Giving opportunities often coincide with major business or financial decisions. Recognizing –and seizing – those opportunities can save your clients money.
Following are just a few such scenarios. We realize that each of your clients – whether an individual, family or business – is unique. Contact us today and let us help you find the best charitable vehicle for each of your client scenarios.
- Year-End Tax Planning and Deductions
- Retirement Planning
- Appreciated Stock or Real Estate
- Considering a Private Foundation
YEAR-END TAX PLANNING
A Minneapolis executive just earned a large year-end bonus and would like to donate it to charity. But she wants to postpone specific charitable decisions.
Establish a Donor Advised Fund, and receive an immediate tax deduction this year. The following year, the donor recommends grants to nonprofits of her choosing. She continues to contribute year-end bonuses to the fund, making grants when it is convenient and where they the greatest impact.
A COMFORTABLE RETIREMENT
A St. Paul retiree wants to continue to give to the community in areas of the arts and education, without running out of money during her lifetime.
Establish a Charitable Remainder Trust. It provides an income stream during the beneficiary’s lifetime, and a Designated Fund can be named as the trust's remainder beneficiary. The trust will provide a steady income stream to the donor with the security of knowing that professional investment advisors manage the trust funds. The fund will achieve the client’s charitable objectives far into the future.
APPRECIATED STOCK AND REAL ESTATE
An affluent family in Minneapolis has appreciated stock and real estate. It constitutes substantial wealth but also contributes to estate planning problems during the current year. The parents have a long-standing interest in affordable housing and would like to take an active role in supporting the community. They would also like to get their adult children involved in philanthropy.
Create a Supporting Organization Fund (minimum $5 million) or Donor Advised Fund (minimum $10,000) at the Foundation. The family contributes their appreciated stock and real estate for the maximum allowable charitable tax deduction and avoids capital gains taxes. When the Foundation sells the assets, the entire gift is put to work. The Foundation's staff will work closely with the family to achieve their philanthropic goals.
A Bloomington family would like to broaden its philanthropic impact through a private foundation, but the family wants greater tax benefits and fewer bureaucratic hurdles.
Open a Donor Advised Fund, which can make grants throughout the country. Family members meet regularly to make grant decisions, and because many of them are real estate professionals, grants often focus on the housing needs of low-income communities. Family privacy is maintained, and worries about tax returns, minimum payouts and excise tax are eliminated.