Philanthropy Archive
A Year of Speculation
As we embark on charitable gift planning for 2012, a look back at the events affecting philanthropy in 2011 can be helpful. At first glance, the events...
Executive Decisions
Corporate executives who amass large amounts of company stock face some unique wealth-transfer challenges and opportunities. Large holdings of a single...
Willing Buyer, Willing Seller, Willing Donor
Given the current real estate market, some owners are feeling more charitably inclined than they used to be. The thought crossing their minds is something...
Philanthropy
The Internal Revenue Service and the courts have been very active this year in the charitable arena. There have been informal reports of increased audit...
Charitable Giving at Death
The federal estate tax is, in a sense, voluntary, because the estate tax charitable deduction allowed under Internal Revenue Code Section 2055(a) can...
Lifetime Versus Testamentary Giving
Self-made people are often conflicted about philanthropy. Many of them work very hard for their wealth and, to a certain extent, measure their self-worth...
Negotiating Pledges and Restricted Gifts
Charitable pledges and restricted gifts continue to serve as common means of supporting favored causes. Given the significant capital invested through...
Family Office Management of Private Foundation Funds
Private foundations (PFs) remain popular because wealthy donors often want to maintain control over donated assets. In a similar vein, many wealthy families...
The Business Within
A new study titled Don't Lock Me Out: Life Story Interviews of Family Business Owners Facing Succession, by Alexandra Solomon, et. al, analyzes life-story...
Van Dusen: It's Not Just About the Cats
Precedents, those cases we look back to again and again for guidance when preparing returns or preparing for an Internal Revenue Service audit, aren't...
Gifting a Personal Residence or Farm
There was an old woman who lived in a shoe Had she planned on giving that shoe (her personal residence) to a charitable remainder unitrust (CRUT) or charitable...
Charitable Remainder Trusts Revisited
Many charitably inclined clients abstained from making significant outright donations to charity or creating or funding charitable remainder trusts (CRTs)...
Prepare for a Possible Change to Tax-exempt Status of Charities
When planning for charitable gifts, especially those accomplished using strategies that result in the gifts unfolding over an extended time, donors and...
Mergers and Charitable Giving: Odd Couple or Best Buddies?
Anyone who has checked the news lately knows that mergers and acquisitions are picking up. And as sure as baseball follows college basketball, philanthropy...
Unintended Consequences
What if a donor sets up a family foundation specifically because the donor wanted to avoid paying federal taxes? ...
A Time of Change
A recent headline in The Chronicle of Philanthropy tells the story: Recession's Hard Lessons Lead to Changes in Endowment Policies: The bulls may be back in control on Wall Street, but the painful lessons that endowment managers endured just a year ago are leading to a number of changes that affect how the funds are managed....
A Symbiotic Relationship
Much of the wealth being transferred in the United States today is in the form of highly appreciated illiquid assets: family businesses, closely held...
New Uses for an Old Tool Private Operating Foundations
If I had to name one difference between private foundations (PFs) in the 20th and 21st centuries, I would use one word: In both centuries, plenty of PFs...
Increased Exemption Amounts Create New Opportunities
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Act) created a major change that came as a surprise to many...
No Job's Over 'til the Paperwork is Done
Tax benefits are a notable side effect of philanthropy (in addition to the satisfaction of leaving the world a better place). Subject to various limits...
Managing CLAT Investments
Charitable lead annuity trusts (CLATs) have received considerable attention recently, in light of current low interest rates. If structured correctly,...
The Battle For the Charitable Tax Deduction
American society has long been defined by an intricate and unique combination of the roles of government, business and the non-profit sector. Other cultures...
Juggling Accounts
In 2010, the legislature, Internal Revenue Service and courts were busy dealing with retirement benefit issues. Congress expanded designated Roth accounts...
Down to the Wire
For those who advise clients on tax and other financial issues, the final weeks of the year are always a time for careful planning and action. This year...
Time to Consider Terminating a Charitable Remainder Trust?
As advisors and their clients are waking up to potential tax rate increases in 2011 or 2012, they're reconsidering a number of tax deferral strategies....
Effective Cross-border Philanthropy
Recent world events have brought new attention to the need for effective cross-border philanthropy. Whether concerned with immediate response to disasters...
