THE TOOLS AND TECHNIQUES OF CHARITABLE PLANNING
1st Edition
Educational Objectives
CHAPTER 1 SELLING THE DREAM
Upon completion of this chapter, the student should be able to:
1. discuss some of the factors that motivate people to give to charities
CHAPTER 2 GENERAL RULES FOR CHARITABLE DEDUCTIONS
Upon completion of this chapter, the student should be able to:
1. describe what a charitable gift is for income tax purposes and who are qualified charities
2. discuss the various types of charitable gifts
3. explain the value and substantiation rules applicable to charitable gifts
4. summarize the basic income, estate and gift tax rules applicable to charitable gifts
5. identify the various penalties for overvaluation
CHAPTER 3 INCOME PERCENTAGE LIMITS
Upon completion of this chapter the student should be able to:
1. discuss the various factors that affect the percentage of the charitable deduction allowed
2. distinguish between public (or 50%) charities and private foundations (30% charities)
3. explain the order of charitable deductions allowed and the carryover rules
4. describe the differences between gifts made “to” charity versus those made “for the use of” charities
CHAPTER 4 GIFTS OF PROPERTY
Upon completion of this chapter, the student should be able to:
1. distinguish between charitable gifts of tangible and intangible property
2. identify the nine major types of publicly traded securities that are often given to charity
3. summarize the various types of privately held businesses and the problems posed by donating such businesses
4. discuss the various categories of real property ownership structures and the specialized planning needed when transferring the donor’s interest to charity
CHAPTER 5 PARTIAL INTEREST RULES
Upon completion of this chapter, the student should be able to:
1. identify what a partial interest gift is
2. describe when the use of partial interest gifts are indicated
3. explain the advantages and disadvantages of partial interest gifts
4. discuss the requirements for donating partial interest gifts and any tax implications
CHAPTER 6 E-PHILANTHROPY AND TECHNOLOGY ISSUES
Upon completion of this chapter, the student should be able to:
1. explain what e-philanthropy is
2. describe the advantages and disadvantages of e-philanthropy
CHAPTER 7 ETHICAL ISSUES IN CHARITABLE PLANNING
Upon completion of this chapter the student should be able to
1. define what ethics means in the context of charitable planning
2. describe the ethical issues faced by donors
3. discuss the ethical issues faced by charity board members and executives
4. explain the ethical issues faced by planned giving and development officers
5. describe the ethical issues faced by advisors
CHAPTER 8 THE PLANNED GIVING OFFICE
Upon completion of this chapter, the student should be able to:
1. define what “planned giving” means
2. describe when planned giving is indicated
3. identify the organizational structures of a planned giving office
4. discuss the various requirements applicable to public charities
CHAPTER 9 THE PLANNED GIVING TEAM
Upon completion of this chapter, the student should be able to:
1. describe when the use of a planned giving team is indicated
2. discuss the advantages and disadvantages of a team approach
3. identify the basics characteristics of planned giving officers, financial advisors, and tax advisors or estate planning attorneys
CHAPTER 10 BARGAIN SALE TRANSACTIONS
Upon completion of this chapter the student should be able to:
1. explain what a bargain sale is
2. describe when the use of a bargain sale is indicated
3. discuss the advantages of a bargain sale transaction to the donor and to the charitable organization
4. discuss the disadvantages of a bargain sale transaction to the donor and to the charitable organization
5. explain the requirements for a bargain sale transaction
6. describe the tax implications of a bargain sale transaction
CHAPTER 11 BELOW-MARKET INTEREST LOANS
Upon completion of this chapter the student should be able to:
1. explain what a below-market interest loan is
2. describe when the use of a below-market interest loan is indicated
3. discuss the advantages and disadvantages of a below-market interest loan
4. explain the requirements for a below-market interest loan
5. describe the tax implications of a below-market interest loan
CHAPTER 12 CHARITABLE GIFT ANNUITIES
Upon completion of this chapter the student should be able to:
1. explain what a charitable gift annuity is
2. describe when the use of a charitable gift annuity is indicated
3. discuss the advantages and disadvantages of a charitable gift annuity
4. describe the tax implications of a charitable remainder unitrust
CHAPTER 13 CHARITABLE GIVING USING LIFE INSURANCE
Upon completion of this chapter the student should be able to:
1. explain when the use of a charitable gift of life insurance is indicated
2. discuss issues affecting outright gifts of life insurance and annuity contracts at death
