Many people are interested in leaving a philanthropic legacy, extending their generosity beyond their lifetime.
Legacy philanthropy, known commonly as planned giving," can consist of anything from bequests to life insurance, IRAs to 401(k)/403(b), as well as charitable gift annuities.
Two area experts, Theresa Zeidler-Shonat, Director of Valuation Services at Smith & Gesteland, and Ann Casey, Vice President of Finance and Operations at the Madison Community Foundation, discussed the different ways planned gifts can be structured, sound tools to make the gifting process work smoothly, and the information you need to initiate the planned giving process.
Ann Casey from Madison Community Foundation and Theresa Zeidler-Shonat from Smith & Gesteland discuss approaches to Planned Giving. Leaving a legacy takes some organization to pull it off successfully.
Kudos to donateNYC for the opportunity to present to your members!
Best practices include reviewing - on an annual basis - your organization’s IRS Form 990 and remember, unless you possess the expertise, never appraise the value of donated contributions.
A Look Back A Look Ahead - Seattle Foundation ServicesErica Klinger
The document outlines Seattle Foundation's services, pricing, and investment options. It discusses moving from limited offerings and unclear impact to being responsive, having value-based pricing, and clearly communicating impact. Services include lifetime and legacy philanthropy as well as organizational services. Pricing is now based on usage and reduced for lifetime philanthropy. Investment options include short, intermediate, and long-term pools along a risk/return continuum.
This document summarizes an event hosted by SkyLaw Professional Corporation on June 22, 2016 about demystifying charities, not-for-profits, and social enterprises. SkyLaw is a boutique law firm that provides legal services to companies and organizations. The event featured presentations by lawyers from SkyLaw on legal structures for non-profits and answered audience questions.
The Family Business Life Cycle: Creating & Distributing WealthNicola Wealth
Wealth can be created at each stage of the life cycle of the family business. The foundation established early on will create a harvest at a later time. Many families experience turbulence when transitioning their businesses (and wealth) to the next generation. It needn’t be so. Being proactive in your approach to this critical subject can successfully prepare the recipients of your wealth and ensure the continuity of your business, and your legacy. We know what issues typically arise at each step along the journey—the key for clients is to anticipate and prepare for them throughout the various stages.
Presentation from the 2016 Dorset Charities Conference, hosted by Ward Goodman. This popular an annual event brings together local charities and leading sector suppliers from across the region.
Ann Casey from Madison Community Foundation and Theresa Zeidler-Shonat from Smith & Gesteland discuss approaches to Planned Giving. Leaving a legacy takes some organization to pull it off successfully.
Kudos to donateNYC for the opportunity to present to your members!
Best practices include reviewing - on an annual basis - your organization’s IRS Form 990 and remember, unless you possess the expertise, never appraise the value of donated contributions.
A Look Back A Look Ahead - Seattle Foundation ServicesErica Klinger
The document outlines Seattle Foundation's services, pricing, and investment options. It discusses moving from limited offerings and unclear impact to being responsive, having value-based pricing, and clearly communicating impact. Services include lifetime and legacy philanthropy as well as organizational services. Pricing is now based on usage and reduced for lifetime philanthropy. Investment options include short, intermediate, and long-term pools along a risk/return continuum.
This document summarizes an event hosted by SkyLaw Professional Corporation on June 22, 2016 about demystifying charities, not-for-profits, and social enterprises. SkyLaw is a boutique law firm that provides legal services to companies and organizations. The event featured presentations by lawyers from SkyLaw on legal structures for non-profits and answered audience questions.
The Family Business Life Cycle: Creating & Distributing WealthNicola Wealth
Wealth can be created at each stage of the life cycle of the family business. The foundation established early on will create a harvest at a later time. Many families experience turbulence when transitioning their businesses (and wealth) to the next generation. It needn’t be so. Being proactive in your approach to this critical subject can successfully prepare the recipients of your wealth and ensure the continuity of your business, and your legacy. We know what issues typically arise at each step along the journey—the key for clients is to anticipate and prepare for them throughout the various stages.
Presentation from the 2016 Dorset Charities Conference, hosted by Ward Goodman. This popular an annual event brings together local charities and leading sector suppliers from across the region.
The document summarizes the agenda for the Buckfast Charity Seminar 2019. It includes sessions on governance, compliance from legal and VAT perspectives, financial sustainability, and delivery. Research findings on the state of governance and finances in the charity sector are presented. The importance of balancing risks for strategic success is discussed. Panel Q&A sessions allow for audience participation.
Our annual series of charity seminars held across the region for trustees, chief executives and finance staff will focus on the main areas of risk facing charities; helping charities of all sizes and complexities to ensure that they have effective and robust governance in place to mitigate the risks their organisation faces.
This document summarizes key points from a charity seminar held by PKF Francis Clark. It discusses findings from governance and finance research showing areas where charities can improve. It also outlines the seminar programme which covers topics like governance, compliance, VAT, and financial sustainability. The goal is to help charities understand modern expectations and thrive and inspire public trust.
This document discusses various planned giving strategies that allow donors to make charitable gifts while also meeting personal financial goals. It describes bequests, life estates, charitable gift annuities, donor advised funds, and other planned gifts. These gifts provide tax benefits to donors and can help donors make larger gifts than otherwise possible or provide lifetime income.
The document discusses the legal environment for social enterprises in Canada. It outlines the limitations of charities and non-profits in conducting business activities. Various organizational structures are described, including corporations, partnerships, and cooperatives. However, Canadian law currently lacks structures like LLCs and community interest companies that are designed for social enterprises in other jurisdictions. Charities and non-profits also face restrictions on earning profits under tax law.
What Are the Tax Benefits of Charitable Giving? - Worth MagazineCBIZ, Inc.
John Sheridan, (CPA, Senior Manager at CBIZ) wrote a piece published to Worth Magazine on how charitable giving will affect your taxes. Be sure contact John should you have any further questions.
Our annual series of charity seminars held across the region for trustees, chief executives and finance staff will focus on the main areas of risk facing charities; helping charities of all sizes and complexities to ensure that they have effective and robust governance in place to mitigate the risks their organisation faces.
