These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
The document appears to be a slide presentation about charitable gift annuities. It includes information such as example annuity rates based on donor age, how annuities provide lifetime income in exchange for an initial gift, and ways that annuities can benefit both donors and charities. It also discusses risks associated with annuities and ways charities can help mitigate those risks, such as through reinsurance. The presentation aims to educate people on the basics of charitable gift annuities.
The document describes various types of charitable remainder trusts (CRTs). A CRT allows a donor to transfer assets to charity while receiving payments, either for life or a set term of years. The donor receives an income tax deduction upfront based on the value of the future gift to charity. When the donor passes away or the term ends, the remaining assets go to the designated charity. The document discusses the tax benefits of CRTs and how distributions are taxed to recipients. It also outlines some variations of CRTs, such as net income CRUTs that make payments based on trust income or "flip" CRUTs that convert to a standard payout rate after a trigger event.
Introduction to charitable gift annuitiesRussell James
This document provides an overview of charitable gift annuities. It discusses that a charitable gift annuity allows a donor to make a gift to charity in exchange for fixed lifetime payments. It notes some key statistics on charitable gift annuities such as the average annuitant age of 78 and average size of $60,000. It also outlines several uses of charitable gift annuities for donors, including providing lifetime income and receiving an immediate tax deduction. Additionally, it discusses some risks of charitable gift annuities for both donors and charities.
Top 10 charitable planning strategies for financial advisorsRussell James
1. Donating appreciated assets like stock instead of cash to charity allows donors to avoid capital gains taxes while still receiving a charitable deduction for the full fair market value.
2. Taking required minimum distributions from retirement accounts after age 70 1/2 and donating them to charity provides tax benefits as the distributions are not considered taxable income.
3. Creating charitable remainder trusts allows donors to receive an immediate income tax deduction today based on the future value of the charitable gift, even though the charity does not receive the assets until later.
Church seminar in planned giving & charitable estate planningRussell James
Estate planning through charitable giving allows Christians to be good stewards of their resources and care for others, while avoiding taxes and expenses. Without a will or estate plan, the government decides how assets are distributed through probate. Estate planning allows people to leave instructions and choose where their assets go. Options include wills, trusts, charitable remainder trusts, gift annuities, and qualified charitable distributions from IRAs after age 70. The best approach is choosing an estate plan rather than relying on the default "government plan."
2017-04-04 Planned Giving Programs - Why They are Needed and How to Get One S...Raffa Learning Community
This session will explain why planned giving is important to every non-profit organization and will go through the basic steps to start a planned giving program.
The document appears to be a slide presentation about charitable gift annuities. It includes information such as example annuity rates based on donor age, how annuities provide lifetime income in exchange for an initial gift, and ways that annuities can benefit both donors and charities. It also discusses risks associated with annuities and ways charities can help mitigate those risks, such as through reinsurance. The presentation aims to educate people on the basics of charitable gift annuities.
The document describes various types of charitable remainder trusts (CRTs). A CRT allows a donor to transfer assets to charity while receiving payments, either for life or a set term of years. The donor receives an income tax deduction upfront based on the value of the future gift to charity. When the donor passes away or the term ends, the remaining assets go to the designated charity. The document discusses the tax benefits of CRTs and how distributions are taxed to recipients. It also outlines some variations of CRTs, such as net income CRUTs that make payments based on trust income or "flip" CRUTs that convert to a standard payout rate after a trigger event.
Introduction to charitable gift annuitiesRussell James
This document provides an overview of charitable gift annuities. It discusses that a charitable gift annuity allows a donor to make a gift to charity in exchange for fixed lifetime payments. It notes some key statistics on charitable gift annuities such as the average annuitant age of 78 and average size of $60,000. It also outlines several uses of charitable gift annuities for donors, including providing lifetime income and receiving an immediate tax deduction. Additionally, it discusses some risks of charitable gift annuities for both donors and charities.
Top 10 charitable planning strategies for financial advisorsRussell James
1. Donating appreciated assets like stock instead of cash to charity allows donors to avoid capital gains taxes while still receiving a charitable deduction for the full fair market value.
2. Taking required minimum distributions from retirement accounts after age 70 1/2 and donating them to charity provides tax benefits as the distributions are not considered taxable income.
3. Creating charitable remainder trusts allows donors to receive an immediate income tax deduction today based on the future value of the charitable gift, even though the charity does not receive the assets until later.
Church seminar in planned giving & charitable estate planningRussell James
Estate planning through charitable giving allows Christians to be good stewards of their resources and care for others, while avoiding taxes and expenses. Without a will or estate plan, the government decides how assets are distributed through probate. Estate planning allows people to leave instructions and choose where their assets go. Options include wills, trusts, charitable remainder trusts, gift annuities, and qualified charitable distributions from IRAs after age 70. The best approach is choosing an estate plan rather than relying on the default "government plan."
2017-04-04 Planned Giving Programs - Why They are Needed and How to Get One S...Raffa Learning Community
This session will explain why planned giving is important to every non-profit organization and will go through the basic steps to start a planned giving program.
