creative giving techniques


Last week I introduced a tool for leaving a financial legacy called a donor advised fund. I also shared three scenarios where a solution for leaving a financial legacy was needed. In all three of these scenarios, a donor advised fund may be used to more efficiently accomplish short and long term giving goals while creating a legacy of giving. Below, I are two examples that could work for the three scenarios I went over last week.

Example 1

A gift of $100,000 to $300,000 to a church or ministries all at once could actually deter others from giving. Also, many times the organizations are not equipped to properly handle such large gifts. But, by setting up a donor advised fund and contributing the same $100,000- $300,000 to it, those in each of the three scenarios can receive the same immediate tax deduction and make distributions from the fund to the same ministries slowly over time so as to not deter others from giving.

Example 2

Retirement accounts(IRA’s, 401k’s) total over $500,000 in which only the required minimum distribution or RMD is being taken annually. The estate is worth over $2,000,000 and the retirement plans as part of the estate are in the worst possible tax position for inheritance since the children will be taxed on every dollar they receive from the retirement accounts. By making the donor advised fund the beneficiary of the IRA’s, not a single dollar will be taxed. This means 100% of the proceeds can be used to accomplish the long term giving goals of the estate for years into the future. The donor advised fund may even be able to fund the ministries your kids or grandkids serve in. What an incredible giving legacy to be remembered by!

For individuals, families, and corporations with the heartfelt desire to significantly influence their community during their lifetime and beyond, a donor advised fund is an outstanding way to achieve impactful giving goals. Not only can your contributions facilitate your current tax planning, but you can experience—in a greater way—God’s joy in charitable giving goals. With additional testamentary funding by a will, charitable trust, gift annuity, retirement plan or insurance policy, you and your family can truly leave a legacy.

Please call me at 830-609-6986 if you would like to discuss how you can use your finances to leave a legacy.