Insights in Philanthropy Australia
Tax Efficient Giving and Bequeath Strategies
Digital Disruption – the impacts on NFPs
Common misunderstandings surrounding NFP
Reporting
Topical Legal Considerations for NFPs
Establishing Social Enterprise
State Tax Exemption for Charitable Institutions
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.
This document discusses entrepreneurial philanthropy and analyzes data from a study of 100 UK entrepreneurial philanthropists. Some key findings:
- Entrepreneurial philanthropists tend to be male, aged 46-65, and have a minimum personal wealth of £10 million. They redistribute at least £1 million through formal philanthropic vehicles like foundations.
- They draw on various types of capital - economic, cultural, social, symbolic - gained from their entrepreneurial experiences and successes. This capital provides resources and connections that influence their philanthropic activities.
- Their motivations include a desire to have impact and be engaged in solving social problems, as well as to be less selfish with their wealth.
- There
An overview of private foundations (non-operating) for the financial advisor, planned giving officer, or philanthropist interested in learning about the legal and tax structure.
This document provides an overview of corporate philanthropy and fundraising. It discusses establishing value propositions, preparing by identifying and researching potential corporate partners, developing a strategy, and integrating efforts. Specific tips are provided around preparing prospect lists, researching companies, documenting strategies, and balancing engagement of corporations through board/committee involvement, volunteering, and smaller donations. Benchmarking progress is also mentioned.
This document provides information about different ways to make charitable gifts through estate planning. It discusses outright gifts, will or trust bequests, charitable trusts including charitable lead trusts and charitable remainder trusts, private foundations, community foundations, and donor-advised funds. It provides an example of how a charitable lead trust can benefit both a charity and family members by reducing estate taxes.
As the end of the year approaches, many people think about their charitable giving and tax planning. A Donor Advised Fund administered by the Raymond James Canada Foundation can help donors receive an immediate tax receipt while allowing them to recommend grants to charities over time. Donors can establish a fund with a minimum $100,000 donation, receive a tax receipt, name the fund, and later recommend grants to chosen charities. The foundation handles administrative duties like issuing receipts, distributing funds, and reporting. Donors can also name successor advisors to continue the philanthropic legacy. A Donor Advised Fund provides an easy and flexible way for end-of-year tax planning and philanthropy.
1. The document proposes a system called Social Credits that aims to channel funding, consumer spending, and social recognition towards social enterprises.
2. Social Credits could be earned through donations, consumer purchases from social enterprises, blogging/sharing about social causes, and voluntary work.
3. The system would create an alternative currency called Social Credits that represents $1 of investment in social enterprises. This could crowd fund projects and create demand for social enterprise products and services.
4. The goal is to build a self-sustaining ecosystem that stimulates more funding, awareness, and support for social enterprises through the gamified distribution and use of Social Credits.
This document discusses estate planning through charitable giving, including private foundations and charitable trusts. It provides an overview of why people give to charity, the tax benefits of giving while alive versus at death, and outlines the key differences between private foundations and public charities. Additionally, it summarizes the requirements and tax implications of various charitable vehicles like charitable remainder trusts, charitable lead trusts, and private foundations.
This document provides information about an upcoming fundraising conference on October 20, 2005 in London. The one-day conference will include keynote speeches and workshops on various fundraising topics. Attendees can choose from multiple concurrent workshop sessions on issues like grant funding, tax incentives for donors, fundraising strategies for small charities, and engaging trustees in fundraising. The conference is aimed at fundraising professionals, charity managers, and those new to the field looking to stay up to date on developments in fundraising.
This document discusses comprehensive fundraising programs and their importance for non-profit organizations. It covers several types of fundraising programs including: budget fundraising like annual appeals; bequest programs; capital campaigns; major gift programs; and obtaining government funding. It emphasizes that fundraising should follow and support an organization's strategic plan and mission, rather than dictate its directions. Fundraising provides resources for organizations to pursue strategies that fulfill their mission of serving the community.
State of Central Florida Arts Organizations 2012PresentMark
This document summarizes data from 81 arts organizations in Central Florida. It finds that while revenues for the arts universe were $59.5 million in 2012-2013, expenses were $55.9 million. Most arts organizations have small endowments, relying more on donations, grants, and earned revenue. The data also shows that arts organizations have relatively low overhead but need to improve board governance and management practices to increase long-term sustainability.
Christopher Karachale, Senior Counsel at Hanson Bridgett in San Francisco, advises businesses and individual on a wide range of tax issues, including federal, state and local tax issues.
This presentation discusses California property tax issues and both reviews the general rules, but also provides an update on current issues for each particular topic.
As a threshold matter, California state property tax law is one of the most confusing areas of tax law. Indeed, there are a number of instances where the rules seem simply nonsensical and perversely counter intuitive. Most importantly, there is a fundamental tension between the property tax rules and income tax rules under the R&TC or the IRC. Clients who are familiar with income tax rules often miss or are uninformed about the property tax ramifications of their transactions.
Personal property Law--Gifts and BailmentsMark Lushenko
The document discusses personal property law and different types of property agreements. It defines personal property as anything owned that is not real estate. It then discusses gifts, which require intent to give a gift, delivery to the recipient, and acceptance by the recipient. It also covers two types of bailment agreements - mutual benefit bailments where both parties benefit financially, and gratuitous bailments where one party receives the property without providing compensation. Bailments involve temporary possession of property but not a change in ownership.
The document summarizes the agenda for the Buckfast Charity Seminar 2019. It includes sessions on governance, compliance from legal and VAT perspectives, financial sustainability, and delivery. Research findings on the state of governance and finances in the charity sector are presented. The importance of balancing risks for strategic success is discussed. Panel Q&A sessions allow for audience participation.
Our annual series of charity seminars held across the region for trustees, chief executives and finance staff will focus on the main areas of risk facing charities; helping charities of all sizes and complexities to ensure that they have effective and robust governance in place to mitigate the risks their organisation faces.
This document summarizes key points from a charity seminar held by PKF Francis Clark. It discusses findings from governance and finance research showing areas where charities can improve. It also outlines the seminar programme which covers topics like governance, compliance, VAT, and financial sustainability. The goal is to help charities understand modern expectations and thrive and inspire public trust.
This document discusses various planned giving strategies that allow donors to make charitable gifts while also meeting personal financial goals. It describes bequests, life estates, charitable gift annuities, donor advised funds, and other planned gifts. These gifts provide tax benefits to donors and can help donors make larger gifts than otherwise possible or provide lifetime income.
