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Financial windfalls, major business decisions, estate planning and retirement can trigger giving opportunities. We work with you and your clients to tailor philanthropic strategies that help your clients achieve their charitable goals, extract the most good from their gifts, and enjoy maximum tax advantages.
You can discuss a range of giving options with your clients. We can tailor a solution to their individual needs. Here are some examples of client solutions.
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Scenario: A financier who lives in Rowayton just earned a significant year-end bonus. He wants to donate a large percent to charity, but has no time before December 31 to research individual nonprofits beyond his alma mater.
Solution: Receive an immediate tax deduction by establishing and naming a Donor Advised fund. We can work with your client to identify excellent nonprofit organizations in Fairfield County that match his charitable interests. He can recommend that his Donor Advised fund award grants to nonprofits he selects, whether they are in Fairfield County or beyond at his convenience. In subsequent years, he can continue contributing year-end bonuses to the fund, and recommend grants.
Scenario: A retired Westport couple with three daughters and seven granddaughters has appreciated stock that constitutes substantial wealth—and raises estate planning problems for them this year. They have been long-time champions of helping low-income women and children in Fairfield County.
Solution: The couple contributes their appreciated stock to the Foundation for the maximum allowable charitable tax deduction and avoids capital gains taxes. The Foundation sells the assets and their entire gift is contributed to the Foundation's Fund for Women and Girls, a Field of Interest fund that exclusively supports programs that benefit women and children in Fairfield County.
Scenario: A long-time Greenwich family has managed their $18 million private foundation for two generations. Now four adult grandchildren serve as trustees. Three live out-of-state and are unable to attend board meetings. All four want to support their own charitable passions, and ask you to divide the foundation so they can pursue their own philanthropic interests.
Solution: Establish a Donor Advised fund for each trustee at their local community foundation. Make four equal grants to each Donor Advised fund. Follow the procedures to terminate the foundation with the appropriate tax authorities.
Scenario: A Stamford CEO approaching retirement wants to reduce future estate taxes by directing money to charity. He also wants to benefit his community, but prefers to leave specific giving decisions to professionals who will use his contribution wisely.
Solution: Reduce taxable estate by establishing a testamentary gift of an IRA or qualified retirement plan assets. Not only does the gift qualify for an estate tax deduction, but there is no income tax imposed on the Foundation's receipt of the assets. The assets will transfer to the Stamford Endowment Fund, a Discretionary fund at the Foundation that addresses critical needs in the Stamford region, now and far into the future.
Scenario: A Ridgefield family who owns a publishing company wants to make a philanthropic impact close to home through a private foundation, but prefers greater tax benefits and fewer bureaucratic hurdles. They also want to involve their children and learn how to be effective philanthropists. They've chosen to focus their giving on adult literacy and early childhood education programs in the region.
Solution: Establish and name a Donor Advised fund. The family meets regularly to discuss nonprofit programs the Foundation brings to their attention, goes on site visits arranged by the Foundation, and makes grant decisions. The Foundation handles all of the grantmaking, paperwork and reporting.
Scenario: A New Canaan couple has appreciated real estate and wishes to donate it to a regional nonprofit that helps senior citizens, but none of the nonprofit organizations are equipped to accept real estate. The couple also spends half the year out-of-state and prefers to leave detailed grantmaking decisions to someone they can trust to follow their philanthropic wishes.
Solution: Give the real estate to the Foundation and receive a tax deduction on its full market value, while avoiding the capital gains tax that would arise from a sale. The Foundation sells the real estate and uses the proceeds to contribute to an existing Field of Interest fund that awards grants to well-run Fairfield County nonprofits that serve our elders.
Scenario: A Fairfield retiree wants to continue supporting her three favorite nonprofit organizations without running out of money during her lifetime.
Solution: Establish a Charitable Remainder Trust that provides an income stream during the beneficiary's lifetime and names a Designated fund as the trust's remainder beneficiary. The trust will provide a steady income stream to the donor. The fund will achieve the client's charitable objectives far into the future.
Scenario: A corporate attorney in Darien with a long-term commitment to helping cancer patients and their families wants to lock in her profit on appreciated stock and use it to support her charitable passion. For the past 12 years she has contributed to an organization that provides respite care for cancer patients and counseling for their families.
Solution: Transfer the stock and open a Designated fund that endows her gift to this nonprofit. Her tax burden is reduced, and the nonprofit can include her grant in their annual budget. Others may also contribute to the fund.
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