor Services Officer.
“Because of their efforts, these
dollars and future donations made to the
permanent endowment fund will stay
invested to keep producing income for
the foundation year after year.”
IN HONOR OR MEMORY
Why not consider a gift to the Barnesville
Area Community Fund in memory or in
honor of someone who was active or
supportive of the community? Printed
cards are available at the EDA office,
2nd floor, Wells Fargo. 2011 gifts:
In Memory of JoAnne Curtis-Ogren
Sharon Temanson
Kevin & Gayle Solum
In Honor of Floyd and Dorothy Butenhoff
Sharon Temanson
In Memory of Pearl Quinnild
Roger & Shirley Adrian
In Memory of Lorraine Olson
Sean & Veronica Wahl
In Memory of Tom Thompson
Sean & Veronica Wahl
In Honor of Julie Krabbenhoft
Gordon & Bonnie Swenson
In Memory of Herman Dunham
Delores Dunham
In Memory of Stanley Toso
William & Elaine Austin
In Memory of Raymond Froslie
William & Elaine Austin
In Memory of Calvin Schuster
Barnesville Chiropractic Clinic
Roger & Shirley Adrian
In Memory of Raymond Christianson
William & Elaine Austin
In Memory of Lyla Evert
William & Elaine Austin
In Memory of Fritz Johnk
Roger & Shirley Adrian
In Memory of Steve Peterson
Roger & Shirley Adrian
Sean & Vernonica Wahl
2012 Board of Directors: Kristal Rick, Cliff Froslie, Mark Huesman, Dr. Sean Wahl, Mike Farrell, Patty Halverson, Joy Solum, Kristy Loeks,
Pam Aakre, Pastor Tom Eaves, Ryan Tonsfeldt, Shelly Dunham and Brad Field
Page 2
2011 Barnesville Area Community Fund Annual Report
GRANT FUND ASSISTS FIVE BARNESVILLE
AREA NON-PROFIT GROUPS
Five local non-profit groups each
received $1,000 of funding through
the Grant Fund during 2011. Since it’s
inception, the Grant Fund has distributed
$147,171 to over 45 area non-profit
organizations.
Groups which were assisted during
2011 included Barnesville Community
Ed who received $1,000 for their
summer theater production of the play,
“Jungle Book”. Funds provided to the
Barnesville Post Prom committee for
game rental at the Post Prom Party.
The Northern Lights Group
Work Camp sponsored by the Lakes and
Prairies Community Action Partnership
used their funding to purchase building
materials to help needy homeowners
repair homes in Barnesville and rural Clay
County.
Hildebrand Hall, owned by
Assumption Church, which hosts a variety
of community events during the year
received $1,000 to make improvements
to the kitchen and bathroom, as well as
replace chairs.
Finally, the Barnesville Main
Street Program used their grant to help
defray the costs of the Community
Picnic which is annually held in July.
The Grant Fund assists Barnesville
area non-profits with a variety of
projects. The board meets monthly to
consider applications.
Current members of the
Grant Fund are Julie Johnson,
Phyllis Peppel, Marlene Schell,
Becky Stout, Jeff Tharaldson,
Darin Allmaras, Maren Gemar
and Mark Huesman.
For more information,
contact Grant Fund
chairperson Julie Johnson at
354-7648.
COMMUNITY FUND SUPPORTS 2011
BARNESVILLE HABITAT FOR HUMANITY BUILD
During 2011 the Community Fund Board of Directors
was pleased to provide $2,500 towards the
Habitat for Humanity Barnesville Build.
The project, sponsored by the Barnesville
Ministerium was the first Habitat project in rural
Clay County. After completing a $50,000
fundraising campaign, the home was built by
community volunteers in June and July.
The Community Fund was excited to partner
with local businesses, organizations and volunteers
to help make this exciting project a reality!
As a result of the financial and physical support
of scores of local individuals and organizations, Rogena
Fronning and her two children, Kate and Noah now
have a place to call home!
2011 Barnesville Area Community Fund Annual Report
Page 3
$20,500 IN SCHOLARSHIPS ARE
AWARDED TO 29 GRADUATES
Since its establishment in 1991, the Barnesville Dollars
for Scholars chapter has awarded over $234,000 in
scholarships to 444 seniors graduating from Barnesville
High School. These scholarships are only possible through
donations from individuals, businesses and organizations.
