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Planned Giving

Planned Giving
December 4, 2024

If this, then that: Your charitable planning cheat sheet

byInspiring Philanthropy

At the community foundation, we’ve recently been asked by attorneys, CPAs, and financial advisors for “cheat sheet” resources to make it easy to determine which type of charitable planning tool is best for a particular client. We love that idea! We’re always happy to be a sounding board for any client situation where charitable giving is an option. Please reach out anytime you and a client are discussing philanthropy. To get your wheels turning, here are three scenarios that have popped up frequently over the last few weeks.

Streamline and tax-optimize charitable giving

If: Your client supports many different charities every year…

Then: A donor-advised fund at the community foundation can be an excellent tool to help a client organize their giving to favorite charities, such as local organizations, places of worship, and an out-of-state alma mater. Clients appreciate how easy it is to support multiple charities while the community foundation’s systems keep track of everything. Plus, clients can give stock and other appreciated assets to their donor-advised funds, often avoiding capital gains tax and simplifying tax receipts to provide their accountants when tax time rolls around. 

Support a specific charity while minimizing risk

If: Your client has supported a particular charity for many years, intends for that support to continue, and also wants to be sure that the funds are used effectively …

Then: Through a designated fund at the community foundation, a client can make tax-deductible gifts during life and through estate gifts, that are set aside to be used exclusively for a particular organization. The community foundation makes distributions from the fund according to the client’s wishes. An advantage of a designated fund is that the assets are out of creditors’ reach if the charity were to run into financial trouble. Plus, a client who is 70 ½ or older can make Qualified Charitable Distributions up to $105,000 per year (increasing to $108,000 in 2025) from IRAs to a designated fund. 

Leave a charitable bequest and reap significant tax benefits

If: Your client intends to provide for charities in an estate plan and owns an IRA or other qualified retirement plan… 

Then: By naming a fund at the community foundation as the beneficiary of a qualified retirement plan, your client achieves extremely tax-efficient results. Not only is estate tax avoided on the retirement plan assets flowing to the charitable fund, but income tax is also avoided. Indeed, the income tax hit on retirement proceeds left to heirs can be steep.

The bottom line here is this:

If you encounter any situation with a client where charitable giving could be involved…

Then please reach out! Most of the time, the community foundation can offer a solution that meets both the client’s tax and estate planning goals and the client’s objectives for supporting their favorite charities. At the very least, we can point you in the right direction.

The Legacy Society is composed of individuals who have provided for the Fremont Area Community Foundation as part of their planned gifts. These are special people who are dedicated to a better future for their community for years to come.

There are many different ways to become a member of the Legacy Society. Simply inform the Foundation of the type of gift you have chosen to leave. This may include cash, securities, life insurance, IRA, memorials or other bequests. Gifts may offer tax advantages. We advise consultation with your financial advisor or attorney.

Becoming a member of the FACF Legacy Society has many advantages:

  • Flexibility - Through the Foundation you can serve several charitable interests in one place.
  • Involvement - Donors can choose the level of involvement according to their preferences.
  • Naming Rights - Funds can be named as desired: for an individual, a family, a purpose or an organization.
  • Experience - The Foundation’s Board of Directors and staff are experienced with philanthropy in the Fremont area.
  • Tax Savings - The Fremont Area Community Foundation is a 501(c)(3) organization and qualifies as a public charity under federal tax law.
  • Permanence - The Foundation will continue to respond to community needs of the future as they evolve.

For more information about planned gifts through the Fremont Area Community Foundation, please contact Melissa Diers at 402-721-4252.

December 4, 2024

If this, then that: Your charitable planning cheat sheet

byInspiring Philanthropy

At the community foundation, we’ve recently been asked by attorneys, CPAs, and financial advisors for “cheat sheet” resources to make it easy to determine which type of charitable planning tool is best for a particular client. We love that idea! We’re always happy to be a sounding board for any client situation where charitable giving is an option. Please reach out anytime you and a client are discussing philanthropy. To get your wheels turning, here are three scenarios that have popped up frequently over the last few weeks.

Streamline and tax-optimize charitable giving

If: Your client supports many different charities every year…

Then: A donor-advised fund at the community foundation can be an excellent tool to help a client organize their giving to favorite charities, such as local organizations, places of worship, and an out-of-state alma mater. Clients appreciate how easy it is to support multiple charities while the community foundation’s systems keep track of everything. Plus, clients can give stock and other appreciated assets to their donor-advised funds, often avoiding capital gains tax and simplifying tax receipts to provide their accountants when tax time rolls around. 

Support a specific charity while minimizing risk

If: Your client has supported a particular charity for many years, intends for that support to continue, and also wants to be sure that the funds are used effectively …

Then: Through a designated fund at the community foundation, a client can make tax-deductible gifts during life and through estate gifts, that are set aside to be used exclusively for a particular organization. The community foundation makes distributions from the fund according to the client’s wishes. An advantage of a designated fund is that the assets are out of creditors’ reach if the charity were to run into financial trouble. Plus, a client who is 70 ½ or older can make Qualified Charitable Distributions up to $105,000 per year (increasing to $108,000 in 2025) from IRAs to a designated fund. 

Leave a charitable bequest and reap significant tax benefits

If: Your client intends to provide for charities in an estate plan and owns an IRA or other qualified retirement plan… 

Then: By naming a fund at the community foundation as the beneficiary of a qualified retirement plan, your client achieves extremely tax-efficient results. Not only is estate tax avoided on the retirement plan assets flowing to the charitable fund, but income tax is also avoided. Indeed, the income tax hit on retirement proceeds left to heirs can be steep.

The bottom line here is this:

If you encounter any situation with a client where charitable giving could be involved…

Then please reach out! Most of the time, the community foundation can offer a solution that meets both the client’s tax and estate planning goals and the client’s objectives for supporting their favorite charities. At the very least, we can point you in the right direction.