Generational Wealth Transfer Planning: What Every Nonprofit Needs to Know Jennifer Pratt, ESQ, Partner, Venable, LLP

2014 Nonprofit Empowerment Summit Giving It Our All!

Ashley Short, ESQ, Associate, Venable LLP

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Generational Wealth Transfer Planning: What Every Nonprofit Needs to Know

Jennifer A. Pratt, Esq., Venable LLPAshley C. Short, Esq., Venable LLP

June 3, 2014

I. Tax Law Changes

A. Increased Exemption Amounts

B. States with No Estate Taxes or Exemption Amounts at the Same Level as Federal

C. Income Tax Planning Needs Exceed Estate Tax Planning in Many Cases

II. Lifetime Giving

A. IRAs

B. Charitable Trusts

C. Outright Gifts – Appreciated Stock, Real Estate, Partnerships and Closely Held Businesses, Illiquid Assets

D. Maryland’s Community Investment Tax Credit (CITC) Program

III. Testamentary Giving

A. IRAs – Donors May Name Charitable Beneficiaries of Retirement Assets at Death.

B. Charitable Trusts – How Do Testamentary Charitable Trusts Differ from Lifetime Creation of Charitable Trusts?

C. Illiquid Assets and Difficult Assets to Value and Sell May be Bequeathed at the Donor’s Death. Now What Does the Charity Do with Them?

IV. Helpful Hints

A. Website – What Donors Are Looking for from Your Website and What Information You Want to Provide to Protect Your Charity

B. How to Reach Donors During Lifetime to Help Circumvent Problems that Arise After the Donor’s Death

C. How to Manage Expectations on Both Sides of the Gift

D. How to Keep in Contact with Donors That Have Promised a Gift to Your Charity