The Tax and Estate Planning attorneys at Leonard, Street and Deinard have a strong reputation for maximizing the benefits of charitable gifts. As a result, donors and nonprofit institutions routinely turn to us for guidance in structuring such gifts. We find that the key to good charitable gift planning is to address all relevant issues in advance of the gift so that donors and donees are not at any point surprised or disappointed. Our attorneys give sound tax advice, based on the most recent case law, regulations and IRS pronouncements, while bearing in mind the donors’ and charitable entities’ overriding desire to promote charitable activities.

As part of the planning process we analyze donors’ existing estate plans; the tax consequences of charitable planning alternatives and the donation of different types of property; and the needs and structure of the charitable recipient. We focus on the details as well as the big picture, and that is why clients refer their friends and associates to us.

Our Experience

Our attorneys have broad experience in charitable giving matters, including:

• Charitable tax planning in the context of business transactions
• Charitable remainder trusts (click to learn more)
  
• Charitable lead trusts (click to learn more)
• Gift annuities
• Family foundations and supporting organizations
• Charitable insurance planning and retirement account planning
• Obtaining and coordinating assistance from appraisers, accountants, investment specialists and insurance advisors

The clients who use our charitable giving experience include both nonprofit entities (such as churches, foundations, hospitals, colleges and universities) and individuals seeking tax-planning advice. Matters we handle include the following:

Charitable Tax Planning for a Business Transaction or Sale

Some of the best charitable planning occurs in the context of the sale of a closely held business, real estate or a block of publicly traded securities. This is an opportune time to utilize charitable planning to reduce the tax costs of the transactions, increase the net return to the donor and fulfill charitable goals. Additionally, a charitable gifting plan must be coordinated with the donor’s accountants to make sure that the timing and nature of gifts maximize tax-planning objectives.

Charitable Remainder Trusts

With the charitable remainder trust, individuals may enjoy an income for life from the trust. Because the principal goes to a nonprofit organization after the lifetime beneficiary dies, donors receive an “up-front” income tax deduction and avoid a large estate tax bite. In many instances capital-gains taxes from a transaction also are deferred through this technique.

Charitable Lead Trusts

Through this type of trust, our attorneys can assist donors who want to support charitable interests now but direct the underlying assets to their families (often at reduced transfer tax costs) after a term of years.

Gift Annuities

With a charitable gift annuity, a donor transfers property to a charity in return for a guaranteed payment for life. The donor obtains an immediate charitable income tax deduction, receives payments (some portion of which are received as tax-free return of principal), avoids the need to manage the assets in the future, and benefits the charity.

Family Foundations and Supporting Organizations

Our attorneys have helped many families establish ongoing foundations, controlled by the family, that make gifts to charities or supporting organizations that work in conjunction with the charity.

Charitable Insurance and Retirement Account Planning

We often assist clients in using life insurance or their retirement accounts as part of their charitable gift planning.

Obtaining and Coordinating the Assistance of Other Firms and Services

To further the wishes of clients interested in charitable giving, Leonard, Street and Deinard offers assistance from our contacts in areas such as:

• Appraisals. Obtaining an appraisal from a qualified appraiser can be key to obtaining the desired tax results.
• Public foundations. For many donors, their goals can be achieved—and the costs of implementing and carrying out their charitable objectives reduced—by coordinating their planning with major public foundations. Leonard, Street and Deinard has cooperated extensively with public foundations in such planning.
• Accounting services. A charitable gifting plan must be coordinated with the donor’s accountants to make sure that the timing and nature of gifts maximize tax-planning objectives.
• Investment and insurance professionals. Selecting assets for charitable giving, maximizing the results and protecting the donors’ noncharitable beneficiaries often require that we involve investment and insurance professionals in the planning process.