Maximizing Impact Through Complex Charitable Gifts
Strategic Charitable Giving Solutions for Your Clients
At the Hamilton Community Foundation, we work alongside professional advisors to implement charitable giving strategies that align with your clients’ financial and philanthropic goals. Whether they want to reduce taxes, create a lasting legacy, or simplify giving, we offer expert guidance and flexible solutions to make it happen.
Giving Vehicles to Consider:
- Appreciated Securities: Donating long-term appreciated securities enables clients to deduct the fair market value up to 30% of their AGI while avoiding capital gains tax. The Foundation accepts both publicly traded and closely held securities.
- Bequests: Including the Foundation in an estate plan can create a lasting charitable legacy while potentially reducing estate taxes.
- Life Insurance Policies: Clients can designate the Foundation as the owner or beneficiary of a life insurance policy, providing an opportunity for immediate tax benefits and estate planning advantages.
- Retirement Assets: Naming the Foundation as a beneficiary of an IRA, 401(k), or other retirement account can help mitigate income and estate taxes while supporting charitable causes.
- Qualified Charitable Distributions (QCDs): Clients aged 70½ and older can donate up to $100,000 annually from an IRA directly to the Foundation, satisfying required minimum distributions (RMDs) while reducing taxable income.
- Real Estate and Tangible Personal Property: Donations of real estate or personal property are deductible at fair market value (subject to IRS limitations) and allow clients to avoid capital gains taxes. The Foundation sells these assets, with proceeds directed to their charitable fund.
- Charitable Remainder Trusts (CRTs): CRTs provide beneficiaries with income for life or a set term, after which the remaining assets create a charitable fund at the Foundation. This strategy offers an immediate charitable deduction and defers capital gains tax.
- Charitable Lead Trusts (CLTs): CLTs provide income to the Foundation for a specified term, with the remaining principal eventually passing to designated beneficiaries, offering potential gift and estate tax advantages.
- Charitable Gift Annuities (CGAs): With a CGA, clients receive fixed annuity payments for life in exchange for a charitable gift. This structure provides tax benefits and, upon their passing, supports charitable giving through a fund at the Foundation.
- Private Foundation Transfers: Converting a private foundation into a donor-advised fund within the Hamilton Community Foundation streamlines administration, reduces costs, and provides professional management while maintaining philanthropic intent.
Advisor Resources
For more details, including stock transfer instructions, sample bequest language, and information on charitable trusts, visit our Resources Page.
