JCF’s Ellen Israelson offers year-end tips to lower clients’ tax bills while increasing their generosity
Studies show that less than 15% of advisors offer charitable planning advice, while a majority of clients report they would like their advisors to discuss charitable giving. Partnering with JCF, you can fill this void by providing timely information to make charitable giving more strategic. Here are a few tips to share with clients to help with year-end planning.
TIP 1: Making a significant contribution now to a donor advised fund (DAF) enables clients to qualify for a maximum 2015 tax deduction, and have the ability to give the money to charities over time. DAFs do not have an annual minimum distribution requirement.
The fastest growing vehicle for charitable giving, surpassing $45 billion last year, is the donor advised funds. Philanthropists at every level find the DAF to be the easiest, most cost-effective, and flexible tool for their giving. And, DAFs are increasingly being used by high-net-worth families as an alternative to, or in addition to, private foundations. If your clients are looking for ways to organize their charitable giving with the highest degree of flexibility and confidentiality, a JCF donor advised fund is the answer.
TIP 2: Donating appreciated, long-term securities to maximize clients’ tax savings.
Clients make a contribution to JCF before the year-end and receive acknowledgement with the gift date for a 2015 tax deduction. They may claim a fair market value deduction (usually determined by averaging the high and low selling prices on the gift date.) Furthermore, the donor is not subject to a capital gains tax on the appreciated portion of the contribution.
TIP 3: If clients are worried about making the required distributions from their private foundations or charitable lead trusts, it is quick and easy to create a donor advised fund, thereby avoiding any excise tax or penalties.
Donor Advised Funds are the most efficient vehicle for charitable giving and can be established in less than a week, and sometimes within a day. DAFs are 501 (c ) 3 public charities and contributions to JCF will count toward the required distribution.
Our 43 years of experience enables JCF to provide your clients with:
- A secure website to easily organize and manage all aspects of charitable giving online
- Robust investment options so clients earn tax-free income in their DAF
- Ability to involve multiple generations of families in charitable giving
- The privacy that only a public charity, not a private foundation, can offer
Why Partner with JCF?
- We Are Advisor-Centric
- We are Experts in Charitable Giving
- We are Flexible accept many types of assets including complex assets
- We offer your clients the highest caliber of personal service
As we approach year-end and you meet with your clients, please keep Jewish Communal Fund in mind. We can work with you to help your clients meet their philanthropic goals, and find the right strategy to maximize charitable assets and minimize their tax burden for 2015.
For information contact Ellen Israelson, [email protected]