Transfer bolsters the foundation’s assets and its role as an enduring philanthropic leader in the Pioneer Valley

SPRINGFIELD—After collaborating with the Community Foundation of Western Massachusetts (CFWM) for 29 years, the Bank of America in May transferred three trusts totaling over $22 million to the Valley-wide grant funder.

The move brings CFWM’s total earned assets from roughly $153 million to $175 million and bolsters its role as an enduring philanthropic leader in the Pioneer Valley.

“That the Bank of America has enough faith in us and what we can do, and in our ability to effectively administer funds, acknowledges that we are truly a leader of philanthropy in the Pioneer Valley,” said Elizabeth H. Sillin, trustee chair of CFWM.

She said the increase in assets will help CFWM to better position itself to attract funds from partners and other granting entities outside the region to support its work. “The more internal muscle they see that we have, the more confident they will be in investing their dollars with us,” said Sillin, a partner with the law firm Bulkley, Richardson and Gelinas, LLP. “The bigger and more effective you are, the more likely it is that you are going to attract other dollars.”

Founded in 1990, CFWM administers a charitable endowment consisting of over 600 separately identified funds totaling approximately $175 million. Some of these charitable assets are unrestricted and are used to meet emerging and changing needs in our region. Others support named nonprofit organizations or provide financial support to college-bound students. Still others are donor advised, offering flexibility to donors in timing, amount, and beneficiary of their giving. Last year, CFWM awarded $7.3 million in grants to nonprofits, and $2.2 million in scholarships and interest-free loans to over 770 area students.

The Bank of America funds will continue to support a wide variety of organizations for generations to come, from grassroots community food pantries to region-spanning arts programs—and will preserve the original donors’ wishes to support their communities in perpetuity.  

Serving Hampden, Hampshire, and Franklin counties, CFWM is fueled by over 150 active volunteers who take on tasks ranging from reviewing scholarship applications to serving on committees focused on finance, investing, education, and philanthropy. 

At the end of its first fiscal year in 1991, CFWM reported assets of $830,730, representing the first group of donors and contributors. “The transfer marks the largest, single gain in its assets,” said CFWM Trustee George Arwady, the publisher and CEO of The Republican. “Generations of local families will benefit.”

Arwady explained, “By adding these new assets to CFWM, the foundation increases its ability to meet the needs of the community while also increasing its visibility and attractiveness to other donors who are looking for the right vehicle for their funds to make the most difference.”

The three trusts transferred from the bank to the foundation are: The Eugene A. Dexter Charitable Fund, established in 1944; The Nan and Matilda Heydt Fund, established in 1960; and The Valley Charitable Trust Fund, established in 1960. All three were originally created to support and serve charitable organizations and interests with a focus on Springfield and Hampden County.

“This transfer represents decades of a dedicated, collaborative effort between the foundation and the bank and is an inspiring example of how the legacy of philanthropy can have a profound and sustainable impact,” said Katie Allan Zobel, the foundation’s president and CEO. 

Carol Leary, longtime president of Bay Path University and an emeritus trustee of the foundation, said, “This significant act of philanthropy will have a lasting legacy and will certainly signal to other organizations or individuals the trust that Bank of America has in the board and the leadership of the foundation.”

While the bank transfer provides growth for the CFWM, Sillin said another recent advancement for the organization was the well-known Valley Gives Day, which was run from 2012 to 2018.

Valley Gives Day helped area nonprofits increase their giving by using online vehicles for donations, and it also earned trust and visibility for the foundation. “We offered a way for people in the Valley to self-identify as givers, and we served as effective consciousness raisers,” she said. Over $10 million was raised over the six 24-hour giving days. 

Sillin and Arwady both emphasized how community foundations play a key role in any region’s philanthropic endeavors.

Sillin was inspired to get involved with the Community Foundation of Western Massachusetts 15 years ago because her father helped launch a foundation in central New York, where she was raised. She said community foundations were formed because big donors were creating trusts at banks, and the banks, in turn, were becoming overwhelmed. 

“The Community Foundation of Western Massachusetts was formed with a lot of these banking organizations to help administer the trusts and distribute the money effectively,” Sillin said. “There are all kinds of donors in the Valley looking for a place that is nimble enough to achieve philanthropic goals over time, and the Community Foundation is in a great position to do that.”

Arwady said community foundations in general do the most good with donor assets for their communities—forever. “I’ve moved around the country and have four community foundations in my will. They are the best way to use your money for good,” he said. 

About the Community Foundation of Western Massachusetts

Founded in 1990, the Community Foundation of Western Massachusetts administers a charitable endowment consisting of 609 separately identified funds ($175 million) serving the three counties bordering the Connecticut River in Western Massachusetts (Hampden, Hampshire, and Franklin counties). For more information about the reach and impact of the Community Foundation of Western Massachusetts, visit http://communityfoundation.org.