Life Insurance & Charitable Remainder TrustsRussell James
A lecture on tax planning that combines life insurance with charitable remainder trusts, specifically through use of an irrevocable life insurance trust (ILIT)
Creating a budget is Part 2 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
WFRE Richard Daugherty PSYCOLOGY OF MONEYBrian Banks
This document summarizes a presentation about planned giving and using life insurance for donors. It discusses different types of donors and their motivations. It also discusses challenges advisors and donors face regarding planned giving and how education can help. Specific planned giving options are presented, including using life insurance by naming a charity as a beneficiary. A case study demonstrates how a term life insurance policy or whole life policy could provide a donation. Other options like GICs, GIAs, and leveraged giving are also briefly covered. The presentation aims to provide donors with information to make planned giving part of their financial and estate plans.
The document outlines the ABCDEFG's of the Rotary Foundation, providing information on its Annual Fund, Benefactors and Bequest Society, focus areas and causes supported like polio eradication, ways to donate including trusts and donations advised funds, goals of Every Rotarian Every Year contributions and growing the Endowment Fund, the Foundation's mission of advancing world understanding and alleviating poverty through health, education and humanitarian grants, and statistics on Foundation recognition and spending.
The Statistics & Psychology of Baby Boomer Lifetime & Legacy GivingRussell James
In this irreverent and entertaining slide deck, Dr. James reviews nationally representative data on Baby Boomers and their lifetime and legacy donations. Beyond simple statistics, this session demonstrates how these demographic realities should change how and when you communicate fundraising information to Boomers. If you want a slide deck based on hard data that goes beyond "just so" stories with obligatory pictures of Woodstock, Vietnam, and Neil Armstrong - then this is the place for you!
The document discusses alternative strategies for retirement planning compared to traditional IRA and 401k plans. It argues that IRA and 401k plans are not optimal due to taxes owed upon withdrawal. Home equity loans used to fund non-qualified investments are presented as a better alternative, providing liquidity, safety, and higher returns. Multiple examples are given showing how this strategy could generate over $1 million more over 30 years compared to traditional tax-deferred plans.
The document provides an overview of different ways to structure charitable gifts through trusts and other planned giving vehicles. It discusses outright gifts, retirement plan gifts, and bequests as simpler options, as well as split-interest gifts like charitable remainder trusts, charitable lead trusts, pooled income funds, and charitable gift annuities that provide tax benefits to donors while also benefiting charities. It compares the structures, tax treatment, advantages and disadvantages of these different planned giving techniques.
Your one page guaranteed to work one page legacy plan f inalWWF-Australia
This document provides guidance and strategies for developing an effective legacy and bequest program. It begins by outlining the benefits of a strong bequest program, such as long-term income, financial sustainability, and increased impact. The document then discusses opportunity cost and how different levels of bequest program investment can yield different returns. Next, it analyzes donor data to identify the best prospects for legacies, such as older, loyal donors who give higher amounts more frequently. The document provides examples of legacy marketing touchpoints and strategies, including newsletters, surveys, websites, events, and follow-up calls. It emphasizes ongoing donor loyalty and relationship building. Overall, the summary is that this document offers an in-depth overview of developing
This presentation is about how to integrate charitable gift planning into your overall financial strategy in a way that will allow you to give to your favourite charities and reduce your overall taxes.
The document discusses how planned giving can help donors efficiently transfer wealth to charity through tax planning methods like charitable gift annuities and appreciated assets, allowing more of their money to benefit causes important to them. It provides an overview of current wealth transfer trends, examples of how planned giving benefits donors through tax savings, and tips for nonprofits to establish a planned giving program with limited resources through prospecting loyal donors and past leaders.
This document summarizes a presentation by Sean Triner on mythbusting in fundraising. It discusses different types of data used in fundraising like analytical, environmental, personal, and strategic data. It also discusses RFV modeling and shows graphs depicting the costs and returns of fundraising over several years. The graphs show that massive initial investment in donor acquisition is needed, and that reducing acquisition for a year leads to decreased costs and increased money available for programs. The presentation aims to dispel myths around fundraising strategies and costs over time.
This document contains 41 multiple choice questions regarding time value of money concepts. The questions cover a range of topics including calculating future and present values, interest rates, annuities, bonds, loans, and other financial calculations. The correct answers to each question are also provided.
Leaving a Legacy - Volleyball England Foundationsimoneturner1
The document discusses leaving a gift in one's will to the Volleyball England Foundation. It provides information on the types of gifts one can leave such as a percentage of their estate, a fixed sum, or a specific item. It also addresses frequently asked questions about writing a will, naming an executor, informing the Foundation of a planned gift, inheritance tax implications, and how to choose a solicitor. The overall document provides guidance to help people consider leaving a legacy to the Foundation through a gift in their will.
1. The document provides information on how to establish good credit, manage finances through budgeting, and tips for financial literacy. It discusses the importance of credit, how to build credit history, and maintaining a budget to avoid debt issues.
2. Statistics are presented on Americans' lack of financial knowledge and spending habits, including that the average American spends more than they earn and most live paycheck to paycheck without savings.
3. Information is also given on Alliance Credit Counseling, a nonprofit organization that provides financial counseling and education programs.
The document discusses various strategies grandparents can use to fund their grandchildren's college education, including custodial accounts, outright gifts, gifts for tuition, employing the grandchild, loans, trusts, Coverdell accounts, 529 plans, Roth IRAs, life insurance, and annuities. Each option has advantages like potential tax benefits and shifting income to the grandchild, but also disadvantages like loss of control, impact on financial aid eligibility, and administrative costs. The best approach may be combining these strategies with financial aid planning to start saving early for rising college costs.
The document contains information from a fundraising consultant regarding direct mail fundraising campaigns. It includes details on campaign results, tests of different pack components, and recommendations. Specifically:
- Test results of different direct mail pack components for an acquisition campaign with Cerebral Palsy Alliance, finding a 4-page letter and key chain premium generated the best response.
