It has been said the two happiest days in the life of a boat owner are the day they buy their pride and joy and the day they sell it. There might be a third--the day they give it away! In this tongue-in-cheek cautionary tale, recovering boat owner and PGDC Editor Marc Hoffman tells a story about one that, to use a related metaphor, unfortunately didn't get away.  MORE »

It is not uncommon for charitable remainder trusts to hold depreciable property or to hold an interest in a passthrough entity that holds depreciable property. In this article, Ted R. Batson, Jr., Vice President of Professional Services for Renaissance Inc., discusses the proper allocation of depreciation deductions between various forms of charitable remainder trusts and their income recipients.  MORE »

One of the most significant differences between a charitable gift annuity and a charitable remainder trust is the obligation to make gift annuity payments is a general obligation of the issuing charity whereas the obligation to make payments from a CRT is limited to the trust itself. For this reason, organizations issuing charitable gift annuities set aside, either voluntarily or subject to state law, a portion of the amount transferred in exchange for the gift annuity in a reserve fund for the purpose of satisfying the annuity payments. The problem is that in recent years, the low interest rate environment has caused some reserves to decline to worrisome levels. In this paper, nationally recognized planned giving authority Frank Minton analyzes the various kinds of risks associated with gift annuities, shows how charities can minimize risk and maximize the benefits of their gift annuity programs, and shares some less traditional ideas for attracting more dollars for gift annuities.  MORE »

Cash donations, as long as the actual amount of the donation is substantiated, will not result in an IRS challenge. But donations of objects such as fine art and collectibles have always been problematic. In this article from Leimberg Information Services, Orange, California attorney Joy Gibney Berus shares ten "must know" TIPs on donating personal property items such as art, antiques, and collections so you may assist your clients in maximizing all of the benefits to which they are entitled.  MORE »

During the past few years corporate and nonprofit management and financial scandals have been at the top of the news. In the wake of federal Sarbanes-Oxley legislation, California has enacted a new law to bring increased accountability to nonprofits and commercial fundraisers doing business in California. PGDC received two independently authored commentaries on the new law from Lynda S. Moerschbaecher, Esq. and Jill S. Dodd, Esq. They complemented one another so well, we have combined them for this report.  MORE »

As some of the popular news programs report, it's only 1,430 days until the next presidential election! With that in mind, in this special report from Tax Analysts, Alan L. Kennard of the St. Louis office of Husch & Eppenberger LLC reviews the rules in the tax code governing political activity by public charities.  MORE »

"The rotten apple injures its neighbors," so Chaucer once said. In this comprehensive article, Boston attorney Stephen J. Small notes that a small number of "bad" conservation easement deals threaten to poison the well for otherwise successful, appropriate, and important private land conservation transactions if IRS enforcement is not targeted at the promoters, appraisers, and others engaged in the bad deals. Small also discusses the main tax and planning hurdles that make it difficult for a real estate developer to get a meaningful income tax deduction for the donation of a conservation easement, including the tricky question of whether a conservation easement is characterized as a capital asset or inventory. Finally, Small makes suggestions for better enforcement in this area, including presenting a list of questions the IRS might ask on a revised Form 8283, "Noncash Charitable Contributions," or other reporting form.  MORE »

California Governor Arnold Schwarzenegger recently signed legislation to amend the provision in the California Insurance Code which restricts the asset classes in which California gift annuity reserves may be invested. In this article, Los Angeles attorney David Wheeler Newman describes the new law and its effect on gift annuities for California residents.  MORE »

Looking for an alternative or supplemental investment for a nongrantor charitable lead annuity trust? In this article from the August/September 2004 issue of the Journal of Practical Estate Planning, David Holaday and Rodney Piercey discuss the benefits and design considerations of using a combination of life insurance and single premium immediate annuity as the investment engine in a family limited partnership used to fund a charitable lead annuity trust.  MORE »

Last January, the IRS published final regulations regarding pooled income funds and their ability to obtain an income tax deduction for amounts permanently set aside for charity based on state law definitions of income. Following recent conversations with IRS, PGDC editorial board member Reynolds Cafferata reports that IRS representatives have concurred informally that a release by the trustee of the power to adjust capital gains between income and principal should be adequate to allow a pooled income fund to maintain its deduction for capital gains permanently set aside for charity without need for a judicial proceeding.  MORE »