When the Exchange Club of Spokane, a community service organization focused on supporting child abuse prevention agencies and improving the quality of life for children, youth and families in Spokane, received a large estate gift for its Foundation, it was a blessing with complications. Funding from a single source required them to restructure as a private foundation. Attorney club members Teresa Sherman and Mary Giannini knew what this would mean for their club. It would add additional work to ensure compliance, work that club member attorneys and accountants were already providing pro bono.
Through the club’s Merrill Lynch investment advisor, their funds continued to grow even during a challenging economy and, as a private foundation, they were paying up to 2% excise tax on those earnings. When Teresa and Mary began researching other options, they discovered the opportunity to transfer their private foundation’s assets to Innovia Foundation and recommend their advisor continue to manage the assets through Innovia’s Donor Designated Advisor Program. The transfer to Innovia Foundation allowed their investments to grow tax free. As a result, the club established four separate funds at Innovia, including a donor-advised fund, that met the original donor’s restrictions and intent.
Pictured are campers at Camp Fire Inland Northwest, one of many local grant recipients from the club’s funds.
