Latest news with #charitablegiving
Bloomberg
4 days ago
- Business
- Bloomberg
Ayesha Curry's Commitment to Using Her Platform to Build Strong Communities
Ayesha Curry, author, entrepreneur, and philanthropist, and Hali Lee, Author of 'The Big We' discuss the future of Sweet July Books and the importance of starting a new paradigm of charitable giving. (Source: Bloomberg)
Associated Press
6 days ago
- Business
- Associated Press
Key Private Bank to Host Free Discussion Panel for Local Non-Profits on Current Charitable Giving Landscape
SYRACUSE, N.Y., May 28, 2025 /3BL/ – Key Private Bank will be partnering with The Bonadio Group to share expert insights for local non-profit organizations navigating the current charitable giving landscape. The panel, 'The Art and Science of Charitable Giving: A Guide for Donors and Nonprofits,' is free to attend and will be held from 9 a.m. to 11 a.m. on Wednesday, June 4 at the Community Folk Art Center. Moderated by KeyBank Vice President, Corporate Responsibility and Community Relations Officer Tamika Otis, the panel will include: The forum will provide context, ideas, and best practices on how non-profit organizations can engage donors to maximize giving. 'Without funding from philanthropic partners, non-profit organizations would not be able to carry out their mission to build a better world. We're meeting non-profits where they are by providing resources and empowering them to fully engage the world of charitable giving,' said Key Private Bank Central New York Sales Leader Julia Trivisonno. 'KeyBank is deeply committed to helping our communities thrive, and we are proud to support local non-profits that work tirelessly to create positive, lasting change.' Local non-profit leaders and stakeholders are encouraged to attend. Those interested in attending the panel discussion can register here. ABOUT KEYCORP In 2025, KeyCorp celebrates its bicentennial, marking 200 years of service to clients and communities from Maine to Alaska. To learn more, visit KeyBank Heritage Center. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2025. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit KeyBank Member FDIC. ### Visit 3BL Media to see more multimedia and stories from KeyBank
Forbes
25-05-2025
- Business
- Forbes
How To Make Charitable Gifts More Effective And Reap More Benefits
Most people wait until late in the year to plan their charitable gifts with the goal of making the gifts by December 31. That traditional approach often leaves a lot of money and other benefits on the table. Often, gifts are made simply by writing a check or donating some assets. The first step to more effective charitable giving is to establish a charitable giving plan. Determine how much wealth you want to donate to charity over time, how much you want to make in lifetime gifts, and how much you want to leave in estate bequests. Also, determine the goals of your giving, especially the causes or charities you want to support. The next step in effective giving is to evaluate the different ways to give, other than writing a check. Charitable giving can provide more than an income tax deduction. Additional benefits might be sheltering capital gains and receiving lifetime income, among others. You gain significant value by starting early in the year and integrating charitable giving with the rest of your retirement and estate plans. Remember that to receive a tax deduction for charitable gifts you must itemize expenses on Schedule A. A minority of taxpayers have itemized expenses since the 2017 tax law doubled the standard deduction, because you only use Schedule A when the total of your itemized expenses exceeds the standard deduction. One way around that problem is to bunch several years of planned charitable contributions into one year. An increasingly-popular way to bunch donations is to contribute a significant amount of money or property to a donor-advised fund. You qualify to deduct the value of the gift (or gifts) you made to the DAF during the calendar year. After funding a DAF account, you recommend contributions from the DAF to charities over time in any pattern you want. There's no minimum annual charitable contribution requirement. You might want to use a DAF to bunch deductions when your other itemized expenses plus the DAF contributions bring your total itemized expenses well above the standard deduction amount. You maintain some control over the DAF account, including choosing