Non-qualified Charitable Trusts
We all have clients who feel they've fully provided for their descendants and loved ones financially, so their remaining estate-planning objectives are...
Charitable Gifts With Use Strings Attached
In business transactions, each party generally seeks to maximize his advantage. But for charitable gifts, typically the donor and the charity have the...
A Practical Guide to Venture Philanthropy
Bill and Melinda Gates do it. Bill Clinton does it. Bono does it. And thanks to the Internet, the Average Joe can do it. What is it, you ask? It's the...
To Give or Not to Give?
As they say, an ounce of prevention is worth a pound of cure. For those charitably inclined, it will be more important than ever this season to understand that the choice of what to give and when to give it may determine how much they can afford to give. This year, the timing of charitable gifts can be the key to making gifts in the most cost-effective ways. ...
Tax Law Update
Second Circuit vacates Tax Court's determination on inclusion of transferred interest in real estate under IRC Section 2036 In Estate of Stewart v. Commissioner,...
Fate of Famed Art Collection Unresolved
Tennessee Chancery Court temporarily blocks the sale by financially strapped college of a 50 percent interest to a Walmart heiress’ new museum...
Grant Making Isn't the Only Way
Despite the economic recession, private foundations (PFs) led by individual donors and by families continue to form, grow and increase their grant making...
The Future of Philanthropy
New report stresses that those donors, private foundations and community foundations engaging in philanthropy must “act bigger” and “adapt better” in the future...
Committing to Creating and Maintaining a Private Foundation
Choosing among various charitable-giving options can be a challenging proposition for your clients. The most common options are creating a private foundation...
Defined Value Clauses Better Defined
After a 2006 opinion from the U.S. Court of Appeals for the Fifth Circuit in McCord v. Commissioner,1 many practitioners expanded their use of defined...
Rising to the Challenge
The way we gave in 2009 will be with us for a long time. Our country's economic crisis has occasioned a sea of change in the way individuals, foundations,...
Kill the CRTs
In what kind of Alice in Wonderland world might clients be better off destroying good things like charitable remainder trusts (CRTs)? Answer: in the down-the-rabbit-hole...
The Unraveling of Donor Intent
Gift restrictions have always been a component of charitable gift planning. In 1643, Lady Anne Radcliffe Mowlson created the first scholarship at Harvard...
Not SO Bad
Few Type III supporting organizations (SOs) are likely to be overjoyed by the new proposed regulations that could soon be governing them. Yet, these anxiously...
Babe Ruth Hit Home Runs, But His Foundation Struck Out
Babe Ruth's biographer, the sports writer Leigh Montville, has written that the famous baseball player's early years, spent mostly in an orphanage, are...
Charities in Distress
Endowments are down without hopes of a quick recovery. How's a nonprofit to cope? A guide to governance and standards of care in troubled times...
What Form Should Your Private Foundation Take?
A quick guide to choosing between two possible entities: non-profit corporation and charitable trust...
How To Help Foundations From Being Madoffed
Follow the complex maze of federal and state laws to (relative) safety...
The Estate Planner's Guide To International Philanthropy
International giving has been one of the fastest growing sectors in U.S. philanthropy in the past few years. We expect planners will continue to see wealthy...
Giving In Today's Economy
We are not sounding an alarm that there will be a collapse of charitable giving in 2009. Clearly, conditions are ripe for both an economic and philanthropic...
Treacherous Waters
A recent Internal Revenue Service Chief Counsel Memorandum concluded that a trust could not claim a charitable income tax deduction after it had received...
American Cancer Society
People facing cancer, those who have beat the disease, and their loved ones are benefiting every day from the progress the American Cancer Society is...
Environmental Defense Fund
Environmental Defense Fund was founded in 1967 by a small group of citizens concerned about DDT's effects on wildlife and human health. Today, Environmental...
The GI Lab at Texas A&M University
One of the most common reasons dogs and cats are presented to a veterinarian is because of gastrointestinal problems, such as vomiting, diarrhea, or weight...
Last Chance for Animals
Last Chance for Animals offers a solution for your clients who believe animals feel fear and pain and that no human being has the right to cause them...
