Dow Doubts???

By Barlow Mann

Dow Jones fears

Has the latest news about the Dow Jones Industrial Average falling created fear in your fundraising departments? (Read this USA Today article here.) Even though many popular stock market indexes are experiencing the first market correction of at least a 10-percent decline in 5-6 years since the financial crisis saw the Dow Jones Industrial index fall from over 14,000 to less than 6500, few people are predicting that the markets will fall below pre-recession highs. Under this scenario, wealthy donors still have quite a bit of appreciated property when compared to previous years’ lows for real estate and securities.

Look for more information about the impact of the Dow’s latest news in our October issue of Give & Take, which should be available during first week of October. In the meantime, you might consider fortifying your end-of-year donor appeal with one of our Year-End Giving brochures.


Gift Planning and Same-Sex Marriage

Male wedding couple topper

by Jon Tidd

Twenty years ago, there were two groups of donors: marrieds and unmarrieds. Today there are two groups of donors: marrieds and unmarrieds. The difference is that today the number of potential married donors has been increased significantly by two recent Supreme Court decisions on same-sex marriage. The bottom line is that all the gift planning opportunities and advantages available to traditional married couples are now available to same-sex married couples, everywhere in the United States.

The question is, what are the gift planning opportunities and advantages specific to married couples? That’s a question having a rather elaborate answer. Here are a few examples:

  • A husband and wife together may create a charitable remainder trust (CRT). Two or more unmarrieds (say, two domestic partners) may not.
  • If wife creates a CRT just for husband, she makes a gift to husband for federal gift tax purposes, but the gift qualifies for the federal gift tax marital deduction. The marital deduction is not allowed to an individual in a civil union or domestic partnership.
  • Gift annuities can be trickier for marrieds than for unmarrieds. As an example, suppose husband uses appreciated stock to set up a gift annuity just for wife. No problem, right? Husband gets a marital deduction, right? The problem is, husband realizes a capital gain that he can’t spread over wife’s “life expectancy”.

There’s a lot more to know about gift planning for marrieds, most of which will be foreign to many same-sex marrieds, who never faced such issues before. We’ll continue to write about this subject and delve deeper. Be sure and subscribe for updates to this blog so you won’t miss out on those. Click here to download our free white paper “Gift Planning for Same-Sex Marrieds” for more information.

Trends in Planned Giving – ACGA Annual Conference Presentation By Robert F. Sharpe, Jr.

If you attended Robert F. Sharpe, Jr.’s opening symposium presentation titled Trends in Planned Giving at the ACGA Annual Conference on April 9, 2014, the presentation deck is available here for download.

Symposium Summary

We are now in the sixth year of fundraising in a time of unprecedented change in the funding environment. It is now becoming increasingly clear that it may be years, if ever, before we are back to business as usual. The combination of a rapidly aging donor population, budget deficits, low interest rates, stock market fluctuations, proposed new taxes on amounts given to charity and the elimination of the federal estate tax for 99.9 percent of all Americans will mean inevitable changes in how donors will make planned gifts, especially larger ones, in coming months and years. When working with the emerging Baby Boomer generation how can we encourage gifts that will produce the most funds in the shortest period of time? Learn why counterintuitive approaches may be more productive in an increasingly competitive environment.

Presentation Download

Here are the slides for download:

Trends in Planned Giving by Robert Sharpe – ACGA 2014 Opening Symposium Presentation

If you’d like to discuss content from the presentation in further detail, contact us.