Listening for Opportunities?
A professional advisor can help clients realize their charitable objectives by listening for charitable giving opportunities, explaining options, and suggesting solutions. Significant giving opportunities often arise when clients are making major business, personal, and financial decisions. Our Community Foundation can work with you and your client to recommend the best charitable solution. Here are some typical scenarios:
Your client is thinking about establishing a private foundation, but would like to understand their alternatives.
Opportunity: Your client can establish a fund at the Foundation that meets their charitable interests and allows close personal involvement with the distribution of gift dollars, without the administrative burden of establishing and managing a private foundation.
High Estate Taxes
Your client has more than enough assets to provide for their children and grandchildren, or perhaps they don’t have any children, and is expecting significantly high estate taxes.
Opportunity: Your client can reduce their taxable estate through an immediate gift to see the benefits during their lifetime or through a charitable bequest or another planned gift, such as giving through an IRA or 401(k). This allows your client to create additional benefit with their money and the opportunity to create a lasting personal or family legacy in the community, saving taxes at the same time.
Year End Tax Planning
Your client just earned a large bonus, sold a business, or received an inheritance, but doesn’t have enough time to decide which charities to support before the end of the tax year.
Opportunity: Your client can contribute to The Fund for the NRV to support projects happening right now that will benefit organizations across the region in areas of significant need like hunger relief or education. Or they could establish a Donor Advised Fund for an immediate tax deduction and your client can get help from the Foundation on how best to support the causes they care about- all on their own timetable.
Required Minimum Distribution from an IRA
Your client is over 70 ½ and must take their required minimum distribution, but does not want the income tax burden.
Opportunity: Your client can take advantage of the IRA Charitable Rollover to make a distribution from their IRA of up to $100,000 directly to the Foundation, thereby avoiding income tax on that. They can contribute to an existing fund or establish a named fund with the gift.
Sale of Highly Appreciated Assets
Your client has appreciated stock, and wants to give to multiple charities.
Opportunity: Use appreciated stock to open a fund at the Foundation or contribute to an existing fund and receive a tax deduction on its full market value. This would allow your client to avoid the capital gains tax that would otherwise arise from the sale of the stock.
Income Stream for Retirement
Your client is passionate about charitable giving, but is concerned about running out of money during their lifetime.
Opportunity: Establish a charitable gift annuity or charitable remainder trust, which will allow for charitable giving, an immediate tax deduction, and a predictable income stream for the remainder of their life. Alternatively, your client could establish a bequest where upon death, the fund begins distributing grants with your client’s charitable interests in mind