The document discusses the legal environment for social enterprises in Canada. It outlines the limitations of charities and non-profits in conducting business activities. Various organizational structures are described, including corporations, partnerships, and cooperatives. However, Canadian law currently lacks structures like LLCs and community interest companies that are designed for social enterprises in other jurisdictions. Charities and non-profits also face restrictions on earning profits under tax law.
What Are the Tax Benefits of Charitable Giving? - Worth MagazineCBIZ, Inc.
John Sheridan, (CPA, Senior Manager at CBIZ) wrote a piece published to Worth Magazine on how charitable giving will affect your taxes. Be sure contact John should you have any further questions.
Our annual series of charity seminars held across the region for trustees, chief executives and finance staff will focus on the main areas of risk facing charities; helping charities of all sizes and complexities to ensure that they have effective and robust governance in place to mitigate the risks their organisation faces.
Insights in Philanthropy Australia
Tax Efficient Giving and Bequeath Strategies
Digital Disruption – the impacts on NFPs
Common misunderstandings surrounding NFP
Reporting
Topical Legal Considerations for NFPs
Establishing Social Enterprise
State Tax Exemption for Charitable Institutions
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.
This document discusses entrepreneurial philanthropy and analyzes data from a study of 100 UK entrepreneurial philanthropists. Some key findings:
- Entrepreneurial philanthropists tend to be male, aged 46-65, and have a minimum personal wealth of £10 million. They redistribute at least £1 million through formal philanthropic vehicles like foundations.
- They draw on various types of capital - economic, cultural, social, symbolic - gained from their entrepreneurial experiences and successes. This capital provides resources and connections that influence their philanthropic activities.
- Their motivations include a desire to have impact and be engaged in solving social problems, as well as to be less selfish with their wealth.
- There
An overview of private foundations (non-operating) for the financial advisor, planned giving officer, or philanthropist interested in learning about the legal and tax structure.
This document provides an overview of corporate philanthropy and fundraising. It discusses establishing value propositions, preparing by identifying and researching potential corporate partners, developing a strategy, and integrating efforts. Specific tips are provided around preparing prospect lists, researching companies, documenting strategies, and balancing engagement of corporations through board/committee involvement, volunteering, and smaller donations. Benchmarking progress is also mentioned.
This document provides information about different ways to make charitable gifts through estate planning. It discusses outright gifts, will or trust bequests, charitable trusts including charitable lead trusts and charitable remainder trusts, private foundations, community foundations, and donor-advised funds. It provides an example of how a charitable lead trust can benefit both a charity and family members by reducing estate taxes.
As the end of the year approaches, many people think about their charitable giving and tax planning. A Donor Advised Fund administered by the Raymond James Canada Foundation can help donors receive an immediate tax receipt while allowing them to recommend grants to charities over time. Donors can establish a fund with a minimum $100,000 donation, receive a tax receipt, name the fund, and later recommend grants to chosen charities. The foundation handles administrative duties like issuing receipts, distributing funds, and reporting. Donors can also name successor advisors to continue the philanthropic legacy. A Donor Advised Fund provides an easy and flexible way for end-of-year tax planning and philanthropy.
1. The document proposes a system called Social Credits that aims to channel funding, consumer spending, and social recognition towards social enterprises.
2. Social Credits could be earned through donations, consumer purchases from social enterprises, blogging/sharing about social causes, and voluntary work.
3. The system would create an alternative currency called Social Credits that represents $1 of investment in social enterprises. This could crowd fund projects and create demand for social enterprise products and services.
4. The goal is to build a self-sustaining ecosystem that stimulates more funding, awareness, and support for social enterprises through the gamified distribution and use of Social Credits.
This document discusses estate planning through charitable giving, including private foundations and charitable trusts. It provides an overview of why people give to charity, the tax benefits of giving while alive versus at death, and outlines the key differences between private foundations and public charities. Additionally, it summarizes the requirements and tax implications of various charitable vehicles like charitable remainder trusts, charitable lead trusts, and private foundations.
This document provides information about an upcoming fundraising conference on October 20, 2005 in London. The one-day conference will include keynote speeches and workshops on various fundraising topics. Attendees can choose from multiple concurrent workshop sessions on issues like grant funding, tax incentives for donors, fundraising strategies for small charities, and engaging trustees in fundraising. The conference is aimed at fundraising professionals, charity managers, and those new to the field looking to stay up to date on developments in fundraising.
This document discusses comprehensive fundraising programs and their importance for non-profit organizations. It covers several types of fundraising programs including: budget fundraising like annual appeals; bequest programs; capital campaigns; major gift programs; and obtaining government funding. It emphasizes that fundraising should follow and support an organization's strategic plan and mission, rather than dictate its directions. Fundraising provides resources for organizations to pursue strategies that fulfill their mission of serving the community.
State of Central Florida Arts Organizations 2012PresentMark
This document summarizes data from 81 arts organizations in Central Florida. It finds that while revenues for the arts universe were $59.5 million in 2012-2013, expenses were $55.9 million. Most arts organizations have small endowments, relying more on donations, grants, and earned revenue. The data also shows that arts organizations have relatively low overhead but need to improve board governance and management practices to increase long-term sustainability.
Christopher Karachale, Senior Counsel at Hanson Bridgett in San Francisco, advises businesses and individual on a wide range of tax issues, including federal, state and local tax issues.
This presentation discusses California property tax issues and both reviews the general rules, but also provides an update on current issues for each particular topic.
As a threshold matter, California state property tax law is one of the most confusing areas of tax law. Indeed, there are a number of instances where the rules seem simply nonsensical and perversely counter intuitive. Most importantly, there is a fundamental tension between the property tax rules and income tax rules under the R&TC or the IRC. Clients who are familiar with income tax rules often miss or are uninformed about the property tax ramifications of their transactions.
Personal property Law--Gifts and BailmentsMark Lushenko
The document discusses personal property law and different types of property agreements. It defines personal property as anything owned that is not real estate. It then discusses gifts, which require intent to give a gift, delivery to the recipient, and acceptance by the recipient. It also covers two types of bailment agreements - mutual benefit bailments where both parties benefit financially, and gratuitous bailments where one party receives the property without providing compensation. Bailments involve temporary possession of property but not a change in ownership.
