Most people give to charity out of the compassion of their hearts. Others recognize that these good actions can also save significant taxes. Vaksman Khalfin, PC helps clients make their charitable gifts in the most tax-efficient manner. For example:
- A charitable remainder trust or a charitable gift annuity will give you an immediate income tax deduction, a lifetime stream of income, and a waiver of capital taxes owned on contributed property
- A charitable lead trust creates an income stream to charity for a term of years with the remainder of the trust going to your children without any estate or gift tax consequences
- A donor advised fund allows you to maximize your income tax savings on your regular monthly contributions to church or charities
- A private foundation offers you the complete freedom to control your giving by placing restrictions on how your gifts are used by charities
Prospective donors often have many questions when it comes to the topic of charitable giving. An increasingly popular and accessible solution is the construction of a private foundation. While the amount of assets available to endow the foundation is important, it is by no means the sole, or even the most important, factor in your decision.
Determining whether a private foundation is right for any individual or family involves a host of additional questions such as:
- What values do you want to promote through your giving?
- Do you wish to involve your family and to what extent?
- What is the geographic scope of your philanthropy?
- How long do you want your philanthropy to operate?
- Do you prefer supporting others’ work or hands-on participation?
- How much time and effort are you willing to devote to administering your philanthropy?
- What are the tax consequences?
The decision is one that involves careful planning, talking with family, and getting some sound advice from a trusted philanthropic advisor. You may know the assets you can afford to put into a private foundation when starting it, but what are the potential consequences of its establishment and operation? Regardless of the assets you have available, Vaksman Khalfin, PC can help you choose between the many options available, thus helping you maximize your charitable dollars and choices for giving.