A charitable remainder trust can allow business owners to transfer their business to heirs with minimum income and transfer tax exposure, ensure retirement income, and create a permanent legacy. In this article from Family Business Magazine, Barton J. Bradshaw, J.D. explains how.

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Has it been only six months since the devastating earthquake struck the island nation of Haiti? If you live there, it might seem like a lifetime. In this article, PGDC editor Marc Hoffman recounts his first-hand experiences in Haiti last February and reminds us all to not forget.

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There has been a lot of concern recently about the effects of Internal Revenue Code §2511(c) on charitable gift planning. In this exclusive article, nationally acclaimed charitable giving expert Jonathan G. Tidd, Esq. analyzes these and related issues.  MORE »

Writing for Trusts & Estates, attorney David Thayne Leibell of Wiggin and Dana LLP discusses two recent court cases that might shut down the Internal Revenue Service's attack on "charitable lids" and suggests that wealthy families’ facing an estate tax in 2010 should place them at the top of their to-do lists.

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In this opinion article, attorney Bruce Givner reviews the legislative history of a portion of the Pension Protection Act of 2006 which requires Treasury to promulgate new regulations on payments required by Nonfunctionally Integrated Type III Supporting Organizations, why he believes a 5% minimum distribution requirement is an incorrect reading of congressional intent, and how he believes charities should respond.  MORE »

Gift restrictions have always been a component of charitable gift planning. While gift restrictions are not new, the increasing number of lawsuits filed by donors and their families to enforce gift intent represent an alarming recent trend. In this article, Kathryn Miree and Winton Smith discuss a number of cautionary tales that highlight the issues in gift purpose litigation.  MORE »

Writing for Leimberg Information Services, Ron Aucutt, group leader of the trusts and estates practice group of McGuireWoods LLP shares the very latest news out of Washington on estate tax reform and indicates momentum for action is picking up.  MORE »

Legislation enacted in 2001 calls for the repeal of the federal estate tax in 2010, and its full reintroduction in 2011. That law has since generated considerable interest in how changes in the estate tax and its ultimate repeal may affect charitable bequests and the fortunes of philanthropies. In this article, David Joulfaian, from the Department of the Treasury's Office of Tax Analysis, offers his personal analysis and opinion on this issue.

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Despite the recession, people are giving and giving generously. In this article from the June 2009 issue of the Journal of Financial Planning, financial writer and gift planning specialist Jim Grote explores the types of gifts that are being made in today's environment.

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Development offices and non-profit organizations of all sizes and shapes are taking a closer look at real estate gifts and the transforming impact these gifts can have on their organization. The largely untapped potential of charitable real estate gifts is becoming even more critical in these challenging economic times. In this article (published originally on the University of Denver's PGDC) Dennis Bidwell gives insight on why organizations should take a closer look at real estate gifts and how they can position themselves for success in attracting them.  MORE »

What happens after the kids have flown the coop and Mom and Dad are left with a large home and an even larger potential capital gains tax on sale? In this article, PGDC Editor-in-Chief Marc D. Hoffman reviews the capital gains tax rules that accompany sales of principal residences and how charitable planning techniques can be blended seamlessly to create a win-win result for the charitably inclined. The original version of this article appeared in the October/November 2002 issue of the Journal of Practical Estate Planning and was presented by the author at the 2002 National Conference on Planned Giving.  MORE »

When New York real estate magnate Leona Helmsley died in 2007, she made it clear the majority of her estimated $5 billion estate was to be used for the care and support of dogs via the Helmsley Foundation. However, a New York Surrogate’s Court judge has ruled the foundation's trustees have sole discretion with respect to the destination of its grants. Should the foundation now honor Helmsely's wishes or make grants for purposes it deems appropriate?
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In these tumultuous economic times, no gift vehicle has come under greater investment pressure than the charitable gift annuity. In this exclusive article, PGDC contributing author Bryan K. Clontz, CFP discusses 10 creative applications of how commercial reinsurance can be used to mitigate these challenges.   MORE »