Through Dollars for Scholars, you have the opportunity
to make a strong statement about the importance of
education beyond high school. Please consider making a
donation, or establishing a scholarship to open the doors for
local students graduating from Barnesville High School.
A total of $20,500 in scholarships were awarded to
29 BHS graduates from the Class of 2011.
2011 Dollars for Scholars recipients were:
Dakota Aberle, Elizabeth Anderson, Sally Berg, Abby
Brandt, Paige Dobmeier, Jeremy Feist, Brad Halverson,
Reed Haugrud, Caitlin Johns, Jeff Johnson, Brooke
Meyer, Conner Paul, Emily Schmiess, Samantha Stahl,
Heidi Nelson, Brittany Walters, Katherine Affield, Callie
Bowen, Zach Hochhalter, Connor Lewis, Mary Schindler,
Brady Solum, Anna Swenson, Tandi Thompson, John
Hagen, Addie Vancura, Eric Buchholz, Boone
Mahar and Haily Vold.
NAMED SCHOLARSHIPS
Rick Holland Memorial
$500
Sponsored by the Barnesville Volunteer Fire Department in
memory of Rick Holland, who was a 16 year volunteer on the
local fire department and served as fire chief from 1984-1991
Knights of Columbus
Community service minded
$500
Midwest Bank
Community service minded
$500
Perry Trowbridge Memorial
Pursuing an education degree
$500
Ulteig Engineers
$500
Pursuing an engineering degree. Ulteig Engineers pledged
four $500 scholarships; one given each year 2009-2012
Barnesville Lions
Community service minded
$750
Barnesville Aces
$500
Someone who has participated in Barnesville JO Volleyball,
possibly play volleyball at college level
Peter & Hannah Thompson Memorial
$1,000
Peter is recognized as the “father of Barnesville.” Scholarship
established by Peter’s grandson and awarded to a person
who is pursuing a business degree.
RESTRICTED SCHOLARSHIPS
Clarence Ebert
$500
Clarence was a vo-ag instructor and FFA advisor at BHS
1953-1968. The scholarship was established by his family
and is awarded to an active FFA member.
Bud Shulstad
$500
Bud was an avid civic and agricultural leader in the area
for most of his life farming in Wilkin and Clay counties. The
scholarship was established by his family and is awarded to
a person pursuing some type of agricultural field.
Sam & Mary Syvertson
Two $1,000
The Syvertsons were fervent Trojan fans. The scholarship is
awarded to one boy and one girl who actively participated in
Trojan athletics.
Page 4
2011 Barnesville Area Community Fund Annual Report
WHERE ARE THE BARNESVILLE
SCHOLARSHIP RECIPIENTS NOW?
While a number of past scholarship have moved
to other parts of the country, several recipients continue
to live the community after earning their college degree.
These farmers, teachers, medical personnel, business
owners and professionals are community leaders who
are raising families of their own.
Listed below is an update on what some past
Dollars for Scholars scholarship recipients are currently
doing since receiving their diploma from Barnesville High
School. Those listed were selected randomly.
PAUL AUSTIN ‘89
Attended Vermillion Community College, Ely, MN for one
year, pipe fitter for Grants Mechanical, Fargo, ND for
commercial businesses HVAC systems.
CHUCK ANDERSON ‘89
Earned ag engineering degree from NDSU; farmer and
real estate appraiser in Barnesville area.
MIKE CIHAK ’89
Graduate of Moorhead State University, assistant director
of marketing communication and design,U of M, Morris.
DEANN LIEN ’90
Earned a BA degree from Moorhead State University,
currently working as a paralegal at Vogel Law Firm,
Moorhead, MN.
KIRBY SCHEER ’91
Earned Doctor of Philosophy in business administration
from Northcentral University, owns Yeahbay, Inc., a
company that develops websites, adjunct professor at
three different universities, lives at Big Lake, MN.
ANGELA (TEMANSON) JOHNSON ’91
Graduated from Augustana College, Sioux Falls, SD;
with degree in social work, program director Foster
Grandparent/Senior Companion programs in NW Iowa.
CAROLYN (MOE) DAHLAN ‘99
Nursing degree from University of North Dakota, Grand
Forks, ND, works as registered nurse at Methodist
Hospital, St. Louis Park, MN.
JASON SALBER ‘99
Earned BS degree in electrical engineering from the U of
M Minneapolis graduate, employed as a project manager
for Sweeney Controls, Fargo, ND.
