Donors May Get Pickier with Gifts to Colleges

A group of wealthy philanthropists is establishing a nonprofit organization to advise donors on how to attach legally enforceable conditions on gifts to their alma maters.

The new Indianapolis-based Center for Excellence in Higher Education is backed by three foundations, those of Bernard Marcus (Home Depot's founder), the Sir John Templeton Foundation, and the John William Pope Foundation.

Public Confidence in Charities Rebounds Slightly

Public confidence in U.S. charities has risen slightly since Sept. 11, 2001, but still has not returned to the level of trust experienced before that day, according to a new survey.
Confidence in Charitable Organizations, 2006, conducted by the Robert F. Wagner Graduate School of Public Service at New York University. 69 percent of Americans expressed a great deal or a fair amount of confidence in charities. While the responses suggest that public confidence is beginning to rebound, the current level of trust is still dwarfed by the 90 percent of respondents who expressed a great deal of trust in charities pre-Sept. 11. Whether the current numbers reflect a solid, long-term increase in public confidence is unclear. The survey suggests that the 2006 figures may indicate “a significant turning point” as the nation neared the fifth anniversary of the Sept. 11 attacks.

Top 10 Estate Planning Mistakes

An estate plan will help you create a coordinated strategy for conserving the assets you accumulate during your lifetime, distribute them according to your wishes at the time of your death, and provide for any needed funding to meet family needs and other special considerations -- such as philanthropic interests.

To avoid some common pitfalls, Morningstar reviews the top 10 estate planning mistakes.

The Biggest Week in the History of Charitable Giving?

Is it hyperbolic to consider that this past week has probably been among the most significant in the philanthropic world? Not since 1913 when John D. Rockefeller established his foundation has such an important series of events taken place in such a short span of time:

• Bill Gates announces that he will step down from day-to-day operations at Microsoft to devote his attention to his private foundation -- the Bill and Melinda Gates Foundation -- the largest private foundation in the world. He is only 50 years old, and I do not think it is too presumptious to think that his influence as head of the foundation will not only equal, but may even eclipse his tenure at Microsoft.
• Warren Buffet makes an unprecedented move of pledging $30 billion of his fortune to the Bill and Melinda Gates Foundation. His munificence is only exceeded by his magnamity. He could have created the second largest private foundation in the world overnight. Instead he only makes the biggest foundation that much bigger, and only asks for a board seat. His total commitment of $37 billion of his personal fortune is the largest gift to charity in history.
• Sandy Weill makes a "deal with God" and pledges to give his estimated $1.4 billion fortune away to charity.
• And Americans gave away $260 billion away in 2005, a record high, up 6.1% from 2004.

Wow!

Rockefellers Celebrate Three Centuries of Philanthropy

The Rockefeller family has sustained a prominent and creative presence in philanthropy for more than 120 years and six generations. A new monograph, based on a series of discussions and presentations by family members and associates explains how they have been able to nurture the family's charitable pursuits across decades. Entitled, An Entrepreneurial Spirit: Three Centuries of Rockefeller Philanthropy, the publication is available from Rockefeller Philanthropy Advisors (212-812-4330).
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Getting Smart at Being Good

In the capitalist world of bare-knuckled competion, a growing number of CEOs believe that baring their corporate soul can bolster the bottom line. Time magazine profiles several executives that are testing the notion that corporations ought to exist for more than the pursuit of profit.

Fast Company Recognizes Social Capitalists

The current issue of Fast Company provides its annual ranking of social capitalists (aka really creative and cutting edge nonprofit organizations). While many of those recognized are past winners, it is always an instructive and inspiring group of institutions doing some fantastic work.

Senate tax bill opens new doors for charitable giving

The Senate's recently passed tax bill includes a section that aims to encourage charitable giving. The bill, S. 2020, contains incentives for charitable giving such as allowing tax-free charitable gifts from individual retirement accounts and new deductions for people who can't deduct their donations, because they don't itemize on their tax returns. Among the bill's other provisions are stricter rules governing deductions when donating clothing and household goods. For more details of the bill's section on charitable giving click here.

