Dear Professional Advisor, 

We're well into the tax season, with attorneys, accountants, and financial advisors urging clients to gather their tax documents and paperwork for their 2023 returns and initiate their 2024 planning. It's prime time for advisors to brush up on fundamental tax principles concerning charitable contributions.

While you address high net-worth clients, it’s crucial to keep these three things in mind:

• Understanding the clients’ diverse motivation for giving to better serve their need and aspirations in planned giving.
• Cash is not King. Actively remind clients about the advantages of donating non-cash assets. By giving such assets instead of cash, clients can often significantly reduce their exposure to capital gains tax.
• Understanding the deductibility rules for gifts to charities is crucial for effective financial planning. There are distinct differences between gifts made to public charities, where clients can deduct up to 50% of their AGI, compared to gift to private Foundations where the deduction is limited to 30% of AGI.

It’s customary in the first quarter of 2024 to revisit tax regulations and strategic planning tactics concerning charitable donations. YBGRF is grateful for the chance to collaborate with you and your philanthropic clients in structuring giving strategies that align with their goals of making a meaningful impact in the community.

Let us help your clients plan for the future through the many income and tax advantages that Charitable Planned Gifts provide. YBGRF offers free services to donors and their advisors as well as timely financial and legislative news and planning resources. Reach out to our Planned Giving team today to learn more about our services.

To learn about all the different ways you can guide your clients with planned giving and support the kids at the Ranch call us at 406.656.8772 or visit us online at yellowstonefoundation.org.

Respectfully,

William A. Hritsco, President
Yellowstone Boys & Girls Ranch Foundation             

If immediate income, potential tax deductions, and charitable giving are of interest to your clients, a Charitable Remainder Trust is on tool to achieve those goals.

There are two common types of Trusts: Charitable Remainder Annuity Trusts (CRATs) and Charitable Remainder Unitrusts (CRUTs).

Trusts are funded by transferring cash, real property, securities, artwork, or even farm equipment! The trusts are irrevocable, distribute income to the donor or named beneficiary during a specified lifetime, or term, and the remaining trust assets will be distributed to charitable beneficiaries.

What’s the difference?

• CRATs distribute a fixed annuity amount and additional contributions cannot be made. If  your client wants to preserve a highly appreciated asset that pays out a fixed percentage based on its initial value, a CRAT may be a good fit.
• CRUTs distribute a fixed amount based on the balance of the trust assets, which is revalued annually, and additional contributions can also be made. This means higher potential income when the trust assets perform well.

For current financial and gift planning information anytime, visit our Advisors Page.

Kind Regards,

Sara Hofer, J.D., Exec. Vice President of Planned Giving
Yellowstone Boys and Girls Ranch Foundation, Inc.