Discussing Charitable Giving

You are aware of significant tax advantages your client can achieve by including a charitable provision in his or her estate plan. Your client’s bequest can create a fund that will contribute forever to causes that are important to them while generating significant estate tax savings. The CFMC can help your clients identify their charitable goals now and help you maximize the tax benefits of the bequest.

Your client just had a liquidity event or earned a large bonus. He or she wants to give back to the community but doesn’t have time at year’s end to decide how to maximize their giving impact. You can recommend establishing a donor advised fund at the CFMC, which would allow your client to realize an immediate tax deduction and have the opportunity to seek advice regarding the most effective use of his charitable assets. The client can begin making grants whenever he or she is ready.

Your client has highly appreciated stock and is willing to consider a charitable gift. He or she may realize a tax deduction for the full market value, while avoiding the capital gains tax that would otherwise arise from the sale of the stock. The Foundation also accepts gifts of closely held stock.

Your client finds he or she does not have sufficient income from the assets he or she has accumulated. The CFMC can show you how a charitable gift annuity or a charitable remainder trust can help your client achieve their charitable objectives while meeting income goals. The charitable portion of their gift can be directed to the client’s favorite charity.

We can help you and your client evaluate the most beneficial asset distribution to minimize taxes, thereby giving more to his or her heirs and still achieving significant charitable objectives. For example, it is usually more tax advantageous for a donor to give retirement assets to charity and other assets to their heirs. Income tax and possibly estate taxes often diminish the value of an IRA or other retirement assets left to an heir.

Your client owns highly appreciated stock in a company that is about to be acquired. The CFMC can work with you to suggest several ways to structure a charitable gift (including the use of planned giving techniques) to help your client reduce capital gains tax and maximize the impact to his or her favorite charitable causes.

Your client either doesn’t have the substantial resources needed to start a private foundation ($10,000,000 is recommended) or lacks the time to oversee its administration and succession planning. The CFMC can help you and your client consider simpler, more cost-efficient alternatives to a private foundation. Consider our variety of fund types, such as a donor advised fund.