- Results of a February 2012 acquisition campaign for another organization, exceeding recruitment targets while testing a notepad versus totebag premium, with the totebag generating a slightly higher response rate.
- Recommendations and learnings from various campaign tests regarding optimizing direct mail for future fundraising acquisitions.
This document discusses the taxation of charitable gift annuities. It explains how to calculate the charitable deduction for a gift annuity by determining the value of the annuity payments and subtracting that from the value of the original gift. It also discusses how annuity payments are taxed, with a portion being a tax-free return of investment and the rest being ordinary income. For gifts of appreciated assets, the capital gain is prorated over the donor's life expectancy and reported portion by portion in each annual payment.
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.
Life Insurance & Charitable Remainder TrustsRussell James
A lecture on tax planning that combines life insurance with charitable remainder trusts, specifically through use of an irrevocable life insurance trust (ILIT)
Creating a budget is Part 2 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
WFRE Richard Daugherty PSYCOLOGY OF MONEYBrian Banks
This document summarizes a presentation about planned giving and using life insurance for donors. It discusses different types of donors and their motivations. It also discusses challenges advisors and donors face regarding planned giving and how education can help. Specific planned giving options are presented, including using life insurance by naming a charity as a beneficiary. A case study demonstrates how a term life insurance policy or whole life policy could provide a donation. Other options like GICs, GIAs, and leveraged giving are also briefly covered. The presentation aims to provide donors with information to make planned giving part of their financial and estate plans.
The document outlines the ABCDEFG's of the Rotary Foundation, providing information on its Annual Fund, Benefactors and Bequest Society, focus areas and causes supported like polio eradication, ways to donate including trusts and donations advised funds, goals of Every Rotarian Every Year contributions and growing the Endowment Fund, the Foundation's mission of advancing world understanding and alleviating poverty through health, education and humanitarian grants, and statistics on Foundation recognition and spending.
The Statistics & Psychology of Baby Boomer Lifetime & Legacy GivingRussell James
In this irreverent and entertaining slide deck, Dr. James reviews nationally representative data on Baby Boomers and their lifetime and legacy donations. Beyond simple statistics, this session demonstrates how these demographic realities should change how and when you communicate fundraising information to Boomers. If you want a slide deck based on hard data that goes beyond "just so" stories with obligatory pictures of Woodstock, Vietnam, and Neil Armstrong - then this is the place for you!
The document discusses alternative strategies for retirement planning compared to traditional IRA and 401k plans. It argues that IRA and 401k plans are not optimal due to taxes owed upon withdrawal. Home equity loans used to fund non-qualified investments are presented as a better alternative, providing liquidity, safety, and higher returns. Multiple examples are given showing how this strategy could generate over $1 million more over 30 years compared to traditional tax-deferred plans.
The document provides an overview of different ways to structure charitable gifts through trusts and other planned giving vehicles. It discusses outright gifts, retirement plan gifts, and bequests as simpler options, as well as split-interest gifts like charitable remainder trusts, charitable lead trusts, pooled income funds, and charitable gift annuities that provide tax benefits to donors while also benefiting charities. It compares the structures, tax treatment, advantages and disadvantages of these different planned giving techniques.
Your one page guaranteed to work one page legacy plan f inalWWF-Australia
This document provides guidance and strategies for developing an effective legacy and bequest program. It begins by outlining the benefits of a strong bequest program, such as long-term income, financial sustainability, and increased impact. The document then discusses opportunity cost and how different levels of bequest program investment can yield different returns. Next, it analyzes donor data to identify the best prospects for legacies, such as older, loyal donors who give higher amounts more frequently. The document provides examples of legacy marketing touchpoints and strategies, including newsletters, surveys, websites, events, and follow-up calls. It emphasizes ongoing donor loyalty and relationship building. Overall, the summary is that this document offers an in-depth overview of developing
This presentation is about how to integrate charitable gift planning into your overall financial strategy in a way that will allow you to give to your favourite charities and reduce your overall taxes.
The document discusses how planned giving can help donors efficiently transfer wealth to charity through tax planning methods like charitable gift annuities and appreciated assets, allowing more of their money to benefit causes important to them. It provides an overview of current wealth transfer trends, examples of how planned giving benefits donors through tax savings, and tips for nonprofits to establish a planned giving program with limited resources through prospecting loyal donors and past leaders.
This document summarizes a presentation by Sean Triner on mythbusting in fundraising. It discusses different types of data used in fundraising like analytical, environmental, personal, and strategic data. It also discusses RFV modeling and shows graphs depicting the costs and returns of fundraising over several years. The graphs show that massive initial investment in donor acquisition is needed, and that reducing acquisition for a year leads to decreased costs and increased money available for programs. The presentation aims to dispel myths around fundraising strategies and costs over time.
This document contains 41 multiple choice questions regarding time value of money concepts. The questions cover a range of topics including calculating future and present values, interest rates, annuities, bonds, loans, and other financial calculations. The correct answers to each question are also provided.
Leaving a Legacy - Volleyball England Foundationsimoneturner1
The document discusses leaving a gift in one's will to the Volleyball England Foundation. It provides information on the types of gifts one can leave such as a percentage of their estate, a fixed sum, or a specific item. It also addresses frequently asked questions about writing a will, naming an executor, informing the Foundation of a planned gift, inheritance tax implications, and how to choose a solicitor. The overall document provides guidance to help people consider leaving a legacy to the Foundation through a gift in their will.
