The document discusses various tools and methods for charitable giving through community foundations, including establishing named funds, unrestricted funds, field of interest funds, and designated funds. It provides details on donor advised funds, comparing them to private foundations. The document also discusses charitable instruments like outright gifts, bequests, gift annuities, charitable lead trusts, and charitable remainder trusts. It focuses on how financial advisors can have conversations with clients about charitable giving opportunities related to their financial situations and goals.

1. Tools for giving.

2. A Personal Legacy of Giving Donors can establish a fund in their name, in a family’s name, or in the name of any person or organization they wish to honor. Named funds

3. A Personal Legacy of Giving Grants distributed from a donor’s fund are awarded in the name of their fund. This person or organization will always be remembered and linked to good works in our community. Named funds

4. Charitable Funds Unrestricted Fund Meeting ever-changing community needs Field of Interest Fund Addressing needs in an important area of community life: arts, AIDS, aging, at-risk youth... Designated Fund Directing gifts to specific agencies or purposes (e.g., scholarship) Donor Advised Fund Involving donors in the use of their gift Four great giving options

5. Donor Advised Funds Cash gifts, deduct 50% AGI 30% AGI Deduct 30% AGI on 20% AGI – basis only after appreciated property 6/30/98 Minimal administrative fees Costly administrative fees No minimum payout 5% minimum payout Grantmaking advice On their own Comparing the differences Donor Advised Fund Private Foundation

6. Charitable Instruments A variety of giving methods Outright Gifts Give cash, stocks, or other assets Bequests Designate a portion of a client’s estate Gift Annuity Annuity contract pays client for life and charitable fund commences grants upon death Charitable Lead Trust Trust pays the Community Foundation a fixed amount for a number of years and then assets go to beneficiary Charitable Remainder Trust Trust pays beneficiary for life and then assets transfer to Community Foundation

7. Michigan Tax Credit Maximum state credit $100 for singles $200 for married couples filing jointly $5,000 for businesses 50% state credit on income tax or Michigan business tax

8. Helping clients realize their charitable goals.

9. Listening for Opportunities Clients expect professional advisors to suggest charitable giving opportunities… or might assume it is not an option. Talking with your clients about charitable giving

10. Listening for opportunities Some of the greatest opportunities to make charitable gifts arise when making major business, personal, and financial decisions. Year-end tax planning High estate taxes Frugal retirement living Private foundations Focused giving IRA and 401(k) Sale of a business Closely held stock Talking with clients about charitable giving TO END OF SECTION

11. Listening for opportunities Just earned a large bonus, but no time to decide on the most deserving charities Year-end tax planning SCENARIO Establish a Donor Advised Fund for an immediate tax deduction, and stay involved in gift for years to come OPPORTUNITY MAIN MENU

12. Listening for opportunities Estate planning identifies significant taxes going to the IRS, but want to keep dollars local High estate taxes SCENARIO Reduce taxable estate through charitable bequest or other planned gift Create personal legacy in community that stays true to client’s charitable intent forever OPPORTUNITY MAIN MENU

13. Listening for opportunities Concerned about running out of money during lifetime, but has always been charitable Frugal retirement living SCENARIO Establish a gift annuity or charitable remainder trust that pays an annuity potentially for life Upon death, the fund begins distributing grants with client’s charitable interests in mind OPPORTUNITY MAIN MENU

14. Listening for opportunities Thinking about establishing a private foundation, but looking for a better, simpler way Private foundations SCENARIO Establish a Donor Advised Fund and stay personally involved with the distribution of gift dollars Use Community Foundation grant expertise for greater impact OPPORTUNITY MAIN MENU

15. Listening for opportunities Passionate about meeting a specific community need and wants to make a meaningful gift Focused giving SCENARIO Community Foundation uses grantmaking expertise to recommend ways to make the greatest impact OPPORTUNITY MAIN MENU

16. Listening for opportunities Wants to leave estate to community and family and has substantial assets in retirement accounts IRA and 401(k) SCENARIO Help client evaluate the most beneficial asset distribution to minimize taxes, giving more to their heirs and preserving charitable intent OPPORTUNITY MAIN MENU

17. Listening for opportunities Owns highly appreciated stock in a company that is about to be acquired Sale of a business SCENARIO Structure a charitable gift of stock before the company is sold to reduce capital gains and increase charitable deductions Establish donor advised fund so once-in-a-lifetime event can help client do good forever OPPORTUNITY MAIN MENU

18. Listening for opportunities Personal net worth is tied up in a closely held company, but wants to give back Closely held stock SCENARIO Donate some company stock to the Community Foundation; company may buy it back at fair market value Establish Donor Advised Fund in client’s name; donor is eligible for tax deduction at fair market value of appreciated stock OPPORTUNITY MAIN MENU

19. More Information Handouts for you and your clients that explain ways to give to our community foundation Tools for Giving and Ideas for Giving www.forgoodforever.org Website about Michigan Community Foundations: background, donor stories, ways to give, special professional advisor information, local links

20. Recommend charity without recommending a charity Talk to your clients about giving For good. For ever. 70 W 8 th Street, Ste 100 Holland, MI 49423 616-396-6590 www.cfhz.org

21. Do you have clients located throughout the state? There are 65 community foundations serving donors in every county in Michigan