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Charitable Planning Benefits both Family and Charity.

HAVE YOUR CAKE, AND EAT IT TOO. Last week as we were celebrating the 4th of July, our Nation’s birthday, I couldn’t help but think about cake.  Which led me to thinking about some of the donors we work with who seem to have figured out how to have their cake and eat it too. Let me explain using a couple of examples with people who are charitably inclined.
  1. A donor has a real property they no longer wish to own/have.  Perhaps they need the money from the sale or perhaps the value of the property is high and it is a good time to sell.  When the property is sold taxes on the gain will be due.  So the donor contacts our Foundation and contributes exactly the right amount of ownership to the Foundation to offset the taxes.  When the property is sold the donor gets a check and the Foundation also gets a check.  The Foundation check goes into a donor-advised fund, so yes, the donor gets to eat their cake and have it too. 
  2. A donor wishes to provide their heirs with a bequest but also to leave their assets to charity.  The donor may not have enough to do both of these goals to the extent they wish, or perhaps one or more heirs is not very financially responsible, or perhaps the donor wishes to disburse the inheritance to their family over a period of years.  Through a charitable trust the donor can bequeath assets to a charitable trust, leaving their heirs an income stream that is invested for great long-term returns, and which pays no taxes so that also enhances the trust income.  Through the Foundation the charitable remainder can go to a family donor-advised fund which will operate much like a private foundation, but with significantly more professional advice and support to the family than is typical in private foundations.  So the donor leaves income to the family, and then also leaves the principal to the family for charitable purposes… yes, the donor gets to have their cake and eat it too.
At the Community Foundation we have dozens of unique plans in place for forward thinking families that combine generous bequest arrangements with charitable giving and perpetuation of family values.  It is important to understand that we don’t need to choose one focus, family or philanthropy, above the other.  The best planning incorporates both. Please keep us in mind as you consider your legacy. Chris Askin, President & CEO.  775-762-1932. Connecting people who care with causes that matter.