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“That’s the attitude some people have about giving,” Keady told roughly 20 area residents and staff members of various organizations who gathered on March 30 at Longmeadow Country Club for a panel presentation called “Informed Giving: A Look at Philanthropy’s Role in Estate Planning.”

The talk was offered in partnership by Glenmeadow Retirement and the Community Foundation of Western Massachusetts as part of Glenmeadow’s free education series called Glenmeadow Learning.

Glenmeadow is an accredited not-for-profit continuing care retirement community known for its holistic mission and innovative programs and outreach to the wider community. In opening the panel discussion, Timothy V. Cotz, president and chief executive officer, explained that Glenmeadow’s roots are firmly based in philanthropy; it’s been financial gifts and bequests over the years that have allowed the nonprofit to grow from one that serves 40 people annually to one that serves roughly 475 residents on the Longmeadow campus and throughout greater Springfield.

Cotz said Glenmeadow now gives back to residents in need through scholarship programs, and it provides many free programs in the community, such as Glenmeadow Learning.

The Community Foundation, in its 25^th year, is a nonprofit that serves as a steward of philanthropic gifts from community members. Each year, the foundation distributes from $8 to $10 million through grants and scholarship programs that benefit students and nonprofits in Hampden, Hampshire and Franklin counties.

Moderated by Katie Allan Zobel, president of the foundation, five panelists outlined the legal and financial mechanisms through which gifts can be made, discussed the tax benefits of such gifts and also shared their own personal stories of philanthropic inspiration.

Zobel said each year in this country, people offer up over $3 billion in charitable giving, and roughly 80 percent of that is in reaction to an ask. “The majority of Americans are reactive givers,” Zobel said, describing what she calls “check-book giving.” “Many of us don’t stop and think strategically about what we’re trying to accomplish with our gifts.”

Zobel said philanthropy is a great facet of a solid estate plan, and it begins with some planning around what you might want to preserve or change in the world. “What is really most important to you in your life? What are the things that you value most in this world?” she asked.

To help people answer those questions and develop a plan, Zobel recommended the development of a team that includes a financial planner and a tax attorney.

Attorney Todd C. Ratner of Bacon Wilson, P.C. said donor advised funds are one of many charitable giving opportunities.  There are many other avenues, some simpler and some more complex.

Some simple means of giving Ratner cited are bequests in wills, revocable trusts and donating appreciated assets, including financial accounts such as IRAs and securities. Other more involved charitable giving opportunities include Charitable Remainder Trusts and Charitable Lead Trusts. These mechanisms, and gifts through real estate, assist the donor in probate avoidance and can also potentially provide the donor with significant income, capital gains and estate tax savings, Ratner said.

By means of example, Keady, of Keady, Foard, Montemagni Wealth Management Group in Springfield, said he and his wife made a gift in stocks to the Community Foundation that provided them with a considerable tax benefit.

Keady said the topic of philanthropy is one that comes up in all his annual reviews with clients. “It’s a broad-based conversation you want to have with an advisor,” he said. “Don’t ever underestimate the type of impact you can make.”

Panelist David Starr, who has worked for Advance Publications—the owners of media organizations such as The Republican, locally—for over 75 years, said he and his wife, Peggy, began giving to local nonprofits in earnest in the late 1970s.

He said that through a more recent, $1 million gift to the Community Foundation, they also established endowment funds for the Springfield Museums, WFCR, Springfield Symphony and WGBY.
“We wanted to make sure they’d live on after we didn’t,” Starr said. “We gave it while we were still alive, and while they all needed the funds.”

Panelist John Gallup said he and his wife, Paula, created a charitable remainder trust through the foundation, through which they made a substantial gift that benefits members of the community, and they also continue to earn quarterly and annual payments on their funds.

“I can’t tell you how rewarding it’s been to create this situation,” he said.

To learn more about Glenmeadow and its history and offerings, visit www.glenmeadow.org.

To learn more about the Community Foundation, visit www.communityfoundation.org.

About Glenmeadow

In the 1800s, elderly individuals without family or means were sent to live at what was called “the poor farm.”  In 1884, a group of civic leaders raised funds among themselves and other area families and purchased a house on Main Street in Springfield’s south end. Quickly outgrowing that house, land was purchased on the corner of Chestnut and Carew streets, where a new home was constructed and opened in 1900.  In 1960, the name was changed to Chestnut Knoll, and in 1992, it began to admit men.

In 1993, the organization purchased a 23-acre parcel in Longmeadow to build a new community that would provide both independent living and assisted living in one building with various common areas.  This was a new concept known as a continuing care retirement community.  Existing residents from the old Chestnut Knoll property were moved to the new campus in 1997.  Shortly after the move, the board voted to change its legal name to Glenmeadow to coincide with the name being used by the developer of the property.

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