KAREN (AUSTIN) WHITTEN ‘92
Earned a Business management degree from North
Dakota State University, works for Microsoft as a
premiere field engineer manager.
LISA (RAMACHER) KAUFMAN ’99
Graduated from MSUM, Moorhead, MN, with a BS degree
in Health & Sports Science, received doctorate of physical
therapy from the University of Mary, Bismarck, ND,
currently employed at Medcenter One, Bismarck, ND.
MATT DESING ’92
Earned undergraduate degree in International Relations
and Spanish with a minor in French at Concordia College,
earned masters and PhD from U of M Minneapolis, is an
assistant professor at the University of Texas at El Paso
teaching medieval and early modern Spanish literature.
AMY (MACKNER) GROSS ’00
Earned BA degree from Augsburg College, Minneapolis,
MN, masters degree from North Dakota State University,
Fargo, ND and PhD from University of Western Michigan,
Kalamazoo, MI, currently employed at U of M Minneapolis
as assistant professor/pediatric psychologist.
RORY (HEIDECKER) TANGEN ‘94
Earned two associate degrees NDCSC, Wahpeton, ND, is
a dental hygenist for Dr. John Jordan, Detroit Lakes, MN.
NICHOLAS AAKRE ‘02
Earned dual BA degree in Government & International
Affairs and in Economics from Augustana College, Sioux
Falls, SD, employed as an economist with the Bureau of
Labor Statistics, Washington, DC.
JESSICA (SALBER) SWENSON ‘96
Earned a BSB (business) degree from U of M,
Minneapolis Carlson School of Management, lead
financial analyst with Honeywell, Minneapolis.
SCOTT BAUER ’96
Graduated with an ag business degree from North Dakota
State University, spent nine years as a store manager
for Titan Machinery, Fargo, ND and recently promoted to
credit manager at the home office.
JOSHUA FEIGUM ’97
Received mass communications degree from MSUM,
working for Johnson Brothers, Fargo, ND.
LYNELLE (RAMACHER) STANFORD ’97
Graduated with BS from Minnesota State University,
Moorhead, MN with high honors in Health & Sports Science,
worked in this area for a little while before becoming a
finance loan officer in Crested Butte, CO; currently an
assistant to the town marshal in Crested Butte, CO.
CATHERINE MOE ‘02
Attended University of North Dakota, Grand Forks, ND,
studied in Australia, graduate of U of M Minneapolis with
a degree in physics, emphasis in biology, works with
cancer patients as a certified medical dosimetrist at the
Roger Maris Cancer Center, Fargo.
COREY GILBERTSON ’03
Earned BS from MSUM in social studies education, is a
store engagement manager at JCPenney, Fargo, ND.
BECKY (GILBERTSON) TORKELSON ’04
Graduated from Minnesota State University Moorhead
with a business management degree, employed at
Scheels All Sports, Fargo, as corporate point of sale.
DANNY HARRIS ’98
Attended Minnesota State University before transferring
to Detroit Lake Community College where he earned
a civil engineering degree, working for Interstate
Engineering, Fergus Falls, MN.
JILL (FIELD) IVERSON ’98
Graduated U of M Minneapolis in 2003 with a BA degree
in physiology and BS degree in kinesiology, 2007
graduate of Northwestern Health Sciences University,
Bloomington, MN with doctorate of chiropractic, employed
at Lyn Lake Chiropractic, Minneapolis, MN from 20072011, opened Fergus Falls Chiropractic in September
2011, Fergus Falls, MN.
2011 Barnesville Area Community Fund Annual Report
Page 5
LEADERSHIP BARNESVILLE PROGRAM
GRADUATES EIGHTEEN IN APRIL
In April of this year, 18 Barnesville area residents graduated from the seven
month Leadership Barnesville program. The course began at a high ropes course,
north of Valley City last September.
Topics covered in the monthly sessions included teambuilding, stakeholder
analysis, consensus and conflict management.
Graduating this year were: Jaynie Herbranson, Laura Brown, Josh Kadrmas,
Cathy Enstad, Shelly Dunham, Terry Ystenes, Josh Johnson, Harold Hagen,
Derrick Sundeen, Marisa Warren, Jordan Kurtz, Heather Weber, Eileen Plath,
Chris Messer, Armand Swenson, Marilyn Eaves,
Angela Hagen and Frank Peloubet.
