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Practical Charitable Planning: October 19, 2017

Central New York Community Foundation 315-422-9538 www.cnycf.org


Thank you to our sponsors for making this program possible! gold sponsors Michael Miller, CFA, Managing Director 750 Third Avenue, 20th Floor New York, NY 10017 212-218-4900 ∙ www.colonialconsulting.com Christine Woodcock Dettor, Esq. One Lincoln Center, Suite 900, Syracuse, NY 315-701-6351 ∙ www.bhlawpllc.com Kenneth J. Entenmann, CFA, Chief Investment Officer 120 Madison Street, Syracuse, NY 315-475-5891 ∙ kentenmann@nbtbank.com

Estate Planning Council of Central New York

Charlotte G. Crandall, Council Executive 606 State Tower Building, 109 S. Warren Street Syracuse, NY 13202 315-474-6775 ∙ cgcrandall@peoplepc.com Gail M. Kinsella, CPA, CGMA, Partner 432 North Franklin Street, Syracuse, NY 13204 315-214-2725 ∙ gkinsella@bonadio.com

continuing education sponsors Mary Anne Cody, Esq. 440 South Warren Street, Suite 400, Syracuse, NY 315-474-7571 ∙ www.mackenziehughes.com Joe Lazzaro, CFP, CLU, President 315-760-3662 ∙ jlazzaro@centerbridgepg.com Madelyn Hornstein, CPA, CEO 443 North Franklin Street, Suite 100 Syracuse, NY 13204 315-471-9171 ∙ www.dbbllc.com Lee M. Gatta, CLU, CLTC, AEP, ChFC Matthew Dauksza, Managing Director, CLU, CFP 5786 Widewaters Parkway Dewitt, NY 13214 315-350-2460 ∙ lee.gatta@prudential.com Charlotte G. Crandall, Chapter Executive 315-474-6775 ∙ cgcrandall@peoplepc.com Central New York Community Foundation 315-422-9538 www.cnycf.org


October 19, 2017

Dear Advisor, Gift planning is a broad topic that can have significant benefits for your charitable clients. Identifying the clients that could benefit, discerning their intentions, and creating a plan that maximizes the advantage for their financial and estate plans are all part of the process. Our presenter, Pamela Jones Davidson, who was with us for this event in 2014, uses her experience as a nationally recognized gift planner to share some guidance on this work. Using case studies, she will talk about the approaches for different client types of varying levels of wealth and planning needs. We hope her examples and insights make you think of some of your own clients and ways charitable planning could help them. The Community Foundation’s staff is available to be a part of your team whenever charitable planning is on the list of topics for your clients. This is true even in situations where we are not going to be a part of the solution. Of course, we are proud of the fact that our mission and purpose offers the flexibility to accomplish a wide spectrum of charitable goals. Whether we are helping a client to structure a planned gift for the benefit of our community, or simplifying their current giving through a donor-advised fund, we will partner with you to leave your clients feeling happy with the outcome of their planning process. The best way to find out if the Community Foundation can support you in accomplishing your clients’ goals is to ask. We are available when needed to help find the right giving option for your client’s particular situation – be it legal, financial or other. We hope that you will come to think of us as your ‘charitable back office’, freeing you to focus on your area of core competency. We have a wealth of written materials that you can use when working with clients. Additionally, we are also available to meet face-to-face with you individually or including your client. Please contact Tom Griffith, Director of Gift Planning, at 315-883-5544 or tgriffith@cnycf.org with questions or to schedule a meeting. Thank you for joining us this morning. I hope we have an opportunity to work together in the future.

Sincerely,

Peter A. Dunn President & CEO

Central New York Community Foundation 315-422-9538 www.cnycf.org


Agenda 7:30 am:

Registration

8:00 am:

Welcome and Introductions

8:10 am:

Presentation by Pamela Jones Davidson, J.D.