School Daze: Alumni Ante Up

According to the latest issue of Kiplinger's Personal Finance, if you plan to endow a scholarship at your alma mater, prepare to dig a little deeper. For example, Duke raised the amount needed to fund a restricted scholarship (the kind that gives you some say over who receives the award, such as specifiying the student's field of study) from $100,000 to $250,000. Johns Hopkins raised their requirement from $20,000 to $100,000. A quick search on the web reveals that to endow a chair or professorship can easily exceed $2 million -- one endowed chair established at Harvard Law Schoool was funded with a $3 million gift. With costs rising, and the increased need of financial aid, colleges are looking to alumni and their major benefactors to foot more of the bill. With the higher donation level, many colleges will give you the option of spreading your donation over a period of five to ten years.

Leaving a Legacy, Large and Small

A variety of options are available to create legacy -- from private foundations to donor advised funds and supporting organizations. Each vehicle for donor-advised giving has its strengths and limitations, as well as a minimum investment threshold that may help you quickly narrow your options. But all of them have one thing in common: They help the 1.2 million charities in the United States.

New Donor Advised Fund for Financial Advisors

The National Philanthropic Trust, in partnership with Concord Equity Group Advisors, have launched a new donor advised fund offered exclusively to independent financial advisors, brokers, estate planners, accountants, trust officers, wealth managers and other professionals. The new program, the Independent Charitable Gift Fund, is also the first donor advised fund to invest in exchange-traded funds.

“Charitable giving is a fundamental element of financial planning and an important addition to the services offered through our wealth management infrastructure,” said Alan Gavornik, Co-Founder and Executive Managing Director of Concord Equity Group Advisors. “The Independent Charitable Gift Fund provides institutions, advisors, and investment representatives with the tools to do well by doing good through sophisticated, high-touch philanthropic services that will deepen their client relationships, while maximizing tax-efficient philanthropy.”

This is the first donor advised fund to invest in exchange-traded funds for low cost, diversified and efficient investment performance. In addition, the program can accept the widest variety of assets – appreciated securities, restricted stock, privately-held stock, real estate and more. The program also provides competitive compensation to advisors that improves their bottom line.

"Advisors will benefit from our expertise and experience," said Eileen Heisman, President & CEO, of NPT. "NPT will provide comprehensive support to help advisors effectively market the program to your existing clients, identify and cultivate prospects, and to attract new clients."

“NPT’s relationship with Concord Equity Group Advisors is truly a win-win,” said Heisman. “NPT has expanded its philanthropic reach to a greater number of individuals interested in making charitable gifts, while Concord has instantly acquired the technical, nonprofit, and operating knowledge necessary to get their program up and running in time for giving season. Our donor-advised fund platform empowers any financial services provider to offer an important and growing service to their clients almost immediately,” she added.

Advisors interested in obtaining more information about the program should contact Andrew Hastings, Vice President, National Philanthropic Trust toll-free at (888) 878-7900.

Charitable Gift Annuity Calculator

Calculate your payout from a charitable gift annuity for one or two lives with this simple charitable gift calculator from PGCalc.

Seen and Be Seen - Upcoming Conferences

Make your reservations now and chase away the winter blues by attending these conferences:

40th Annual Heckerling Institute on Estate Planning
January 9-13
Fountainbleu Hilton Resort
Miami Beach, FL
Sponsored by the University of Miami Law School
(305) 284-4762

2006 Mid-Winter Tax & Estate Planning Conference
January 15-22
St. Croix, U.S. Virgin Islands;
Sponsored by the National Law Foundation
(302) 656-4757

2006 Family Office Management Conference
January 30 - February 1
The Biltmore Hotel
Coral Gables, FL

How You Can Help The Victims of Asia Earthquake and Tsunamis

The following organizations have the proven expertise to mitigate the damage from this disaster in both the near and long term. All have a long-term presence in the region, and currently have emergency teams on the ground to provide needed relief assistance to victims:

