Communicating Charitable Giving

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Blog, In The News, News and Articles | June 9, 2020

Donor-Advised Funds Working Hard for our Community: Join the Trend

Donor-advised funds (DAFs) are a popular charitable giving tool. And right now is a perfect time to evaluate this planning strategy. Abby Axelrod-Wunderman, Director of Charitable Giving In recent years, DAFs have been one of the fastest-growing philanthropic planning tools in the marketplace. DAFs are popular because they allow an individual or family to make a tax-deductible transfer that qualifies as a charitable contribution, and then recommend grants to favorite charities from the fund when the time is right. A DAF operates like a checking account for charities. It is established according to IRS guidelines that provide tax advantages for the donor as well as administrative efficiencies. Amid the COVID-19 pandemic, giving from DAFs at the Community Foundation is accelerating. This increase is creating a significant boost for nonprofits and people in need in Palm Beach and Martin Counties. Indeed, the global healthcare crisis is precisely why many donors establish DAFs in the first place: To be ready to give when needs are the highest. From a national perspective, according to a recent survey conducted by the Community Foundation Public Awareness Initiative, 64 Community ...

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Blog, In The News, News and Articles, Racial Equity Hub | June 4, 2020

Mission: Improve Diversity, Equity & Inclusion in Philanthropy

Abby Axelrod-Wunderman, Director of Charitable Giving If we as philanthropists and grantmakers are honest with ourselves, over the past several years, we have faced rising criticism for lack of transparency, the continuation of wealth inequality, and the perpetuation of a broken economic system. What can we do about it? How can we in the philanthropic sector contribute to expanding American democracy to include everyone? What can we do to address inequality and make a meaningful contribution to a changing nation? Our Community Foundation, and others around the nation, are taking the lead to help their residents, leaders, and decision-makers build diverse, equitable, and inclusive communities for the common good. Our cities are grappling with how to embrace and draw strength from diversity while leveraging the resources diversity provides to help them thrive. A commitment to racial equity work often requires community foundations to think beyond responsive grantmaking and to develop disciplined, long-term strategies for understanding and addressing systemic issues that threaten wide-spread community growth.  What the Community Foundation is doing. We at the Community Foundation for Palm Beach and Martin Counties want to reinforce and share ...

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Blog, In The News, News and Articles | May 29, 2020

Know the Benefits of Required Minimum Distributions and Qualified Charitable Distributions

Abby Axelrod-Wunderman, Director of Charitable Giving The CARES Act was designed to provide relief to Americans who are struggling due to the economic, emotional, and physical toll COVID-19 is causing. The goal of suspending RMDs is to give people more control over their funds and to reduce having to sell investments and create a taxable event during a time of emergency. The CARES Act allows IRA account owners to skip both their 2019 and 2020 required minimum distribution (RMD), if it was their first year and had not yet made an RMD by April 1, 2020.  How could RMDs in 2020 make a difference?  For one, you could provide support to nonprofit organizations if you are not concerned about keeping your RMDs. An individual can still do a qualified charitable distribution (QCD) from their IRA if they are age 70.5 or older and send money directly to a qualified charity. Even though RMDs are not owed in 2020, and their amount will not offset any future RMDs, except for the fact that their account balance is now lower, nonprofits in our community are in ...

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Blog, In The News, News and Articles | May 28, 2020

Why Now = Excellent Time to Set Up a Charitable Lead Annuity Trust

Abby Axelrod-Wunderman, Director of Charitable Giving Among the many factors swirling together in the pandemic marketplace are 1. historically low-interest rates and 2. historically high needs for increasing charitable giving to support organizations dealing with the health crisis. This makes the Charitable Lead Annuity Trust (CLAT) an attractive vehicle for individuals who want to help charities in the near term and still preserve assets for their families. Here's how a CLAT works.  An individual transfers cash or other property to an irrevocable trust. For a term of years, a charity designated by you (which could be a donor-advised fund) receives an income stream. The trust can be structured to maximize income tax benefits, or estate and gift tax benefits, in varying degrees. After the term of years, the remaining assets in the trust are distributed to your designated non-charitable beneficiaries. Why is CLAT so advantageous right now?  If over the term of the income period, the trust assets outperform the current IRS 7520 rate (which should be easy to do because rates are so low right now), the non-charitable remainder beneficiaries will receive assets with ...

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Blog, In The News, News and Articles | May 27, 2020

Communicating with Your Clients about Charitable Giving

We hope you and your loved ones are safe and well. Below are some tips and tools you might find helpful when communicating with your clients about charitable giving during COVID-19, and while interest rates are low.  If you have any questions, please do not hesitate to reach out to Abby Axelrod-Wunderman, Director of Charitable Giving at aaxelrod-wunderman@cfpbmc.org or 561.340.4512. Why now is an excellent time to set up a Charitable Lead Annuity Trust Among the many factors swirling together in the pandemic marketplace are 1. historically low-interest rates and 2. historically high needs for increasing charitable giving to support organizations dealing with the health crisis. This makes the charitable lead annuity trust (CLAT) an attractive vehicle for individuals who want to help charities in the near term and still preserve assets for their families. Here's how a CLAT works.  An individual transfers cash or other property to an irrevocable trust. For a term of years, a charity designated by you (which could be a donor-advised fund) receives an income stream. The trust can be structured to maximize income tax benefits, or estate and gift tax ...