9:50 am:

Questions & Answers

Central New York Community Foundation 315-422-9538 www.cnycf.org


Pamela Jones Davidson, J.D. Pamela Jones Davidson, J.D., has been a nationally recognized speaker in charitable gift planning for 30 years. She is President of Davidson Gift Design, a consulting firm located in Bloomington, Indiana specializing in gift planning, planned giving program design and implementation and training. From 1985 through 1996, she was with Indiana University Foundation, leaving that organization as its Executive Director of Planned Giving and Associate Counsel. Ms. Davidson received her undergraduate degree from Indiana University in 1975 and graduated magna cum laude from the Indiana University School of Law at Indianapolis in 1979. She has been an examiner in the Estate and Gift Tax Division of the Internal Revenue Service and practiced law with an Indianapolis law firm before joining the nonprofit sector in 1985. Ms. Davidson was the 1999 President of the National Committee on Planned Giving (now, National Association of Charitable Gift Planners) after serving on its board in various capacities for six years. As a past president, she is a member and current Chair of its Ethics Committee. She serves on the Editorial Board of the Planned Giving Design Center. Ms. Davidson is a past board member and treasurer of the Indiana Chapter of the National Society of Fund Raising Executives (now, AFP), and a past board member and president of the Planned Giving Group of Indiana. She serves on the Community Advisory Boards of both of her local public radio and television stations, and on the board and past president of Middle Way House, her community’s nationally recognized women’s shelter.

Central New York Community Foundation 315-422-9538 www.cnycf.org


Central New York Community Foundation 315-422-9538 â–ª www.cnycf.org


Central New York Community Foundation ▪ 500 South Salina Street, Suite 428 ▪ Syracuse, NY 13202 315-422-9538 ▪ www.cnycf.org


Professional Advisors The Community Foundation recognizes the key role that you, as your clients’ professional advisor and confidant, play in structuring a plan to address the needs and desires of clients with charitable interest. We work hard to make the charitable giving process easy and rewarding for all involved. To do that, we have dedicated ourselves to meeting your needs, ensuring that you have the technical information and tools at your fingertips to help your clients achieve their charitable goals. What can the Community Foundation do for you? 1)

The Community Foundation provides an extremely flexible, accountable, dynamic charitable platform for long-term giving. Donors can create funds for multiple charitable beneficiaries or allow the Foundation to direct the funds to charitable organizations that can most effectively achieve the donor’s goals. Also, the Community Foundation will steward the donor’s intent and act as a hedge against nonprofit uncertainty.

2)

The Community Foundation can create funds around a specific area of interest – for example, education, arts, or the environment. This fund can serve as a catalyst to bring other donors in the community to the table with similar interests, leveraging your client’s contributions.

3)

The Community Foundation can work with you and your client to identify the most effective type of life income gift to meet their needs and to maximize the benefits of those gifts through the use of the most effective assets and distribution rate.

4)

The Community Foundation can serve as trustee of split interest vehicles like charitable remainder trusts or can arrange for third party trust administration if the donor prefers to self-trustee.

5)

The Community Foundation can prepare charitable deduction calculations for your clients.

6)

The Community Foundation accepts donations of complex, non-cash assets including real estate, closely held stock, art, collections and life insurance.

7)

The Community Foundation can work with your clients who want to create a platform for family philanthropy.

Central New York Community Foundation 315-422-9538 www.cnycf.org


Professional Advisors (cont.) Most of your clients may not know how to achieve their charitable goals or what they can accomplish through effective charitable planning. Some may not even know to raise the issue unless their advisor first presents the topic for conversation. Discussing philanthropy with your clients can be good for your clients and good for your business. What can you do to support the Community Foundation? 1)

Ask your clients about their charitable goals in the financial and estate planning process. This will increase charitable giving across the community. Begin with these three questions: – Do you have charities that you support on an annual basis? – Do you want to include any of these charities in your financial or estate plans? – If I could show you how to shift tax dollars to charitable dollars in your planning, would you be interested in exploring that?

