The Updating of the Decennial Actuarial Tables: 2 Years Late and 10 Years Out of Date?

Posted January 15th, 2021

Sec. 7520(c)(2) of the Internal Revenue Code requires the updating of the actuarial tables every 10 years. In August 2020, the National Center for Health Statistics and the Centers for Disease Control and Prevention released updated tables for the 2009-2011 period. This report shows the continual improvement in longevity. Almost 6,300 more people out of …Read More

Gift Receipts … Continued

Posted January 8th, 2021

Last time, I suggested this language for a year-end cash gift receipt: Thank you for your cash gift of $5,000 made by your Chase Bank check number 2651, dated December 31, 2020, which [our charity] received in the mail on January 4, 2021. [Our charity] provided no goods or services to you in consideration of …Read More

The Better Testamentary Response to the SECURE Act: Charitable Remainder Trust or Gift Annuity? Part 3

Posted January 4th, 2021

In establishing a testamentary charitable gift annuity that qualifies for the federal estate tax charitable deduction, all the variables must be discernible at the date of the donor’s passing. These variables could be described either in (1) the beneficiary designation document itself such as the will or trust or (2) a stand-alone agreement on file …Read More

Getting Ready for January 2021

Posted December 29th, 2020

In a lot of years, January has been hectic for me. Why? Because my phone has rung ceaselessly about year-end gift problems. What sorts of problems? These have been typical phone calls: Donor wired stock to us in late December, but we didn’t receive the stock until January. Our business office says we keep our …Read More

Latest COVID Relief Bill Signed

Posted December 28th, 2020

Last night, President Trump signed the latest relief package attached to the Consolidated Appropriations Act to fund the federal government. The relief portion of the legislative package was estimated at approximately $900 billion and includes extended unemployment benefits for millions of people who lost jobs this year, as well as $600 one-time relief payments to …Read More

The Better Testamentary Response to the SECURE Act: Charitable Remainder Trust or Gift Annuity? Part 2

Posted December 18th, 2020

Many commentators believe funding a testamentary charitable gift annuity with an income in respect of a decedent (IRD) item, like an IRA, means the annuity will be taxed in full immediately, with no recovery in basis. But is that, in fact, the correct result given the purpose of the IRD rules? When this IRD item …Read More

Gift Ideas for Those Who Don’t Itemize

Posted December 17th, 2020

There was a lot of charitable giving in the U.S. before the federal income tax (1913) and a federal income tax charitable deduction (1917) came along. Example: As a young person, I made great use of a public library in Aurora, Illinois—one of the many such libraries funded by Andrew Carnegie. Carnegie funded these libraries …Read More

Working With Financial and Estate Planning Advisors

Posted December 14th, 2020

Getting donors to say “yes” often involves working with their professional advisors—attorneys, accountants, financial planners, trust officers, insurance agents, bankers, etc. Planned giving officers may be more knowledgeable about sophisticated charitable planning than professionals who only occasionally encounter charitable remainder trusts, charitable gift annuities or the use of charitable techniques in estate and generation-skipping transfers. …Read More

Gifts of LLC Units

Posted December 8th, 2020

If an individual wants to give LLC units to your organization, be careful! Potential problems lie ahead for both the donor and your organization. Here’s why, by way of an example. Suppose the gift is of 10% of all the outstanding LLC units. It’s necessary to analyze the gift on two levels. First level: Donor …Read More

Last Call for Giving in 2020

Posted December 4th, 2020

Thanksgiving celebrations and GivingTuesday are over, but the most generous time of year is just beginning! That’s right, the month of December is traditionally a time for giving to friends, family and favorite charitable organizations. Giving this time of year is embedded in many cultures and religions, and according to scientific studies, charitable giving makes …Read More