This was the ninth year of the program which
is designed to help participants strengthen their
leadership skills and broaden
community awareness.
The program is sponsored by the Barnesville Area Community Fund with financial
assistance through West Central Initiative, Wells Fargo, Midwest Bank, Barnesville Lions and Thursday Nite Lions. For more information call 354-2145.
LEADERSHIP BARNESVILLE ALUMNI ARE OUT MAKING A DIFFERENCE!
Page 6
Just as the ripples created when a
stone is skipped into a lake, Leadership
Barnesville alumni have touched nearly
every organization in the community.
Ken Kolding Sr. ‘03 is quick to
share his story about how Leadership
Barnesville gave him the confidence to
run for and be elected as the Lions District
Governor in 2007. Kristal Rick, ‘04 a
member of the St. James Board of Trustees
agrees, “The program empowered me to
know I could make a difference....”
These are just two of the folks who
have given back. Of the 7 members on
the Barnesville Planning Commission, 4
are graduates of the program, including
Chairman Mike Detloff, ‘11 . As a result
of a leadership project, Vikki Nielsen
‘05 learned about the Barnesville Food
Pantry and today she and alumni Sara
Lien are co-chairs of the pantry!
The Barnesville Lions who have
financially supported the program since
it started have found themselves to be
beneficiaries of the program. Among
the many Lions members who have gone
2011 Barnesville Area Community Fund Annual Report
through the program, three of the four
officers are alumni - Mike Pearson ‘04,
Dean Ernst ‘03 and Jon Yeske ‘08 are
in line to become the President!
The Community Fund Board is quick
to practice what it preaches. Of the 13
member Board of Directors, 6 have gone
through the program and several have
served as trainers for the program.
Ann Arbor Miller
At a strategic planning meeting of
the Barnesville Area Community Fund
in 2002, all agreed that it was getting
harder and harder to find people to take
on leadership roles in the community,
from church boards to Lions, Boy Scouts
to PTA. During that discussion EDA
Executive Director Karen Lauer shared
some information she had received about
community based leadership programs.
Designed as a way to empower citizens
through teambuilding activities and
leadership skill training, programs across
the nation had proven results.
So it was in September 2002 with
financial assistance from West Central
Initiative, Wells Fargo, Midwest Bank and
the Barnesville Lions, 18 participants took
part in the the first Leadership Barnesville
program. Ten years later, nearly 170
Barnesville area residents have gone
through the program. While many of the
graduates will tell you of the impact the
program had on them personally, the real
impact has been in their continued sharing
of time and talent with the community.
Nicky Nelson ‘08 truly believes in
the program and the impact it has on
the community. Nicky has been very
involved in reaching out to high school
students to be part of the program as
a member of the Leadership Planning
Committee. Recently Nicky joined the
Our Savior’s Church Council, putting her
leadership training to practical use.
ESTATE
PLANNING
John Shockley, Attorney
Ohnstad Twichell Law Firm
- offices in Barnesville
BENEFITS OF USING CHARITABLE
REMAINDER TRUSTS
Charitable Remainder Trusts are an attractive option
for people who want to make significant gifts to a charity while
retaining income for themselves or family members. Under a
typical Charitable Remainder Trust, the donor will contribute
property to the trust, reserving to himself an income stream which
must be paid at least annually either for his life, his and his spouse’s
lives, or for a set length of time not in excess of 20 years. Upon
the termination of this income beneficiary’s interest, the remainder
of the assets in the trust will pass to a charity or charities of the
donor’s choice.
Charitable Remainder Trusts offer income tax and estate
tax charitable deductions, avoidance of capital gains taxes when
the trust is funded with appreciated assets, and, if a bank trustee
is used, professional management and investment.
The Charitable Remainder Trust is most often used for
highly appreciated stock. After the stock has been transferred
to the trust, the stock can be sold free of any capital gains taxes
and a very generous income tax deduction can also be given to
the donor based upon the life expectancy of the donor if the
trust ends upon the donor’s death. Upon the donor’s death, the
property will be transferred to the charity of the donor’s choice
free of any estate tax.
Charitable Remainder Trusts can also be very beneficial
when a farmer retires and plans on having an auction sale on his
farm machinery. Many times, when the farmer does have his
auction sale, he is very surprised at the very substantial income
tax consequences because, most often, there is very little, if any,
depreciation left on the farm machinery.