2)

Involve us during the planning process if you are creating a perpetual charitable gift through the Community Foundation. We will be happy to brainstorm with you about how that gift might be structured to best achieve your client’s charitable goals.

3)

Help educate your clients and the community about the unique role of the Community Foundation in building a permanent pool of resources for the community.

4)

Serve as our ambassadors and advocates in the community. Encourage your friends, colleagues, or clients to call us or visit our website at www.cnycf.org if they have questions, concerns, or see opportunities.

If you have questions or would like to discuss a specific situation for a particular client, please feel free to contact Tom Griffith, Director of Gift Planning, at 315-883-5544 or tgriffith@cnycf.org.

Central New York Community Foundation 315-422-9538 www.cnycf.org


Ten Reasons To Partner with the Community Foundation ONE

We enable you to broaden your practice by building on our philanthropic expertise.

TWO

We provide highly personalized service tailored to each individual's charitable and financial interests.

THREE

We are a local organization with deep roots in the community.

FOUR

Our professional program staff's knowledge on community issues and needs is available to donors on request.

FIVE

Our donor-advised funds help people invest in the charities they already care about, and learn about new causes to invest in.

SIX

We accept a wide variety of assets, and can facilitate even the most complex forms of giving.

SEVEN

We offer maximum tax advantage under state and federal law.

EIGHT

We multiply the impact of gift dollars by pooling them with other gifts and grants.

NINE

We offer permanence to donors, through endowment funds and multigenerational involvement.

TEN

We are community leaders, convening agencies and coordinating resources to create positive change.

Central New York Community Foundation 315-422-9538 www.cnycf.org


[Divider Page] Tab: “Presentation”


10/19/2017

PRACTICAL CHARITABLE PLANNING October 19, 2017 Pamela J. Davidson, J.D. Davidson Gift Design Thompson & Associates Bloomington, Indiana

PRELIMINARY THOUGHTS • Who should consider charitable plans? • When should charitable plans be addressed? • What assets should be contributed? • THESE ARE THE QUESTIONS WE WILL CONSIDER TODAY!

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DONOR BENEFITS IN CHARITABLE GIFT PLANNING • Personal satisfaction – The joy and pleasure of becoming a philanthropist for the donor’s favored charities, – Leaving a legacy at a level often greater than they thought imaginable

• Income Tax Savings – Reduced income tax, beneficial during life – The avoidance of additional tax on long‐term capital gains when use appreciated asset – Reduced or avoided income tax owed by the survivor beneficiary of qualified retirement plans – Income tax deduction with retained life estate, of personal residence, vacation home or farm

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DONOR BENEFITS IN CHARITABLE GIFT PLANNING

• Gift and Estate Tax Savings – Through lifetime charitable gifts and testamentary provisions – Significant estate tax savings from charitable income plans where donor and spouse are the only income beneficiaries

• Increased lifetime income – Charitable Gift Annuity, Charitable Remainder Trust

• Tax‐sheltered lifetime income

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DONOR BENEFITS IN CHARITABLE GIFT PLANNING • Supplemental retirement income • Asset management, Diversification • Financial support – Fixed or Variable, for a term or life, – For self, family or friends

• Charitable Giving not always driven by financial aspects – Values, caring, legacy 5

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Outright Gifts – Appreciated Assets  – Remainder interest in a personal residence, vacation  home or farm

• Testamentary Gifts – All or part of balances in qualified retirement plans  (including IRA’s)  – Bequests in wills or testamentary trusts 6


10/19/2017

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Life Income Plans – One‐time transfer of highly appreciated assets with  low‐yield immediately prior to retirement  or in  anticipation of sale of business, real estate or family home – Use of low‐yield CD’s, mandatory retirement plan  distributions, or appreciated securities, for older  individuals to fund a charitable gift annuity that  provides fixed return income – Retirement Planning ‐‐ A series of deferred payment charitable gift annuities, or net income CRT 7

