Knowledge, experience and commitment to transformational philanthropy make CICF a singular resource for professional advisors from all fields.
Professional advisors — CPAs, financial planners, estate lawyers and more — frequently play a quiet, yet invaluable role in how Central Indiana residents give back to their community. At CICF we work hard to understand the needs of professional advisors so we can help you help your client, no matter what type of advisor you are (we frequently work with a team of advisors), nor what your client’s needs are.
Here are three mini-case studies that show how we can supplement the direction and service you’re providing:
THE ADVISOR: Bill Dale, estate planning lawyer with the law firm Dale and Eke
- THE NEED: A prominent local surgeon who was contemplating his legacy in connection with working with Bill on his estate plan.
- THE CHALLENGE: Bill’s very busy client was considering establishing a private foundation; creating a private foundation meant he and his family would have to either hire a staff or shoulder the administrative burden themselves, which would require time, knowledge and experience…which they did not have.
- THE SOLUTION: “I just didn’t think a private foundation was the right giving vehicle for him or his family,” Bill says. “I told him he should contact CICF and consider creating a donor-advised fund. In fact, I gave him Mary Stanley’s cell number.”
Here’s why:
- Donor-advised funds (we call them Personal Foundations here at CICF) give donors much of the control that a private foundation does without the back-office staff or costs. A recent CICF policy change allows all donors (not just donors with large funds) to choose to use their personal investment advisor to invest the assets of their fund in most cases.
- Personal Foundation fund holders receive expert research, advice and direction from CICF’s knowledgeable Philanthropic Services staff.
- Personal Foundations may be created with as little as $25,000 compared to an estimated $10 million necessary to create and sustain a private foundation.
- THE RESULT: Bill’s client contacted us to discuss donor-advised funds, and ultimately decided to create one. He is happy that the family comes together to decide upon charitable recipients and that he has a “built in staff” to assist them every step of the way. Several of his family members routinely make charitable gifts into the family fund.
THE ADVISOR: Mike Giannamore, CPA/JD, principal of MGA Professional Corporation
- THE NEED: Mike’s client had appreciated real estate holdings he no longer wanted.
- THE CHALLENGE: Mike’s client complained that the real estate had become expensive to maintain, but was highly appreciated.
- THE SOLUTION: “I knew this client was charitable, so I suggested that he donate the real estate to a donor advised fund at CICF,” Mike says.
Here’s why:
- A gift real estate can be made to any type of fund at CICF, including donor advised funds and also scholarship, designated, community endowment and field of interest funds. CICF will sell the real estate and deposit the net proceeds in the fund of the donor’s choice to benefit the charity or charitable interest area of the donor’s choice.
- Donors of appreciated assets receive an income tax charitable deduction for the year in which they make the gift, equal to the fair market value of the property on the date of the gift—regardless of when the property is sold by CICF.
- Donors of appreciated real property held for more than one year avoid potentially significant capital gains tax they otherwise would owe if they sell the property and then donate the proceeds.
- THE RESULT: Mike’s client donated a parcel of real estate with a fair market value of $160,000 to a donor advised fund he established with CICF. CICF will deposit the net proceeds in the client’s fund which will serve as a resource to “prefund” the client’s charitable future charitable giving.
THE ADVISOR: Jeff Yu, CPA, CFP, Executive Director of Column Capital Wealth Management
- THE NEED: Married couple with significant wealth who want to support favorite charities and causes, and have a way for their children and grandchildren to learn about and experience giving. Couple supports many organizations and wants their estate plans to continue this generosity.
- THE CHALLENGE: Jeff’s clients have multiple goals for their giving, including helping their adult children make charitable gifts, providing annual support for selected charities, and supporting giving for Christian-related organizations. Initially designed as a future fund, the assets for which would come to CICF through their estate plans, the clients wanted to get started sooner and Jeff thought they should make a charitable gift at the end of the year. “The more we worked with CICF, the more my clients felt CICF was a great choice to assist with their family’s giving,” Jeff says, “and the timing was right for them to start the fund from a tax perspective.”
- THE SOLUTION: Jeff’s clients started a donor advised fund and began working with their CICF Philanthropic Services Advisor to recommend grants. The existing fund agreement accommodated the donor advised fund, and CICF new business staff worked to amend the fund agreement while the clients are living to accomplish their charitable goals for their estate gifts. The fund agreement satisfied the clients’ very particular concerns (children not able to name successor fund advisors unless designated representative approves). Fund agreement also allocates estate gifts in specific percentages, starting several funds at CICF to meet all of the donors’ goals.
- THE RESULT: Jeff’s clients worked with CICF to create a customized charitable plan that accomplishes the family’s many philanthropic goals for giving during their lives and after.