This document summarizes different types of property ownership and how ownership can be acquired and transferred. It defines real property as land and fixtures, while personal property is all other forms of property. Ownership can be acquired through purchase, gifts, inheritance, or other means like adverse possession. Common types of concurrent ownership are tenancy in common, joint tenancy, and tenancy by the entirety. Bailments involve the delivery of personal property for a purpose, creating duties of care for bailees and bailors. Deeds are used to transfer interests in real property.
Scott phinney personal property and bailmentsScott Phinney
This document defines different types of property and bailments. It discusses:
1) The difference between real and personal property, and different types of personal property.
2) How fixtures can become part of real property or remain personal property of a tenant.
3) Bailments, which involve the delivery of personal property by the bailor to the bailee. The key elements of a bailment and different types of bailment relationships are explained.
BUS 116 Chap029 personal property and bailmentsneogenesis6
This document provides an overview of personal property and bailments. It defines key terms like tangible and intangible personal property, different types of property ownership including tenancy in common and joint tenancy, and classifications of lost, misplaced and abandoned property. It also explains bailment law including the types of bailments and standards of care for bailees. Special bailments like those involving innkeepers, carriers, and warehouses are described along with their applicable duties and liabilities.
Ownership and Property in Islamic Financial TransactionsAbdul-Samad Saadi
Ownership and property in Islamic financial transactions can be summarized as follows:
1) There are two main types of ownership - total ownership where one enjoys both legal and beneficial ownership, and partial ownership which is either legal ownership alone or beneficial ownership alone.
2) Property is classified based on its eligibility for private ownership - some property like public roads cannot be owned, some can only be owned through legal means like waqf property, and some are unconditionally eligible for ownership.
3) Total ownership can be established through commonly accessible property where ownerless property is claimed, contracts like sales and gifts, succession through inheritance and compensation, and derivation where new property comes from already owned property.
Nuisance refers to an activity or condition that causes harm, offense or annoyance. There are two types of nuisance under common law - public nuisance, which interferes with public rights, and private nuisance, which interferes with a person's use or enjoyment of their land. To be considered a nuisance, the interference must be substantial and unreasonable. Property owners can sue for damages or an injunction to stop a nuisance. Nuisance laws have evolved over time to address issues like industrial pollution and competing land uses.
The document discusses various types of property including movable, immovable, tangible, and intangible property and outlines the differences between them. It also examines different types of transactions involving property like sale, lease, mortgage, and intellectual property rights. Various laws governing these different types of property transactions in India are also mentioned.
The document discusses the tort of nuisance under the law of torts. It defines nuisance as the violation of a person's right to reasonable convenience and comfort. Private nuisance involves a substantial and unreasonable interference with the use and enjoyment of land, such as damage from golf balls or noise, smells, and vibrations. Public nuisance aims to protect the public from unwarranted disturbances and requires plaintiffs to show they were more affected than others. Defenses to private nuisance include claims that the interference was trivial or reasonable given the circumstances.
A basic guide to property law. Since this is based on common law and applies to the law of the land - please check your state property statutes for modern codes. This is intended for law students and builds a foundation for the law of property law - each states laws vary. Thank you!
This document provides an overview of intellectual property (IP) including the types of IP (patents, trademarks, copyright), governing bodies and laws, and key concepts around IP rights.
1. It discusses the World Intellectual Property Organization (WIPO) which promotes IP protection worldwide and is headquartered in Geneva, Switzerland.
2. The major types of IP are outlined as functional/technical inventions protected by patents, artistic works protected by copyright, and symbols/logos protected by trademarks.
3. The rights provided by patents, copyright, and trademarks are territorial in nature and regulated by country-specific laws, though international treaties allow cross-border cooperation on IP issues.
Max Whittier amassed wealth in California and established a tradition of philanthropy that has been carried on by subsequent generations through eight family foundations over 60 years. Whittier Trust has supported the Whittier family and over 300 other families and entities in their philanthropic activities since the 1950s. They provide customized services to minimize demands and maximize rewards for clients' philanthropic journeys, with a goal of carrying out clients' philanthropic missions.
The document discusses the Charities Act 2006 and the introduction of the Charitable Incorporated Organisation (CIO) as a new legal structure for charities in England and Wales. It examines existing legal structures for charities, the advantages and disadvantages of the CIO, and how charities can transition to becoming a CIO. It also analyzes how the Act defines public benefit and establishes new principles for charities to demonstrate identifiable, related, and unrestricted benefits.
The document discusses the Investors Group Charitable Giving Program which allows donors to establish a personal charitable giving account. Key benefits include having no administrative responsibilities, immediate tax benefits, and the ability to support charities over time. The process to set up an account is simple, taking only 5 steps: naming the account and successors, making an initial donation, selecting investment funds, recommending annual grants, and making further contributions. The program provides a smart way for donors to support charity through both current and deferred gifts.
Raising Dough: Financing Your Farm or Food-Based BusinessElizabeth Ü
In order to start or grow a farm of food-based business, you need money. Farmers have more financing options than ever before to raise capital for their farm-based businesses, but choosing which fundraising methods to pursue requires knowing how they work. In this track, learn the criteria, sweet spots, pros and cons, tips and techniques of the many financing options available. Complete with interactive exercises, success stories, and cautionary tales, discover what it takes to access the right kinds of capital for your farm. You’ll leave with steps you can take right away, whether you are currently seeking financing or don’t expect to for years to come.
Presenters:
Rebecca Thistlewaite, Sustain Consulting
Elizabeth Ü, Finance for Food
Bill Kitsch, Mid-Atlantic Farm Credit
Topics Covered:
--Clarifying Your Values & Prioritizing Business Investments
--Organizing Financial Records & Improving Your Credit Rating
--Cash Flow, Budgeting & Enterprise Analysis
--Overview of Financing Types & Laws to Keep in Mind
--Loans; Land Financing Options; Grants; Community Supported Models; Crowdfunding
--Social Capital: Why It’s Important & How to Build It
--Equity Financing
Presented at PASA's 23rd Annual Farming for the Future Conference: Letting Nature Lead. State College, PA. February 8, 2014
This document provides an overview of philanthropy and the charitable sector. It discusses how philanthropy is becoming more complex, with greater focus on impact and multi-generational engagement. Generational shifts are changing how wealth is managed and transferred. The document outlines different donor profiles, vehicles for giving, and tools for developing a strategic philanthropic plan, including evaluating charities and measuring impact. The case study demonstrates transforming a tax problem into a multi-million dollar foundation with long-term social goals.