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Life Income Plans (continued) – Short‐term (10/15, up to 20 years) term of years charitable remainder trusts to divert income to  children/grandchildren, often funded with IRD assets – Charitable remainder trust funded with partial interest in a highly appreciated real estate, even rental – Transfer of closely‐held C corporation by a majority owner, even to children – Child or grandchild as remainder beneficiary of a charitable lead trust – Earnings bailout from a closely‐held C corporation 8

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Charitable Remainder Trusts – Created by Congress in 1969 – An exception to the split‐interest rule, for spouses – Often funded with appreciated real estate or stock  during lifetime, or testamentarily with IRD assets – Two forms of CRT’s: • Annuity trust – pays a fixed amount, no additional contributions • Unitrust – variable payout, additional contributions, inflationary protection, far more popular

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10/19/2017

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Charitable Lead Trusts – Assets transferred to the Trustee of a charitable lead trust during lifetime or after death.  – For a period of years or for someone's lifetime,  either a fixed amount or a fixed percentage of the trust assets are distributed to one or more  charities.  – At the end of the trust, the assets are returned to the donor's family, usually children, sometimes  grandchildren.  10

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Charitable Lead Trusts (continued) – The value of the charities' interest in the trust is not taxed for either federal gift or estate tax. – Only the present value of the family's right to receive the trust assets in the future (not the  actual amount which the family receives) is  taxable for federal gift or estate tax.  – Huge gift/estate tax savings are possible and typical.  11

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Beneficiary Designation Gifts – Smart and revocable gift options for all ages – Retirement plan assets which may well be that  individual’s largest asset holding – Retirement plan assets are among the most  expensive for family to inherit due to potentially heavy taxation – Income tax on retirement plans is simply deferred

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10/19/2017

CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Beneficiary Designation Gifts (continued) – Consider using for charitable purposes the most expensive assets family can inherit – Can designate a percentage (not an amount) of one or more of one or more retirement plan  assets to individuals and/or various charities – designations revocable during life – Retirement plan assets DO NOT pass via a will or  trust, but by contract, who is listed on the beneficial designation form on file with the plan  holder

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CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Beneficiary Designation Gifts (continued) – Gift simple to complete – Can change the beneficiary designation form  anytime by simply completing a new form and  sending it back to the company holding the plan – Even a twenty‐one year old can choose this option – Can use one plan, if have multiple plans, as the source of all testamentary charitable giving

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CHARITABLE PLANS AND  PERSONAL PLANNING OBJECTIVES • Charitable Gift Annuities – Around since the 1831, today the second most  popular charitable gift plan behind bequests – Fixed, guaranteed (as long as charity is solvent) income for one or two older lives – rates often  higher than market rates and CD rates – A portion of the annual annuity is taxed as tax‐ free return of investment for the rest of the  annuitant's or annuitants' life expectancy 15


10/19/2017

SIMPLER PLANNED GIFTS • Bequests  ‐ donor includes “magic language” in valid will or testamentary trust • Beneficiary Designation, – by Percentage, of (Part or All) of (One or More) Retirement Plan Assets – revocable, flexible, using (very) expensive assets  for family to inherit,  – all ages can do –optimal for charitable giving 16

SIMPLER PLANNED GIFTS • Gifts of Life Insurance Policies That Are No Longer Needed, by Gift of Ownership or Beneficial Designation of (Part or All) or (One or More) Life Insurance Policies – donor can consider a wealth replacement strategy, for family • Gifts Using Appreciated Stock or Real Estate (often low yield) as Funding Asset 17

SIMPLER PLANNED GIFTS • Gifts of Real Property Subject to Life Estate or Term of Years (for donor and spouse, partner, sibling) of personal residence, vacation home or farm (only) • TOD (Transfer on Death) deeds, legal in many states,  deed or affidavit with designating beneficiary,  death certificate filed in same public records where realty located.  In a few states, called the Enhanced Life Estate Deed.  Avoids probate. 18