how it is invested. The investment returns compound tax-free in the account. Some of the best ways to make charitable contributions don't involve cash. Donating appreciated investments from taxable accounts reaps significant tax benefits in addition to bunching charitable contributions in one year. Most DAFs and other charities accept contributions of a wide range of assets, such as stocks, mutual funds, real estate, digital currencies, and more. Your tax deduction is the fair market value of the property on the date of the gift. There are no capital gains taxes due on the appreciation that occurred while you owned the property. So, you sheltered the capital gains from taxes, qualified for a deduction of the property's value, and the charity will benefit from the property's full value. That's more beneficial than selling the investment and paying taxes on the gain while separately writing a check to charity. Several charitable giving strategies generate an additional benefit: regular income. One strategy is to make a contribution to the charity in return for a charitable gift annuity. The charity pays income to you for either life or a period of years, whichever you select. You can schedule the income to begin immediately or at a later age. The CGA pays less income than a comparable commercial annuity. The difference in income is your gift to the charity and qualifies as an itemized expense deduction in the year of the gift. The amount of the deduction is determined using current interest rates and a formula issued by the IRS. Suppose a married couple ages 65 and one 66, donate $100,000 worth of property with a $50,000 basis to a charity in return for a charitable gift annuity with monthly lifetime payments to begin immediately. At recent interest rates, they would qualify for a charitable contribution deduction of $33,248 in the year of the gift. They'd receive $4,800 annually, paid in monthly installments, no matter how long they live. For 24.6 years, 56.5% or $2,712 of the annual payments would be tax free. The rest would be divided between long-term capital gains and ordinary income. After that, the entirety of each payment would be taxed as ordinary income. The details depend on the donors' age and interest rates in the month the gift is made. Another gift that generates regular income is the charitable remainder trust. You donate cash or appreciated property to the trust. The trust sells any property tax free and reinvests the proceeds. You receive annual income from the trust for either life or a period of years, whichever you select. The payments can be either a fixed amount (known as a charitable remainder annuity trust, or CRAT) or a fixed percentage of the annual trust value (known as a charitable remainder unitrust, or CRUT). After you pass away or the income period ends, the charity receives whatever is left in the trust, called the remainder interest. In either case, you qualify for a charitable contribution deduction in the year of the gift equal to the present value of the charity's remainder interest. You don't owe capital gains taxes immediately on the gain you had in the property. Instead, part of each income payment will be taxed as a long-term capital gain over your life expectancy. The tax code puts minimum and maximum limits on the annual income that can be paid by a charitable remainder trust. Another strategy that should be considered by anyone who is charitably inclined and older than age 70½ is making qualified charitable distributions (QCDs) from a traditional IRA. In a QCD, you tell the retirement account custodian to distribute part of the account to a charity. You receive no deduction, but the distribution isn't included in your gross income. Plus, if you're taking required minimum distributions (RMDs), the contribution counts toward your RMD for the year. I've discussed QCDs in detail in the past. Donating a permanent life insurance policy you no longer need can generate tax benefits. When you transfer a policy with a paid-up cash value to charity, you qualify for a charitable contribution deduction equal to the paid-up value. The charity will name itself the beneficiary. The life insurance benefits won't be included in your estate and will benefit the charity. When the life insurance isn't fully paid up, you can transfer ownership to the charity. You make contributions to the charity to pay the future premiums, which qualify as deductible charitable contributions.
