Charitable Giving
Strategies Package
The Carolinas Wealth Management Difference
We work with charities to develop a strategic plan for marketing to donors.
We equip you with the right tools, help identify the right people, and set specific goals and objectives for performing an effective planned giving campaign.
Our company offers value added services that include seasoned subject matter experts to intimately guide you and donors in the areas of tax planning, estate planning, legacy planning, retirement income planning, and charitable giving strategies. We will work hands on with your donors to perform a needs assessment and deliver on the specific areas of planning for the future that is the most important to them. Ultimately, for you, we will create a network of individuals that are positioned financially to perform greater acts of benevolence in alignment with your organization’s goals and objectives.
In addition to our team of financial professionals, we also are able to offer you focused marketing services to help you promote your campaign. We will gve you access to collateral, resource kits, and analytics that you will need to perform regular engagement with your donor base. Essentially, what we can deliver for you is unique and effective for your planned giving needs because we have covered under one umbrella at Carolinas Wealth Manage-ment! Overall, our vision at CWM is to deploy our team of professionals to serve people, build relationships, and deliver guidance that will help optimize the financial outlook for all families with an emphasis on expanding charitable giving.
What We Can Do For You!
The CWM Team:
We Educate!
Donors often do more when they understand how everyone can benefit with proper planning and strategies. We offer complimentary dinners and lunch-n-learns to educate your donor base on the importance of reviewing their life and financial decisions. Our seminars
and complimentary second opinions include details on how to use assets and monies to do more for heirs and charities while reducing the government's share.
We have a Team!
In addition to our group of six financial advisors, we have a team of attorneys and CPA's that are focused on maximizing the tax advantages of every strategy we present. These are not people that we refer to but professionals that work in our offices. We are committed to making sure every aspect of every strategy is thoroughly explored to allow for the best possible outcome for our clients. Areas of risk and reward are fully evaluated.
Our team consists of professionals available to help maximize your gifts!
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Financial Impact: Our CFP professionals help minimize distruptions to your lifestyle•
Tax decisions: Our CPA's and Certified Tax Specialists help minimize tax implications•
Estate Planning: Our tax attorneys help ensure your legacy to your heirsWe Equip You To Engage!
We offer you a strategic guide customized to help you achieve your goals. Based on your needs, we will provide you with materials that include:
• Outreach letters to donors
• Online resources for donors to ask questions and seek advice
• Events marketing to build community and share information
• Opportunities to offer your donors one-on-one financial assessments
How We Do It.
The CWM Difference:
“Helping Good People Live Their Best Life”
• Reduce estate taxes
• Claim an income tax deduction
• Produce an income
• Benefit charities instead of the IRS
Learn the options.
Charitable Trusts:
We walk donors through their options!
What motivates your givers?
We will seek to understand your donor’s motivations and objectives for helping your causes and creating a philanthropic plan.
What solutions are best?
We will work with them to understand the solutions that are available to them to meet their wealth transfer goals while building a legacy for their charities.
What funding strategies should they use?
We will provide global investment research capabilities to help them determine what assets are best suited for them to give.
Donors often benefit when they maintain control.
Our team helps your donors maintain control of their planned giving and have confidence in the choices they make for the benefit of the causes they choose to support. With our team, your donors will have access to resources that will show them how to potentially:
Learn the options.
Charitable Trusts:
We walk donors through their options!
Elimination of capital gains taxes
Because their assets are tax-exemptible, Charitable Remainder Trusts do not pay any capital gains taxes. These taxes can range from 0% to 23.8% of an asset's growth in value. For this reason, CRTs are ideal for assets like stocks or property with a low cost basis but highly appreciated value.
Funding a CRT with highly-appreciated assets (like real estate) allows trustees to sell those assets without paying any capital gains on the property sold. The full value of contributed assets stays in the trust (and thus, to the family and favorite charity).
Reduction of income and estate taxes
A CRT is considered "outside of your estate" by the IRS. Because of this, donors may end up keeping as much as 40%, based on current marginal estate tax rates, of the value of the gift intact for the benefit of the charity. Plus, you are usually not limited in how much you can contribute by the annual gifting limit or the Estate and Gift Tax Credits. CRTs, because they benefit a charity, may also qualify you for a partial income tax deduction. The amount of your deduction is the present value of the remainder interest to the charity. Your current deduction also depends on the type of property you contribute, as well as the type of charity you name as beneficiary. Any deductions not used in the year of contribution may be carried forward 5 years.