Expert advice on international grantmaking and risk managementTed Hart
Expert Advice on International Grantmaking and Risk Management from CAF America, the recognized expert on tax effective, risk managed international and domestic grant making. Understand IRS regulations, learn ways to protect your reputation and become more strategic with your philanthropy.
Everything You Ever Wanted to Know About Foundation, Corporate, and Governmen...Abila
Last year, corporate and private family foundations alone gave more than $56 billion in grants to nonprofit organizations. Are you getting your share? This presentation evens the playing field for all nonprofits to learn how to access corporate, private foundation and government funding.
Planned Giving Opportunities with the Upcoming Transfer of Wealth (Pt. 1/2)West Muse
This document discusses planned giving opportunities for museums through bequests and other planned gifts as part of an upcoming transfer of wealth. It provides an overview of giving trends in the US, the amounts of wealth expected to be transferred between generations in the coming decades, and how different generations approach philanthropic giving. The document then discusses strategies for launching a planned giving program, overcoming challenges, identifying prospective donors, gift types and their tax benefits, and opportunities involving bequests, life insurance, retirement plans, and charitable gift annuities. Experts provide insights on these various planned giving tools and how nonprofits can utilize them.
Many entrepreneurs – social, triple bottom line or otherwise – do not avail themselves of all potential capital sources when seeking funding to grow or scale, limiting prospects to cash flow their initiatives. This seminar explores a range of options for funding: external in the marketplace, internal within an organization, new ideas and classics not to overlook.
This document compares different types of charitable giving accounts, including community foundations, donor advised funds through financial institutions, personal/family foundation accounts, and private foundations. It outlines the key differences between each type of account in areas such as set-up costs, minimum funding amounts, personal administration requirements, investment management, granting policies, and other features. The document provides a high-level overview to help donors determine which type of charitable giving vehicle is the best fit based on their philanthropic goals and preferences.
Starting A Foundation Guidance for Advisors.pptetebarkhmichale
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose of long-term financing and long-term capital requirement. The Capital mark
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose of long-term financing and long-term capital requirement. The Capital mark
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose
This document discusses the services provided by an accounting firm to help charities and non-profits manage their finances and comply with regulations. It outlines the challenges faced by charities, including tight budgets, increased competition for funding, and greater reporting requirements. The firm has decades of experience supporting various types of charities and can provide a comprehensive range of services, from auditing and tax advice to strategic planning and guidance on industry changes. Their approach is to offer a tailored partnership with a focus on quality to help charities meet their financial and administrative needs.
The document summarizes the benefits of establishing a fund with the Greater Pike Community Foundation. It allows donors to participate in organized philanthropy and support important causes in the local community. Donors receive superior tax benefits by making contributions to the Foundation's established 501(c)(3) compared to setting up a private foundation. Establishing a fund is a simple process that can be done in less time than opening a bank account and handles all administrative and grantmaking activities.
Social enterprise: What is it and what to considerNICVA
A presentation by Amanada Johnston from Social Enterprise NI helping participants understand more about what social enterprise is, what you need to consider if thinking about starting a social enterprise, what support is available and gave some examples of local social enterprises.
Alterna Savings is a credit union based in Ottawa, Canada with $8 billion in assets and 166,000 members. It was founded in 1908 and has grown significantly through mergers, including a 2005 merger that was the largest in Ontario history. The organization provides banking services like savings, investments, and home loans. It focuses on corporate social responsibility through programs supporting financial literacy, inclusion, and local communities. Alterna Savings aims to help individuals, communities, and employees thrive through ethical banking practices.
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1. PUTTING THE “PLAN” INTO PLANNED GIVING
Ann E. Casey, CPA
Vice President of Finance and Operations at the
Madison Community Foundation
Theresa A. Zeidler-Shonat, ASA
Director of Valuation Services at Smith & Gesteland
1
2. ANN E. CASEY, CPA
Ann Casey is Vice President of Finance and Operations for Madison Community
Foundation, where she directs the financial and accounting activities for the
foundation's assets, including oversight for investment management and policy
development. She also assists individuals with planned giving and major gifts.
Before joining MCF in 1999, Ann spent nearly 20 years in public accounting as a Senior
Tax Manager with both Ernst & Young and Grant Thornton, focusing on tax planning for
entrepreneurial businesses, executives and high net worth individuals.
Beyond her commitment to managing philanthropy through the Madison Community
Foundation, Ann demonstrates a commitment to community through her many
volunteer activities. She is currently on the Board of the Wisconsin Planned Giving
Council and the Catholic Diocese of Madison Foundation. She is also a public board
member of the University of Wisconsin Medical Foundation, as well as its Investment
and Audit Committees.
Ann holds a BBA in Accounting from UW-Whitewater and a Masters in Taxation from
UW-Madison, and completed the Strategic Perspectives in Non-Profit Management
program at Harvard School of Business.
2
3. THERESA A. ZEIDLER-SHONAT,
ASA
As an Accredited Senior Appraiser in the Business Valuation discipline, Theresa
specializes in business enterprise, equity, and intangible asset valuations for financial
reporting, gift and estate tax, tax planning, succession planning, merger and
acquisition planning and assessment, divorce and litigation support, and SBA lending
requirements.
Theresa has performed valuations for companies in a wide variety of industries that
range from traditional service and manufacturing industries to service industries to
rapidly-changing and high-tech industries and other intellectual-property-intensive
industries. Theresa has worked with clients that range in size from small family businesses
to multi-billion dollar, multi-national firms.
Theresa takes a consultative approach to business valuation. In her role she helps
companies understand the value of their businesses, and gives them the tools and
information to understand how their actions can strengthen their business.
3
4. WHAT CAN GIVING DO?
Think of all the things that
Charitable Giving and Philanthropy
do for our Community…….
