A number of philanthropic leaders have voiced support for proposed legislation to increase the amount of distributions from private foundations and donor advised funds. Named the “Initiative to Accelerate Charitable Giving”,...more
Donors make contributions to donor-advised funds (“DAFs”) for a variety of reasons. One is that DAF rules permit the donor to make the contribution in the current year (which entitles the donor to a deduction in that year),...more
As private foundations and other charitable organizations look forward to the end of the coronavirus pandemic and the return of in-person events, it may be a good idea to review the self-dealing rules involving event tickets...more
Tax-exempt organizations (including private foundations, which are subject to special additional disclosures) are subject to certain public disclosure rules. These rules require that the organization make its exemption...more
A recent case involving a gift to endow professorships shows the tension between principles of trust and contract in bequests—and how the difference can have unanticipated and important effects on how disputes are resolved. ...more
Business owners who work hard to grow a business and sell it (hopefully, with a substantial windfall) oftentimes focus on philanthropy and making a difference with their new-found wealth. Successful sellers usually recognize...more
Part 1 of our Article addressed why a charitably-inclined client should make a gift to charity in the year of business sale.
Having completed the analysis of when it is best to make a gift, some clients may hesitate to...more
1/27/2021
/ Adjusted Gross Income ,
Charitable Donations ,
Charitable Lead Annuity Trust ,
Charitable Organizations ,
Charitable Remainder Trust ,
Estate Tax ,
Gift Tax ,
Income Taxes ,
IRS ,
Split-Interest Charitable Trusts ,
Tax Deductions
The Consolidated Appropriations Act of 2021 (CAA, Public Law No. 116-260) was signed into law on December 27, 2020. The Act extends and expands changes to the rules of charitable giving enacted under the Coronavirus Aid,...more
We are nearing the end of calendar year 2020 (thankfully!) and it is time to consider end-of-year tax planning. Due to the outcome of the election, there is significantly more certainty about the possibility of tax law...more
Many grantmakers are unaware, but private foundations can make direct grants to individuals to further the private foundation’s exempt purpose. Private foundations often focus their grantmaking programs on making grants to...more
On Tuesday, November 3rd, Americans went to the polls and cast votes for President, Senators, and House members. In some cases, the results are still being tabulated (or subject to challenge). However, the picture becomes a...more
Formation -
Requires formation of a new corporation or trust; must apply for IRS exempt status.
Simple application and donor advised fund agreement with sponsoring organization. ...more
For charitably inclined individuals, there is a significant amount of uncertainty brought on by possible policy shifts that may occur if former Vice President Joe Biden is elected and Democrats take a majority in the Senate....more
As part of his campaign platform, Democratic Presidential nominee Joe Biden has released a tax plan which may significantly increase the capital gain tax. Specifically, the platform includes a proposal to eliminate the...more
As explored in a previous article, the IRS clarified that mission-related investments (MRIs) will not trigger the private foundation “jeopardy investment” rule (that is, a private foundation cannot make investments that would...more
The November 3 election may have dramatic impacts on the income and estate tax laws. These changes could become effective as early as January 1, 2021. Of course, a big uncertainty is the outcome of the election, and whether...more
On September 22, 2020, Foley & Lardner LLP’s Family Office and Sports & Entertainment Groups partnered to highlight various aspects regarding investing in professional sports franchises. The discussion was led by Foley’s...more
Private foundations are subject to special rules relating to conflicts of interest. These are called “self-dealing” rules. These rules flatly prohibit transactions between interested persons (known as “disqualified persons”)...more
As part of his campaign platform, Democratic Presidential nominee Joe Biden has released a tax plan that would significantly increase taxes on high net worth individuals. Although a campaign platform is only a “rough draft”...more
All employers have information that they want to protect and keep secret. From a salesperson’s customer list to Colonel Sanders’ secret blend of 11 herbs and spices, maintaining the confidentiality of private information is...more
When a foundation is initially created, its governing documents are a creature of circumstance—usually, there is some tax or charitable impulse that is driving the creation of the foundation. The attorney or accountant...more
At the end of June, the Commissioner of the IRS Large Business and International Division announced a new campaign to audit high-net-worth individuals and the entities (such as partnerships, corporations, trusts, and private...more
For high-profile athletes commanding mega salaries and worldwide fame, giving back generously to their communities or to a cherished cause is a go-to play. Charitable giving carries limited risk while offering significant...more
Each family office we work with is unique to the situation and needs of the family it serves. The key to success is identifying the right business and tax objectives—we take a very client specific approach. In working with...more
New proposed IRS regulations clarify that the tax will not apply in most cases when company officers/employees serve as directors and officers of the company foundation for no compensation from the foundation
In a prior blog...more