Last Minute Year-End Tax Planning/Philanthropy

A few years ago, during the last week of December, the two owners of a successful local business received an unexpected email from their accountant. In this communique, they were informed that their company had been significantly more profitable than had been projected and would be faced with a massive tax bill if a large charitable gift was not made by year-end. The problem that owners faced at that moment was that one was vacationing with family in the Bahamas and the other in Park City, UT. Obviously, they were not in a position to have a meaningful conversation about philanthropic priorities, especially given the scale.

Recognizing this challenge, the accountant suggested that the Coastal Georgia Foundation may be a good, easy and efficient way to quickly resolve this matter. After two calls and two emails, the owners had established and funded a Donor Advised Fund at the Foundation and returned to their families on the beach/slopes. What was most surprising to them, they later shared, was not the ease with which their problems had been solved, but the level of service they now receive from Foundation staff who help maximize the impact of their philanthropy, elevating the exercise from simple check writing to true grant-making.

Come back and visit us for a listing of upcoming events. 

Have a topic you'd like us to consider? Email Anna, ahall@coastalgeorgiafoundation.org 

Please click to download any or all of the following resources in our toolkit, and do not hesitate to contact info@coastalgeorgiafoundation.org or call (912) 268-4442 with additional questions:

• Annual Report
• Brochure
• IRS Determination Letter
• Donor Advised Fund Agreement
• Donor Advised Fund Guide Handbook
• Funds and Fees
• Sample Bequest Language

CCGF is here to help you serve your clients better.

Helping your clients reach their philanthropic objectives is an important service you can offer whether they’re engaged in retirement, estate, or tax planning. We can help with philanthropic planning, adding value to your practice and your client relationships.

The 2014 U.S. Trust® Study of High Net Worth Philanthropy examines giving patterns, priorities and attitudes of America’s wealthiest households. Since 2006, this biennial study has been written and researched in partnership with the Indiana University Lilly Family School of Philanthropy.

The largest, longest running series of its kind, the study is an important barometer for wealthy donors’ charitable engagement and viewpoints, offering valuable insights that inform the strategies of their peers, nonprofit professionals, charitable advisors, and others. The following is a summary of key findings from the full 89-page report.

Financial Advisor Magazine

Reducing Guesswork
By Karen DeMasters

Randolph Brinton, a financial advisor and senior vice president at Ferris, Baker Watts Inc. in Baltimore, had a client who wanted to give 10 different charities $5,000 a year each by selling some securities and other assets. It was a doable job, but a time-consuming one for both the advisor and the client. The solution was to give the lump sum to the Baltimore Community Foundation and let it sell the assets and dole out the money.

To use an overworked cliché, it was a win-win solution all the way around. “Giving the money to the Baltimore Community Foundation was a simple way for us to accomplish the client’s goal, and it helped the foundation and it strengthened my relationship with the client because I helped him accomplish what he wanted,” says Brinton, who works frequently with the foundation.

Clients expect professional advisors to suggest charitable opportunities...or they might assume it is not a good option for them.  This article suggests how to introduce charitable giving in discussions with clients and why.

Broching the Philanthropy Barrier

 It's often a missed opportunity.  Although many affluent investors want to support their favorite causes while also integrating philanthropy into their financial plans, many financial advisors fail  to broach the topic of charitable giving with their clients--even though they are uniquely positioned to play a pivotal role in developing clients' giving strategies.

What to Give: Cash, securities, life insurance, retirement plans and other non-traditional assets, including real estate and family heirlooms, can be used to start a fund or make a donation.

How to Give: Outright gifts, bequests, Charitable Remainder Trusts, Charitable Lead Trusts are all possible options for making a gift to the Foundation.

Where to Give: Donor-advised funds, field of interest funds, agency or other Foundation funds, the Coastal Georgia Foundation makes it simple for clients to create or contribute to a fund that matches their vision.

Legacy Society: Clients who plan to leave a gift to the Coastal Georgia Foundation through their will or estate plan become part of the Foundation's "Legacy Society".

Discuss your clients' overall philanthropic goals and define their objectives. 

What is the most advantageous way for your client to meet their goals and what causes are they most interested in? 

Determine the type of fund and structure that best suits their needs.

It may be possible that a Foundation fund already exists which reflects your client's interests and they may simply contribute to that fund.  This may be a good option for clients wishing to remain anonymous or who may not meet a minimum dollar amount to open a new fund.

Should opening a new fund be the best decision, the Coastal Georgia Foundation takes responsibility for tax reporting, fund distribution, and all other grant administration.  Your client will receive a quarterly fund statement with access to the Foundation's online portal, in the case of a Donor Advised Fund, may make recommendations for grants to the Foundation at any time.

Our staff is here with comprehensive assistance at any point along the way.  It is our pleasure to work with you and your clients to facilitate their giving.