Charitable Planning
What is Charitable Planning?
Charitable planning is an intentional effort to achieve one’s philanthropic goals while ensuring the most tax-efficient outcomes for the individual and beneficiaries. So you can help change the world with practical charitable planning strategies to implement a generous giving plan, achieve legacy goals, and maximize tax advantages.
With effective and strategic charitable event planning, you can make a lasting impact on your preferred causes while becoming eligible for significant tax deductions. To achieve this, you can get a charitable planning lawyer or financial advisor to document your charitable contributions, ensure they’re incorporated into your long-term financial plan, and secure a financially stable future for yourself, your family, and your community.
Our Oregon tax consultants at Interactive Wealth Advisors provide charitable planning services to our clients — we are attentive and proactive in offering technical tax compliance advice to help them achieve their ultimate philanthropic goals.
What are the Tax Advantages of Charitable Planning?
There are a couple of federal government-established tax incentives to encourage charitable giving – incentives for income, capital gains, and estate tax deductions.
Income Tax
Donations to a qualified charity are tax deductible and may make you eligible for a deduction amount equal to the fair market value of your contribution. But because of the yearly deduction limitations against your Adjusted Gross Income (AGI), you can seek charitable tax planning advice from your tax advisor. You can try “bunching” your contributions in one tax year to raise the amount you donate in a high-income year.
Estate Tax
The estate tax is charged on the net value of an estate before it is passed on to beneficiaries. However, donations to a qualified charity may reduce this tax, depending on your legal arrangement.
Also, including charitable giving estate planning in your financial plan while you are alive may exclude the gifted assets from your assets – and the icing on the deductions is that it is limitless!
Capital Gains Tax
Short-Term Assets
These are assets you keep for a year or less. Now if you sell a short-term asset before donating the proceeds, there will be a regular income tax on the gains of that sale. But if you donate the asset, the IRS will record the contribution as a cash donation deductible against AGI up to 60% for a public charity and 30% for a private foundation.
Long-Term Assets
These are assets owned for over a year. Long-term capital gains are taxed at lower rates, allowing you to eliminate taxes on the capital gains as long as you don’t sell before donating. So, charities receive a more significant donation
Our Charitable Estate & Tax Planning Services
IRA or Retirement Plan Beneficiary Designations
With charitable IRA planning, you can choose an organization to become the beneficiary of your IRA or retirement plan, like 401(k) or 403(b). This is an ideal option since your donation is tax-deductible with Roth IRA planning, so the charity will not be responsible for any income tax on the donation.
Charitable Legacies
Advisors at IWA can work with you to include donations in your will. So in the amended will, you can fix a specific amount, a percentage of an estate, or both to give to particular charities.
Charitable Trusts
Charitable trusts are often introduced to “lock in” certain economic benefits and tax savings. It’s a charitable estate planning strategy to reduce taxable estate by moving assets out of the estate for charity. With our experienced advisors at Interactive Wealth Advisors, you can rest assured that your legacy will be transferred successfully during your lifetime while ensuring maximum tax efficiency.
Elder-care Consultation
At IWA, we offer our clients a comprehensive strategy for adequate long-term care planning. Our financial planners can help you identify and implement methods to preserve your assets to guarantee financial security and accomplish your philanthropic goals..
Who Is It For?
Interactive Wealth Advisors offers charitable trust planning services to implement a giving plan for our clients, including:
Company Executives
We help companies structure and implement corporate philanthropy programs. And when our clients want to improve their philanthropic mission, we guide them to invest in the ideal and qualified charity organizations.
Entrepreneurs
We offer personalized business exit strategies and financial planning for small business owners to manage the impact of a significant liquidity event, like the sale of a company or highly appreciated real estate.
Retirees and Wealthy Families
We assist our clients in forming their private family foundations and avoiding violating any of the numerous IRS rules to run a foundation. We ensure that every step of the process follows tax compliance rules to meet legacy goals and utilize tax benefits.
Our Process
Step 1: First Meeting
We will schedule a call to speak with you and learn your unique requirements for charitable gift planning. We will also discover your expectations from us as your advisors and share our values and approach. If you decide we are a fit, you can get back to us, and we will schedule more calls for further conversations.
Step 2: Define your goals
Now, we will start by helping you define overall goals and objectives. Discussing charitable gifting strategically for long-term achievements lets you understand your priorities and expected legacy. With this, we can work with you to create and implement a charitable giving plan to achieve those goals.
Step 3: Find Ideal Organizations
After understanding your goals, we will recommend qualified organizations that align with your interests, ensure tax efficiency, and guarantee connections with like-minded donors to broaden your network.
Step 4: Incorporate Giving Into Financial Planning.
As experts in philanthropy, we can help you incorporate giving into your financial planning to make your goals realistic with fewer taxes. We also ensure that the tax planning with charitable trusts follows Oregon’s rules, regulations, and tax codes. So, if you have a mortgage, your estate planning advisor can identify your tax-deductible interest and reduce your income.
Why Choose Us?
We Know Our Onions
Interactive Wealth Advisors experts offer a boutique of products and services for tax estate and financial planning for the elderly with maximum tax benefits. Our team stays up-to-date with the latest tools and ideas on offering charitable gifts to facilitate and provide the most efficient options.
We Are Thorough
Our team takes a personalized approach to identify the most effective strategies for our clients. We are careful and thorough in understanding and providing a holistic system to transfer your assets and ensure your legacy.
Unrivaled Quality Service
We do not stop working after drafting and signing documents. We will update you on the charitable giving tax planning status and ensure appropriate implementations align with your goals.
We are Local
Tax laws, regulations, and rules are ever-changing, especially in different states. As a financial planning company in Oregon, we stay knowledgeable about updated laws and offer tax-compliant solutions.