Times
16-05-2025
- Business
- Times
Meet the pair donating £5.2m a week to climate change
Hedge fund managers are leading the charitable giving charge in the UK, taking the podium positions in The Sunday Times Giving List. Joint top for the first time are Suneil Setiya and Greg Skinner, worth an estimated £980 million each, who last year gave away 13.77 per cent of their wealth. The Quadrature Capital founders are notoriously private but their money speaks volumes. Last year the company, owned via the Cayman Islands, gave £4 million to the Labour Party, then in opposition, its largest single donation ever. Yet the issue Setiya and Skinner care most about is climate change. 'We are passionate about supporting causes that address poverty, inequality and human suffering,' they say. 'Climate change compounds these challenges. This realisation led us to
Telegraph
11-05-2025
- Business
- Telegraph
Philanthropy is not the sinister tax dodge the Left would have you believe
Can charitable giving be a means to avoid tax? Whenever a story of some very rich person making a large donation is in the news, the sneering refrain of it being a tax write-off will soon be heard. The reality is that charitable giving does not work as a method of avoiding tax – or rather, it can indeed reduce your tax bill to zero, but at a cost that is under the most advantageous circumstances more than double what the tax liability would have been. How the rich use charitable donations to reduce their tax bills is rich fodder for Guardian columnists, but it has been a much hotter political issue for much longer on the other side of the Atlantic. In the United States it has fuelled progressive outrage for over a century. American philanthropy is on a much grander scale than ours. In 2023, charitable giving in the US is estimated to have totalled $557bn (£420bn). According to the Charities Aid Foundation (CAF), last year the UK public donated £15.4bn. Americans gave roughly 27 times more than Britons, while its population is only six times larger. If we were as generous per head of population, we would be giving around £70bn to charity every year. The US is much richer than us, and that gap is growing. But that can only be part of the story for such a large divergence. A popular explanation is that the US tax system treats donations more generously than that of the UK. But the problem with that argument is that it doesn't – our system is just more complex. In fact, as UK taxes are considerably higher (certainly if only US federal taxes are taken into account), our tax relief is also higher. Admittedly, our more complex rules will mean that a lower proportion of relief that is due will actually be claimed. For a higher rate taxpayer to donate £1,000 to charity, the net cost to them will be £600 and for an additional rate payer – someone earning over £125,140 – £550. Those wishing to give £1,000 to their chosen cause must make a payment of £800. Then the charity claims £200 from HMRC in Gift Aid, ie the 20pc basic rate tax paid on the gross amount. The donor can then declare the gift on their annual return, avoiding any higher or additional rate tax on that £1,000. There is a good reason why the UK has Gift Aid rather than the more straightforward US system of simply declaring donations on one's annual tax return to get the relief. In the United States all taxpayers are obliged to file a tax return; in the UK most people on PAYE without outside earnings don't have to. When donations are made to family charitable trusts, rather than what are generally understood as charities, the story becomes more intriguing. The donor will not lose full control of the funds. Set up a charitable trust with your nearest and dearest on the board, then donate £1m. HMRC will top this up with £250,000 and your tax bill will go down by £312,500 (as surely anyone who can afford to donate £1m will be an additional rate taxpayer). The same effect can be had for those with smaller sums to spare or those who don't want to go to the hassle of establishing their own charity by setting up a donor account with CAF or other charitable entities who provide this service. Under both arrangements, the funds don't need to be distributed straight away to deserving causes. But such trusts cannot simply be used to accumulate tax-free funds. In America the rules are complex, but broadly speaking 5pc of a foundation's funds need to be distributed each year. The UK guidelines are rather less rigid, but the same general principle applies. A family charitable trust's board, or in truth often the person who set it up, can still direct how its funds are invested. These decisions do need to be made in the interests of the charity, not those of the donor – but this should usually not be too onerous a requirement. The appeal of such an arrangement to plutocrats is unambiguous. They can put part of their wealth beyond the reach of the taxman while still having significant control over them. So why is this not a tax dodge? Because once the transfer has been made the funds can only be used for charitable purposes and the money can not be called back. They can't be dipped into when a desperate desire for a new yacht arises. One of the great success stories of British philanthropy since its founding in 1958 has been the Garfield Weston Foundation. Its donations have benefitted virtually all our great museums, art institutions and welfare charities across the country. Its funds have an intriguing source. British Sugar, Primark (both owned by Associated British Foods) and Fortnum and Mason all, indirectly, contribute to them. Associated British Foods, with a market capitalisation of around £14.5bn, is 56.6pc owned by Wittington Investments. Fortnum is wholly owned by Wittington. Just over 20pc of Wittington benefits the billionaire Weston family. The other 79.2pc is owned by the foundation, which annually makes donations of around £100m. That is what family charitable trusts can achieve. They are not a tax dodge, but rather make Britain a better place for all of us.
