Solutions for Your Clients

Situation

Issue

Solution

Year-end Tax Planning

 Your client just sold their business and would like to make a substantial charitable contribution to offset their taxable income, but they have no time before the end of the year to research a charity that might be of interest to them. Establish a donor advised fund and receive and immediate tax deduction for the gift.  Make subsequent recommendations for grants to charities of their choice whenever it is most convenient.  Consolidating giving through a donor advised fund makes it easy to keep track of charitable gifts for tax reporting.

Comfortable Retirement

 As a retiree, your client wants to increase the income they currently receive from certificates of deposit, but doesn't want to risk investing in stocks.  They also desire to begin a legacy to benefit the arts in their community. Establish a charitable remainder trust that provides a stream of income during their liftime.  Any remainder can be used to establish a fund to benefit the charity(ies) that they designate.  They receive enhanced current income while knowing that their charitable goals will be met in the future. 

Appreciated Stock

 Your client owns highly appreciated stock that they have held for more than one year.  They have a strong interest in affordable housing for the disabled and would like to take an active role in supporting their community.  They would also like to involve their adult children in establishing a plan for the family's charitable giving. Open a donor advised fund with a gift of the appreciated stock.  They will receive an immediate tax deduction for the fair market value of the stock and avoid paying captial gains tax on its sale.  The entire family can serve as advisors to the fund and develop charitable goals together, with assistance from Foundation staff if desired. 

Appreciated Real Estate

 Your client owns appreciated real estate and wishes to donate it to their local church.  However, the church is not prepared to accept gifts of real estate. They can donate the property to establish an endowment fund for the benefit of their church.  They will receive a tax deduction for its fair market value, while avoiding any capital gains tax that would arise from the sale.  The Foundation will sell the property and use the proceeds to endow the fund, providing ongoing support to the church.

Estate Preservation

 Your client is approaching retirement and wants to reduce future income and estate taxes by directing IRA assets left at the time of their death to charity.  They would also like to ensure that their gift impacts critical community needs present at the time the gift is made. Your client can contribute their IRA assets to the Foundation's unrestricted endowment fund.  Gifts that support the Foundation increase our ability to respond to community needs.  By gifting their IRA or qualified retirement plan assets to charity at the time of death, they maintain the use of the assets during their liftime, generate an estate tax deduction and avoid paying income taxes on the distribution of plan assets.