1. The document provides information on how to establish good credit, manage finances through budgeting, and tips for financial literacy. It discusses the importance of credit, how to build credit history, and maintaining a budget to avoid debt issues.
2. Statistics are presented on Americans' lack of financial knowledge and spending habits, including that the average American spends more than they earn and most live paycheck to paycheck without savings.
3. Information is also given on Alliance Credit Counseling, a nonprofit organization that provides financial counseling and education programs.
The document discusses various strategies grandparents can use to fund their grandchildren's college education, including custodial accounts, outright gifts, gifts for tuition, employing the grandchild, loans, trusts, Coverdell accounts, 529 plans, Roth IRAs, life insurance, and annuities. Each option has advantages like potential tax benefits and shifting income to the grandchild, but also disadvantages like loss of control, impact on financial aid eligibility, and administrative costs. The best approach may be combining these strategies with financial aid planning to start saving early for rising college costs.
The document contains information from a fundraising consultant regarding direct mail fundraising campaigns. It includes details on campaign results, tests of different pack components, and recommendations. Specifically:
- Test results of different direct mail pack components for an acquisition campaign with Cerebral Palsy Alliance, finding a 4-page letter and key chain premium generated the best response.
- Results of a February 2012 acquisition campaign for another organization, exceeding recruitment targets while testing a notepad versus totebag premium, with the totebag generating a slightly higher response rate.
- Recommendations and learnings from various campaign tests regarding optimizing direct mail for future fundraising acquisitions.
This document discusses the taxation of charitable gift annuities. It explains how to calculate the charitable deduction for a gift annuity by determining the value of the annuity payments and subtracting that from the value of the original gift. It also discusses how annuity payments are taxed, with a portion being a tax-free return of investment and the rest being ordinary income. For gifts of appreciated assets, the capital gain is prorated over the donor's life expectancy and reported portion by portion in each annual payment.
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.
This document provides information on creative giving options for donating to Life Matters World Wide (LMWW), including direct donations, third-party donations through organizations like United Way, partnering with local businesses for donations from purchases, hosting fundraising events, and donating appreciated stocks and retirement funds to avoid capital gains taxes. It highlights opportunities provided by the CARES Act in 2020 to increase tax deductions for charitable donations. Suggested ways to make tribute bequests honoring others through wills, trusts, insurance policies, and retirement accounts are also outlined.
Tips for Charitable Donations | Stephen OvertonStephen Overton
Keep excellent records of all charitable donations, including receipts, to prove deductions claimed on taxes. Documentation requirements increase for larger donations, such as appraisals for donations over $5,000. Be sure donations are made to organizations with IRS tax-exempt status to legitimately claim deductions. Deduct the value of any gifts received from donations from the total amount donated.
10 Strategies for Post COVID-19 fundraising in complex and major giftsRussell James
The document outlines 10 strategies for nonprofit fundraising in the post-COVID-19 environment for complex and major gifts. It recommends beginning with showing concern for donors' well-being. It suggests focusing initial fundraising efforts on donors with donor-advised funds, as they are more likely to donate assets already set aside for charity. Special one-time requests may work well but should identify a crisis for beneficiaries rather than the organization. Planned gifts can help address donor uncertainty. Charitable gift annuities and retained life estates in homes or farmland provide tax benefits and lifetime income. Charitable lead and income tax planning trusts allow donors tax deductions. "Charitable swaps" of appreciated assets for cash donations provide tax benefits even in
This document discusses converting regular spending into earnings through a "Shopping Annuity". It presents statistics showing average household income and expenditures. It then explains that a Shopping Annuity works by redirecting regular shopping purchases made through a shopping portal, which allows consumers to earn cashback on purchases. This cashback can provide a steady income stream equivalent to investment returns from hundreds of thousands to millions of dollars. Regular shopping expenditures are essentially converted into a form of passive income annuity.
This document discusses various planned giving strategies that can provide benefits to donors and charities during uncertain economic times:
1) "Donate While You Wait" suggests donating stocks that have fallen in value but maintain dividends, allowing donors to receive a tax refund from the donation.
2) "Donate After Waiting" uses an example where investments grow over time, are then donated, providing tax benefits while benefiting the charity later.
3) "Charitable Income Gift" illustrates how donating appreciated shares from a private corporation provides tax benefits through credits to the Capital Dividend Account and avoids capital gains tax, while replacing the donated assets with life insurance continues future tax benefits.
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
This document provides guidance on creating a personal monthly budget. It begins by outlining the lesson objectives of estimating expenses, taxes, savings, and an emergency fund. It then provides information on different types of expenses like fixed vs flexible, needs vs wants. Examples of budgets are shown with categories like housing, food, utilities. The importance of tracking expenses and income is discussed. Overall the document serves as a guide for students to research costs of living and create their first personal budget.
Donations of securities are currently one of the most tax-smart ways to make charitable donations in Canada – but is your charity set up to accept them? CanadaHelps has you covered! Since 2007 we have been successfully helping our charities to accept donations of publicly traded securities and mutual funds. This webinar will outline how the donation works for the charity and the donor, how CanadaHelps processes gifts for your charity and how to market, promote and speak to donors about this type of donation.