The Leukemia & Lymphoma Society
WHO WE ARE: The Leukemia & Lymphoma Society (LLS) is the world's largest voluntary health organization dedicated to funding blood cancer research and...
Memorial Sloan-Kettering Cancer Center
Since our founding as the country's first cancer hospital in 1884, Memorial Sloan-Kettering has pioneered countless discoveries in science and research...
National Wildlife Federation
National Wildlife Federation (NWF) is a non-profit environmental organization whose mission is to restore the balance of nature and protect our rich wildlife...
The Rotary Foundation
The Rotary Foundation of Rotary International is poised to change how the world thinks about resolving conflict and securing peace. Committed to doing...
Shriners Hospitals for Children
Shriners Hospitals for Children is a one-of-a-kind health care system dedicated to improving the lives of children by providing pediatric specialty care,...
Time To Rethink Portfolios and Distributions
These harsh economic times should induce clients, fiduciaries and their advisors to review trust distributions and portfolio viability. Many investment...
Young America's Foundation
Do you have conservative clients interested in passing on their ideas with a planned gift? Your clients will thank you for telling them about Young America's...
Would They Do It Anyway?
About six years ago, I started talking differently to prospective private foundation clients. I used to try to craft a cohesive answer to the most common...
Compensate Directors Of Family Foundations?
It can be a thorny issue, whether to compensate the directors of a family foundation1 who are family members and, if so, how much to pay them. Certainly,...
Ten Lessons From 30 Years Of Charitable Planning
Little did I dream, when I started practicing 30 years ago in a small office in Fort Collins, Colo., that I would have the opportunity to work with hundreds...
Breaking Up Is (Not So) Hard to Do
Sometimes even the best relationships go sour. But getting out of a private foundation doesn't need to be fraught with confusion about an uncertain future....
Giving and Loaning Art to Charity
Herbert Vogel, a retired postal worker, and his wife, Dorothy Vogel, a former librarian, spent 45 years amassing a collection of more than 4,000 pieces...
GST Planning With CLATs
David T. Leibell and Daniel L. Daniels, partners in the Stamford, Conn., office of Cummings & Lockwood LLC, report: Private Letter Ruling 200733007 (issued...
Power to the Donors
New York's Lincoln Center, about to engage in a costly renovation of its symphony space, is refusing to assure the family of Avery Fisher that the auditorium...
Sample CLATs
Thanks to the Internal Revenue Service for its help to the estate-planning and charitable-giving community, by publishing sample charitable lead annuity...
Tax Credits for Gifts Charities May Never Get
To stop donors from abusing charitable remainder trusts (CRTs) by taking deductions when charities couldn't actually expect to receive anything, the Internal...
What Price Patents?
David T. Leibell and Daniel L. Daniels, partners in the Stamford, Conn., office of Cummings & Lockwood LLC, report that planners have been buzzing for...
A SARBANES-OXLEY FOR CHARITIES
David T. Leibell and Daniel L. Daniels of Cummings & Lockwood LLC in Stamford, Conn. report: On June 14, 2007, the Internal Revenue Service released for...
Charitable Deductions For Non-Grantor Trusts
The general tax rule is that trusts compute their income and deductions as if they were individuals.1 Probably the most significant exception to this...
HOW THE HARVARD CRT TECHNIQUE WORKS
Dear Editor: The March issue's, Charitable Giving, column in the Briefing section described private letter rulings issued to Harvard University in 2003...
CHARITABLE GIVING
From David T. Leibell and Daniel L. Daniels, partners in the Stamford, Conn. office of Cummings & Lockwood LLC, we have this update: Ruling provides comfort...
Transfers Between Private Foundations
At some point in the life of a private foundation (PF), it may be advantageous to transfer most or all of its assets to one or more other PFs. The most...
CHARITABLE GIVING
From David T. Leibell and Daniel L. Daniels of Cummings & Lockwood in Stamford, Conn., we have the following update: The Internal Revenue Service launches...
The Gift of a Great Book
As a practicing trusts-and-estates attorney, I approached a book with a plot about an unusual bequest in a last will and testament and whose narrator...
CHARITABLE GIVING
David T. Leibell and Daniel L. Daniels of Cummings & Lockwood in Stamford, Conn., report that the new score on split-interest charitable trust investments...
