ADVERTISEMENT
back 4»
We sat down again with Mr. Salomon to find out specifically what types of ”3 A v,
strategies his clients use when determining how to plan their philanthropy. 1 {Q
1 ‘0-
Arthur noted that charitable giving takes many forms. Each one tailored with a ‘I-J“ -2
specific purpose in mind. Tax efficiency, maximizing the gift, retaining control of
the assets; all of these concepts should be reviewed when thinking of making a
gift to your favorite charity. Below is what Arthur describes as the ”Foundation
of Philanthropy”. A
”We make a living by what we get, but
we make a life by what we give”
-Winston Churchill
Private foundations provide you with the Charitable Remainder Trust (CRT): A CRT is an
most control over how your gifts will be irrevocable donation useful for any type of gift,
allocated, though tax deductions may be only including cash that you donate in trust to a charity and
30% or less of your AGI. Generally, gifts should then receive as an upfront income tax deduction. In
be in excess of $1 million, return, you receive a payment from the trust either for
a term of years or the life of the non-charitable
Straight charitable giving. Donations in benefICIary. After that interest terminates, the charity
. . . receives the remainder.
their Simplest form, this method comes down
to writing a check. While the gifts are 100% Life insurance gifts. You can direct the payout
income tax—deductible (subject to AGI from a policy to charity. With a revocable beneficiary
limitations) from your itemized income tax, designation, you can change the terms, but you won’t
they don’t affect the value of your estate. receive a tax deduction. With an irrevocable
beneficiary designation, the terms can’t be changed,
_ but you gain a tax deduction for the premium, making
Donor-adVIsed funds allow you to make this the preferred choice for estate planning.
recommendations for how the money will be
used, but the final decisions are made with the Appreciated property donation5_ By donating
approval 0f the independent organization. Tax part of your appreciated property, you may be able to
deductions UP to 50% 0f your adjusted gross eliminate some capital gains taxes. This strategy is
Income (AGI) are allowed. Generally, gifts must recommended for highly appreciated stock or real
range from $25900 to $1,000,000. estate, or a large collection of art or other valuables.
Salomon & Co. _ _
SALOMON & CO. 800.928.0012 If you have C0n31dered Charltable
859.266.0012 - - -
.egac,p.an@sa.ommmm g1v1ng and have questlons ab out the
r l :31: 2053mm 5‘4“” P'ace' tools used to help those in need,
,0, Lexington, KY 40509 please don’t hesitate to call us
I E IVA N C I All Securities &Advisory tOdaY.
R V i A L Services
C E 5 Offered Through LPL Financial
Member FINRA/SIPC