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Category: Philanthropy (page 1 of 3)

New York Society of CPAs Recommends Changes to Private Foundation Returns

In a comment letter addressed to Tamera Ripperda, Director of Exempt Organizations at the IRS, the New York Society of CPAs recommends that certain changes could be made to Form 990-PF, Return of Private Foundation (the Form) that would improve IRS oversight responsibilities, simplify and increase accuracy of form preparation … Continue reading

Court Upholds IRS Retroactive Revocation of Foundation’s Exempt Status Where Foundation Benefits One Family

In Educational Assistance Foundation for the Descendants of Hungarian Immigrants in The Performing Arts, Inc, the US District Court for the District of Columbia found that the Foundation in question operated in a manner that inured to the benefit of one family, precluding it from having tax-exempt status. Therefore, the … Continue reading

AICPA Offers Form 990 Recommendations to IRS

On June 17, 2015, The American Institute of CPAs (“AICPA”) offered more than 40 recommendations to the IRS for the Form 990, Return of Organization Exempt from Income Tax, and instructions.

The recommendations include the following:

  • adding thresholds throughout the instructions at the top of any schedule, part or line that
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Rules, Strategies, And Tactics When Using Donor-Advised Funds For Charitable Giving

Michael Kitces writes about donor advised funds (“DAF”), focusing on rules, strategies and tactics advisors might employ.  His article begins as follows:

The primary benefit of a donor-advised fund (DAF) is that it allows someone to donate assets for charity today – and receive a tax deduction now – even

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Donating Complex Assets

Julie Chu, at Credit Suisse, writes about charitable planing for private equity and hedge fund principals.  Her article begins as follows:

While estate planning for private equity and  hedge fund partners remains an important and widely addressed topic, the ascendancy of income tax management, in light of higher income

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The Law of Charitable Pledges

Conrad Teitell, in his Philanthropy Tax E-Letter, writes about the law of charitable pledges.  His article begins as follows:

At its annual banquet, a major charity calls out the name of each attendee who then stands and announces the amount he pledges to the annual campaign.

One guy refused to

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Tax Court Holds That Threat of Litigation Eliminates Code Sec. 642(c)(2) Charitable Set Aside Deduction for Estate

In Estate of Eileen S. Belmont, Deceased, Diane Sater, Executrix, the Tax Court disallowed a charitable set aside deduction under Code Section 642(c)(2).

In the Estate of Belmont, the Decedent’s (“D”) will directed that the residue of her estate, which included income in respect of a decedent, be left … Continue reading

Common Charitable Gift Mistakes

Carol G. Kroch, Esq., Managing Director, Wealth and Philanthropic Planning, of Wilmington Trust, writes about common mistakes individuals make when making charitable gifts. Her article, begins as follows:

Many donors not only want to do “good,” but want to ensure that they also do “well” with their charitable gifts, making

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Why the Buffett-Gates Giving Pledge Requires Limitation of the Estate Tax Charitable Deduction by Edward A. Zelinsky

Edward A. Zelinsky has published his article, “Why the Buffett-Gates Giving Pledge Requires Limitation of the Estate Tax Charitable Deduction” in the Florida Tax Review, Vol. 16, No. 7, 2014.  The Abstract reads as follows:

The Buffett-Gates Giving Pledge, under which wealthy individuals promise to leave a majority of their

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IRS Issued Special Edition of Tax Tip for Charitable Gifts

The IRS released a special edition of tax tips on November 17, 2014, for people who want to make charitable gifts and claim tax deductions at year-end. This edition involves aspects such as qualified donee charities, forms of donations, household goods, charity acknowledgement record, year-end gifts and other special rules.… Continue reading

Private Foundation Makes Possible to Extend Family Control over CRT/CLT

A charitable remainder trust (CRT) or a charitable lead interest (CLT) is usually of limited period of family control, with the former of the donor’s lifespan and latter of the term of the trust. Both CRT and CLT make distributions to charities, and at the same time grant tax savings … Continue reading

Limited-Life Foundations: Atlantic Philanthropies Down To Last Two Years

Limited-life foundations donate to causes they believe in as spend-down foundations. Atlantic Philanthropies, funded by Chuck Feeney of the Duty Free Shoppers Group, is one such foundation that set its spend down goal for the year 2016 back in 2002. The foundation is now down to its last two billion … Continue reading

IRS Acknowledges Transfer of IRA to Charity as Non-taxable Transfer

A decedent owned an individual retirement account (IRA) with a trust as its primary beneficiary. The decedent’s estate and Trust wanted to transfer the IRA to a charity, and asked the IRS a ruling to not include the transfer as taxable income under section 691(a)(1).
The IRS concluded that the … Continue reading

Private Foundations: Hoping for Reform but Mastering Today’s Net Investment Income Tax

Michele A. W. McKinnon, Douglas W. Charnas, Milton Cerny and Justin F. Trent, of McGuire Woods, discuss the 2% excise tax on net investment income of private foundations, proposals to address the tax and how to deal with it currently.   Their article begins as follows:

Despite being exempt from

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Conrad Teitell Model Thank You Letter for Charities

Conrad Teitell has made available a specimen letter, thanking volunteers of charitable organizations, for their efforts and informing them of their ability to deduct unreimbursed expenses.

See letter at  THANKING VOLUNTEERS: SPECIMEN LETTER | Philanthropy Tax E-Letter.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.Continue reading

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