Charitable Giving Planning
Charitable giving has long been a vital part of our socioeconomic system. The resources devoted to charitable activities through private philanthropy have fulfilled a variety of human needs that otherwise would not have been met. To encourage this philanthropy in the private sector, Congress, since 1919, has granted favorable tax treatment to charitable contributions by individuals who are the principal source of charitable giving.
The federal individual income tax is the largest single item in the budgets of many taxpayers. Minimizing the income tax burden is, therefore, a legitimate part of personal and family wealth planning. Taxpayers should not make important financial decisions, including those dealing with significant charitable contributions, without considering their income tax consequences.
Estate tax rates can be burdensome to some individuals and families. In situations where it applies, the generation-skipping transfer tax can render a proposed transfer of property economically unfeasible. Accordingly, estate tax considerations play an important part in determining how best to pass an estate to beneficiaries, including chosen charitable beneficiaries.
tpbs, LLP can help you design and implement charitable giving strategies to meet your philanthropic goals. Such alternatives rely heavily upon income tax and estate tax considerations that coordinate your philanthropic goals with your overall wealth-planning goals. We have experience in working with charitable remainder trusts, private foundations, community foundations and donor-advised mutual fund programs. Additionally, you will be advised of the most tax efficient assets to use for the various charitable giving techniques.