Date post: | 23-Jan-2018 |
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SMART GIVING
CHARITABLE FINANCIAL PLANNING
AGENDA
• Why give charitable donations
• Smart giving
• What to give – Appreciated Assets
• Controlling the when to give (Donor Advised Fund)
• Charitable Remainder Trust
• Wealth Replacement Trust
• Another use of Insurance
• Charitable Gift Annuity
• Using an IRA
• A Project in Review - Palace of Gold
• Inspiration to Share - Bring it home
B O O K S , E D U C AT I O N , P R A S A D A M , D E I T I E S & T E M P L E S
WHY WE GIVE CHARITABLE DONATIONS
A R E F L E C T I O N O F O U R VA L U E S
SMART GIVING
APPRECIATED ASSETS
• Stocks (held over one year)
• Bonds
• Real Property
• Closely held business
• Tangible Personal Property
Why
Tax savings allows more giving
EXAMPLE
You purchased 100 shares Apple stock at $50.00 per share
At a value of $5,000
AAPL Hits $550.00 per share
That is a vale of $55,000
EXAMPLE
• Option 1 – You sell the stock and pay capital gains tax of $7,500
(Currently 15%) This leaves you with $48,500 to donate to donate
and right off on your taxes
You wish to donate the $55,000 to a book distribution program
and other projects
• Option 2 – You set up a Donor Advised Fund through VCF and
your Financial Advisor. You transfer the Apple Stock to your DAF
sell it when you want and donate all $55,000 to book distribution
and other programs. You pay no capital gains tax and can write
off the entire $55,000
WHAT IS A DONOR ADVISED FUNDS
• Setup through a Community Foundation
• Examples
• Vedic Community Foundation
• Minimum opening $10,000
• Transfer Appreciated Assets
• Assets can continue to grow
• Donor (you) advises when and where to distribute
• 100% tax deduction on Appreciated Assets
• Takes assets out of your estate
• Low cost for maintence
Your
investment
account
At Merrill
Lynch
HOW IT WORKS
Your DAF
With VCF
At Merrill
Lynch
Your Assets
Transfers to
your DAF
With VCF
At Merrill
Lynch
Donations
Distributed
When &
where you
say
Tax deduction is given
at full appreciated
price of assets when
transferred
CHARITABLE REMAINDER TRUST
• Provides tax deduction of contributed assets
• Deduction can carry over for 5 years
• Donation is irrevocable
• Donor receives an income stream 5% up to 50%
• Income stream continues for life time
• Income beneficiaries can not change
• Moves assets out of one’s estate
• The CRT pays no taxes on its earning passed through
• The Trust funds are transferred to Charity at death
WEALTH REPLACEMENT TRUST
• How to satisfy the family
• Irrevocable Life Insurance Trust (ILIT)
• Policy is not owned by the Insured person
• Consequently, not subject to Estate Tax
• The Insurance policy is used to replace contributions to
CRT or a Donor Advised Fund
• Proceeds from the Policy are not taxable
ANOTHER USE OF INSURANCE
• Establish a policy with the Charity as beneficiary
• Policy premiums can be paid by the Charity through
donations from the insured
• Policy is outside of Donors Estate
• Can use either Term, Universal & Variable Life Policy
CHARITABLE GIFT ANNUITY
• Provides tax deduction to the giver on appreciated
assets
• Provides a guaranteed income stream to donor
• Income stream is determined by age & amount
• Donor can defer income until retirement
USING THE IRA
• This option expired December 31, 2013 (Under review
by Congress to continue for 2014)
• Provides for $1 for $1 deductions from your IRA
• You must be 701/2 when the gift is transferred
• Gifts cannot exceed $100,000 per year per person
• Gifts must be made directly from IRA to 501c3
• Also satisfies Required Minimum Distribution
• It may be reestablished for 2014 by Congress
LET’S LOOK AT A PROJECT
• It should have a Financial Goal and timeline
• Promotes Vedic Culture, Science or Philosophy
• It must be a 501c3 or attached to a nonprofit entity
• Int. projects must receive funds through a US 501c3 for tax
credit
• Funds must be utilized as promoted
• Annual and as needed financial review from VCF
• Is the project VCF Certified?
SRILA PRABHUPADA’S PALACE
The Right Project at the Right Time
PAST, PRESENT, FUTURE
• The Plans for the Palace began in 1972
• Completed in 1979 after Srila Prabhupada departed
• Became a top tourist attraction in West Virginia
• 50,000 visitors a year
• 2011 a five year $7 million dollar restoration began
• Fully restored, it will become a Int. pilgrimage destination
• The Palace can be cash flow positive in 2017
TIMELINE
PROJECT BENEFITS
• Educates the Public about Vedic Culture
• Facilitates distribution of Sacred Vedic Literatures
• Pays homage to a Pure Ambassador of Vedic Traditions
• Brings honest pride to those of Vedic Cultural Heritage
NEXT STEPS
• Establish Your Families Financial Plan
• Set Your Retirement Goals
• Discuss and review your Estate Plan
• Establish Your Charitable Financial Vehicle
• Bring this seminar to your Friends and Community
• For more information contact us at: [email protected]
CONCLUSION
Chant Hare Krishna and be Happy
Smart Devotees Finish Rich