Donor Advised Funds, Private Foundations, Gift Annuities, and Other Charitable Contribution Arrangements

Planned giving is an integral part of tax planning for high net worth individuals. It is vital that tax advisers understand the differences in these techniques to recommend an appropriate arrangement for their clients. The Tax Act of 2017 significantly raised the standard deduction, $15,000 for single taxpayers and $30,000 for married couples filing jointly in 2025. This encourages "bunching" strategies, making significant charitable contributions one year, and taking the standard deduction the others. Tax reform also raised the limit on cash charitable contributions to public charities and some private foundations to 60 percent of AGI from the prior 50 percent. Both of these changes encourage large taxpayer gifts.

The surge in the use of DAFs was fueled by tax reform. These nifty vehicles allow privacy, an immediate tax deduction, and create planning opportunities. DAFs facilitate the "bunching" strategy. Taxpayers can front-load contributions just before retirement or make a large deductible contribution in a year with extraordinary income. The donor "advises" the foundation or charity on disbursements to be made, allowing the charitable organization to receive steady annual funding if desired.

Private foundations, like DAFs, provide an opportunity for an immediate tax deduction while deferring charitable giving. These foundations are organized as a trust or corporation, must apply to the IRS for tax-exempt status and meet annual minimum distribution requirements. Donors wanting to establish a family legacy and maintain control over contributions may prefer a private foundation.

DAFs and private foundations don't need to operate exclusively. A private foundation wanting to remain anonymous or struggling to meet its minimum distribution requirement could establish a DAF.

A conservation easement is another well-known gifting vehicle that provides a sizeable charitable deduction for a worthy cause. However, in light of recent challenges and disallowances, are these a wise choice?

Each gifting strategy comes with its own mandated compliance obligations. Without meeting these requirements, the benefits of planned giving could be forfeited. Contributions have been regularly disallowed for complex arrangements like conservation easements as well as simple transactions like unacknowledged cash contributions.

Listen as our panel of experts explains the most effective donation strategies so that you can select an effective and rewarding plan for you or your clients.

1. Identifying clients needing charitable planning
2. DAFs
3. Private foundations
4. CLTs and CRTs
5. Other arrangements
6. Charitable deduction compliance

The panel will review these and other key issues:

• Identifying clients who need charitable planning or assistance with charitable planning
• The pros and cons of the most common charitable gifting strategies
• Selecting the appropriate charitable gifting arrangement for the taxpayer
• Securing the charitable deduction for charitable gifts
• Establishing a DAF

Learning Objectives

After completing this course, you will be able to:

• Identify common charitable gifting methods
• Recognize taxpayers who would benefit from a gifting plan
• Determine which charitable plan is best suited to the taxpayer
• Discern differences between common gift-giving strategies

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).