On the other hand, if the farmer first transfers his farm
machinery into a Charitable Remainder Trust and, subsequently,
the Trustee of this trust sells the farm machinery, he would
significantly reduce his income tax consequences.
Unlike the case of the transfer of stock into a Charitable
Remainder Trust, the transfer of farm machinery or other farm
personal property into a Charitable Remainder Trust, normally
will not result in any charitable income tax deduction to the farmer.
This is because these assets are ordinary income property in the
farmer’s hands and, therefore, would produce ordinary income if
sold at its fair market value. The farmer, a cash basis taxpayer,
has already deducted the depreciation on the farm machinery
leaving him with a zero basis.
By using a Charitable Remainder Trust for the sale of the
farm machinery, the farmer can substantially increase his income.
Furthermore, upon the death of the farmer, or if the farmer
wishes, upon the death of the farmer and the farmer’s spouse, the
trust will be distributed to the charity or charities of the farmer’s
choice, thereby eliminating the estate tax on the machinery sale as
well. Finally, the farmer will not recognize any self-employment
income on the transfers of the farm machinery to the Charitable
Remainder Trust, or on the sale of the farm machinery by the
Charitable Remainder Trust. Distributions from the trust to the
farmer will not constitute self-employment income either.
Even though the trust must be irrevocable which means that
the farmer cannot change his mind about the trust after he creates
it, the farmer can retain the right to change the trustee of the trust
and can also retain the right to change the charity. Furthermore,
as many charities can benefit as the farmer chooses.
The future is exciting, and a little scary too. You wish you could be
there for the people, community and organizations you care about. Well
here’s some good news.....You can BE THERE for others. Leaving a
legacy is not something reserved for the rich and famous.
Start today in 4 easy steps!
Make sure you have an up-to-date will (or living trust) that reflects
your charitable objectives.
1.
2.
3.
4.
Make your favorite charity a beneficiary of your life insurance,
pension plan or IRA.
Think beyond cash - you can leave stocks, real estate, insurance
policies and other property to charitable oeganizations.
Contact your financial advisor (a financial planner, lawyer or
accountant) and ask for help in establishing a charitable gift.
There’s a
great big
FUTURE
out there.
2011 Barnesville Area Community Fund Annual Report
Page 7
Barnesville Area Comunity Fund
An Affiliate of West Central Initiative
Post Office Box 461
Barnesville, Minnesota
56514
Presorted
Standard
U.S. POSTAGE
Return Service Requested
PA I D
Barnesville, MN
PERMIT #10
* * * ECRWSS * * *
POSTAL CUSTOMER
HUMANITARIAN FUND TOUCHES PEOPLE’S LIVES
Area Community Fund
Touching People’s Lives
....Making a Difference
BOARD OF DIRECTORS
Shelly Dunham
Kristy Loeks
Brad Field
Patty Halverson
Dr. Sean Wahl
Mike Farrell
Pastor Tom Eaves
Kristal Rick
Joy Solum
Cliff Froslie
Ryan Tonsfeldt
Mark Huesman
Pam Aakre
493-4339
354-7310
354-7622
329-8006
354-2531
493-4411
354-2630
354-7165
493-4245
867-2218
354-7463
354-2811
937-5500
FOR MORE INFORMATION
Grants for Non-Profits
Julie Johnson
354-7648
Humanitarian needs
Any Barnesville area minister
Low Interest Business Loans
Karen Lauer
354-2145
Dollars for Scholars
Pam Aakre
937-5500
‘‘
BARNESVILLE
During 2011, four area families were
touched through the generosity of the
Humanitarian Fund, one of the five funds
under the direction of the Barnesville
Area Community Fund.
One of the individuals was Jayne Lien
for whom a roast beef benefit dinner was
held in April 2011.
The Humanitarian Fund provides an
accountable and trustable system to both
receive and distribute funds that are
raised to help individuals in need.
Donations to the fund are tax-deductible
and accepted on an ongoing basis. All
families who receive assistance do so
without any tax consequences.
Area residents facing a medical crisis
or other personal tragedies are urged to
contact any area minister.
Organizations planning a fundraising
event should contact Patty Halverson at
354-7356 to discuss the advantages of
working through the Humanitarian Fund.
Without the generosity
of the community
there would have been no
way to have gotten my recent
hip replacement.
We are deeply grateful.
