GUIDE QUESTIONS

1. What options exist for donors who want to make a current year donation but do not have a

current recipient in mind, or do not want to give entire amount to a specific charity in the current

year?

2. What is the impact on the Carsons' taxes and after-tax income from a $15,000 cash donation in

2013?

3. The Bradleys are considering a $3 million donation to a public charity; they also own $3

million in appreciated stock. Whichever approach they choose, the Bradleys want the charity to

end up with $3 million in cash (or property worth that amount) as a result of their donation.

Which approach would be more tax efficient: to sell the stock and then donate $3 million to

charity or to donate the stock itself?

4. What charitable vehicles or structures would you recommend to the Carsons, and why?

Distribute Attachment A to students to fill out prior to class.

5. What charitable vehicles or structures would you recommend to the Bradleys, and why?

Distribute Attachment B to students to fill out prior to class.

6. Calculate the amount of the tax deduction for the Bradleys if they were to establish a

Charitable Remainder Annuity Trust under the assumptions in the case. Use Exhibit 3 as a

guide.

7. If Congress wanted to make charitable donations more widespread across income levels, what

amendments could they make to the Internal Revenue Code?