It just got more dangerous to use income in respect of a decedent for charitable bequests. In this article from the January 2009 issue of Trusts & Estates magazine, UMKC law professor Christopher Hoyt examines how a recent IRS Chief Counsel Memorandum and new proposed regulation will require new strategies to enable donors to successfully pay a charitable bequest with IRD.
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The retirement of the Baby Boomers is shifting their priorities from accumulation to spending and charitable giving. But many wealth managers remain stubbornly focused on helping clients retain their wealth. In this article, Burlingame, California based wealth manager Sean Stannard-Stockton discusses how the trend of “Giving while living,” is placing the philanthropic advisory role squarely onto the shoulders of wealth managers who may or may not be up to the task.

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Life settlement, in which life insurance policies are sold in a secondary market, has become a major financial market and viable opportunity for policyowners to convert unneeded policies for more than their cash surrender value (CSV), often with favorable tax treatment. In this article from the Journal of Accountancy, appraiser Alan Breus, CLU, ChFC reviews the history of the life settlement marketplace, emerging regulation, income tax consequences, tips for safe transactions, and charitable applications.

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When considering their charitable options, many donors overlook giving assets that can provide the greatest tax benefits. In this article from the Journal of Practical Estate Planning, Orange County, California attorney Joy Gibney Berus discusses several factors to consider and requirements that must be met to obtain and maximize the benefits from donations of art, antiques and collectibles.

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On October 3, 2008, Congress passed and President Bush signed into law the Emergency Economic Stabilization Act of 2008. Of all the last minute sweeteners added to the Senate version of the bill, one of the sweetest for charitable organizations and those who support them was an extension of the charitable IRA rollover provisions that expired at the end of 2007. In this article, The Sharpe Group reviews these provisions and offers resources that can help organizations and advisers assist their donors and clients to take advantage of this renewed giving opportunity.  MORE »

According to a new article by Barlow Mann of The Sharpe Group, organizations asking their older donors to simply include them in their will may be missing a tremendous opportunity: current gifts of publicly-traded securities and other non-cash assets.  MORE »

In February of this year, Congress passed the Economic Stimulus Act of 2008. Included in this bill is a provision for up to 130 million taxpayers to receive tax rebates. In this special report, Robert Sharpe, Jr. and Barlow Mann from The Sharpe Group discuss what they believe to be a tremendous opportunity and advantage for taxpayers to donate their rebates to charity.
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According to a study by New York University - Stern School of Business finance professor David L. Yermack, corporate CEOs may be taking advantage of inside information to maximize charitable deductions for company stock transferred to their own private foundations. In "Deduction Ad Absurdum: CEOs Donating Their Own Stock to Their Own Family Foundations", Dr. Yermack studies 151 charitable gifts of at least $1 million noting that such gifts, which are not subject to strict insider trading rules, are often followed by sharp declines in the price of the donated stock. He even suggests CEOs may be backdating their gifts in a way similar to recent stock option backdating practices in collusion with the charitable donee and others in order to increase their personal deductions.  MORE »

A few years ago, insurance advisers Michael Brink and Bryan Clontz wrote an article for the Planned Giving Design Center that discusses ten creative charitable uses of life insurance and their tax implications in planned giving. It has now been updated for current law, so we thought you might enjoy taking another look.
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Despite the old adage warning against discussing politics in polite company, we just couldn't resist the partisan throw-down that happened between Sen. Harry Reid and radio talk show host Rush Limbaugh during the past few weeks that resulted in a $4,200,200 gift to charity via an eBay auction. We were curious how the gift was structured and thought you might be as well.  MORE »

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 »

Can an IRA be used to help indirectly finance life insurance owned by a charity? In this article, Steve Leimberg reviews and comments on recently published Ltr. Rul. 200741016 in which the Service concluded the arrangement is not a prohibited investment in insurance within the meaning of section 408(a)(3) of the Code such that the IRA would cease to be an IRA under section 408(a)(3).  MORE »