In This Issue
January AFR Rates
Good News for Donors!
Be BOLD!

Learn More About Us!

 

Davenport & Barr

 

Spencer Group

 

Coming Soon in 2013!

Look for announcements on special webinars from Davenport & Barr. Dates & times to be announced shortly!

Newsletter Archive

January 2013 AFR

 

 

The IRS Applicable Federal Rate (AFR) for January 2013 has decreased back to its all-time low of 1.0%.   Also known as the Discount Rate, the AFR means that charitable deductions on new gift annuities and charitable remainder trusts will continue at very low levels.

 

While this historic low rate minimizes charitable deductions, it also means that tax-free income to gift annuitants will be maximized, having the effect of increasing their overall effective rate of return. 


 

 

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Karen  Davenport
Karen Davenport
President
Davenport & Barr
Mike Davenport
Mike Davenport
Founder
Davenport & Barr

 

Anastacia Barr

Director of Client Communications

Davenport & Barr

Mike Spencer
Mike Spencer
President
Spencer Group 
 
Mike Gaito, Spencer Group 
Mike Gaito
Director of Information & Analytic Services 
Spencer Group

 Beyond Philanthropy Vol.2, Issue 5

                              January, 2013

   


   

 

We wish you all the best for 2013!  

 

 

Good News for Donors!

By Mike Davenport

 

The American Taxpayer Relief Act of 2012 (H.R.8) passed by the Senate and the House and signed by President Obama over the New Years holiday has great news for donors!

 

Section 8 of the Act provides for an extension of tax-free distributions from Individual Retirement Plans for charitable purposes.

 

The amendment made by this section applies to distributions beginning in the taxable years beginning after December 2011.

 

Here's what it means in layman's terms:

  • Any qualified charitable distribution made after December 31, 2012, and before February 1, 2013, shall be deemed to have been made on December 31, 2012.

This means that an individual has until February 1, 2013 to make a charitable distribution form his/her IRA directly to a qualified charitable organization in an amount up to $100,000 and have it counted as a 2012 distribution. This individual can also make an additional distribution before December 31, 2013 of up to $100,000 and have it counted as a 2013 distribution!

 

In effect, this extension covers the tax years 2012 and 2013.  What happens after December 31, 2013 is anybody's guess.

 

To review the advantages of this unique gifting opportunity:  Please Click Here

 

 

 

 

   

 

 

 

 

Be Bold in 2013!
Ask to be #1

By Karen Davenport

 

While year-end giving is over, solicitations for donations targeted at your donors will continue to come from every direction over the next 12 months - and not just from your organization. These requests for money, from the checkout line at the grocery store to the email inbox, can cause good-hearted people running in too many directions. 

 

This continuous onslaught can turn acts of generosity into nerve-racking obligations that often result in "donor fatigue". Patrick Rooney, associate dean for academic affairs and research at Indiana University's School of Philanthropy, recommends that givers should target three, four or five charities and give larger gifts to those organizations as opposed to dispensing a large number of small gifts to many charities. 

 

But how do we politely suggest to donors that bigger contributions to fewer causes (yours included of course) means those contributions can do more good than lots of small gifts to many organizations?

 

One easy, but direct idea is to suggest to your donors that they make your organization one of their top charities!  You can begin by thanking them for doing this already. While we may not know if our organization is in the top 3 or 5, we can suggest that it is by a simple statement in our thank you letter, such as: "We appreciate that XZX Charity is one of your top giving priorities!" 

 

The power of suggestion is an influential tool.  If you have been receiving regular gifts continuously for a number of years, you can likely assume that your organization is already in the top tier. To really get to the heart of the matter, however, requires a conversation. There is absolutely nothing wrong with asking your donors what types of organizations are important to them and why. 

 

Not only will you learn more about your donors' interests and motivations for giving, you may hear that your organization is one of their most important charities already - incredibly important information that many times can lead to a major gift, a planned gift, or both!