Sharpe Blog

As troubleshooter, advisor and draftsman, a lawyer will be involved in the largest gifts with the most complications stemming from asset selection. They serve as “Dr. No” when donors are determining the size of the gift or, perhaps, whether to give at death rather than during lifetime. Their only motive is protecting all interests of …Read More

You are approached by someone previously unknown to your organization about a gift of a large sculpture. She explains that she has recently downsized, and the sculpture no longer suits her living space. She purchased it through her interior designer years ago. It is an odd gift, to be certain. With some tactful pressing, you …Read More

In navigating the last lap of the journey to a completed gift, the accountant looms prominently. Long regarded as the trusted advisor, the accountant, especially one with a financial planning practice, often has the entire picture of the donor’s cash flow and assets. The accountant often answers one or more of the following questions: Should? …Read More

This winter, Sharpe Group conducted a 3-day planned giving seminar, The Essentials of Gift Planning & Taxes, as part of our Sharpe Online Academy. This seminar is based on the 5-day comprehensive seminar traditionally held in person each year in Florida. The 5-day seminar typically includes twenty-two sessions in addition to multiple informal gatherings for …Read More

Perhaps not, but often the completion of a planned gift does necessitate teamwork. Larger commitments (six figures and higher for most givers) trigger income tax, estate planning, retirement income and insurance consequences. The donor often contemplates a planned gift in response to the challenge of “wanting to do more” but “not sure if I (or …Read More

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

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

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

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

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