As your primary resource for charitable giving strategies, the Foundation team diligently tracks best practices and legal updates that could affect philanthropy overall, as well as specific giving methods and everything in between.
For example, we are paying attention to the IRS’s plan to increase audits of wealthy taxpayers so that our team is better positioned to help you and your clients understand the requirements of valuing charitable gifts. We’re gearing up to help you and your clients incorporate charitable giving vehicles as a way to blunt the potential impact of the anticipated estate tax exemption sunset. In addition, we’re watching the IRS scrutinize aggressive techniques using annuities inside charitable lead trusts.
Another issue we’re watching closely is the latest news on the IRS’s proposed regulations of Donor Advised Funds (DAFs). We’ve studied the transcript from the public hearings in early May. Many community foundation leaders shared recommendations urging that any new regulations not disrupt the positive and productive working relationships between community foundations and advisors helping clients achieve philanthropic goals. As always, our team is staying on top of the issues and will keep you informed.
A DAF is one of many types of funds your clients can establish at the Foundation. We also offer Unrestricted Funds, Field of Interest Funds, Scholarship Funds, Designated Funds, and a wide range of planned giving and Legacy options for clients who want to invest in the community’s long-term needs.
DAFs are popular because they allow your client to make a tax-deductible transfer of cash or marketable securities that is immediately eligible for a charitable deduction. Then, the client can recommend gifts to favorite nonprofits from the fund to meet community needs as they emerge. What’s especially rewarding for our team is to work with you and your clients to explore a diversified portfolio of giving vehicles. It’s possible that a client’s portfolio would include a DAF, as well as one or more of a variety of other tools, such as a bequest, unrestricted gift, or charitable trust. We are confident in our ability to continue to work collaboratively with you for years to come to help fulfill your clients’ philanthropic wishes. Thank you for the opportunity to work together!