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
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
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 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
In the last few weeks, we’ve been reading press reports that both for-profit companies, like the national restaurant chain Ruth’s Chris Steak House and the NBA’s Los Angeles Lakers, and nonprofit institutions applied for—and received—the allocated resources for small businesses under the Paycheck Protection Program (PPP). It is likely many organizations with fewer than 501 …Read More
There’s a place down by the ocean Where I take my mixed emotions When my soul’s rocked by explosions Of these tired times Where love sings to me slowly Even when I feel low and lonely Even when the road feels like The only friend of mine One light, one goal One feeling in my …Read More
For every dark moment in our history, there are countless tales of everyday people coming together to accomplish extraordinary feats. This pandemic is no exception. Manufacturing equipment meant for making legos and baseball uniforms is being modified to produce personal protective equipment for hospitals facing shortages. Countless homemade masks are being sewn and donated by …Read More
As the saying goes, “age may have its privileges,” but in our current environment of low interest rates, don’t even try to establish a 5% charitable remainder annuity trust (CRAT)—the lowest payout rate permitted—unless: The donor is at least age 76. (For a two-life trust, at least one of the income beneficiaries must be age …Read More
Little things I should have said and done I just never took the time You were always on my mind (you were always on my mind) You were always on my mind –Willie Nelson (Always on My Mind) This is part four of our series of navigating in these times of great change. In the …Read More
The COVID-19-triggered financial recession underscores for businesses and individuals the need to hold sufficient cash to ride out the tumult. For individuals with cash, or access to it, there are planning opportunities. With the equity markets well off their highs, now is an especially attractive time to consider a Roth conversion as part of retirement …Read More