Everyone’s Doing These!?!

wsj 2.2.16

Planned giving in the news!  Click the picture to check out an article on funding CRUTs with appreciated art.

Ironically, the article makes it sound as if these are done often (ha, ha!  CRUTs funded with art are even rarer than Lead Trusts!).  Still, it’s a nice piece.

Actually, take a look at this chart from the article – very interesting. Notice that there are hardly any lead trusts but the total assets are high.  And, notice that CRUTs have more assets than donor advised funds!

Careers in Planned Giving – Intro

Wealth Transfer ProphecyFor close to 20 years, I have counseled colleagues into whether to join the planned giving field. Some have made it while many have not.  This post is the first in what should be a long series on this topic.

For an intro, let’s assume that we all agree that the fundraising world is sitting on a precipice – huge swaths of most fundraising databases are filled with babyboomers!  Let’s not forget that people do not work or live forever – so giving doesn’t continue forever either.  A scary prospect for most organizations but there is an answer to soften the blow: planned giving.

So, planned giving – which as a career option has taken its hits over the past two recessions – is poised for growth!  That means more and possibly better jobs – either as planned giving specialists or fundraisers with strong planned giving skills.

That being said, if you have not been working in or around the field, you are a long way from breaking into this area.  My goal with this series of posts is to breakdown the profession, define it clearly, lay out potential job options, job skills necessary to work on, and interim steps to be considered along your career path.

Here are my initial blog post that I am mulling over:

  • What is planned giving from a career perspective?
  • Is the great wealth transfer really coming and will it be great or a dude?
  • Who should be looking into planned giving and who should be looking to add it to their skillset?
  • Getting a job in planned giving or one with significant planned giving responsibilities
  • The planned giving job market – a realistic assessment

What do you think?  Please add your comments! And, forward to friends who might be candidates for a job change in this directions.

 

IRA Giving – The Questions Start

ira_rollover pictureFirst question on IRA giving that reached me today.

Individual over age 70.5 already took RMDs for 2015 in November and wants to somehow now send that RMD to charity under the IRA giving law? Any way to undo the RMD withdrawal and then have it go to charity?

Answer: sorry, no.

There is a 60 day rule for individuals (any age) to withdraw IRA funds and then return them to an IRA account with no tax consequences or penalties.  Why can’t our donor just return the RMD funds he took out in November and then request an IRA rollover gift to satisfy his RMDs?

Sadly, there is another rule regarding RMDs that prevents this from working.  The rule is that until RMDs are satisfied, any withdrawal from your IRA is considered RMD and you can’t use the 60 day rule on RMDs!!

In other words, if you are 70.5 or older (and now owe RMDs), you can’t start using the 60 day rule until you have already taken out your annual RMD.  (sounds like age discrimination to me;)

Oh well. It would have been nice if the Tax law writers had slipped some exception for giving to charity on this issue.

Click the picture above to learn more about IRA rollovers in general or click here  for more about the 60 day rule and how it doesn’t for well for people age 70.5+.

 

IRA Law Passes! Permanently!!

The IRA giving provision is on the books again!  Hooray!

Now what?

It is December 21st. Friday is Christmas (that rules out Thursday, too, and even this entire week for many).  New Year’s Eve is the following Thursday.  So, we have 6.5 business days, give or take, to do something this year about it.

Some of my colleagues have had a mailing ready to go that maybe, just maybe went in the mail today.  Problem with this strategy is that the mail is really slow this time of year – trust me, I am waiting for a check from a client 20 miles from my home that went out on Wednesday last week and I am still waiting!  Anyway, your donor needs to somehow get the IRA plan administrator to disburse the funds in 2015 to count for 2015 (no big deal if it misses).  No, in my mind, an attempt at a mailing doesn’t make sense.

What about an email blast?  Yes, go for it!  Big headline:  IRA Giving Provision Reinstated!  Big message:  Contact your IRA plan administrator about taking advantage of this year-end giving option for a tax-free gift from your IRA to ______ charity.  Bullet points:  If you are age 70 1/2 or older; You can gift up to $100,000 from  your IRA with no taxable income; Call us now for more information or contact your IRA plan administrator to find out how to take advantage of this law before December 31th.

Even better, get on the phone or personalized emails!  You should be calling anyone who not only had a recent interest in IRA giving, but anyone who ever used the provision in the past!  Talking points:  did you know that Congress just passed the law the allows you to make direct gifts to us from your IRA with no tax consequence?  If you haven’t taken your 2015 RMDs yet, an IRA rollover gift counts towards your RMD.

Beyond this year?  The law is now permanent!  Like I said – hooray!  Why am I so excited?  It just happens that the oldest baby-boomers (those born in 1946) will start turning 70.5 this year!  Oh, and did you know that for boomers, IRAs are the biggest asset class among their financial investments, by far?  Will share that data another time – just realize that IRAs for boomers are big and now boomers will start being eligible to make gifts from their IRA to cover their RMDs, for annual giving, for special or major gifts.

Don’t forget that a donor needs to have actually reached his/her 70.5 birthday before pulling the trigger on this.  The IRS, in their accountant’s way of viewing the world, actually count your half-birthday as the day you actually turn the next age.  Yep, if you are than 50% through the  year since your last birthday, you can start telling everyone that according to the IRS, you are already a year older’).