10/19/2017

SIMPLER PLANNED GIFTS • Government Savings Bonds; if no longer paying income, cash in, outright gift to charity, or fund charitable gift annuities for self and another, or testamentary disposition, by bequest, in will or trust • Promoting Gifts Other than Cash ‐ vary message, testimonials, stories to illustrate 19

GIFT PLANNING  IN EVERY ECONOMY • Charitable Gift Annuity – Highly popular – Flexible – Repeatable – Rates and deductions favor older donors – Create lifetime income for one or two annuitants

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GIFT PLANNING  IN EVERY ECONOMY • Charitable Lead Annuity Trust – Provides funds to charity or charities now – Assets eventually returned to donor’s family – Stretches exemption value by minimizing the taxable value of “future gift” back to family – Good option when interest rate are low and asset  values depressed – Higher charitable deduction – Can leverage gift or estate tax deduction 21


10/19/2017

GIFT PLANNING  IN EVERY ECONOMY • Gift Remainder Interest in Personal Residence, Vacation Home, or Farm – Charitable income tax deduction now for older couple,  for personal residence, vacation home, farm (only) – Nothing changes for donor(s) who continue to live in  the home, pay taxes, maintenance – An out‐of‐state vacation home gift can avoid ancillary jurisdiction, simplify estate – Options available if donor(s) must move from home – Ideal for those who want charity to have the property,  plus a prized income tax deduction since most do not  have a taxable estate 22

GIFT PLANNING  IN EVERY ECONOMY • Retirement Plan Assets – Beneficiary designations, by percentages, of (all or  part) of (one or more) retirement plan assets  – Avoid significant taxation  potential – Revocable – Simple form to designate/change beneficiary

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GIFT PLANNING  IN EVERY ECONOMY • Life Insurance – Beneficial designations, by percentages, of (all or  part) of (one or more) life insurance policies that  are no longer needed by donor or donor’s family – Avoid inclusion in estate – Revocable – Simple form to designate/change beneficiary

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GIFT PLANNING  IN EVERY ECONOMY • Depreciated Stock – Donor sells depreciated stock, takes loss  deduction – Donates proceeds to charity, takes charitable gift  deduction – Low‐yielding stocks reduce loss of income – Can use proceeds to fund a charitable gift annuity and potentially increase income

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GIFT PLANNING  IN EVERY ECONOMY • Matured Savings Bonds – Redeem and make outright gift to charity  (charitable deduction offsets income inclusion) – Older donor can redeem and fund a charitable gift  annuity – Can include provision in will or trust directing all government obligations to charities

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GIFT PLANNING  IN EVERY ECONOMY • Bequests – Always in vogue – IF the donor has a valid, properly executed will or  testamentary trust that includes a provision for  one or more charities, using those charities’  proper legal name – Other options may be better choices

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10/19/2017

CHARITABLE IRA ROLLOVER – EXTENDED PERMANENTLY •

The Philanthropy Protection Act of 2006 (a.k.a. IRA  Charitable Rollover), extended permanently in December 2015, provides an especially attractive option for  philanthropically‐minded individuals who attain the age  of 70 ½ in designated years 

Can make an outright gift up to $100,000 of IRA assets to one or more favored charities annually

A husband and wife can each give that full amount each  year

The charity has to be public; gifts to donor advised funds, supporting organizations and private foundations have  not qualified for this favorable treatment.  28

CHARITABLE IRA ROLLOVER (continued) • This distribution must be made directly from the IRA custodian to a public charity • Can count towards even satisfy that plan owner’s mandatory distribution for that year • No income tax deduction for that gift to charity because that IRA fund balance has never been taxed ,but donor does not have to include the IRA distribution in taxable income, far better than a deduction!! 29

CASE STUDY #1 • Appreciated farm, no debt, older couple with 5 children, plan to sell to Parks Foundation • Advisors had never done a charitable plan • Donors own 100% undivided fractional interest in their farm • Hero of the story: visionary Park Superintendent, “Is there a gift conversation there? 30


