Talking with Your Client about Giving
When helping your clients with financial and estate planning, you will want to ask about their charitable interests. They will want to know the most satisfying and effective way to accomplish their philanthropy.
Together, you may consider the following:
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- When to give.
Does your client want to establish a fund now—or later, through deferred gifts, a will, or other planned giving?
- What to give.
There are many different kinds of assets your client might have to start a fund, and The Trust accepts most of them. We have significant experience accepting:
- charitable remainder trusts
- charitable lead trusts
- retirement plan assets
- closely held stock
- publicly traded stock
- life insurance
- The best way to give. The Trust has four types of funds available:
about which one is right for your client.
Deferred Gifts and Bequests
A permanent fund in The Trust will continue a family's name and ensure that the causes they care about will be supported forever. They are also assured that should there be a change of circumstance that makes literal compliance with the terms of the gift instrument "unnecessary, undesirable, impractical, or impossible," our governing body is able to vary them. This is called the variance power. Your client's gift will never become obsolete, and will remain useful to the community in perpetuity.
Your client can set up a fund through a deferred-giving arrangement. A key feature of many estate plans is a tax advantage to your client now for the commitment of a charitable gift later. The following can be used:
- Charitable remainder trusts (CRTs)
CRTs allow your client to receive income (or provide income for another person); when the trust terminates, the remaining assets will be used to support your client's charitable interests.
- Charitable lead trusts (CLTs)
CLTs enable your client to make significant charitable gifts in the near term while transferring substantial assets to beneficiaries, who may benefit from significantly lowered gift and estate taxes.
- Life Insurance
Life insurance can be used as a charitable asset, enabling your client to be eligible for a charitable tax deduction based on the current value of the paid-up policy.
- Retirement Plans
Retirement plan assets can be used to support your client's charitable interests while achieving significant tax advantages for their heirs.
After providing for personal bequests, your clients may include
provisions for setting up a fund or add to one already established. They
will save estate taxes and ensure that the charitable work they care
about is carried on. Contact us for a sample of will language or to speak with our general counsel.
By establishing a fund today, your clients can support favorite charities during their lifetimes. Many of our donors have donor-advised funds and add to their funds each year, recommend grants on a regular basis, and name the fund in their wills.
As a public charity, The New York Community Trust offers donors the maximum charitable tax deduction permitted by law. It may be advantageous for your client to make a current gift based on this year's tax situation, and to determine grants from the fund in future years.
We accept cash, publicly traded stock, retirement plan assets, closely held stock, copyrights, and life insurance. We also have significant experience accepting charitable remainder trusts and charitable lead trusts.
Contact us today