An Important Tax Court Case About Giving Real Estate

Posted June 30th, 2020

The Guest case shows how to reap benefits from and avoid problems with a real estate gift. The donor in Guest wrote a letter to Charity stating that he, by the letter, gave two properties to Charity. Wanting the gift but not wanting to be in the chain of title, Charity wrote back to the …Read More

Mixed Results for Giving in 2019

Posted June 22nd, 2020

The first quarter of 2019 began with the DOW and other stock market indexes seeing a significant decline. There were growing concerns over the economy, which created a challenging environment for charitable giving. By mid-year, half of the charitable organizations indicated their fundraising results were flat or down compared to the previous year. The economy …Read More

Real Estate-Funded Gift Annuities

Posted June 16th, 2020

Some individuals who own real estate like the idea of swapping the real estate for a gift annuity. Especially if they’ve grown tired of managing the property and see the gift annuity as a good way of replacing the income the property provides. This can be a good deal for the donor. And a bad …Read More

How the IRS Discount Rate Affects Gift Calcs

Posted June 10th, 2020

The IRS discount rate (7520 rate) has a big effect on charitable remainder annuity trust (CRAT), charitable lead annuity trust (CLAT) and gift annuity calculations but has almost no effect on unitrust calculations. CRAT calculations: The 7520 rate adversely affects two CRAT calculations: [1] the charitable remainder calc and [2] the 5% probability calc … …Read More

We’ve Received the PPP Funds … Now What? (The “All Things Considered” Edition)

Posted June 8th, 2020

I’ve got my memories Always inside of me But I can’t go back Back to how it was I believe you now I’ve come too far No I can’t go back Back to how it was Created for a place I’ve never known This is home Now I’m finally back to where I belong Where …Read More

Using 20/20 Hindsight for Future Planning: What Nonprofits Should Be Doing Now, Part 2 of 2

Posted June 4th, 2020

The first part of this article was featured in the latest issue of Sharpe Group’s bimonthly newsletter Give & Take. Click here to read it. Here, I will further explain the provisions of the CARES Act as they relate to nonprofits and then offer ideas to help you evaluate whether your current planned giving strategy …Read More

The Value of Stewardship, Part 2 of 2: Hang a Lantern on Your Problem … Before the Donor Does

Posted June 4th, 2020

Background In the May/June issue of Give & Take, The Value of Stewardship, Part 1 of 2: First Do No Harm showed how the acceleration of a bequest intention stewarded unsatisfactorily in the eyes of the donor led to its revocation. What is the nature of the risk to the charity when a donor makes …Read More

An Era of Heightened Scrutiny Arising for Donor Advised Funds?

Posted May 27th, 2020

One of the lesser known aspects of a donor advised fund (DAF) is the advisory privilege on investments.1 Presently there are no regulations under sec. 4966 of the Internal Revenue Code (Code) providing guidance. The practice of charities sponsoring DAFs has been to maintain legal ownership and control of the assets after receipt. Failure to …Read More

Opportunities to Give

Posted May 19th, 2020

Congress recently passed the unprecedented CARES Act, a $2 trillion stimulus package aimed at helping the American economy and its most vulnerable businesses, small businesses and individuals recover from the repercussions of the COVID-19 pandemic. Included in the stimulus package is a direct payment of $1,200 to millions of individuals, with an additional $500 for …Read More

The CARES Act

Posted May 17th, 2020

The CARES Act creates two incentives for 2020 individual giving: One allows an itemized charitable deduction for up to 100% of adjusted gross income for cash gifts paid in 2020 to qualified charities. The donor must elect this provision. The IRS will instruct taxpayers how to make the election. The other allows a $300 above-the-line …Read More