Thinking outside the box with donor-advised funds

Butch Ahlers knew Eline Morris his entire life. Growing up in Nance County, Eline and her husband Richard were close with Ahlers' family. Both were farm families, helping each other out as Nebraskans do.

As the years went on, Butch and his wife LaRee maintained that close relationship, helping both Richard and Eline as they navigated the twists and turns that come along with aging. After Richard died in 2014, the Ahlers continued to assist Eline until her passing in 2020. Having no children of her own, the last favor Morris asked of the Ahlers was to steward her legacy using land placed in a charitable trust with the intention to benefit Nance, Greeley, and Boone Counties.

Though experts in being good neighbors, the Ahlers were not so versed in estate planning, so they turned to someone who was when it came time to figure out how to make a significant impact in the community. They found the right person in Sarah Duey, an estate planning attorney in Omaha. After meeting with Butch and Laree, learning about their relationship with Eline, and studying the trust, Duey thought there might be another way to make this gift work.

"We were trying to think outside the box," she said.

Their creative thinking led them to Nebraska Community Foundation, where they connected with the nonprofit's Office of Gift Planning. Through conversations with former and current directors of gift planning Jim Gustafson and Todd Mekelburg, the Ahlers and Duey learned about the potential to use proceeds from the sale of the land to establish a donor-advised fund.

After taking time to deliberate, they decided to transfer the property to NCF. To do so, they needed to first terminate the trust in court. The land then went into newly formed Morris Donor-Advised Fund, an affiliated fund of NCF. By giving the land to NCF, the Ahlers ensured that more of Eline's wealth could go toward bettering the community. Had they sold the land themselves, some of that wealth would've gone to taxes.

Donor-advised funds can be used to distribute gifts to numerous charities. With a DAF, you can make gifts to charity during your lifetime, and when you pass away, your children can carry on your legacy of giving. In Morris' case, the Ahlers are carrying on her legacy. They are part of a volunteer fund advisory committee that oversees all grantmaking.

In less than two years, the Morris DAF has made significant grants. A fire on the Morris' property inspired a deep appreciation for volunteer firefighters in the area, so it made sense for the fund to award grants to the nearby departments. Cedar Rapids, Wolbach, Primrose, Fullerton, and Belgrade all received grants to use toward upgrading vehicles.

"She would just want it to do good," Butch said.

Eline's story is an excellent example of taking someone's generosity and maximizing its effectiveness. By turning the trust into a DAF, Eline's gift became much more flexible.

"The trust may not have been the perfect tool, but we found the right tool to benefit the area," Duey said.

Nebraska Community Foundation has extensive (and free) resources to help one familiarize with the many ways to make a charitable planned gift. Visit fivetothrivene.org to learn more about how you can create your own legacy in the place you love. Click on the "Transfer of Wealth Toolkit" for a free guide called "Planning Your Legacy."

If you would like to speak to an NCF representative, you may contact Todd Mekelburg at [email protected], 402.323.7343 or Becky Ries, [email protected], 308.730.1048

For information on how you can give back to your hometown, contact Nebraska Community Foundation's Office of Planned Giving, 402.323.7330 or [email protected].