BrattleboroCitizensBreakfast

April17,2015
GibsonAikenCenter

MunicipalPhilanthropy
Presenter:ChrisChapman
Chris@tcvermont.com
VideoLink

AwriterfriendhadadvisedChrisnottoleadwiththenegative,sohebeganhistalksaying
thatthereisreasontohopebecausethereisuntappedopportunitytobreakthepatternof
scarcityofmunicipalresourcesinBrattleboro,thestate,andtheregion.Currently,we
cannotaffordallthatweneedbyraisingtaxes.Wehavebeentaxedaboutasmuchaswe
canbe.Yetwestillneedmoneyforthebasicsinfrastructure,includingroads,bridges,
sidewalks,libraryhoursandmaintenanceequipment,pluspublicsafety.TheGreenSt
retainingwallandElliotStbridgerepairarejusttwovisibleexamples,andthemuchlarger
Police/Fireprojectisamoreprominentone.

Localmunicipalitiesarefacedwithinfrastructuredepreciationandtaxpayerexhaustion.Taxes
areincreasedjusttokeepupwiththestatusquo.Thereisaneedtoattractbusinessesto
growthelocaltaxbase,butyoucantblamebusinessesthatleaveforplaceswithhealthier
economies.Childrenhavebecomeourmostvaluableexport:twothirdsoftaxmoneyisspent
oneducation.Onceeducated,theyleave,seekingemploymentopportunitieselsewhere.
Businessescantfindthelocaltalentandskilltheyneed,sotheystayaway,leavingthetown
tocopewithitsexpensesandneedingtoraisetaxesjusttomaintainthestatusquoandstill
trytokeepthetownattractiveforbusinessformation,expansion,andresettlement.Allofthis
canbesummarizedasaslowmotioneconomicdeathspiral.

Thereisarayofhope,however.Ifwecanchangetherelationshipbetweenthosewhoare
taxed(includingrenterswhohelppaytheirlandlordstaxes)andthetaxingauthority.In
essence,weneedtochangetheparadigmoftaxation,atleastatthelocallevel.Changingthe
relationshipwouldmeannotdemonizinggovernmentbutratherseeingitastheeffective
instrumentthatitis.(WecanindeedhavetenhourTownMeetingstodiscusspolicy,butwe
docometoinformedagreement.)

Americaisthemostgenerouscountryintheworld.
GivingUSA
reportsthat$335billionwas
giventocharityintheUnitedStatesin2013,andthisfiguredoesnotincludeinkindpublic
service.Wearenowonthefrontendofthelargestintergenerationaltransferofwealthinthe
historyofcivilization,estimatedat$59trillion.Assetsarenowmoreliquidthanever.Addto
thatfactthelongstandingwillingnessinoursocietytomakephilanthropicdonations,andthe
waytobreakthedeathspiralbecomesclear.

Themostrecentexampleofmunicipalphilanthropyisthatof
RonaldRead
,ajanitorwhose
bequestof$1.2milliontotheBrooksMemorialLibrarywasthelargestinits150yearhistory
andwhose$4.8millionestategifttotheBrattleboroMemorialHospitalwasstunning.But

Readisnotalone.TheThompsonTrust,withacurrentportfolioofsome$20million,was
startedtoprovideforretiredseamstressesinBrattleboroVTandRhinebeckNY.TheAustine
SchoolwasfoundedbyCol.Austine,aCivilWarveteran.AnnaMarshendowedthe
BrattleboroRetreat.MorerecentexamplesincludetheNelsonWithingtonSkatingRinkand
theWestRiverPark.Thegenerosityofindividualshassometimesbeenwellknown,but
othershavealsomadequietcontributionstothetown.Itslikelythatmostpeopleare
unawareofthelateDr.JohnHoglesendowmentofapieceofpropertyoffEatonAve.asa
wildlifesanctuary.AretiredBrattleborojanitorestablisheda$500,000scholarshipfundthe
EamesAwardforfurtherstudyofthearts.

Philanthropyisnotsolelymotivatedbythepromiseoftaxrelief,butmoresobyaninternal
needforpersonalfulfillment.Therootoftheworditself,whichliterallytranslatesfromGreek
asloveforonesfellowhumanbeings.Thetaxcodeallowsandpromotesphilanthropic
donationstomunicipalities,cf.170oftheIRSCode.1 ContributionstotheTownare
taxdeductible.Withthetrilliondollartransferofwealthgoingonaroundus,inthemost
generoussocietyintheworld,thisisagoodtimeforthetowntoannouncethatitwould
welcomecontributionsoverandabovepeoplespropertytaxobligations.TheSelectboard
couldsimplystatethatitwelcomessuchcontributions.Thesecontributionsarelikelytobe
episodic,buttheycanrangefromhugetransfersallthewaydowntothewidowsmiteand
addupsubstantiallyovertime.ItwilltakeourSelectboardsleadershiptopromotesucha
trend,whichwouldinessenceeffectaneededchangeintheparadigmoftaxation.Asa
practicalmatter,theSelectboardvotestoacceptallgrantstotheTown.Thispracticegives
theSelectboardtheabilitytoaccept,reject,ornegotiateconditionsthatadonormaywishto
placeonacontribution.Thislongstandingpracticemakesthetransactionpublicly
accountable.Theprocesstodothisiscurrentlyinplacethereisnoneedtoforma
committee.Theonlyadditiontothetownsworkwouldbeissuingreceiptsfordonorstax
reporting(whichmightevenincludethankyounotes).

SummaryofsomeQuestionsandAnswers:

AsuggestionofapproachingtheVermontCommunityFoundationtosetupa
Brattleboromunicipalfundwastermedsound,buttheMunicipalPhilanthropyidea
lookingtowardabiggergoal,seekingtochangetheparadigmoftaxation.

Acriticismthatfederalexpendituresoftaxesacttocrimpthehoseupthelinebefore
resourcescangettotheTownlevelwasnotdisputed,butthisphilanthropyproposal
attemptstoaddressproblemsatthelocallevelinahumaneandsimplemanner.

cf:CharitableContributionDeductions
http://www.irs.gov/Charities&NonProfits/CharitableOrganizations/CharitableContributionD
eductions