Giving all or part of the asset to charity will eliminate or reduce capital gains taxes and can replace less efficient charitable giving, continue or begin to provide lifelong income, and provide satisfaction about supporting a charity of one’s choice.
Donor advised funds will lock in a tax deduction for the current year and allow as much as time as is needed to choose a charity.
Giving the retirement fund to an endowment from which heirs may recommend charitable gifts will reduce estate tax, and create a family legacy. In the meantime, other assets can be used for gifts to family members.
How do they want to be remembered? Suggest a charitable fund at the Foundation to be remembered and as an alternative to paying too much estate tax.
The Community Foundation offers your clients numerous benefits, including the maximum charitable tax benefits available. When your clients give to their chosen organizations through the Community Foundation, the Foundation handles the grant paperwork– administration, record keeping and financial statements. We ensure every nonprofit organization they support is qualified as a charitable recipient and offer the opportunity to our donors to review funding proposals pre-screened by our staff to help make decisions on funding these proposals. The Foundation also provides numerous opportunities for donors to pool funds, work on common interests and support local organizations. The Foundation is also equipped to accept a wide variety of assets from cash to securities, to real estate and closely-held stock.
Bring up the philanthropic question. Most clients are probably philanthropic already so helping them think through the role of philanthropy in their current financial and estate plans is a natural transition and is an important part of the overall planning process.
While tax considerations vary according to assets, generally your clients may deduct up to 50% of their adjusted gross income (AGI) for cash contributions, and up to 30% of their AGI for gifts of appreciated securities. Your client’s tax situation should be viewed on an individual basis to determine the deductibility allowed for them. A fund at the Foundation is often a better alternative than a private foundation.
There is no better place. Your client may remain anonymous. We are not required to report his/her name to the public or through any reports required by the IRS.
Call the Foundation Monday through Friday 8:30 am to 5:00 pm at (770) 832 – 1462.