Did you know that December 31, 2012 is not only New Year’s eve this year, it is also the eve of tax doomsday?
I already started mentioning this oncoming situation in February, so check out my overview of the issues: http://theplannedgivingblog.wordpress.com/2012/02/05/2012-incomeestategift-tax-update/.
For those who want more than just an overview, check out this excellent article on the Planned Giving Design Center: http://nyct.pgdc.com/pgdc/perfect-storm-prospective-expiration-bush-tax-cuts. What I love about the article is the list of 17 negative tax consequences that will kick in on January 1, 2013 should Congress and the President not act on this.
In truth, Congress will do something – either a partial or whole fix or a “kick the can” temporary solution. What fundraisers and planned giving officers in particular need to be aware of is the opportunity that many older supporters should be seeing their estate planning attorneys before the end of the year.
What can you do? Offer tax/estate planning update seminars, send email alerts and other educational pieces, stir up the pot. People don’t change their estate plans often – if this is the year that frightening tax doomsday scenarios push your prospects to revisit their plans, you want them remembering your organization in those conversations.