Richard C. Peck Consulting, LLC & The Philanthropy Guy, LLC
Providing consulting and educational services to nonprofits, donors, and professional advisors related to impactful charitable giving
| | |
Charitable Giving Newsletter
04/30/24
In This Week's Issue:
Get Ahead with a Lead Trust!
Weekly Tips for Nonprofits, Donors, and Professional Advisors
| |
Get Ahead with a Lead Trust! | |
If you know how a charitable gift annuity (CGA) or charitable remainder trust (CRT) works, my hat is off to you! If you don't know, don't despair: it is an irrevocable gift (meaning you can't take it back) that may provide a charitable income tax deduction while offering a quarterly stream of income to an individual or couple---and leaving a nice chunk of change to a nonprofit when the annuity or trust terminates. Now, imagine instead somewhat of the reverse, called a charitable lead trust (CLT): it can operate for a set term, which could be the life of one or more individuals, and payments are made to one or more designated charitable beneficiaries for that time period. After the end of the trust term, the remainder of the trust is distributed to non-charitable beneficiaries—such as family members or back to the donor, depending on the type of CLT.
If you are an advisor and have clients who typically donate between $10,000 and $50,000 to charity each year, these kind people may be ideal candidates for the---wait for it---"reversionary grantor charitable lead annuity trust" (a.k.a. "simplified CLAT"). This planning solution works best in a low-interest-rate environment, which we were just in, and hopefully we will see again. So, it's good to know about it, understand it, and plan for possibly establishing one in the near future, right?
My friend and trusted philanthropy expert Brad Gornto is a specialist on the topic of reversionary grantor CLATs and can give you the low-down on the tax and other advantages of this technique. Brad is impressive in what he knows in the lead trust realm...he is arguably one of the best practitioners in the country on this theme. Listen to this short podcast (that he and I recorded together with CPA JG Gassman last year---for the American Institute of Certified Public Accountants (700,000 members strong), also known as AICPA, via this link here: The power of the simplified charitable lead annuity trust (CLAT)| PFP learning library podcast archive | Resources | AICPA & CIMA (aicpa-cima.com) And, read Brad's stellar bio below:
| |
|
Brad Gornto, Esq., LL.M
Throughout his entire 23-year+ legal career, Brad has practiced in the areas of estate planning, probate & trust administration, charitable planning, business law, commercial transactions, and taxation for high-net-worth families, business owners, business entities, fiduciaries, philanthropists, and non-profit organizations.
Brad earned his undergraduate degree (marketing) from Florida State University in 1995, his law degree (J.D.) from the University of Florida College of Law in 1998, and his Masters in Taxation (LL.M.) from the University of Miami School of Law in 2000.
In addition to his successful law practice, Brad is also the Founder and President of a separate charitable planned giving consulting firm, Effectual Giving, LLC, which provides “out-sourced” professional planned giving consulting services to universities, Christian faith-based ministries, national & regional charities, as well as to philanthropic families, professional athletes, & public figures.
Brad is happily married to his wife of 20 years, Cindy, and together they are raising their four children, Bryce, Owen, Joel, & Daisy Grace. Read more about Brad's practice here:
ABOUT US | gorntolaw
| | |
A Tip for Nonprofits: Ever heard of the term "capacity building"? According to the National Council of Nonprofits' web definition, it is "an investment in the effectiveness and future sustainability of a nonprofit." When capacity building is successful, says the Council, it strengthens a nonprofit’s ability to deliver on its mission over time, thereby enhancing the nonprofit’s ability to have a positive impact on lives and communities. Hey, I like capacity building! Read more here via the orange hyperlink: What is Capacity Building? | National Council of Nonprofits
| |
A Tip for Donors: Ever wonder...what the heck is an SDG? It is a "Sustainable Development Goal," and the United Nations lists 17 of them on its website, including No Poverty, Clean Water and Sanitation, Quality Education, and Gender Equality. The SDG Actions Platform is a global registry of voluntary policies, commitments, multi-stakeholder partnerships, and other initiatives made by governments, the UN system, and a broad range of stakeholders to support acceleration of the UN SDGs. Check them out here via this blue link: THE 17 GOALS | Sustainable Development (un.org)
| |
A Tip for Professional Advisors: BNY Mellon Wealth Management partnered with Brown Yardley Research to conduct a research
study focusing on 200 high-net-worth investors. The purpose of the study was to understand the
behaviors, attitudes, and experience toward charitable giving. It is insightful (but not really funny...these advisors to the right must be laughing about something else!). Seriously, enjoy the report via this blue link here: https://www.bnymellonwealth.com/content/dam/bnymellonwealth/pdf-library/articles/charitable-giving-report-final.pdf
| |
"Service to others is the rent you pay for your room here on earth."
~Muhammad Ali
| |
Richard C. Peck Consulting, LLC and The Philanthropy Guy, LLC | |
228 Park View Drive
Belmont, NC 28012
+1 (603) 387-3897
| | | | |