As the Whidbey Community Foundation celebrates its 10th anniversary, it is inviting island residents to think about philanthropy in new ways—from simplifying their annual giving to creating a legacy that will benefit Whidbey for generations.
Imagine planting a garden in which the assets we invest grow to their best capacity and yields can be shared with the community.
The foundation’s webpage notes: “As Whidbey’s only Island-wide community foundation, we introduce caring people to local causes that inspire them. We support Island nonprofits through philanthropy, training and capacity-building. We help donors make meaningful contributions and thoughtful long-term investments in Whidbey’s health and vitality.”
Meeting with WCF members at the Flower Cafe at Bayview Farm & Garden to raise awareness of the foundation’s benefits and ways to support it, were Executive Director Jessie Gunn, Holly Harlan, Development and Donor Services Manager, and Jane Spalding, community connector and WCF board member.
“Donor Services is one of three areas where we want to focus our conversation,” said Jessie. “We’ve seen the impact of how WCF has grown. In 2016 managed $20,000. Now we manage $8.5 in assets. There are three main pathways to give.”
Donor Advised Fund—DAF
A donor advised fund (DAF) is a charitable giving account that allows donors to make a tax-deductible contribution, invest those assets for future charitable giving, and recommend grants to nonprofits over time. Many donors appreciate the flexibility of making one larger contribution and supporting multiple organizations over several years.
“Our more popular form of giving is opening a DAF fund,” added Jessie. “Donors come to us because they’ve been giving to favorite charities. They want to streamline the process by opening an account. In a donor advised fund—a donor opens a fund to support their philanthropic interest. Let’s say you give to your local food bank each year, for instance. You are in a financial position where you can ‘bundle’ your giving.”
A recent WCF blog illustrates an example of bundling. George and Sheila Saul—the couple highlighted in the blog—are WCF donors and volunteers who support the foundation’s mission. Below is a quote from the blog.
“The Sauls established a Donor Advised Fund (DAF) at WCF in March 2020 to simplify and strengthen their giving. After years of donating directly to nonprofits, they found that DAF allowed them to maximize their charitable impact—bundling gifts for tax efficiency, contributing appreciated stock without capital gains, and keeping all their charitable receipts in one place. They love the ease of WCF’s online portal, the ability to support Whidbey nonprofits with a few clicks, and the way their DAF serves as a bridge to their legacy plans. One of their first gifts was to support an early childhood reading program at Sno‑Isle Libraries in honor of George’s mother—a meaningful example of how the DAF helps them give both intention and flexibility.”
Jane Spalding said she first became interested in charitable giving after she began taking Required Minimum Distributions (RMDs) from her retirement account.
“Like many retirees, I realized those distributions increased my taxable income,” she said. “I wanted to use some of that money to support causes I care about.”
Through charitable giving—including options such as Qualified Charitable Distributions (QCDs), when eligible—she found she could support local nonprofits while making her giving more tax-efficient.
“I felt fortunate that I was in a position to give back,” she said.
NOTE. While donor advised funds are an excellent tool for organizing charitable giving, current IRS rules do not allow Qualified Charitable Distributions (QCDs) to be made directly into a donor advised fund. Individuals who are eligible to make QCDs can instead give directly from their IRA to qualified charities, including Whidbey Community Foundation’s unrestricted Foundation Fund or certain other qualifying funds, but not to a DAF.
Legacy Planning
Another way of giving is through WCF’s Legacy Planning, which “…distributes gifts immediately after your estate is settled, provides support of a set number of years, or becomes an endowment that delivers annual grants in your fund’s name,” according to the website.
The Sauls, as mentioned in the blog quoted above, also have invested in WCF’s Legacy Planning program. The blog notes:
“For George and Sheila, partnering with WCF felt like a natural extension of their values: community-rooted, practical, and focused on long-term impact. They appreciate that WCF offers ‘one‑stop convenience’ for giving—both now and after they’re gone. As George often says, WCF is the trusted partner that helps answer all the ‘What‑ifs?’ of charitable planning: What if an organization closes? What if community needs shift? What if they want to update their plans without revising their trust or will? WCF provides the flexibility, stewardship, and local insight they were looking for.”
The foundation consults with wealth advisors to curate a custom plan for its donors.
“What’s important is we work with wealth management professionals and attorneys,” said Holly “We surround our donors with the support they need. We have a lot of tools to do that.”
Jessie also mentioned what economists call the “Great Wealth Transfer”—the unprecedented transfer of trillions of dollars from one generation to the next over the coming decades. She believes even a small portion of that wealth, invested locally, could have a transformative impact on Whidbey’s future.
Anticipation of the windfall is noted across the internet. For example, here is a note from Merrill Lynch:
“As heirs receive trillions in assets over the next two decades, their investing preferences could create new opportunities,” notes a Merrill Lynch Investment story on the phenomenon. Some trends are already emerging. IT’S BEEN CALLED THE GREATEST WEALTH TRANSFER in history:1 nearly $124 trillion in assets is set to change hands through 2048, according to estimates by the consulting firm Cerulli Associates. The recipients, primarily members of Generation X (those born between 1965 and 1980), millennials (1981-1996) and Gen Z (born after 1997), are expected to inherit some $106 trillion of that amount, mainly from baby boomers, with the rest going to charity—an anticipated wealth transfer of $125 trillion.”
Supporting the Whidbey Community Foundation
Unlike gifts designated for a single organization or purpose, unrestricted gifts allow the Foundation to respond to changing community needs over time—supporting emerging opportunities, responding to crises, and investing where resources are needed most.
“Your gift to the Foundation Fund keeps us responsive in times of need, proactive in times of growth, and steady throughout every season,” notes the WCF webpage. Last year’s donations, for example, benefitted youth services, more than $140,000 toward the island’s Essential Needs program, created the Whidbey Food Resilience Fund, donated more than $2 million to more than 100 nonprofits, created educational workshops and training for nonprofits and donors, and supported emerging nonprofits.
“We’re turning 10 in September, and we are one of the youngest foundations across country,” noted Jessie. “Look at what we’ve accomplished. Now we need a community foundation that will support Whidbey Island long into the future.”
For more information, visit the Whidbey Community Foundation webpage.