Community Foundations and Professional Wealth Advisors:
What’s the Connection?
Community foundations like ours have spread throughout the country over the past twenty years. Donors and their advisors have come to appreciate our flexibility, our responsiveness, our value, and our shared interest in the communities we serve. Regardless of the many ways we can collaborate, community foundations and wealth advisors both agree on one important point: make sure, for your own best interests, that you have a plan and review it regularly. You will undoubtedly feel better when you do.
Philanthropic Leaders Advisory Network
The members involved in the PLAN have sponsored several educational seminars for wealth advisors in our area, and we will continue to do so. Some of the topics we have addressed include charitable issues, but others have been about more general topics such as changing laws that concern advisors, and how those advisors can best serve their clients.
We are thankful for the following advisors who have donated their time to make presentations:
- Robert Vamos, Ameriserv Financial Services – Charitable Planning Options & Use of Life Insurance to make Charitable Gifts
- Brad Wingler, Nationwide Insurance, & Monica Garver, RTD Financial – Fiduciary Responsibilities Related to Informed Decisions about Retirement Plan Fees
- Thomas R. Seitz, CPA, and Barry Gilchrist, CPA, Wessel & Company – Tax Strategies for Charitable Giving & Roth IRA Planning Techniques
- Kayla Puchko Stephenson & Douglas Puchko, Puchko Financial Associates – Financial Planning & Personal Financial Strategies
- Tiffany Sturtz, CPA and Michelle Petrosky Moon, Barnes Saly & Company, P.C. – Federal Estate Tax vs. PA Inheritance Tax and other recent Tax Law Changes You Need To Know
We also appreciate the over 200 professionals who have attended these seminars to date. We look forward to working with all of them and serving their best interests and the communities in which they serve.
For questions about the PLAN or our seminars, please contact Paula L. Hencel at (814) 209-8663.
Wealth Advisor Resources
A Donor-Advised Fund at the Community Foundation for the Alleghenies provides an alternative to a private foundation that can save individuals and corporations considerable time and expense.
|No initial tax filings||Must file documents with IRS requesting status of Foundation|
|No incorporation documents required||Must establish corporation|
|Cash Gifts Deductible at 50% AGI||Cash Gifts Deductible at 30% AGI|
|Appreciated Assets Deductible at 30% AGI; 50% for cash gifts||Appreciated Assets Deductible at 20% AGI; for cash gifts, 30%|
|Real Estate contributed during life deductible at Fair Market Value||Real Estate contributed during life only deductible at basis|
|No Excise Taxes||Excise Taxes of 2% of Net Investment Income|
|No annual pay-out||Pay-out required: 5% of assets annually|
|Very efficient, low cost||More costly, accounting, legal & tax|
|Professional staff Professional investment management||Most Private Foundations are too small to afford staff and liability insurance|
|Anonymity if desired||990 PF available to all via internet|
|Quarterly reports with history of gifts and grants|
|Committed to help donors achieve charitable goals.|
From time to time, we like to share tips and techniques for wealth advisors. Here is some information that could be helpful when advising donors about advanced planning techniques.
First, with the large gift and estate applicable exclusion amounts ($5.12 million for 2012), nearly all of your donors will be able to use the testamentary uni-trust with no estate tax concern. Because this is often funded with IRAs or other qualified plans, there are excellent prospects for large numbers of “Give It Twice” trusts under the expanded estate exemptions.
Second, large estate owners now know that they face estate taxes. With AFRs (Applicable Federal Rates) at very low levels and asset values reasonable, it is a great time for large lead trusts.
Third, income tax planning will continue to increase in importance for upper-income taxpayers. The ability for uni-trusts to be invested to pay “low-tax” income is greater than ever.
Visit the “Financials” section on our About page to view this information.