3. describe the issues affecting outright gifts of life insurance and annuity contracts during life
4. explain the two planning scenarios involving gifts of new life insurance purchases
5. discuss the use of life insurance as a wealth replacement tool with respect to charitable donations
6. discuss how life insurance compares with more traditional investments available to a charity
CHAPTER 14 CHARITABLE LEAD TRUSTS
Upon completion of this chapter the student should be able to:
1. explain what a charitable lead trust is
2. describe when the use of a charitable lead trust is indicated
3. discuss the advantages and disadvantages of a charitable lead trust
4. explain the requirements for a charitable lead trust
5. describe the tax implications of a charitable lead trust
CHAPTER 15 CHARITABLE REMAINDER ANNUITY TRUSTS
Upon completion of this chapter the student should be able to:
1. explain what a charitable remainder annuity trust is
2. describe when the use of a charitable remainder annuity trust is indicated
3. discuss the advantages and disadvantages of a charitable remainder annuity trust
4. explain the requirements for a charitable remainder annuity trust
5. describe the tax implications of a charitable remainder annuity trust
CHAPTER 16 CHARITABLE REMAINDER UNITRUSTS
Upon completion of this chapter, the student should be able to:
1. explain what a charitable remainder unitrust is
2. describe when the use of a charitable remainder unitrust is indicated
3. discuss the advantages and disadvantages of a charitable remainder unitrust
4. explain the requirements for a charitable remainder unitrust
5. distinguish between a net income exception charitable remainder unitrust (NICRUT) and a net income with make-up charitable remainder unitrust (NIMCRUT)
6. describe the tax implications of a charitable remainder unitrust
CHAPTER 17 COMMUNITY FOUNDATIONS
Upon completion of this chapter the student should be able to:
1. explain what a community foundation is
2. describe when the use of a community foundation is indicated
3. discuss the advantages and disadvantages of a community foundation
4. explain the requirements for a community foundation
5. describe the tax implications of a community foundation
CHAPTER 18 QUALIFIED CONSERVATION EASEMENTS
Upon completion of this chapter the student should be able to:
1. explain what a qualified conservation contribution is
2. describe when the use of a qualified conservation contribution is indicated
3. explain the requirements for a qualified conservation contribution
4. describe the income and estate tax implications of a qualified conservation contribution
CHAPTER 19 DONOR ADVISED FUNDS
Upon completion of this chapter, the student should be able to:
1. explain what a donor advised fund is
2. describe when the use of a donor advised fund is indicated
3. discuss the advantages and disadvantages of a donor advised fund
4. distinguish between the various types of donor advised funds
CHAPTER 20 POOLED INCOME FUNDS
Upon completion of this chapter, the student should be able to:
1. explain what a pooled income fund is
2. describe when the use of a pooled income fund is indicated
3. discuss the advantages and disadvantages of a pooled income fund
4. explain the requirements for a pooled income fund
5. describe the income and estate tax implications of a pooled income fund
CHAPTER 21 PRIVATE FOUNDATIONS
Upon completion of this chapter, the student should be able to:
1. explain what a private foundation is
2. describe when the use of a private foundation is indicated
3. discuss the advantages and disadvantages of a private foundation
4. explain the requirements for a private foundation
5. describe the tax implications of a private foundation
CHAPTER 22 RETIREMENT PLAN GIFTS
Upon completion of this chapter the student should be able to:
1. explain what a retirement plan gift is
2. describe when the use of a retirement plan gift is indicated
3. discuss the advantages and disadvantages of a retirement plan gift
4. explain the requirements for a retirement plan gift
5. describe the tax implications of a retirement plan gift
CHAPTER 23 TESTAMENTARY GIFTS
Upon completion of this chapter, the student should be able to:
1. explain what a testamentary gift is and the various types
2. describe when the use of a testamentary gift is indicated
3. discuss the advantages and disadvantages of a testamentary gift
4. explain the requirements for a testamentary gift
5. describe the tax implications of a testamentary gift
CHAPTER 24 SUPPORTING ORGANIZATIONS
Upon completion of this chapter, the student should be able to:
1. explain what a supporting organization is
2. describe when the use of a supporting organization is indicated
3. discuss the advantages and disadvantages of a supporting organization
4. explain the requirements for a supporting organization
5. describe the tax implications of a supporting organization