Charitable Planned Giving Options & Opportunities

Join this free and informative discussion with Kelley Corbridge on Charitable Planned Giving Options & Opportunities. This overview will give you understanding of:

• Perpetual Endowment Giving:
  • Outright Gifts
  • Planned Gifts
  • Gifts with a retained interest
  • Endowment vs Operational
• Outright Gifts:
  • Directly to the Charity
  • Income tax deduction
    • If itemized and w/ 60% AGI limit for cash, 30% for appreciated securities, with carryovers)
    • Out of estate for estate tax purposes
  • IRA Direct Donation Option – Qualified Charitable Donation
    • Age 70 ½ 
    • $108,000 limit
    • Certain types of Charities not available
      • Private Foundations & 
      • Donor Advised Funds 
  • Options for special assets
    • Fully paid Life Insurance
      • Policy no longer required?
      • Cash value equal to or close to death benefit?
      • Avoid tax on accumulated earnings
    • Capital Gains assets – gain avoided (stock, bonds, real estate, etc)
    • Partnership with Community Foundation of Teton Valley
      • Difficult to value assets
      • Illiquid assets   
      • Pre-approval required
• Planned Gifts:
  • Will 
  • Trust
  • Beneficiary designation
    • i.e. IRA, 401-k
    • Avoid potential double taxation
    • Target taxable assets to charitable portion of estate plan
      • i.e. step-up basis for other assets
    • Potential “make-up” to family through life insurance trust
• Retained Interest Gifts:
  • Income Stream for life or years, with balance to charity
    • Charitable Remainder Trust
      • Lifetime (may be multiple lives) or
      • 20-year term
    • Charitable Gift Annuity
      • i.e. through Community Foundation of Teton Valley
      • Avoid capital gains tax
      • Increase income stream
    • Charitable Lead Trust
      • Income to charity for term of years
      • Remainder to family
  • Impact of Interest Rates
    • Higher the IRS interest rate, the higher the remainder interest and the lower the initial interest (Charitable Remainder Trust: higher income tax deduction and higher amount to charity – Charitable Lead Trust – opposite)
    • Lower the IRS interest rate, the higher the initial interest and the lower the remainder interest (Charitable Remainder Trust: lower income tax deduction and lower amount to charity – Charitable Lead Trust – opposite)
    • Donor may establish the interest rate so long as the actuarial charitable interest is at least 10% and annual payout interest rate is at least 5%
• Endowment Giving
  • Long-term support of charitable organization (versus all into one-year’s operating budget)
  • Teton Valley Community Foundation Partnership with endowment-oriented donor (instead of individual charities setting up their own foundation, with associated costs and compliance costs)
  • A commonly favored option for charitable donors