Communicating Charitable Giving

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Blog, Events, In The News, News and Articles, Racial Equity Hub | August 2, 2020

Mask Up Florida

Mask Up Florida! My mask protects you. Your mask protects me.  Our "Mask Up Florida" campaign encourages wearing a face mask in public to prevent the spread of COVID-19. Covering your nose and mouth in public not only protects you, it also protects others around you. Please wear your mask properly. It's one of the best tools we have to knock out COVID-19.  INSTAGRAM FACEBOOK TWITTER E-BLAST SIGN UP

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Blog | July 28, 2020

Donor Privacy Protections: Now Official!

Abby Axelrod-Wunderman, Director of Charitable Giving Many of you have been tracking developments related to the disclosure of donor identity and proposed IRS regulations to clarify its applicability.   You may recall that focus on this issue increased on July 30, 2019, when a Montana federal district court judge set aside the IRS’s Revenue Procedure 2018-38. Under that Revenue Procedure, the IRS had removed the Schedule B disclosure requirements for Section 501(c)(4) and several other forms of tax-exempt entities.  Because the court based its ruling wholly on procedural grounds, advisors remained concerned that the public could access information regarding clients’ contributions to 501(c)(4) social welfare organizations and 501(c)(6) trade associations. This concern is now laid to rest. The IRS’s final regulations, effective on May 28, 2020 (which may be applied to returns filed after September 6, 2019) retained the provisions in the proposed regulations requiring only 501(c)(3) charitable organizations and 527 political organizations report names and addresses of substantial contributors during a taxable year.  The net-net here is clients who are giving money to specific organizations that tackle controversial social issues on either end of the political spectrum ...

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Blog | July 28, 2020

Annual Fundraising Looks Different, but the Tax Rules are Still Sticky

Abby Axelrod-Wunderman, Director of Charitable Giving For many charities that rely on events to achieve annual fundraising goals, the cancellation of 2020's Met Gala (which raised an estimated $15 million in 2019) came as a blow, signaling that in-person galas and auctions might not be back anytime soon.  Still, many organizations are moving forward with virtual fundraisers.  What should you keep in mind as you advise clients who routinely support charities through events?  The rules for charitable deductions still apply, meaning the IRS only allows a tax deduction for the portion of the ticket price for which your client received nothing of tangible value in return. So, when the charity sends a receipt for the gift, your client will see that the charity has subtracted the perks' fair market value--food, beverage, entertainment, T-shirts, and other goodies--from the full amount of the contribution. In the case of virtual events, the charity may skip "tickets" and perks altogether, which means your client's contribution is a donation to the charity itself. Regardless, it is still essential to consider carefully the implications for your clients who want to purchase event tickets using ...

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Blog, In The News, News and Articles, Publications and Resources, Racial Equity Hub | July 12, 2020

Anti-Racism: Are You Fighting It or Just Talking About It?

For the last several weeks, there have been continuous updates from businesses and organizations about changing their internal and external landscape to "become more diverse, inclusive, and knowledgeable." However, we also need to recognize this work has a more critical underlying issue: anti-racism. How do you develop an anti-racist culture throughout your organization? First, board members, leadership, and staff need to have a real understanding that anti-racism work is an ongoing, everyday process of active listening, and learning. This step sounds easy, but it is not. Something quickly glossed over is this "active" part. What does it mean to be an active listener or an active learner? It means you take every interaction, conversation, meeting, and otherwise and approach it with as much awareness as possible. You listen to what others say, and you respond with thoughtful questions to learn more.  The Harvard Business Review gives a range of resources to aid your organization's efforts to undo racism. To respond to anti-racism adequately, leaders must reckon with the Black experience inside their workplaces. To do this, start with some necessary steps:  Identify the harm without ...

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Blog, In The News, News and Articles, Publications and Resources, Racial Equity Hub | June 26, 2020

Diversity and Racial Justice: More Work for the Workplace

Diversity in the workplace can be a powerful and critical differentiator for your business or nonprofit. Having employees with different backgrounds who can provide alternative perspectives and bring with them unique life experiences can benefit your organization's decision-making processes. Types of Diversity in the Workplace Racial diversity is a common focus of diversity training, but it is essential to note there are more components when it comes to workplace diversity. Including: Age and generational differences Cognitive functions Culture and language Gender and sexual orientation Race and ethnicity Other: values, different experiences, and types of intelligence Because of these different forms of diversity, leadership, and human resources, personnel must create an inclusive environment welcoming to everyone. Breaking Down Racial Diversity In light of the George Floyd murder and the many racial hate crimes that have taken place in our country, racial diversity in the workplace is, perhaps, being looked at more closely. Racial diversity in the workplace – from the recruitment process to promoting people of color within the workplace – continues to move at an unimpressive pace. LinkedIn's annual workplace diversity report shows the needle is moving so slowly that some ...