Save the ChildrenAsia Earthquake/Tidal Wave Relief Fund
54 Wilton Road
Westport, CT 06880
(800) 728-3843

Mercy Corps
PO Box 2669
Portland, OR 97208
(800) 852-2100

Doctors Without Borders/Medecins Sans Frontieres
PO Box 2247
New York, NY 10116-2247
(888) 392-0392

Oxfam America
Attn: Donor Services Dept.: Asian Earthquake Fund
26 West Street
Boston, MA 02111-1206
(800) 77-OXFAM

The Asia Foundation
Give2Asia
465 California Street, 9th Floor
San Francisco, California 94104-1832
(415) 743-3336

Helping the Victims of the South Asia Earthquake and Tsunamis

According to the Wall Street Journal a multibillion-dollar disaster-recovery package is going to be needed for the countries worst affected by a tsunami that hit southern Asia from India to Thailand, killing thousands of people. While the World Bank, United Nations, and others will provide aid, Americans looking to make a charitable donation to help should contact the American Red Cross International Response Fund or the Asia Foundation. If we identify other names we will post them here.

Generosity Index Ranks Giving By State

The Catalog for Philanthropy has released its 2004 Generosity Index (GI), a state-by-state analysis of individual tax returns and charitable giving patterns. The 2004 index (based on 2002 tax returns) ranks Mississippi, Arkansas and Oklahoma as the most generous, and Rhode Island, Massachusetts and New Hampshire as the least.

The GI is based on the philosophy that philanthropic generosity is not just how much one gives, but how much one gives in relation to how much one has. So Mississippi, despite having the lowest per capita income, ranks first because its citizens give disproportionately more of their income than their wealthier counterparts such as California and Connecticut. The underlying research methodology can be found at the site.

Nifty 50: Top Philanthropists Giving Even More

While overall giving may be growing only slightly, the largest donors in the United States are increasing their gifts by tremendous amounts, according to BusinessWeek’s third annual rankings of the Top 50 U.S. Philanthropists.

For instance, Bill and Melinda Gates donated their entire stock dividend worth $3 billion! That's more than the entire Walton family of Wal-Mart fame have given in their entire lifetimes. The other big gift was from the estate of Susie Buffet (Warren Buffet, Berkshire Hathaway's wife) of $2.5 billion.

For the rundown, go to the article - The Top Givers (registration required).

We're In the Money: Millionaires Growing at Record Rate

The number of households with more than one million dollars in net worth (excluding primary residence) has risen to a record high as well as at a record rate, according to new research released today by TNS Financial Services. According to the latest Affluent Market Research Program (AMRP), TNS’ annual survey of wealthy U.S. households, the number has shot to 8.2 million as of mid-2004, a 33 percent increase over last year. The addition of two million households to the high net worth market is the largest increase ever recorded by the study, which began monitoring this group in 1981.

A Bypass Trust Can Assist Wealthy Couples

For married couples with estates valued at more than the federal estate-tax exemption, a bypass trust can sharply reduce the potential burden. Bypass trusts also offer a few other important benefits. (Source: The Houston Chronicle)

Donor Advised Fund Reforms Welcomed

Based on hearings that took place last June, and its own research, the US Senate Finance Committee’s staff has proposed a number of recommendations to more closely regulate donor advised funds. The Non-Profit Times reports that these reforms are being welcomed by a number of leaders in the field.

The National Philanthropic Trust, along with other leading providers of donor advised funds, has always supported strict compliance with existing tax law, and has been a leading advocate for establishing model standards of practive. In fact, NPT, and a number of peers, are already doing what these proposals recommend.

While a couple of the proposals should be modified, to ensure the costs of providing this valuable charitable giving vehicle remain as low as possible, and the details of others still need to defined, overall it should help the market as a whole.