- Jayne and daughter Dayna
BERG AUTO BODY GETS ASSISTANCE FROM
LOAN FUND
When Chad Hayden was thinking about
selling his auto body repair business; long time
employee Lucas Berg said he was interested
in buying the business.
A few months later, with the assistance
of a low interest loan from the Barnesville
Area Revolving Loan Fund, Hayden
Collision & Classics became Berg Auto
Body.
Berg is excited to continue the long
standing tradition of having an auto body
repair business in downtown Barnesville.
“I love doing auto body and I take a lot
of pride in what I do. I am very excited for this amazing
opportunity to serve the Barnesville area.” said Berg.
ESTATE
PLANNING
John Shockley, Attorney
Ohnstad Twichell Law Firm
- offices in Barnesville
BENEFITS OF USING CHARITABLE
REMAINDER TRUSTS
Charitable Remainder Trusts are an attractive option
for people who want to make significant gifts to a charity while
retaining income for themselves or family members. Under a
typical Charitable Remainder Trust, the donor will contribute
property to the trust, reserving to himself an income stream which
must be paid at least annually either for his life, his and his spouse’s
lives, or for a set length of time not in excess of 20 years. Upon
the termination of this income beneficiary’s interest, the remainder
of the assets in the trust will pass to a charity or charities of the
donor’s choice.
Charitable Remainder Trusts offer income tax and estate
tax charitable deductions, avoidance of capital gains taxes when
the trust is funded with appreciated assets, and, if a bank trustee
is used, professional management and investment.
The Charitable Remainder Trust is most often used for
highly appreciated stock. After the stock has been transferred
to the trust, the stock can be sold free of any capital gains taxes
and a very generous income tax deduction can also be given to
the donor based upon the life expectancy of the donor if the
trust ends upon the donor’s death. Upon the donor’s death, the
property will be transferred to the charity of the donor’s choice
free of any estate tax.
Charitable Remainder Trusts can also be very beneficial
when a farmer retires and plans on having an auction sale on his
farm machinery. Many times, when the farmer does have his
auction sale, he is very surprised at the very substantial income
tax consequences because, most often, there is very little, if any,
depreciation left on the farm machinery.
On the other hand, if the farmer first transfers his farm
machinery into a Charitable Remainder Trust and, subsequently,
the Trustee of this trust sells the farm machinery, he would
significantly reduce his income tax consequences.
Unlike the case of the transfer of stock into a Charitable
Remainder Trust, the transfer of farm machinery or other farm
personal property into a Charitable Remainder Trust, normally
will not result in any charitable income tax deduction to the farmer.
This is because these assets are ordinary income property in the
farmer’s hands and, therefore, would produce ordinary income if
sold at its fair market value. The farmer, a cash basis taxpayer,
has already deducted the depreciation on the farm machinery
leaving him with a zero basis.
By using a Charitable Remainder Trust for the sale of the
farm machinery, the farmer can substantially increase his income.
Furthermore, upon the death of the farmer, or if the farmer
wishes, upon the death of the farmer and the farmer’s spouse, the
trust will be distributed to the charity or charities of the farmer’s
choice, thereby eliminating the estate tax on the machinery sale as
well. Finally, the farmer will not recognize any self-employment
income on the transfers of the farm machinery to the Charitable
Remainder Trust, or on the sale of the farm machinery by the
Charitable Remainder Trust. Distributions from the trust to the
farmer will not constitute self-employment income either.
Even though the trust must be irrevocable which means that
the farmer cannot change his mind about the trust after he creates
it, the farmer can retain the right to change the trustee of the trust
and can also retain the right to change the charity. Furthermore,
as many charities can benefit as the farmer chooses.
The future is exciting, and a little scary too. You wish you could be
there for the people, community and organizations you care about. Well
here’s some good news.....You can BE THERE for others. Leaving a
legacy is not something reserved for the rich and famous.
Start today in 4 easy steps!
Make sure you have an up-to-date will (or living trust) that reflects
your charitable objectives.
1.
2.
3.
4.
Make your favorite charity a beneficiary of your life insurance,
pension plan or IRA.
Think beyond cash - you can leave stocks, real estate, insurance
policies and other property to charitable oeganizations.
Contact your financial advisor (a financial planner, lawyer or
accountant) and ask for help in establishing a charitable gift.
There’s a
great big
FUTURE
out there.
2011 Barnesville Area Community Fund Annual Report
Page 7