4
13. HOW TO GIVE
• Lifetime gifts
• Life Interest Gifts
• Planned/Deferred Gifts
13
14. OUTRIGHT GIFTS
• Cash, Check, Credit card, Text-to-Give
• Securities
– Publicly traded stock, mutual funds
– Closely-held business interests
• Real Estate, Other property
• Retirement accounts, Annuities, Life
Insurance
14
15. DONATE LONG-TERM GAIN
PROPERTY
Sell stock/
Gift Cash Gift Stock
Stock Value $50,000 $50,000
Basis 10,000
Long-Term Capital $40,000
Gift to charity $50,000 $50,000
Tax on gain 8,000 0
Tax savings of (15,000) (15,000)
Net cost of gift $43,000 $35,000
15
16. ORDINARY INCOME
• For property which would result in
Ordinary Income when sold:
– Charitable deduction reduced, or
– Ordinary Income must be recognized
16
17. ORDINARY INCOME
• Examples:
– Short Term gain property
– IRAs
– S Corps, Partnerships, LLCs
– Commercial annuities or insurance
– Real estate
17
18. LIFE INTEREST GIFTS
• Charitable Remainder Trust
– Income to individual/remainder to charity
• Charitable Lead Trust
– Income to charity/remainder to individual
• Retained Life Interest in Property
– Give home to charity; donor may live in
home
18
19. CHARITABLE GIFT ANNUITY
• Donor(s) receives lifetime income in
return for charitable gift
• Immediate tax deduction
• Annuity rate based on age
• Annuity payments partially tax-free
• Remainder of gift/fund stays with
charity
19
20. CGA SAMPLE RATES
One Life
AGE RATE
60 4.4%
65 4.7%
70 5.1%
75 5.8%
80 6.8%
85 7.8%
90+ 9.0%
Two Lives
AGE RATE
60/65 4.0%
65/70 4.4%
70/75 4.8%
75/80 5.3%
80/85 6.1%
85/90 7.3%
90/95 8.8%
20
21. GIVING VEHICLES
Private Foundation
– Separate charitable entity
– Minimum $3 million - $5 million
recommended
– Apply for tax-exempt status; annual tax
returns
– Not really “private”
– Annual board meetings, corporate
records
– Closely-held stock deducted at basis only
21
22. GIVING VEHICLES
Donor Advised Fund
– Component fund within another charity
• Community foundations
• Commercial investment companies
– Simple to create, low minimums
– No separate tax filings or record-keeping
– “Recommend” grants and distributions
– Can give anonymously
22
24. LEGACY EXAMPLE
Continue Lifetime Giving
• Add to Donor Advised
Fund at CF
• Support ~30 annual
charities
• Adjust list as interests
have changed
• Payout over 10 years
• Report back to family
24
25. LEGACY EXAMPLE
One Bequest, Many Uses
• College scholarship
fund
• High school
scholarship fund
• Donor advised fund
for children
• Immediate grants to
20 favorite charities
25
26. BEQUESTS
Gift of property or
money promised to
a person or
organization upon
your death.
90% of Planned
Gifts
• Defined $$
amount
• % of estate
• Specific asset
• Beneficiary
– Bank account
– Life Insurance
– Retirement Funds
26
27. BEQUESTS
I/we give and bequeath (describe
bequest) to Madison Community
Foundation, Madison, Wisconsin, for its
charitable purposes as defined in and
subject to the provisions of the Madison
Community Foundation Trust Agreement as
it exists on this date or as they may be
amended in the future. This gift shall be
added to the Bob and Sue Smith Donor
Advised Fund.
27
28. WHAT TO GIVE TO CHARITY
• During Lifetime – Capital Gain property
– No gain recognized; full FMV deduction
– At death, taxable beneficiaries get step-up in
basis
• Gain goes away forever
• At Death – Ordinary Income accounts
– Taxable beneficiaries would be taxed on
income
– Charity pays no income tax
28
29. CHARITABLE GIFT PLANNING
What to consider
• Donor considerations
– Values and interests
– Available assets
Valuation
Tax consequences
Ease and consequences of transfer
– Income considerations
Need for future income
Ability to generate income from gift
29
30. CHARITABLE GIFT PLANNING
What to consider
• Non-Profit considerations
– Ability to liquidate the gift
– Risks/Costs of ownership
Valuation and acceptance costs
Holding/liquidation costs
Liabilities
Tax consequences
– Capacity to honor donor intent
Current or new program or initiative?
Mission fit or mission drift?
Other donor expectations
30
31. PLANNING PROCESS & TEAM
• Consult with:
– Tax Advisor
– Attorney
– Appraiser
– Giving Coordinator at Charity/Charities
31
32. WHY PEOPLE GIVE
• 2014 Study of High Net Worth
philanthropy (household income
>$200,000)
– 74% belief gift can make a difference
– 73% personal satisfaction
– 66% supporting the same causes
– 63% giving back to the community
– 62% serving on a nonprofit’s board or
volunteering for a non-profit
32
33. BUT WHAT ABOUT TAX BENEFITS
OF PHILANTHROPY?
• Only 34% of donors cited tax
advantages among their chief
motivators for giving.
• Even if they aren’t a primary motivator,
tax advantages exist.
• There are also impacts on what you
need to include in your tax return.
33
34. THE KNOWLEDGE
CONNECTION
• The study found strong relationships
between donors’ knowledge of giving
and personal fulfillment from giving.
• Donors who rated themselves “expert”
at giving both give more and gain
more fulfillment from giving.
34
35. NON-CASH GIFTS
• Most non-cash gifts
have some sort of
valuation or
appraisal
requirement
related to taking a
charitable
deduction on a
tax return.
35
36. WHEN TO DO AN APPRAISAL
• Art work(s) with a total claimed value
deduction at or exceeding $20,000
must have a complete, signed
appraisal by a qualified appraiser
attached to the return;
• Be sure to verify IRS requirements
regarding photo-documentation.
36
37. WHEN TO DO AN APPRAISAL
• Any personal property with a claimed
deduction exceeding $250 must
include with the return a written
communication from the qualified
organization containing the name of
the organization, the date of the
contribution and the amount of the
contribution
37
38. PERSONAL PROPERTY?
• General Definition:
– A type of property which can include any
asset other than real estate. The
distinguishing factor between personal
property and real estate is that personal
property is movable.
