Community Foundation of Abilene : Advise : Six Opportunities for Your Client's Charity

Occasionally, you will have a client who approaches you with a problem that charitable giving can answer. It's a great solution for your client and your community!

Here are six opportunities to consider charitable giving as a solution:

  1. "I want to sell appreciated property, but I'm concerned about capital gains taxes."Giving all or part of the asset to charity will eliminate or reduce capital gains taxes and can replace less efficient charitable giving, continue or begin to provide lifelong income, and/or provide satisfaction about supporting a charity of one's choice.
  2. "I'll be receiving additional taxable income this year. I'd like to give some to a charity, but I'm not ready to decide which one."A donor-advised fund will lock in a tax deduction for the current year and allow as much time as is needed to choose the charity.
  3. "I manage a rental unit which provides needed income, but it's too much work."Giving the rental property to charity and setting up a charitable remainder trust (CRT) will eliminate the capital gains tax, secure lifetime income (perhaps more than from the rental), claim a sizeable tax deduction, and support a favorite charity.
  4. "I have a large retirement fund but my children will only receive 20 or 30 cents on the dollar."Giving the retirement fund to an endowment from which heirs may recommend charitable gifts will reduce estate tax, eliminate income tax on the IRA distribution, and create a family legacy. In the meantime, other assets can be used for gifts to family members.
  5. "I have no children, and it's time to write a will."How do they want to be remembered? Suggest a charitable fund at the Foundation as a way to be remembered and an alternative to paying too much estate tax.
  6. "I'd like to help a long-time employee (or friend, sibling, or parent)."A life-income gift, such as a charitable remainder trust, will assure the income beneficiary receives a lifetime income -- and also allows your client to support a favorite charity following the person's death.