Have you ever attended a charity auction only to have the well-meaning auctioneer rally the audience by saying, "Come on everybody, it's deductible!" In this updated article, Ronnie C. McClure, Ph.D., CPA, suggests donors, bidders, and charitable organizations may be in for a surprise. Although auctions probably fall more under the category of "spontaneous" than "planned" giving, there are several interesting tax facts you might want know before the next gavel falls.  MORE »

The IRS has issued proposed regulations that address the portion of a trust that is includable in a deceased grantor's gross estate under sections 2036 and 2039 in the event the grantor has retained the use of trust property or the right to an annuity or other income payment from the trust for life.  MORE »

According to Barlow T. Mann and Robert F. Sharpe, Jr. from The Sharpe Group, the popularity of charitable remainder trusts and pooled income funds has flagged over the past several years while charitable gift annuities and charitable lead trusts have enjoyed unprecedented growth. In this article from the June 2007 issue of Trusts & Estates, the authors share why they believe a confluence of factors are leading to a resurgence of charitable remainder trusts and the continued popularity of charitable lead trusts.  MORE »

In early January, the Planned Giving Design Center received a press release from a Florida financial advisor announcing he had obtained a U.S. patent on the use of tax deferred variable annuities within pre-need funeral contracts, endowment funds (including donor advised funds), charitable remainder trusts, charitable lead trusts, and pooled income funds. In the wake of AICPA's call for legislation against tax strategy patents, we ask the question: Are investment patents of this type good for planned giving? We invite your comments and opinion.  MORE »

The U.S. Patent and Trademark Office has published a patent application in which the inventors claim a unique use of combinations of charitable remainder trusts, charitable lead trusts, gifts of remainder interests in real property, options, and life insurance to accomplish business tax planning objectives.  MORE »

In this article from Leimberg Information Services, New York attorney Conrad Teitell is ringing an alarm bell about a major charitable deduction benefit that may be lost thanks to a few greedy tax promoters, donors, and complicit charities who are conspiring to grossly inflate the value of charitable gifts, conceal key elements from the IRS, and avoid the Form 8282 "tattletale" rule.  MORE »

In a November 10 address to the Philanthropy Roundtable, IRS Commissioner of Tax Exempt Orgs Steven T. Miller discussed the IRS's compliance role in the evolving charitable sector.  MORE »

The Internal Revenue Service has reminded section 501(c)(3) organizations, including charities and churches, that federal law prohibits them from becoming directly or indirectly involved in campaigns of political candidates and has provided references to resources where organizations can review these rules.  MORE »

The Service has approved the reformation, subject to judicial approval, of a testamentary trust that provides both a charitable lead annuity interest to twelve qualified charitable organizations and fixed annuity payments to three individuals. The trust will operate for the shorter of the lives of the three individuals or a fixed term of years with the remainder interest held for the benefit of the twelve charities. The Service ruled the present value of charitable lead interest will qualify for the estate tax charitable deduction under section 2055(a).  MORE »

The IRS has released a draft of the 2007 Form 5227, Split-Interest Trust Information Return, required for chariable remainder trusts and charitable lead trusts. The draft form incorporates information formerly reflected in the Form 1041-A; however, it is not yet known if Form 1041-A will be still be required for 2007. A release date for the final form and instructions is targeted for December 24, 2007. Comments should be submitted to the IRS by December 14 to allow proper consideration.  MORE »