Our speaker Paul Nazareth, VP of Community Engagement at CanadaHelps is a 15 year planned giving professional who is a national instructor with the Canadian Association of Gift Planners, has worked with securities donations in charities of all sizes and with the advisors who make these gifts happen. Get your program set up to get more gifts this year!
The document summarizes a presentation about charitable trusts and estate planning. It discusses how charitable remainder trusts can provide income for life, pass assets to heirs free of estate taxes, and leave remaining assets to charity. It also describes how charitable lead trusts can eliminate estate taxes by having charity receive income for a period before assets pass to heirs.
Who gets your percentage of the business when you retire, die or sell it? Your partner, a spouse, or your children? Are you doing the best to maximize tax advantages? What are you doing to protect your interest and assets? How are you positioning employee retention and loyalty?
2014 Okoboji Foundation Nonprofit ForumJoe Sorenson
This document provides an outline and information about services from the Community Foundation of Greater Des Moines, including the power of endowments, Endow Iowa tax credits, charitable gift annuities, and farmland donations. It discusses how endowments can generate grants over decades, the tax benefits of Endow Iowa for donations, examples of appreciated stock and grain donations, payment rates for charitable gift annuities, and the value of farmland in Iowa that could support charities through programs like Keep Iowa Growing.
2014 Okoboji Foundation Nonprofit ForumJoe Sorenson
This document summarizes a presentation about endowments and charitable giving tools. It discusses the power of endowments to provide grants over many years. It describes Iowa's Endow Iowa program which provides tax credits for donations to community foundation endowments. It provides examples of donating appreciated assets like securities or grain to receive tax benefits. It also discusses charitable gift annuities which provide donors with guaranteed lifetime income in exchange for a gift. The presentation aims to educate about options for charitable giving and creating lasting legacies.
This document summarizes a presentation about endowments and charitable giving tools. It discusses the power of endowments to provide grants over many years. It describes Iowa's Endow Iowa program which provides tax credits for donations to community foundation endowments. It provides examples of donating appreciated assets like securities or grain to receive tax benefits. It also discusses charitable gift annuities which provide donors with guaranteed lifetime income in exchange for a gift. The presentation aims to educate about options for charitable giving that benefit both non-profits and donors.
We all have to spend money to live so why not get paid for it. The Shopping Annuity. There is an amazing overview of how one can come to an understanding of where their money goes, recapture that money, and turn it into a professional income. If you understand this and you are willing to apply it to your life, then you are ready to add some serious finances to your life and create a lifestyle rather than simply have a job. If this sounds like it may be of value to you, come visit me at www.bestshoppingever.com and/or connect with me on facebook https://www.facebook.com/ldfaison
This document discusses how Donors Unite provides a way for individuals and businesses to support charities by converting money spent on gifts into donations. It notes that while Americans spend over $1 trillion annually on gifts, only a small portion is donated to charities, representing an opportunity. Donors Unite addresses this by allowing gift recipients to donate the value of gifts to charities of their choice through redemption of unique codes printed on gift cards. This provides a creative way for businesses to express appreciation while also highlighting their social responsibility.
Businesses are currently spending over $77 billion per year on material gifts for clients and employees. If just 10% of this money was converted to the purchase of a Donors Unite charity gift card, an additional $7.7 billion would be redirected to charities to support their missions.
Businesses are currently spending over $77 billion per year on material gifts for clients and employees. If just 10% of this money was converted to the purchase of a Donors Unite charity gift card, an additional $7.7 billion would be redirected to charities to support their missions.
Similar to Taxation of Charitable Gift Annuities (20)
A guide to understanding charitable giving and charitable bequest giving using neuroimaging with practical examples of applications to planned gift marketing
The demographics of charitable estate planningRussell James
1. The document analyzes new data from a large longitudinal study that matched individuals' lifetime survey responses about charitable planning with their actual estate distributions after death.
2. It finds that most charitable bequests are added close to death, and charitable plans often change as death approaches or with life changes like health declines or family changes.
3. The data has important implications for charitable gift planners, suggesting they maintain contact with older donors and not assume charitable plans are permanent.
The secret to understanding planned givingRussell James
Planned giving can lower taxes and provide income to donors by allowing them to trade gifts for tax benefits and lifetime payments. However, planned giving options often seem complex, involving charitable gift annuities, charitable remainder trusts, and pooled income funds. In reality, planned giving only does two things: lower taxes and trade gifts for income. The document provides an overview of various planned giving vehicles and how they accomplish these two objectives. It aims to simplify an area that nonprofits, donors and financial advisors should understand and use to benefit charities and clients.
This document discusses predicting nonprofit crisis and death by analyzing financial information, particularly IRS Form 990. It provides tools for evaluating nonprofit stability similar to tools for evaluating for-profits, including income/expense trends, net income trends, and asset/debt trends. Restricted funds like permanently restricted and temporarily restricted funds must also be understood. Negative net income in the previous year is identified as the best single predictor of future nonprofit disruption risk. The document analyzes financial trends for a small college that closed in 2008 to identify early warning signs in its financials from 2003-2005.
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 discusses charitable giving opportunities and trends for 2011 and beyond. It highlights special tax opportunities for 2011 including qualified charitable distributions from IRAs and Roth IRA conversions. It also discusses gifting remainder interests in homes and farmland which provide immediate tax deductions. Trends showing increases in charitable planning among childless and educated individuals aged 55-65 are presented, as are demographic trends pointing to growth in these populations. A new online graduate certificate in charitable financial planning from Texas Tech University is announced.