10/19/2017

A SOLUTION FOR CASE STUDY #1 • Four deeds: • 2% outright gift to Parks Foundation • 15% to local CF for a 6% CGA for the couple for life • 30% to 20 year CRUT for children, 5% payment • sold 53% to the Parks Foundation • 47% free of capital gains, plus • income tax deductions, offset gains and income taxes, • plus, income for the couple and their adult kids 31

CASE STUDY #2 • Single man, no children, retirement plan a major  asset • Heirs he loved: His sister and his partner, his same generation • Contacted charity at age 69 ½, “next year I must take a retirement plan distribution; I don’t need it, but I  might.” 32

A SOLUTION FOR CASE STUDY #2 • First gift, a testamentary CRUT in will, to pay 5% for  life to his sister and his partner • Second gift, the first of many deferred charitable gift  annuities annually, to offset MRD from  IRD plan • Third gift, beneficial designation on retirement plan  to the trustee of the CRUT in his will, pre‐tax funding • Fourth gift, retained life estate on residence after  partner died, donor late 80’s. • Result – multiple income tax deductions and greater  income, simplified life, more in scholarships 33


10/19/2017

CASE STUDY #3 • Younger couple, both age 45 • With deferred compensation payout from previous employer that doubles their AGI for that year. • Charitable and civically engaged but currently only use monthly checkbook giving. 34

A SOLUTION FOR CASE STUDY #3 • Begin with a discernment conversation about their charitable goals – May not be clearly defined – Beginning now will help guide them as they progress

• Consider: – Donor‐Advised Fund – Gift to charity for the purchase of limited‐pay life insurance policy  – Net income only charitable remainder unitrust 35

CASE STUDY #4

• Younger doctor couple, both age 55 who are  charitable and are fully funding their available retirement plans. • Still concerned about giving away assets now since they may need them in retirement.

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A SOLUTION FOR CASE STUDY #4 • Consider a deferred charitable gift annuity • Consider a charitable remainder unitrust, funded over time and for their lifetimes, to diversify  retirement income • Consider revocable % designations on retirement  plan assets now – best way to take care of all  charities they care about • Consider a testamentary CRUT for heirs, funded with IRD assets at survivor’s death

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CASE STUDY #5 • Jack, age 62 visits Gift Planner, announces a $200,000 gift to the charity. • She asks him if he’s planning on selling any property  anytime soon, his wife has told him to start  unloading his many rental properties in DC. • The federal capital gains tax rate is then 28% so he’s  not acted.  The couple also wishes to diversify its  holdings in anticipation of retirement and ending  their landlord role.

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A SOLUTION FOR CASE STUDY #5 • Jack funded a CRUT with his selection of debt‐free,  fully depreciated rental real estate, when sold, Jack  and spouse had income from an investment  portfolio, diversified. • Jack repeated this technique with other parcels of his  rental holdings, tax breaks each time. • Result:  Jack had told Gift Planner he was giving  $200,000 but his new goal is $1 million – because she showed him how • Jack could replace the value of these gifted assets  with wealth replacement insurance, to his daughter 39


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CASE STUDY #6 • Older couple, age 85 with significant stock portfolio, she wanted to gift $1M for medical research but did  not want charity to sell her beloved GE stock during  her lifetime. • The couple had an older home in an established  neighborhood, had charitable plans for that too. • And, in need of an income tax deduction due to  much passive income from investments.  The couple had no children or heirs.

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A SOLUTION FOR CASE STUDY #6 • Couple chose a retained life estate to the local  historical society, during life, for a much‐needed  charitable income tax deduction.  Added advantage is that couple could tour the home with the charity  and tell the what and why, a very treasured  experience. • After wife died, leaving a $1 million gift to medical research, husband also created a fund at the local  community foundation.

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Questions?