CHARITABLE GIVING
From David T. Leibell and Daniel L. Daniels of Cummings & Lockwood in Stamford, Conn., we have this report: IRS disallows CRUT modification not based...
Role Models
Last year, Warren Buffett threw down the gauntlet: Here's what philanthropy looks like on the grandest scale. Together, he and Bill Gates have set out...
Cold Snap for DAFs
The Pension Protection Act of 2006 (PPA), which so radically redefined the rules for supporting organizations, also transformed the rules for donor-advised...
The New Accountability
Nonprofits, especially those operating or fundraising in multiple states, are under a great deal of pressure these days to maintain compliance with both...
HOW THE RICH GIVE
A new study on high-net-worth philanthropy shows that the rich are different. David T. Leibell and Daniel L. Daniels, partners of Cummings & Lockwood,...
CHARITABLE GIVING: WHAT NOT TO DO
David T. Leibell and Daniel L. Daniels, partners in the Stamford, Conn. office of Cummings & Lockwood LLC, report that a recently released Technical Advice...
Donating Real Estate
Real estate has been the fastest appreciating investment for many people during the past several years. With interest rates rising, however, recently...
Terminating Gifts
There are many strategies that a professional advisor can use to help clients exit from planned gifts. All require a clear understanding of the partial...
CHARITABLE DISINCENTIVES
David T. Leibell and Daniel L. Daniels of Cummings & Lockwood in Stamford, Conn., take a closer look at the Pension Protection Act's provisions on charitable...
BLOCKING UBIT
From David T. Leibell and Daniel L. Daniels, principals in Cummings & Lockwood LLC in Stamford, Conn., we have this update: The Internal Revenue Service...
TERMINATING CRTS
David T. Leibell and Daniel L. Daniels, principals in Cummings & Lockwood LLC in Stamford, Conn., report: IRS issues series of rulings ultimately approving...
Know the Differences
Many tax and estate-planning professionals are aware of the basic tax rules governing deductions for charitable contributions. They know the general distinctions...
VENTURE PHILANTHROPY ON A ROLL
David T. Leibell and Daniel L. Daniels, principals in Cummings & Lockwood LLC in Stamford, Conn., report: The Internal Revenue Service has approved another...
Venture Philanthropy Deal Okayed
From David T. Leibell and Daniel L. Daniels, partners of Cummings & Lockwood LLC in Stamford, Conn., we have this update: IRS approves private foundation's...
Relief From 2005-24
From David T. Leibell and Daniel L. Daniels, partners of Cummings & Lockwood in Stamford, Conn., we have this update: IRS extends indefinitely the safe...
One Size Doesn't Fit All
Most grant-making foundations in the United States operate on very modest budgets, are largely unstaffed and are run by unpaid trustees. But that's where...
EXTENSION DENIED
From David T. Leibell and Daniel L. Daniels of Cummings & Lockwood LLC, in Stamford, Conn., we have this update: IRS denies private foundation's request...
Stretch This
A complete liquidation of a person's retirement account can trigger a huge income tax liability, significantly diminishing assets available for investment....
Scandal Is a Good Teacher
A $15.8 million judgment against the former foundation president; a $5.8 million judgment against the corporate secretary; more than $500,000 in personal...
A Closer Look at Those New Specimen CRUTs
The Internal Revenue Service has done a yeoman's service in publishing specimen safe-harbor charitable remainder unitrust (CRUT) agreements for inter...
Private Foundations'Investing Options
Private foundations are usually organized as trusts or not-for-profit corporations. When choosing between the two, advisors tend to focus on ease of formation...
CHARITABLE GIVING
From David T. Leibell and Daniel L. Daniels of Cummings & Lockwood LLC, in Stamford, Conn., we have this update: IRS denies estate's request for extension...
Who's Giving? Who's Receiving?
Americans pride themselves on their philanthropy. Our economic contributions to charity and volunteerism far exceed those of other countries in the developed...
CHARITABLE GIVING
From David T. Leibell and Daniel L. Daniels of Cummings & Lockwood LLC, in Stamford, Conn. we have this update: IRS permits funds set-aside by a private...