Using Life Insurance in Charitable PlanningRussell James
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
Gifts of Remainder Interests in Homes and FarmsRussell James
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
Elements and Timing of Charitable DeductionsRussell James
This document discusses the timing and elements of a charitable gift under U.S. tax law. It addresses when a gift is considered complete for tax purposes, such as when money or property is delivered to a charity or its agent. It also discusses situations where retained interests by the donor, like an option to repurchase property, mean the gift is not complete until those interests are transferred. The timing of when a gift is complete determines what tax year deductions can be claimed.
This document summarizes key considerations for donating retirement assets to charity. It discusses the different life stages of retirement accounts and tax implications of donations from each stage. Donating before age 59.5 can create taxable income and penalties, while donations from 59.5-70.5 are taxable but penalty-free. Qualified charitable distributions after 70.5 avoid taxes. The document also compares tax outcomes of leaving retirement assets to heirs versus charities. Naming charities as beneficiaries can avoid estate taxes and provide tax deductions.
The document discusses the documentation requirements for charitable contributions under U.S. tax law. It outlines the different documentation needed based on the amount and type of contribution, including donor records, charity receipts, appraisals and IRS forms. For cash contributions under $250, the donor needs only their own records. For contributions over $500 of property, including non-publicly traded stock and vehicles, the donor needs additional documentation like a qualified appraisal. Failure to follow the documentation rules can result in reduced or disallowed deductions.
A Charitable Lead Trust (CLT) makes payments to charity for a set period of time, after which any remaining assets pass to non-charitable beneficiaries designated by the donor. Donors use CLTs to reduce gift and estate taxes by taking advantage of the difference between the present value of projected charitable payments and the actual growth of the trust's assets over time. CLTs allow donors to transfer wealth to heirs in a tax-efficient manner while also providing benefits to charity.
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
Why financial planners should study charitable planningRussell James
Financial planners can provide significant value to clients by learning about charitable planning. Through sophisticated charitable strategies like a charitable remainder trust combined with an irrevocable life insurance trust, a couple can sell their $10 million business tax-free, receive an income tax deduction, increase their lifetime income, and leave their entire estate to their children tax-free. Charitable planning is a growing field that allows financial planners to help clients pass on both financial value and personal values to future generations and charitable causes.
This document summarizes a presentation on new research findings related to legacy giving and charitable estate planning. Some key findings from the research presented include:
- Most donors over age 50 who give at least $500 per year to charity do not have a charitable estate plan in place, despite their lifetime giving.
- Factors like having a graduate degree, volunteering regularly, and making regular charitable gifts increase the likelihood someone will have a charitable estate plan.
- People are more likely to drop charitable plans from their estate after becoming a grandparent or parent. Estates of those who do make charitable plans tend to grow faster than average.
- Future demographics, with rising educational levels and childlessness, are generally positive
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2. All slides are
taken from this
book which
includes
detailed
explanations of
all concepts.
Available from
Amazon.com
Full color version available at
www.createspace.com/4707238
7. Find the §7520 rate
http://www.irs.gov/Businesses/Small-Businesses-&-Self-
Employed/Section-7520-Interest-Rates
Multiply annual payment by
annuity factor in IRS Pub. 1457
http://www.irs.gov/Retirement-Plans/Actuarial-Tables
Value of annuity
8. Find the §7520 rate
http://www.irs.gov/Businesses/Small-Businesses-&-Self-
Employed/Section-7520-Interest-Rates
I can choose
current or
one of last
two month’s
rate
$4,000/year
age55donor
on10/31/13
Aug 2.0%
Sept 2.0%
Oct 2.4%
10. Find the §7520 rate
2.4%http://www.irs.gov/Businesses/Small-Businesses-&-Self-
Employed/Section-7520-Interest-Rates
$4,000/year
age55donor
on10/31/13
For the
lowest
annuity
valuation
[highest
charitable
deduction]
select
Oct. 2.4%
11. Section 1 Table S - Based on Life Table 2000CM
Interest at 2.4 Percent
Life Life
Age Annuity Estate Remainder Age Annuity Estate Remainder
0 34.2376 0.82170 0.17830 55 18.1993 0.43678 0.56322
1 34.3011 0.82323 0.17677 56 17.7570 0.42617 0.57383
2 34.1418 0.81940 0.18060 57 17.3129 0.41551 0.58449
3 33.9727 0.81534 0.18466 58 16.8678 0.40483 0.59517
4 33.7967 0.81112 0.18888 59 16.4213 0.39411 0.60589
Find the §7520 rate
2.4%www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Section-
7520-Interest-Rates
Multiply annual payment by
annuity factor in IRS Pub. 1457
$4,000 X 18.1993www.irs.gov/Retirement-Plans/Actuarial-Tables
$4,000/yearage55
donoron10/31/13
12. Find the §7520 rate
2.4%www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Section-
7520-Interest-Rates
Multiply annual payment by
annuity factor in IRS Pub. 1457
$4,000 X 18.1993www.irs.gov/Retirement-Plans/Actuarial-Tables
Value of annuity
$72,797
If annuity
pays more
than
annually, add
adjustment
factor from
Table K
$4,000/yearage55
donoron10/31/13
14. 2011 2012 2013 2014 2015 … Death
…
2010
IRS requires
annuity
value <90%
of transfer
If charitable
deduction is
not >10% of
transfer, it
doesn’t
qualify
15.
