A giving strategy is needed for donor-advised funds
For charitably inclined clients, some donations may be better than others. Tactics that excel during a client’s lifetime might not be ideal at death.
The average American has grown more tight-fisted in recent years, donating a smaller portion of his or her income to charity than he or she did 10 years ago.
For nearly a decade, the rules allowing for a tax-free Qualified Charitable Distribution directly from an IRA to a charity have been on-again, off-again, a part of the infamous Tax Extenders that would lapse and be reinstated every other year.
Imagine a snapshot of American giving. What would it look like? Would it portray an abundantly generous America, or show a dismal lack of involvement in charitable causes and civic society?
If you want to be successful, you should work as hard as possible and suffer, right? Or so we’re told.
When advising clients who are considering the best ways to make significant charitable gifts, it can be helpful to begin with what I refer to as the “anatomy of a gift.”
A donor advised fund (DAF) is a philanthropic vehicle that is maintained and operated by a public charity.
The “Wait a While” trust is called a charitable lead annuity trust.
A very popular option for a parent with children is called the “Give It Twice” trust. This is a trust funded when the surviving parent passes away.