Advising Your Client

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Advising Your Client

As a Professional Advisor, you and many other CPAs, Attorneys, financial planners work with people and businesses who have philanthropic wishes. Central Kentucky Community Foundation wants to assist you, your clients and our community.

Often your client approaches you with a problem that charitable giving can answer. Here, we provide several examples (and charitable solutions). If you do not see a particular issue and/or want additional information, please contact us at 270-737-8393.

Concerned about taxes For example, “I want to sell appreciated property, but I’m concerned about capital gains taxes. How can I eliminate or reduce my taxes?” Giving all or part of the asset to charity will eliminate or reduce capital gains taxes, will create a tax deduction, could continue or begin to provide lifelong income, and will provide satisfaction about supporting a favorite charity.
Desires to  avoid an immediate capital gain tax and relieve burdens of ownership Your client may say, “I manage a rental unit that provides needed income, but it’s too much work.  What do you advise?” Using the rental property to fund a charitable remainder trust (CRT) will not only secure lifetime income (perhaps more than from the rental property) and relieve the burdens of ownership, but also eliminate the capital gains tax, create a sizeable tax deduction, and ultimately support a favorite charity.
Wishes to leave a legacy For the client who says, “I have no children, and it’s time to write a will.” How does your client want to be remembered? You can suggest a charitable fund at CKCF as a way to support the issues they are passionate about in perpetuity.
Concerned about retirement plan assets For example, “I have a large retirement fund, but I’m worried that my children will receive only 20 or 30 cents on the dollar.” Using a retirement fund to create an endowment will reduce estate tax, eliminate income tax on the IRA distribution, and create a family legacy. In the meantime, other assets can be used for gifts to family members.
Wants to help a specific individual Your client may say, “I have a longtime employee (or friend, sibling, or parent) I’d like to help.” A life-income gift, such as a charitable gift annuity, will assure the friend/family member a lifetime income — and allow your client a tax deduction and support of a favorite charity at that person’s death.
Wants to be charitable but is unsure where to give For the client who says, “I’ll be receiving additional income this year.  I’d like to give some to charity, but I’m not sure which one.” A donor-advised fund will lock in a tax deduction for the current year and allow time to choose the charity. With expertise on the nonprofit community, CKCF staff can connect donors with organizations in their areas of interest and provide opportunities for donors to co-fund projects with CKCF.