16. Find the §7520 rate
www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Section-
7520-Interest-Rates
Multiply annual payment by
annuity factor in IRS Pub. 1457
www.irs.gov/Retirement-Plans/Actuarial-Tables
Value of annuity
For two
lives use
Table R
Annuity factor is
(1-remainder)
§7520 rate
19. Part of each annuity check just gives you
back some of the money you paid
Initial Gift
Annual Payments
Charity $100,000
10/31/2014
Donor $4,000
10/31/2015
10/31/2016
10/31/2017
+ Return of InvestmentEarnings
20. Initial Gift
Annual Payments
Charity $100,000
10/31/2014
Donor $4,000
10/31/2015
10/31/2016
10/31/2017
+ Return of InvestmentEarnings
The rest is earnings (taxable)
21. Initial Gift
Annual Payments
Charity $100,000
10/31/2014
Donor $4,000
10/31/2015
10/31/2016
10/31/2017
+ Return of InvestmentEarnings
There is NO tax on getting back your own
money
22. Initial Gift
Annual Payments
Charity $100,000
10/31/2014
Donor $4,000
10/31/2015
10/31/2016
10/31/2017
+ Return of InvestmentEarnings
There IS a tax on getting earnings on your
money
32. Do you pay
taxes on the
interest
earned?
Yes.
That is new
money you
didn’t have
before
33. The idea of
taking all of
the interest
and some of
the principal
each year is
similar to an
annuity
34. Each annuity check has some earnings
and some return of original investment
earnings
returnof
original
investment
35. How much of each annuity check is return
of the money you put in originally?
earnings
returnof
original
investment
36. $ used to buy annuity
Original life expectancy
earnings
returnof
original
investment
Annual return
of investment=
NOT the deductible gift
part of the transaction
41. 2014 2015 2016 2017 2018 Life Expectancy
2013
Taxfree
returnof
investment is
divided
among each
expected
payment
Original Investment
…
42. 2014 2015 2016 2017 2018 Life Expectancy
2013
Annuity payments
after life
expectancy are
100%taxable
because alloriginal
investment has
beenreturned
…
43. 2014 2015 2016 … 2025 Life Expectancy Death
2013
…
$4,000
Ordinary
income
$4,000
Ordinary
income
$3,355
Taxfree
return
ofinvest-
ment
$645
Ordinary
income
$3,355
Taxfree
return
ofinvest-
ment
$645
Ordinary
income
$3,355
Taxfree
return
ofinvest-
ment
$645
Ordinary
income
$3,355
Taxfree
return
ofinvest-
ment
$645
Ordinary
income
44. 2011 2012 2013 … Death… 2022 Life Expectancy
2010
$3,355
Taxfree
return
ofinvest-
ment
$645
Ordinary
income
If early death,
donor’s last tax
return deducts
original investment
not yet given back
$3,355
Taxfree
return
ofinvest-
ment
$645
Ordinary
income
$3,355
Taxfree
return
ofinvest-
ment
$645
Ordinary
income
45. Compare a cash charitable gift annuity vs.
splitting the gift amount between a
commercial annuity and an immediate gift
vs.
$4,000
$4,000
Charity
Donor
Insurance
Company
Donor
Charity
49. I paid for it
I sell it for
fair market
value of
I have a
capital
gain of
Normal Capital Gain Rules
50. I paid for it
I sell it for
fair market
value of
I have a
capital
gain of
Normal Capital Gain Rules
51. I paid for it
I give it to
charity for
an annuity
worth
It has a fair
market
value of
I have a
capital
gain of
52. % of the
property value
used for
annuity
% of cost basis
allocated to
annuity
=
53. Step 1: Divide property value
Original cost
$500,000
Value
$1,000,000
Gave to charity for
$800,000 annuity
$800,000
Annuity Part
80%
54. $800,000 of value to donor
Original cost
$500,000
Value
$1,000,000
Gave to charity for
$800,000 annuity
$800,000
Annuity Part
80%
55. Step 2: Divide cost basis
Original cost
$500,000
Value
$1,000,000
Gave to charity for
$800,000 annuity
$400,000
Annuity Part
of Cost Basis
80%
56. 20%gift part of
cost basis
$100,000
Annuity part of cost basis
Original cost
$500,000
Value
$1,000,000
Gave to charity for
$800,000 annuity
$400,000
Annuity Part
of Cost Basis
80%
57. Annuity
part
$800,000 value to donor
─$400,000 annuity part of
basis
Gain:Annuityvaluelessannuitypartofbasis
Original cost
$500,000
Value
$1,000,000
Gave to charity for
$800,000 annuity
58. Original cost
$500,000
Value
$1,000,000
Gave to charity for
$800,000 annuity
Gain:Annuityvaluelessannuitypartofbasis
Annuity
part
$800,000 value to donor
─$400,000 annuity part of
basis
$400,000 Gain
59. If donor purchases
annuity for another
person with
appreciated
property, tax on
capital gain is paid
immediately
60. If donor is
annuitant (or if
jointly purchased
annuity for donor
and spouse), tax on
capital gain is paid
over
life expectancy
62. 2014 2015 2016 2017 2018 Life Expectancy
2013
Totalcapital
gainis
divided
among each
expected
payment
Capital Gain
…
63. 2014 2015 2016 2017 2018 Life Expectancy
2013
5yearlife
expectancy
and$10,000
