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Year-End Giving and Tax Planning Tips

CBN’s Executive Director of Planned Giving discusses year-end giving. Read Transcript

- Well, as you probablywatch the calendar,

you see the days ticking byand 2018 is coming to a close.

And so is the deadline formaking charitable contributions

that you can deduct on your tax return.

The more you give, themore you can deduct,

and the more money youget back from the IRS.

Joining us now to explainthis is Frank Nico.

He's CBN's Director of Planned Giving.

And Frank, we appreciate you being here.

Good to see you.

- Good to see you, Pat.

- The tax law has changed.

The standard deductionhas gone up and so forth.

Tell us about where we are now.

- Well, one of the things

to take advantage of the planned giving

to maximize the tax benefits.

You know, there's fewertaxpayers gonna be itemizing.

In fact, there's 25 millionless, they estimate,

that are going to be itemizing,

so more taking a standard deduction.

- [Pat] Right.

- One of the most effectiveways for seniors to give now

is they not only get thedouble standard deduction

plus some extra for being over 65,

but it's the charitable IRA.

And that's an exclusion from income,

so you don't have to itemizeto take advantage of that.

And you distribute it

through a qualifiedcharitable distribution

to take advantage

of that exclusion.- Charitable IRA,

tell us how that works.

What do you do?

- Well basically, it'sa pretty easy set up.

There's no IRA account to set up.

It's just a vehicle to distribute it

out of a traditional IRA to the charity.

So it's important that whoeveryour brokerage firm is,

like let's say Fidelity, that basically,

that they make the check payable

to the charity of your choice

that's a qualified 501(c)3.

- So you've got people that advise folks

if they wanna know

how to do that.- Yes.


- [Pat] All right, wellwhat's the other way,

the other thing?- Well,

some of the things to take advantage of,

especially if you're not going to itemize

and you're gonna be takingthe standard deduction,

or if you're close to itemizing,

but you don't quite have enough

with the doubling ofthe standard deduction

is to bunch some of yourdeductions into 2018,

so move some of what youwould take in 2019 into 2018.

So one of the ways isa Donor Advised Fund.

So with a Donor Advised Fund,

you can take an immediate taxdeduction after it's set up

so you can actually give a large lump sum

and get an immediate tax deduction

and then grant it to your favorite charity

over the next few years.

- That's something new, isn't it?

- Well, it started several years ago,

but you can have it setup through Donors Trust.

In fact, I was talking toSteve Moore in the green room

and that's how he does his giving now.

So it's a good thing to do.

And again, if you do setup a Donor Advised Fund,

it's very easy to set up.

You can do then probably theitemized deduction this year,

then maybe flip over tothe standard next year.

- So assuming, say you'vegot an account with Fidelity,

just a regular brokerage account,

and you say I want todesignate so much money

to put it into a Donor Advised Fund,

do you have to fill out awhole lot of papers for that?

- It's pretty easy to open up an account,

and usually it's like a minimum $5,000

at a lot of these firms.

They have the charitablesupporting group set up

to where you would movethe funds over there.

The nice thing about it too,while the funds are there

in that Donor AdvisedFund, they can appreciate

before they get granted out.

And they're tax-free

while it's appreciating.- Then you send a letter

or email or somethingto the brokerage account

and you say I want to now give $1,000

to the Salvation Army or whatever

and they'll take it out of that fund?

- Right, they'll grantit over to that charity.

- [Pat] And it'll sit there

and appreciate- Right.

- 'til such then.- Tax-free.

- Tax-free.

And if you then give it,

you don't pay any taxes

on it though.- Exactly.

- [Pat] Well, that's apretty good deal then.

- Right.- Okay.

Well, what do you...

Here's the numbers, ladies and gentlemen.

Frank and his team.

It's not the same number.

It's 1-800-288-2373 and thisthe time to do something.

It's the end of the year

and you ought to takeadvantage of an opportunity

to help your favorite charity,

and let's hope that'sCBN or Regent or whatever

or Operation Blessing.


Now these funds you giveto, they have to be 501(c)3

approved?- In most cases, that's true.

- [Pat] Yeah.

- Yes.

- And your people are standing by

the telephone.- Right.

- Well, Frank, remember N-I-C-O,Frank Nico, 1-800-288-2373

or you can send an emailto plannedgiving at CBN

and Frank and his team wouldbe delighted to assist you,

that you might have afulfilling opportunity

at the end of the year.

God bless you.

I hope this is successful.

- Yes, thank you very much.

- Okay.


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