GOALS AND CHARITABLE GIVING
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Matching Donor Goals with Charitable Gifts:
There are a variety of charitable giving techniques that can be matched with a donor's goals in making the gift. These include:
| Charitable Planning Goal |
Charitable Giving Technique |
The Outcome |
| A quick and easy gift |
An outright gift of cash, securities or personal property |
Income tax deduction and possible avoidance of capital gains taxation |
| A large gift with little cost |
Name a charity as owner and beneficiary of a life insurance policy |
Current income tax deduction equal to value of policy; possible future deductions for premiums |
| Avoid capital gains tax on the sale of an appreciated asset |
Donate real estate, securities or other appreciated assets |
Current income tax deduction and avoidance of capital gains tax |
| Make a charitable donation after death |
Name a charity in your will or establish a revocable living trust |
Control of property during lifetime and possible estate tax savings |
| Donate personal residence, but continue to live there |
Donate ownership of the home to a charity, but retain the right to live there during lifetime (retained life estate) |
Charitable income tax deduction and lifetime use of home |
| Avoid the double taxation (income and estate) of retirement plan assets |
Name a charity as beneficiary of retirement plan assets remaining at your death |
Avoids passing a heavily taxed asset to heirs; removes remaining value from estate |
| Receive a fixed income from assets |
Create a charitable remainder annuity trust that pays a fixed annual income |
Immediate income tax deduction and fixed income for life |
| Receive a potentially increasing income from assets |
Create a charitable remainder unitrust that pays a percentage of trust assets, which are valued annually |
Immediate income tax deduction and potentially increasing income for life |
| Reduce gift and estate taxes on assets passing to heirs |
Create a charitable lead trust that pays income to a charity for a set term and then passes to heirs |
Current income tax deduction and potential gift and/or estate tax savings |
| Supplement income from assets |
Transfer assets to a charity in return for a lifetime income (charitable gift annuity or pooled income fund) |
Current income tax deduction and lifetime income |
| Maintain control over how donated funds are used |
Donate assets to a donor advised fund or set up a family foundation |
Current income tax deduction and take an active role on how donated is managed and distributed |
Whatever
your reasons for giving, matching your charitable planning goals with
the appropriate charitable giving technique can help make your gifts
more meaningful, both to you and to the charities you choose to
support. Please call my office if we can be of assistance.
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MESSAGES
from the Masters...
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THE POWER OF OUR DREAMS
by Dr. Philip E. Humbert
Our
heroes have always understood the power of dreams, even when their
dreams were delayed or frustrated for long periods of time. They never
game up!
Henry
Ford went bankrupt before creating the Model T. Peekaboo Street fell
and failed and even broke bones before winning Olympic medals. Thomas
Edison failed thousands of times before fulfilling his dream of an
electric light, and Abraham Lincoln failed too many times to count
before becoming the greatest President America has known.
Imagine
Helen Keller without her unrealistic dream! Pop culture would be very
different if Tina Turner had lost her dream when she was slapped down,
or if Oprah had given up along the way.
Martin
Luther King, Jr. is remembered for many things, but none has been more
lasting or more powerful than his proclamation that, "I have a dream!"
Never,
ever stop dreaming! Some dreams will prove elusive, and some will prove
disappointing. Some may seem misguided and need to be revised, revamped
and revisited. But it is our ability to dream of new and better worlds
that makes us human. Our dreams empower us! Our leaders and heroes have
always been pulled by their visions, their dreams of possibilities that
lie around the corner, just out of sight, but not out of reach. Dream
big dreams!
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Brought to you by:
| Jeffrey N. Schweitzer, EPA, CEP, ATP
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| Northeast Financial Strategies Inc
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About our firm:
Offering Financial & Estate Planning, Investments, Insurance, Accounting, Payroll, and Income Tax Preparation for Individuals & Small Business. "Financial Strategies That Fit YOUR Needs!"
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QUOTES
from the Masters...
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On Potential/ Possibilities
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"You
are capable of going on to greatness in performance -- and you are also
in great danger of sliding back into average performance. It's your
choice. Which do you choose to do today?"
-– Tom Hopkins
"We
spend January 1 walking through our lives, room by room, drawing up a
list of work to be done, cracks to be patched. Maybe this year, to
balance the list, we ought to walk through the rooms of our lives...not
looking for flaws, but for potential."
-- Ellen Goodman
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On Opportunities
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"The
richness of life, the love and joy and exhilaration of life can be
found only with an upward look. This is an exciting world. It is
cram-packed with opportunity. Great moments wait around every corner."
-- Richard M. DeVos
"What have you always wanted to do but been afraid to attempt? Whatever it is, it may be your greatest opportunity in life."
-– Brian Tracy
"The secret of success in life is for a man to be ready for his opportunity when it comes."
-– Benjamin Disraeli
"Great minds must be ready not only to take opportunities, but to make them."
-– Colton
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