– That is, the asset is not fixed permanently to
one location as with real property such as
land or buildings. Examples of personal
property include vehicles, furniture, boats,
collectibles, etc.
38
39. WHEN TO DO AN APPRAISAL
• The donor must have an
acknowledgement stating whether
the organization provided any goods
or services in exchange for the gift
and, if so, a description and a good
faith estimate of the value of those
goods or services.
39
40. WHEN TO DO AN APPRAISAL
• Any personal property with a claimed
deduction exceeding $500 but less
than $5,000, the client must complete
Section A of the Form 8283 and attach
it to the tax return (this includes
donation of household contents
exceeding claimed $500)
40
41. WHEN TO DO AN APPRAISAL
• Any personal property with a claimed
deduction of $5,000 or more, Section B
of IRS Form 8283 must be completed
(including “qualified appraiser’s” and
donee’s signatures) and attached to
the tax return. A qualified appraisal
must be prepared for the donated
property.
41
42. WHEN TO DO AN APPRAISAL
• This applies to single items or multiple
similar items of personal or real
property.
42
43. WHEN TO DO AN APPRAISAL
43
• IRS: Appraisal for
charitable gift
deduction for tax
return must be
effective as of date
of donation or no
more than 60 days
preceding
donation.
44. POLL QUESTION
How Long do you think a
Typical Business
Appraisal Process Takes?
A. 4 to 6 months
B. 3 to 6 weeks
C. 2 to 3 months
D. 1 to 2 weeks
E. 3 to 4 days
44
45. Business Interest Appraisal Timeline
45
I.
• Project Scoping and Engagement Letter
• This typically takes a few days between initial discussions and the engagement letter
II.
• Information and Data Request
• This length of this step depends on how quickly client responds with requested information
III.
• Initial Modeling and industry research
• This portion should take 4 to 6 days to complete
46. Business Interest Appraisal Timeline
46
IV.
•Follow up questions for client
•Questions arise during step III. Timing depends on client response time.
V.
•Finish model and finalize report
•A few days to a week depending on responses received in Step IV.
VI.
•Submit final report to client
•In total process typically takes 3 to 6 weeks .
47. APPRAISAL TIMELINE
• Length it takes to complete a business
appraisal can be affected by:
– Whether the appraiser can start right away or
has other projects that must be finished
before starting yours
– Responsiveness to information
requests/follow-up questions
47
48. APPRAISAL TIMELINE
• You may also need
– Real estate appraisal
– Machinery and Equipment appraisal
– Art or Antiques appraisal
• The timelines for those are different. If they
are assets held in the business, these
appraisals need to be complete before
business appraisal can be finalized.
48
49. IRS Guidance Regarding Appraisals
for non-cash charitable
contributions
• IRC Section 170(f)(11)
• Section 883 American Jobs Creation Act
• Section 1219 of the Pension Protection Act
of 2006
• IRC Section 6695A
49
50. WHAT’S NOT DEDUCTIBLE?
• A contribution to a specific individual,
• A contribution to a non-qualified
organization,
• The part of a contribution from which the
individual receives or expects to receive a
benefit (such as sports tickets or a dinner),
• The value of time or services,
• Personal expenses.
50
51. WHAT’S NOT DEDUCTIBLE?
• A qualified charitable distribution from an
individual retirement arrangement (IRA),
• Appraisal fees (these may be claimed as
related business expenses),
• Certain contributions to donor-advised funds,
or
• Certain contributions of partial interests in
property.
51
52. WHAT’S NOT DEDUCTIBLE?
• One may not deduct a charitable
contribution of a fractional interest in
tangible personal property, unless all
interests in the property are held
immediately before the contribution by
the donor or by the donor and the
qualifying organization receiving the
contribution.
52
53. WHO CAN AND CAN’T PERFORM
APPRAISALS
• The IRS has a requirement that a
“Qualified Appraiser” is used.
• The IRS also excludes certain individuals
from performing appraisals for tax
purposes.
53
54. WHAT IS A “QUALIFIED
APPRAISER?”
• Has an appraisal designation from an
appraiser org, or
• Has met certain minimum education
and experience requirements;
• Regularly prepares appraisals for
which he or she is paid;
54
55. WHAT IS A “QUALIFIED
APPRAISER?”
• Demonstrates verifiable education and
experience in valuing the type of
property being appraised;
• Has not been prohibited from practicing
before the IRS under section 330(c) of title
31 of the United States Code at any time
during the 3-year period ending on the
date of the appraisal;
• The individual is not an excluded
individual.
55
56. APPRAISER ORGANIZATIONS
• Business Appraisals
– American Society of Appraisers (ASA)
• Accredited Senior Appraiser (ASA)
– The Institute of Business Appraisers (IBA)
• Certified Business Appraiser (CBA)
– National Association of Certified Valuation
Analysts (NACVA)
• Certified Valuation Analyst (CVA)
56
57. APPRAISER ORGANIZATIONS
• Machinery and Equipment Appraisals
– American Society of Appraisers (ASA)
• Accredited Senior Appraiser (ASA)
– Association of Machinery and Equipment
Appraisers (AMEA)
• AMEA accredited or certified
– NEBB Institute
• Certified Machinery & Equipment Appraiser
(CMEA)
57
58. APPRAISER ORGANIZATIONS
• Art and Antique Appraisals
– American Society of Appraisers (ASA)
• Accredited Senior Appraiser (ASA)
– Appraisers Association of America (AAEA)
• Certified Member
– International Society of Appraisers
58
59. APPRAISER ORGANIZATIONS
• Real Estate Appraisals
– American Society of Appraisers (ASA)
• Accredited Senior Appraiser (ASA)
– National Association of Real Estate Appraisers
(NAREA)
– Appraisal Institute
• Real estate appraisers must be
licensed/certified in the state in which the
property exists
59
60. WHAT IS AN “EXCLUDED
INDIVIDUAL?”
• The donor of the property, or the taxpayer who
claims the deduction.
• The donee of the property.
• A party to the transaction in which the donor
acquired the property being appraised, unless
the property is donated within 2 months of the
date of acquisition and its appraised value is not
more than its acquisition price. This applies to the
person who sold, exchanged, or gave the
property to the donor, or any person who acted
as an agent for the transferor or donor in the
transaction.
