by Andrew Hibel | Apr 2, 2019 | Featured, Linked In |
It’s Sunday afternoon and I’ve just driven three hours through the frozen heartland of Illinois to pay my last respects to someone who has recently passed away. It is sunny on what should be a dark day, but my drive has given me the opportunity to reflect on my 30 plus year relationship with the family that I am about to visit. This day, unlike so many others I have shared with the family, will be a sad one. I must say goodbye to someone who has shared his generosity and wisdom with me and has left an indelible mark on my life. It has been a privilege to be present in the life of this family and, now, in the passing of their loved one. This privilege is not lost on me. As a planned giving officer, I get to serve as a conduit and catalyst for the amazing philanthropic endeavors of those with whom I work. In doing so, I get to connect with incredible people and benefit immeasurably from their giving, not only as I gain a deeper understanding of their giving goals but also the fabric of life that holds us all together. Nonprofits do an excellent job of promoting how planned gifts, and their donors, achieve amazing results in saving and changing the lives of the recipients of philanthropic gifting. While planned gifts are often associated with tax planning, they still come with a story. There is a nature behind planned givers better seen as givers who are thoughtful about how their lives can touch the lives of others through their acts. Those who...
by Andrew Hibel | Dec 13, 2018 | Charitable Giving, Donor Impact, Featured, Linked In, Taxes |
The Tax Cuts and Jobs Act of 2017 was the first major legislative change to the tax code since 1986. While many of its’ changes left how the charitable deduction worked unchanged, the doubling of the standard deduction is predicted to reduce the percentage of taxpayers who itemize from 30% to 10% which effectively removes two-thirds of taxpayers who could have used the charitable deduction in 2017. This reduction has made many taxpayers in 2018 to ask the question of whether to itemize or not itemize their deductions. The good news is that there are still great taxwise ways to give to charity, either way, you answer that question. Idea to consider if you don’t itemize- gift from your IRA If you are 70 ½, you are able to make a charitable contribution, up to $100,000, to a public charity of your IRA and not incur the distribution as taxable income. You are not able to deduct the amount as a charitable contribution (but you would not be able to anyway as you are not itemizing your deductions) nor can you contribute it to a donor advised or a private foundation. Please know that these are just the basic details and you will need to discuss this technique with your advisor before implementing. And good minds differon the value of this strategy. Idea to consider if you do itemize- bunching a gift to a donor advised fund If you are going to itemize your deductions this year, and might not do so next year, then you should consider a donor advised fund(DAF). With a DAF, you are able to claim...
by Andrew Hibel | Jul 16, 2018 | Uncategorized |
Fundraisers nationwide have sounded alarms about how the Trump Administration’s new tax law will affect philanthropic giving. But at least three local experts don’t seem overly concerned. On May 17, a capacity lunchtime crowd attended a panel discussion sponsored jointly by AFP and the Planned Giving Council. The panel answered national speculation that the law’s higher standard deduction will would reduce many taxpayers’ motivation to itemize their taxes, and thereby take away a powerful inducement to charitable giving. The speculation was a launching point for panelists Andrew W. Hibel (Charitable Catalyst and Founder of The Advise Us Foundation), Julie Quinlan Brame (Campaign Consultant, Milwaukee Public Museum) and Kathy Kielar (Senior Director, Major & Planned Gifts at WTTW|WFMT. Chicago). The panelists encouraged the crowd with three main takeaways: For all donors who choose to itemize, the law should have a negligible effect on giving motivation The new law will likely only affect donors of moderate-size gifts because larger donors will likely continue to itemize Because of the tax cut, all donors are likely to have more capacity to give Read the full article...
by Andrew Hibel | Apr 18, 2018 | Charitable Giving, Donor-Advised Funds, Featured, Linked In, Taxes |
The rules of the game are largely unchanged – it’s just that many taxpayers won’t be playing anymore The Tax Cuts and Jobs Act of 2017 is the legislative centerpiece of President Trump’s first year in office. The law increases the standard deduction, likely reducing taxpayers’ motivation to itemize deductions. While experts differ, most expect this change to have a negative effect on charitable giving. Donors who care about the mission and futures of the nonprofits they support should pay attention to what’s a fact, and what’s speculation, about the potential effects of this far-reaching act. Speculation: The act will limit charitable giving. No one knows the answer to this question – in fact, I suggest that no one knows if we’ll ever know! The effect will not be apparent soon, and when it arrives will very likely be buried amid other economic factors: a continued strong economy (and sustained donations) may suggest to some that there is no effect, while a troubled economy might exaggerate any interpretation. Trying to ferret out the law’s effect might be akin to trying to figure out which specific drink caused your hangover. Since a conclusive answer to the overall effect may be hard to come by, maybe the best strategy for scrambling nonprofits is to understand that itemization (and charitable giving) will continue to be a case by case decision for every donor. There’s nothing new about that – the key, as always, will be to send clear messages and build strong relationships (though perhaps with a bit more urgency than ever before). The tax law might leave a hole in your...
by Andrew Hibel | Apr 12, 2018 | Events, Featured, Linked In |
When your nonprofit organization’s CEO says “Do you take this strategic plan to have and to hold?,” can you say “I do!” with conviction? Being called upon to fund strategies that did not fully consider donors and development is justifiably every fundraiser’s nightmare. There should be a symbiosis between an organization’s strategic plans and its fundraising expectations, but that’s not always the case. Using real-world, cautionary tales of planning processes that succeeded or went awry and how fundraisers responded, this session equips organization executives, board members and development leaders with the perspective they need to ensure that strategic plans drive fundraising success – and vice versa. Join us for this free, 2-hour seminar, May 14, 9:00 am – 11:00 am presented by Doug Diefenbach, Principal, Diefenbach Communications Strategies Forefront, 208 South LaSalle Street, #1540 Chicago, IL Click here to reserve your spot today! Doug Diefenbach is an accomplished consultant with special expertise in the area of nonprofit and philanthropic marketing. For more than 30 years, in both executive and consulting roles, he has helped a wide range of organizations to develop, meet and exceed their goals for strategic alignment, brand visibility, constituent engagement and philanthropic...