gain $2,000
ofeachcheck
for5yearsis
capital gain
$10,000 Capital Gain
$2,000
$2,000 $2,000
$2,000
$2,000
…
68. $4,000
Annuity
Donor gives $100,000
stock (cost$60,000)
Charity
paysage
55donor
$4,000
peryear
forlife
Value ofannuity
-Basisusedforsalepart
Total capital gain
$72,797
(previousslides)
$60,000basis X
($72,797/$100,000)
69. $4,000
Annuity
Donor gives $100,000
stock (cost$60,000)
Charity
paysage
55donor
$4,000
peryear
forlife
$72,797 (Annuity)
-$43,678 (Basis used)
Total capital gain
$72,797
(previousslides)
$60,000basis X
($72,797/$100,000)
77. $4,000
Annuity
Donor gives $100,000
stock (cost$60,000)
Charity
paysage
55donor
$4,000
peryear
forlife
$2,013
Returnof
Basis
$645Ordinary
Income
$4,000Check
$1,342
Capital
Gain
78. 2014 2015 2016 … 2025 Life Expectancy Death
2013
…
$4,000
Ordinary
income
$4,000
Ordinary
income
$645
Ordinary
income
$1,342
CapGain
$2,013
Return
ofBasis
$645
Ordinary
income
$1,342
CapGain
$2,013
Return
ofBasis
$645
Ordinary
income
$1,342
CapGain
$2,013
Return
ofBasis
$645
Ordinary
income
$1,342
CapGain
$2,013
Return
ofBasis
79. 2014 2015 2016 … Death… 2022 Life Expectancy
2013
If early death,
donor’s last tax
return deducts
allocated basis not
yet given back
$645
Ordinary
income
$1,342
CapGain
$2,013
Return
ofBasis
$645
Ordinary
income
$1,342
CapGain
$2,013
Return
ofBasis
$645
Ordinary
income
$1,342
CapGain
$2,013
Return
ofBasis
81. If donor names a different annuitant, the
donor has made a gift to that person
1/1/2018
1/1/2017
1/1/2016
1/1/2015
1/1/2014
3rd Person 4,000
FiveThousandandno/100
Charity
Donor 3rd Person
Charity
82. This gift (to a non-spouse) may reduce the
remaining gift tax exclusion
1/1/2018
1/1/2017
1/1/2016
1/1/2015
1/1/2014
3rd Person 4,000
FiveThousandandno/100
Charity
Donor 3rd Person
Charity
86. Long term
capital gains for
collectibles (art,
antiques,
stamps, coins,
jewelry) are
taxed at a
higher rate
(31.8%) than
other capital
gains
87. I give $100,000
in collectible
items in
exchange for a
gift annuity.
What is my tax
rate for the
capital gain
portion of the
payment?
$100,000
($60,000basis)
Donor
gives
$100,000
Charity
paysage
55donor
$4,000per
yearforlife
$4,000
Annuity
89. The nature of the capital gain income doesn’t
change, it is simply deferred. We don’t know in
advance what tax rate will apply at that time.
0% rate if
ordinary income
tax rate is 15%?
15%rateifordinary
income taxrateis
25%?
3.8%Medicaretaxif
purchasedafter
1/1/13?
20%rateifordinary
income taxrateis
39.6%?
28%rateon
collectiblescapital
gain?
90. Donor gives $100,000
of unrelated use
tangible personal
property with
$60,000 basis.
What is the
deduction?
$100,000
Art
Donor
gives
$100,000
Charity
paysage
55donor
$4,000per
yearforlife
$4,000
Annuity
91. What is the
deduction?
Remember: A
charitable gift of
unrelated use
personal property is
deducted at lower of
basis or FMV
$100,000
Art
Donor
gives
$100,000
Charity
paysage
55donor
$4,000per
yearforlife
$4,000
Annuity
92. % of the
property value
used for
annuity
% of cost basis
allocated to
annuity
=
93. Step 1: Divide property value
Original cost
$60,000
Value
$100,000
Gave to charity for
$72,797 annuity
$72,797
Annuity Part
72.8%
94. 27.2% of value to charity
Original cost
$60,000
Value
$100,000
Gave to charity for
$72,797 annuity
$72,797
Annuity Part
72.8%
95. Step 2: Divide cost basis
Original cost
$60,000
Value
$100,000
Gave to charity for
$72,797 annuity
$43,678
Annuity Part of
Cost Basis
72.8%
96. Gift Part of Cost Basis
Original cost
$60,000
Value
$100,000
Gave to charity for
$72,797 annuity
$43,678
Annuity Part of
Cost Basis
72.8%
97. Because I can deduct only cost
basis for unrelated
use tangible
personal
property my
deduction
is $16,322
Original cost
$60,000
Value
$100,000
Gave to charity for
$72,797 annuity
$43,678
Annuity Part of
Cost Basis
72.8%
99. Help me
HERE
convince my bosses that continuing to build and
post these slide sets is not a waste of time. If
you work for a nonprofit or advise donors and
you reviewed these slides, please let me know
by clicking
100. If you clicked on
the link to let
me know you
reviewed these
slides…
Thank
You!
101. This slide set is from the curriculum for
the Graduate Certificate in Charitable
Financial Planning at Texas Tech
University, home to the nation’s largest
graduate program in personal financial
planning.
To find out more about the online
Graduate Certificate in Charitable
Financial Planning go to
www.EncourageGenerosity.com
To find out more about the M.S. or
Ph.D. in personal financial planning at
Texas Tech University, go to
www.depts.ttu.edu/pfp/
Graduate Studies in
Charitable Financial Planning
at Texas Tech University