60
61. WHAT IS AN “EXCLUDED
INDIVIDUAL?”
• Any person employed by any of the above persons. For
example, if the donor acquired a painting from an art
dealer, neither the dealer nor persons employed by the
dealer can be qualified appraisers for that painting.
• Any person related under section 267(b) of the Internal
Revenue Code to any of the above persons or married
to a person related under section 267(b) to any of the
above persons.
• An appraiser who appraises regularly for a person in (1),
(2), or (3), and who does not perform a majority of his or
her appraisals made during his or her tax year for other
persons.
61
62. THE VALUE OF YOUR GIFT MAY
NOT BE WHAT YOU THINK IT IS…
62
63. Fair Market Value
“The price at which the property would change hands
between a willing buyer and a willing seller when the
former is not under any compulsion to buy and the latter is
not under any compulsion to sell, both parties having
reasonable knowledge of relevant facts. Court decisions
frequently state in addition that both the hypothetical
buyer and seller are assumed to be able, as well as willing,
to trade and to be well informed about the property and
concerning the market for such property.”
63
Source: IRS Revenue Ruling 59-
60
64. GIFTS OF INTERESTS IN CLOSELY-
HELD COMPANIES
• Your buy-sell agreement is probably
not “fair market value”
– The IRS requires charitable deductions at
FMV.
64
65. GIFTS OF INTERESTS IN CLOSELY-
HELD COMPANIES
• Market participate considerations?
– Value of ability to control the company
(discount for lack of control)
– Opportunity cost of investment (discount
for lack of marketability/non-liquidity)
65
66. Point in time Measurement
• Value Changes over time
• “Valuation Date” is important
66
67. Intangible Assets
• Intellectual Property (IP)
• Marketing Intangibles (Trademarks)
• Artistic Intangibles
• (there are other intangible assets that
are harder to gift)
67
68. Art and Antiques
• Auction prices may not be FMV
– Typically auction prices include both
buyer and seller fees
• Your insurance appraisal is
replacement cost, not FMV
• eBay isn’t a good source for value
estimates, either
68
69. IRS Restrictions on Charitable
Deductions for Intangibles
• The taxpayer’s initial deduction for
contributions of certain intellectual
property may be the lesser of the
taxpayer’s basis in the property or the
fair market value of the property.
69
70. IRS Restrictions on Charitable
Deductions for Intangibles
• Transfers of property are not
deductible:
– If the transfer is of a partial interest in
property.
– To the extent that consideration is
received for the transfer.
– If the transfer is inadequately
substantiated.
– To the extent the property is overvalued.
70
71. IRS Restrictions on Charitable
Deductions for Intangibles
• The fair market value of a patent must
take into account factors such as
whether the patented technology has
been made obsolete by other
technology; any restrictions on the
donee’s use of, or ability to transfer the
patented technology; and the length
of time remaining before the patent’s
expiration.
71
72. LIMITATIONS ON DEDUCTIONS
• If the donor contributes personal
property that has a fair market value
less than the donor's basis in the item,
the claimed deduction is limited to the
fair market value.
• Donor cannot claim a deduction for
the difference between the basis and
the fair market value.
72
73. LIMITATIONS ON DEDUCTIONS
• If the donor contributes property with a
fair market value that is more than the
donor's basis, the donor may have to
reduce the fair market value by the
amount of appreciation (increase in
value) when figuring the deduction to be
claimed.
• Different rules apply to figuring the
deduction, depending on whether the
property is ordinary income property or
capital gain property
73
74. LIMITATIONS ON DEDUCTIONS
• Donation of self-created works: Since
the 1970s, an artist may not claim the
fair market value of self-created works
donated by the maker to a qualifying
nonprofit organization. The artist may
only claim the cost of materials used in
creating the works.
74
75. MAKE SURE YOU AREN’T GIFTING
A PROBLEM
• Are there restrictions on transfer?
• Check your buy-sell agreement and
other corporate documents
– Can an organization outside of company
management own company equity?
75
76. MAKE SURE YOU AREN’T GIFTING
A PROBLEM
• Illustrative Example of a problem…
• Robert Rauschenberg’s Canyon
– A work of art in the estate of art dealer
Ileana Sonnabend
76
80. THE CANYON PROBLEM
• Under US law it can’t be sold because
it contains a taxidermied bald eagle.
• Actually, most people can’t even own
it, much less sell it.
80
81. THE CANYON PROBLEM
• Violation of:
– 1940 Bald and Golden Eagle Protection
Act
– 1918 Migratory Bird Protection Act
81
82. THE CANYON PROBLEM
• Criminal Penalties for Anyone who:
– “take, possess, sell, purchase, barter, offer
to sell, purchase, or barter, transport,
export, or import, at any time or any
manner… alive or dead, or any part, nest,
or egg thereof…”
82
83. THE CANYON PROBLEM
• Sonnabend had an exemption to own
the work based on a notarized
statement that the bald eagle was
stuffed by one of Roosevelt’s Rough
Riders prior to passage of the laws
83
84. THE CANYON PROBLEM
• However, it couldn’t be sold or
possessed by anyone else.
• How could it have a fair market value
if it is illegal to have a market for it?
• Three separate appraisers valued it at
$0
84
85. THE CANYON PROBLEM
• The IRS disagreed and said it was
worth $65 million
• They imposed penalties
• It went to tax court
85
86. THE CANYON PROBLEM
• The ultimate resolution?
• The IRS agreed to drop fines and taxes
• However, the work had to be donated
to a US Institution and the estate could
not claim a charitable deduction on it
• It is in MoMA’s collection today
86
87. WHAT’S NEXT?
• Think about
what you want
to support
• Think about
which of your
assets is best
gift to support
it (hint: it may
not be cash)
• Talk to your
legal and tax
advisors
87
88. WHAT’S NEXT?
• Talk to the giving
coordinator at the
charities you want to
support
• Line up the
appraisals you’ll
need
• Feel good about
supporting the things
that matter to you
88
90. Theresa Zeidler-Shonat, ASA
Director of Valuation Services
Smith & Gesteland, LLP
608.828.3154
theresa.zeidler-shonat@sgcpa.com
Ann Casey, CPA
Vice President Finance and Operations
Madison Community Foundation
608.232.1763
ACasey@madisoncommunityfoundation.org
90