On Jan. 31, the Jewish Community Foundation’s J-LEAD program hosted “2021 is here! Let’s plan for a bright future,” an online event about tax, financial and estate planning techniques. Lindsay Fineman, J-LEAD chair, moderated a panel of notable experts, including current and past J-LEAD members, who shared insights about planning for the future and how to support important causes through smarter giving strategies. Though the event was geared toward those just getting started with estate planning, the experts offered information applicable to anyone interested in impactful and tax-wise charitable giving.
The panel included Jeremy Sandler, financial adviser and founder of Sandler Financial Solutions; Paul Himmelstein, attorney with Lewis Rice; Robert Gershon, CPA; and Josh Stein, director of philanthropy of the Jewish Community Foundation and staff liaison for the J-LEAD program, the Foundation’s giving circle for Jewish adults in their 20s, 30s and 40s. J-LEAD members annually pool charitable resources and make collective grant decisions, as well as participate in social and educational events throughout the year.
The panel discussed how to begin planning for one’s future and Himmelstein explained that it is never too early to start putting good plans in place. He said, “It starts with the client’s goals. Where do you want to go?” and suggested that timing is important — the earlier you start the more options you have available to you.
Sandler shared his advice for getting started: “Making sure you have a good, solid team to help you.” Many people first seek out the help of a professional adviser during significant life events — a new job, marriage, having children, selling a business, divorce or retirement — though it’s never too early or late to engage the help of a professional adviser. Depending on your needs, you may choose to work with an attorney, accountant, financial planner and/or a philanthropic adviser, all of whom are trained to listen to your unique goals, provide guidance and, as needed, collaborate with other professionals to ensure your goals are met.
One of the benefits of working with a professional such as a CPA is their expertise in the area of tax-wise charitable giving. “Any good tax accountant is going to have a planning conversation with you each year, in addition to doing your tax returns,” said Gershon. “I never recommend that you use tax to drive charitable contributions, but if you are going to make contributions to organizations that you feel strongly about, there are some basic steps that you can use to take advantage of tax incentives.”
One of these steps is opening a Donor Advised Fund, like those offered at the Jewish Community Foundation. Stein explained, “Donor Advised Funds are like charitable checking accounts that allow donors to easily and efficiently support the charitable organizations of their choice.” Donors are eligible to receive a tax deduction in the year their Donor Advised Fund is opened and may then use their fund to support their favorite charities according to their own timetable. “Bunching” multiple years of charitable gifts into a Donor Advised Fund is a smart way to receive the tax advantages of giving, even if the donor wasn’t able to itemize their taxes the previous year.
Giving appreciated stock is another smart strategy. Transferring appreciated stock (held for one year or longer) directly to a charity or to a donor advised fund at the Foundation can offer greater tax benefits than donating cash. Some advantages of giving appreciated stock are that the donor may be eligible to receive an income tax deduction for the full market value of the stock (up to 30% of their adjusted gross income), they avoid paying capital gains taxes and they’re able to generously support the charities that are important to them.
While for many people. planning for the future means saving for retirement and their children’s college, it can also mean making plans to support their favorite charities in perpetuity. Many members of the Jewish community have already established planned gifts, which are charitable gifts put in place during one’s lifetime that are paid from one’s estate at their death. There are a variety of ways to make a planned gift and working with a professional adviser can help donors find the best giving strategies for their particular needs.
“At the Foundation we often work with estate planning attorneys and other professional advisers to help our donors find the best vehicles to leave a charitable legacy, whether it be to pre-fund something during their lifetime or to give from assets upon their death,” said Stein. “When you plan to leave a legacy, you’re truly helping to ensure a bright future for coming generations.”
For more information about planned giving or J-LEAD, visit www.jcfkc.org or contact Josh Stein at 913-327-8121 or .
