TAXWISE GIVING ~ W.S.W. FOUNDATION
"There's a great deal of new data which shows if you're generous, charitable, and altruistic, you'll live longer; you'll feel more fulfilled; you'll feel more expressive of who you are as a person;
you probably will feel more control and
freedom in your life."
The United States Tax rules allow individuals not to pay or significantly reduce their income taxes by giving to a recognized 501 (c)(3) charitable organization, (The W.S.W. Foundation) during life or upon death. Many times the dollar amount given is not the same as your out of pocket cost because of our tax laws. In addition, there are special tools such us Charitable Gift Annuities, (CGA) and Charitable Remainder Trusts, (CRT) and others that provide income, income tax deduction, or deferral of capital gain tax. Tax-wise giving is very important, but often overlooked, part of financial and estate planning.
We can provide you professional guidance.
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Charitable Remainder Trusts, (CRT) can be a great tool used for donating to a charitable Foundation such as the W.S.W. Foundation because they can create a win-win for both the Foundation and the potential donor. A CRT allows the donor to dedicate property to a qualified charity in the future, but still receive an income stream during the donor's life or for a specified term of years. At the end of the term the property is distributed to the qualified charity, (or charities) of the donor's choice. However, you do not have to wait to take the value of the property for the year in which he or she forms the CRT,
(even if that amount does not actually end up going to charity.) CRT's can be especially attractive to a donor who has highly appreciated property with substantial built in capital gains, (stock, real property, etc.) and will be subject to a large capital gains tax hit since a CRT is not subject to this tax.
For example, if a donor owns shares of stock that were purchased for $10,000 and those shares are now worth $100,000 then if a donor were to sell them he or she must pay capital gains tax on the $90,000 gain. However, if a donor instead transfers those same shares into a CRT and the CRT sells them, the CRT will not be subject to this tax. Therefore, the donor gets the benefit of the full $100,000 in funding the CRT. The donor then will receive monthly, quarterly, annual, etc. distributions from the CRT, (based on a percentage of the full $100,000) throughout the term of the CRT. At the end of the term, the "remainder" is then donated to the charity, (or charities) of the donor's choice. There are many different types of CRTs to fit the specific needs of donors, so feel free to ask us and find out if one works for you.
Charitable Gift Annuities, (CGA) are important too. These types of gifts require the assistance of a knowledgeable professional and may serve your other objectives. For example, you wish to honor a friend who has helped you during your life – you can give your friend a CGA, (income for the rest of your friend's life) and when the friend is deceased whatever is left goes to charity. It is the two gifts in one approach – to the friend and the mission of the charity.
If you are inclined to give to charities but are property rich and cash poor, you may want to consider a Charitable Reverse Mortgage, (CRM).
The W.S.W. Foundation 501 (c)(3) charity for 61 years will give you a CGA in return for receiving your property at death. Or if you need to provide for an heir who does not know how to handle money, a CRT allows for income to the heir whereby they do not have the ability to spend the principal. Our Financial Advisors, Attorneys and Certified Public Accountants, (CPAs) are familiar with these tools.
It is important to explain your goal and objectives to a knowledgeable professional. Many professionals do not have sufficient knowledge in the charitable area and advise their clients not to do it. Saying no is the safe and easy route to go. The best scenario from a tax perspective is to have a low-cost basis and a high market value asset. The W.S.W. Foundation, 501 (c)(3) (is a charitable organization) has individuals on staff who can give you at no charge or obligation a computer-generated educational illustration showing your likely income, tax deduction, and explanation.
"We are here to make donating easy and hassle free!"
TAXWISE GIVING ~ TEAM
Wade W. Slome, CFA® & CFP® - Chartered Financial Analyst & Certified Financial Planner, Masters of Business Administration Cornell University, Author, Founder & President Sidoxia Capital Management, LLC.
Christopher "Chris" K. Poling, JD - Attorney at Law, Specialization Tax Law, Probate, Trusts and Estates (as an area), Law School: Pepperdine University SOL; LLM in Taxation from Loyola Law School, Non-profits, California State Bar Certified Tax Specialist Olincy, Karpel & Poling.
Kevin D. Weaver, CFP® - Certified Financial Planner, Vice President, Research and Operations - Sidoxia Capital Management, LLC.
Jerome S. Abbott Jr. - (Former) Vice President & Financial License Manager - Bank of the West, Union Bank, and Chase Bank, (Current) Senior Project Manager W.S.W. Foundation.
W.S.W. Foundation "Charitable Giving Advisor" ~ Assisting Clients through the complexities of a: "CRT" Charitable Remainder Trust, "CGA" Charitable Gift Annuities, or "CRM" Charitable Reverse Mortgage Process. Working as a liaison to provide personal guidance, information, as well as assistance with the Financial Advisors, Attorneys, Accountants and the W.S.W. Foundation in order to achieve maximum financial and tax benefits for the clients.
The expenses and staff salaries of the W.S.W. Foundation are completely paid for by internal funds, NOT by public donations.