Out Of The Ashes Devlopment Council is a non-profit organization dedicated to educating and advocating on behalf of those affected by Childhood Obesity, Domestic Violence, and Sexual Misconduct.

1. Charitable Donations A WIN-WIN-WIN-WIN scenario!

2. (1) Donor – donor and his or her heirs (2) Charity – Gets funds for its programs (3) Federal Government – does not have to tax citizens to run social justice programs. (4) General Public – programs are run more efficiently and at less of a cost in taxes. Who WINS?

3. Upon consideration of sale Upon consideration of death When to donate?

4. What the government gets and you lose: TAXES Recovered Depreciation = 25% Capital Gains = 15% presently Transferring Assets at Sale

5. Sample = 1 million asset. Assume a Basis at $100,000 Recovered Depreciation $200,000 @ 25% = $50,000 Capital Gains $900,000 @ 15% = $135,000 Total tax to government = $185,000. *** YOU LOSE 20%of your own asset selling it yourself!

6. What the government gets and you lose: TAXES State Tax = 10-19% Federal Tax = 45% of the remainder Transferring Assets at Death

7. What donation saves you: 100% of the value of the asset with no tax consequences used during your lifetime or reserved to your heirs upon death. HOW ??

8. Sample = 1 million Washington $100,000 - $190,000 45% of $810,000 = $364,500 *** You only keep $ 445,500 of your own asset! (LESS THAN 1/2 of the ORIGINAL VALUE)

9. What kind of trusts will work? Charitable Trusts

10. Donation of property gets you a tax deduction which can be taken over a five year period, depending on your annual income. 561 Exchange

11. You derive a monthly or annual benefit and the remainder goes to the charity upon death with NO TAX CONSEQUENCE. Charitable Remainder Trust

12. The charity derives a monthly or annual benefit and the remainder goes to your heirs upon death, with NO TAX CONSEQUENCE. Charitable Lead Trust

13. Specified annual value % of income generated (at least 5%) Unitrust

14. You take out a life insurance policy placed in a separate trust for the value of the asset. It pays off to your heirs upon death with NO TAX CONSEQUENCE. Life Insurance

15. Trusts are not mutually exclusive. Donor can choose one or more to suit her or his financial situation. Combo’s may be right for you!

16. Out of the Ashes Development Council Robert Pittman, Attorney Today’s Presentation