Philanthropy

 

Charitable Gift Funds

We offer two types of charitable gift fund products that can help serve your philanthropic needs. For assistance selecting the one best suited for both your charitable giving requirements and financial goals, talk to your financial advisor.

Donor Advised Funds

Donor Advised Funds can be described as mutual funds for charitable donations. A gift made to a Donor Advised Fund earns a federal income tax deduction, because the fund is a nonprofit entity. Upon completion of a gift to the fund, the donor then has the ability to make grants to their qualified charities of choice on their own timetable.

Benefits to the Client

  • Provides an immediate tax deduction
  • Avoids capital gains taxes on gifts of appreciated securities
  • Contributions grow tax-free under professional money management which may potentially mean larger gifts in the future
  • Allows donor to appoint a successor to the account to continue the giftgiving legacy
  • Allows donor to consolidate all charitable giving in one account, with further distribution to individual charities at a later date
  • Provides an estate planning solution — contributions are excluded from the donor’s estate for federal estate tax purposes
  • Allows donor to receive benefits similar to those of a private foundation, without all of the paperwork and startup costs that may be prohibitive for smaller contributions

How Does it Work?

  • Donor fills out an application and makes an initial contribution of $10,000 or more, and $1,000 or more for subsequent contributions
  • Contributions are invested in a choice of investment pools recommended by the donor
  • Donor can recommend grants on their own timeframe

Pooled Income Funds

Like Donor Advised Funds, Pooled Income Funds can also be thought of as mutual funds for charitable donations. What makes Pooled Income Funds different is donors to Pooled Income Funds receive an income stream from their contributions. Fund contributions are pooled together and managed the same as a mutual fund, with donors receiving an income based on the number of shares they have in the fund and the fund’s performance.

Benefits to the Client

  • Provides an immediate tax deduction
  • Avoids capital gains taxes on gifts of appreciated securities
  • Contributions grow tax-free under professional money management which may potentially mean larger gifts in the future
  • Allows income beneficiaries to receive a variable income stream for life which depends on the performance of the underlying investments
  • Provides an estate planning solution — contributions are excluded from the donor’s estate for federal estate tax purposes
  • Simpler and less expensive than a charitable remainder trust

How Does it Work?

  • Donor fills out an application and makes an initial contribution of $20,000 or more, $5,000 or more for subsequent contributions
  • Contributions are invested in a choice of investment trusts recommended by the donor
  • Income beneficiaries start receiving a variable income stream for life
  • Upon death of the last income beneficiary, the remaining interest is transferred to the Donor Advised Fund

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