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Blog, In The News, News and Articles | June 9, 2020

Donor-Advised Funds Working Hard for our Community: Join the Trend

Donor-advised funds (DAFs) are a popular charitable giving tool. And right now is a perfect time to evaluate this planning strategy. In recent years, DAFs have been one of the fastest-growing philanthropic planning tools in the marketplace. DAFs are popular because they allow an individual or family to make a tax-deductible transfer that qualifies as a charitable contribution, and then recommend grants to favorite charities from the fund when the time is right. A DAF operates like a checking account for charities. It is established according to IRS guidelines that provide tax advantages for the donor as well as administrative efficiencies. Amid the COVID-19 pandemic, giving from DAFs at the Community Foundation is accelerating. This increase is creating a significant boost for nonprofits and people in need in Palm Beach and Martin Counties. Indeed, the global healthcare crisis is precisely why many donors establish DAFs in the first place: To be ready to give when needs are the highest. From a national perspective, according to a recent survey conducted by the Community Foundation Public Awareness Initiative, 64 Community Foundations surveyed shared grants ...

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Blog, In The News, News and Articles | May 29, 2020

Know the Benefits of Required Minimum Distributions and Qualified Charitable Distributions

Abby Axelrod-Wunderman, Director of Charitable Giving The CARES Act was designed to provide relief to Americans who are struggling due to the economic, emotional, and physical toll COVID-19 is causing. The goal of suspending RMDs is to give people more control over their funds and to reduce having to sell investments and create a taxable event during a time of emergency. The CARES Act allows IRA account owners to skip both their 2019 and 2020 required minimum distribution (RMD), if it was their first year and had not yet made an RMD by April 1, 2020.  How could RMDs in 2020 make a difference?  For one, you could provide support to nonprofit organizations if you are not concerned about keeping your RMDs. An individual can still do a qualified charitable distribution (QCD) from their IRA if they are age 70.5 or older and send money directly to a qualified charity. Even though RMDs are not owed in 2020, and their amount will not offset any future RMDs, except for the fact that their account balance is now lower, nonprofits in our community are in ...

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Blog, In The News, News and Articles | May 28, 2020

Why Now = Excellent Time to Set Up a Charitable Lead Annuity Trust

Abby Axelrod-Wunderman, Director of Charitable Giving Among the many factors swirling together in the pandemic marketplace are 1. historically low-interest rates and 2. historically high needs for increasing charitable giving to support organizations dealing with the health crisis. This makes the Charitable Lead Annuity Trust (CLAT) an attractive vehicle for individuals who want to help charities in the near term and still preserve assets for their families. Here's how a CLAT works.  An individual transfers cash or other property to an irrevocable trust. For a term of years, a charity designated by you (which could be a donor-advised fund) receives an income stream. The trust can be structured to maximize income tax benefits, or estate and gift tax benefits, in varying degrees. After the term of years, the remaining assets in the trust are distributed to your designated non-charitable beneficiaries. Why is CLAT so advantageous right now?  If over the term of the income period, the trust assets outperform the current IRS 7520 rate (which should be easy to do because rates are so low right now), the non-charitable remainder beneficiaries will receive assets with ...

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Blog, In The News, News and Articles | May 27, 2020

Communicating with Your Clients about Charitable Giving

We hope you and your loved ones are safe and well. Below are some tips and tools you might find helpful when communicating with your clients about charitable giving during COVID-19, and while interest rates are low.  If you have any questions, please do not hesitate to reach out to Abby Axelrod-Wunderman, Director of Charitable Giving at aaxelrod-wunderman@cfpbmc.org or 561.340.4512. Why now is an excellent time to set up a Charitable Lead Annuity Trust Among the many factors swirling together in the pandemic marketplace are 1. historically low-interest rates and 2. historically high needs for increasing charitable giving to support organizations dealing with the health crisis. This makes the charitable lead annuity trust (CLAT) an attractive vehicle for individuals who want to help charities in the near term and still preserve assets for their families. Here's how a CLAT works.  An individual transfers cash or other property to an irrevocable trust. For a term of years, a charity designated by you (which could be a donor-advised fund) receives an income stream. The trust can be structured to maximize income tax benefits, or estate and gift tax ...