Thank you for coming! Pamela J. Davidson, J.D. Davidson Gift Design Thompson & Associates Bloomington, Indiana

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EXTRAS (TIME PERMITTING) • Charitable Gift Annuity Donor Profiles • Model Standards of Practice for the Charitable Gift Planner • Donor Bill of Rights

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CHARITABLE GIFT ANNUITY  (FIXED INCOME) DONOR PROFILES • 65+ year old donors who could afford to make an  outright gift, but are concerned about future income needs and want something they can "count on."  • Donors who want a fixed income and like the  simplicity of the charitable gift annuity agreement  and reporting.  • Donors who want a fixed income but have a modest  amount to contribute (not enough for a charitable  remainder trust). 

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CHARITABLE GIFT ANNUITY  (FIXED INCOME) DONOR PROFILES • Donors who want a nominal income they can "count on"  and budget for • Donors who want to name an older individual like a parent or former spouse as the annuitant as a way of providing  financial assistance • Donors who simply want to replace a fixed income (such as  income from a Certificate of Deposit) and make a future charitable contribution at the same time. • Donors who must take mandatory withdrawals of  retirement plan assets and use those to fund a charitable  gift annuity, immediate or deferred, to offset that income  tax inclusion and for income for self and spouse or partner or sibling.

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CHARITABLE GIFT ANNUITY  (FIXED INCOME) DONOR PROFILES • Donors who want a simple, understandable plan, with income reported on a familiar 1099  • Donors with low‐yield appreciated assets who want  higher current income without incurring long‐term  capital gains taxes in one tax year. • Donors who want to use one or more deferred  payment gift annuities as a source of retirement  income and diversification strategy.  • Donors who won’t have a taxable estate and who will benefit from an income tax deduction for funding a  CGA during life for self and another.

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MODEL STANDARDS OF PRACTICE FOR THE CHARITABLE GIFT PLANNER Adopted  and  subscribed  to  by  the  National  Committee  on  Planned  Giving  (now,  Partnership for Philanthropic Planning) and the American Council on Gift Annuities,  May 7, 1997. Revised April 1999. Designed to be signed annually by PPP planned  giving council members.

I.

Primacy of Philanthropic Motivation

II.

Explanation of Tax Implications

III.

Full Disclosure

IV.

Compensation

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MODEL STANDARDS OF PRACTICE FOR THE CHARITABLE GIFT PLANNER V.

Competence and Professionalism

VI.

Consultation with Charities

VII.

Description and Representation of Gift

VIII. Full Compliance IX.

Public Trust 48


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The Donor Bill of Rights Philanthropy is based on voluntary action for the  common good. It is a tradition of giving and sharing  that is primary to the quality of life. To ensure that  philanthropy merits the respect and trust of the  general public, and that donors and prospective donors  can have full confidence in the nonprofit organizations  and causes they are asked to support, we declare that  all donors have these rights:

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The Donor Bill of Rights I.

To be informed of the organization's mission, of the way the  organization intends to use donated resources, and of its  capacity to use donations effectively for their intended  purposes. II. To be informed of the identity of those serving on the  organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities. III. To have access to the organization's most recent financial statements. IV. To be assured their gifts will be used for the purposes for which they were given. V. To receive appropriate acknowledgement and recognition.  50

The Donor Bill of Rights VI. To be assured that information about their donation is  handled with respect and with confidentiality to the extent  provided by law. VII. To expect that all relationships with individuals representing  organizations of interest to the donor will be professional in  nature. VIII. To be informed whether those seeking donations are  volunteers, employees of the organization or hired solicitors.  IX. To have the opportunity for their names to be deleted from  mailing lists that an organization may intend to share. X. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers. 51


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Practical Charitable Planning Thank you for coming! Pamela J. Davidson, J.D. Davidson Gift Design Thompson & Associates Bloomington, Indiana

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2017 Continuing Education booklet  

2017 Continuing Education booklet  

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