We are experts at charitable planning. Our expertise covers everything from creative annual gifting to forming complex charitable trusts, pooled income funds and operating foundations. We provide foundations and public charities with comprehensive legal counsel on a wide array of issues, including compliance issues, contract matters, directing annual meetings, and formulating rules and policies.
Why People Give
WHY PEOPLE GIVE
Values Transfer. To pass moral values and responsibility on to successive generations and on to society.
Emotional Benefit. To give one’s life meaning and significance. To leave a legacy. To memorialize one’s own life or other’s lives.
Community Development. To help the community, country or world prosper. To create and manage changes in society.
Repayment. To fulfill a perceived obligation for care or education received. To fulfill responsibilities transmitted by religious beliefs.
Tax Benefits. To receive a tax deduction.
TYPES OF GIFTING
Current Gifts. Gifts of Cash, Stock, Real Estate or Tangible Personal Property.
Deferred Gifts. Designated now, but delivery is deferred: Trusts; Life Insurance; Retirement Plans; Charitable Trusts.
Split-Interest Gifts. Split between an up-front interest and a remainder interest: Charitable Remainder and Lead Trusts.
Charitable Entities. Create and fund tax exempt entities: Operating and Non-operating Foundations; Pass-through Foundations.
BENEFITS OF CHARITABLE TRUSTS
A. Asset transferred to the trust: TRANSFER IS NOT A TAXABLE EVENT.
B. Asset is sold inside the trust: SALE IS NOT A TAXABLE EVENT.
C. Donors can afford to DIVERSIFY THEIR PORTFOLIO.
D. Donors get a SUBSTANTIAL CURRENT TAX DEDUCTION.
E. Donors get INCREASED INCOME & CASH FLOW.
F. By replacing the gift, HEIRS GET A MUCH LARGER INHERITANCE.
G. The assets in the trust have FULL CREDITOR PROTECTION.
H. Donors get RECOGNITION DURING THEIR LIFETIME.
CHARITABLE REMAINDER TRUST
You can secure a lifetime income. Save on income and estate taxes. Enjoy satisfaction making the gift. Receive public recognition.
WHO IS IT FOR
Generally if you are 50 or older. Own highly appreciated assets. In high income bracket. If giving appeals to you.
A. Charitable Gift Annuities
The Donor makes a gift, the Charity pays the Donor annuity payments for the Donor’s lifetime, with the remainder to the Charity.
B. Deferred Charitable Gift Annuities
Similar to a Charitable Gift Annuity, except that the income payments are deferred for 1 or more years after the gift is given to the Charity.
C. Charitable Remainder Trusts
The Donor gifts assets to a special Trust. The Trust pays the Donor a fixed or variable income for the Donor’s lifetime, with the remainder to Charity.
D. Charitable Lead Trusts
The Donor gifts assets to a special Trust. The Trust pays the Charity a fixed or variable income for a fixed period, with the remainder to Donor’s family.
E. Donor Advised Funds
The Donor makes a gift to an investment account earmarked for charitable giving, with directions for grants to charities.
F. Charitable Life Estate
The Donor gifts their house, farm or vacation home to charity, but retains the right to use the property until the Donor’s death.
G. Pooled Income Funds
A separate fund set up by the Charity, into which donations of several Donors are pooled, and Donors get income based upon their share.