-We walk donors through their options!
Produce immediate income for the charity
If the intent of the donor is to provide for the charity immediately while still retaining tax benefits discussed with regards to the Charitable Remainder Trust, then a Charitable Lead Trust may be more appropriate.
How a Charitable Lead Trust works:
Like a CRT, CLTs offer current income tax deductions and a reduction of capital gains taxes. The only difference is the CLT flip-flops the parties involved. Charities become the income beneficia-ries, receiving a steady stream of income for a set number of years. At the owner’s death, named beneficiaries then receive the remainder of the assets. And just like the CRT, charitable lead trusts also receive the same preferential tax treatment by the IRS. In a nutshell, your heirs get the income and the charity receives the capital.
Produce a retirement income
CRT’s are irrevocable trusts that actually provide for an maintain two sets of beneficiaries. The first set are the income beneficiaries (the donor, but can be anyone). Income beneficiaries receive either a set dollar amount or a set percentage of income for your lifetime from the trust. The seond set of beneficiaries are the chariteis. They receive the principal of the trust after the income beneficiaries pass away. The IRS states that, at a very minimum, the CRT must distribute at least 5% of the net fair market value of its assets. If you don’t need the income one year, you may elect to defer income through a “makeup provision.” However, the CRT’s net distribution must eventu-ally equal 5% to be considered valid.
Learn the options.
A combination of options!
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The Legacy Trust
CRTs are designed to give the principal to charities when the donor passes away. This bypasses any children, which could leave heirs feeling slighted. These feelings of ill-will can be overcome by combining the CRT with another strategy to “make up the
difference” that goes to charity. For instance, some large estates combine the CRT with The Legacy Trust to provide a cash distribution upon the death of the owner. The Legacy Trust then subdivides into individual trusts for each named heir. With a lead trust, the charity receives payments through the term of the contract, and following that,
individuals receive the remaining assets.
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The Wealth Replacement Trust
If the donor wishes to keep the asset level to the heirs as it was before implementing the CRT, they can supplement the CRT with a separate Wealth Replacement Trust. In this scenario, everyone wins. The estate owner receives income streams and a tax deduction , the charity gets the remaining principal of the CRT, and the children receive their share in a tax-free cash distribution from the Wealth Replacement Trust that is usually provided through a life insurance policy.
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The Dynasty Trust
Many families want to use their wealth to provide not only for their children, but for future generations as well. One of the most powerful tools available to help them do that is the dynasty trust. Properly structured, a dynasty trust can keep your assets from being included in your or your descendants' estates, so they can pass tax-free from one
generation to another.
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Generation Skipping Trust
Very similar to the dynasty trust, except it will not go on in perpetuity. This trust ends at the death of the last grandchild.
combinations of options.
Charitable Trusts:
Sam’s Story
“In 2007, I was the ING Platinum Advisor of the year. I was living a luxurious lifestyle and all the social recognition was at my fingertips, yet I was miserable. In 2010, my dear mother passed away from ovarian cancer. As she lay dying, she begged me to re-commit my life to the Lord and stop the life of reckless abandon that was all about Sam. My mother had raised me in a loving Christian home but during college, I decided to live in the world. Even though I had made a promise to my mom to change my life, I fought my convictions for over a year. I started to observe other people as they were brought into my life that demonstrated real
completeness of joy.”
“As I looked at the man in the mirror, I realized the kind of legacy I was building was nothing eternal, rather it was all about me and my unfulfilling selfish desires. If I did not make
a change, my legacy would end as a miserable man focused on himself and temporary unfulfilling things. God began working in my life. He began to place people into my path that were happy because they gave, not because of what they received. God made me realize I was custom designed for a purpose, an eternal purpose, with a hope and a future, with a promise to experience completeness of joy. I was empty but now I am fulfilled. I want to help others have fulfillment. I want to help them realize their best possible future! I want to use my expertise and services to impact communities and non-profit organizations that are focused on serving humanity, investing in biblical eternal things, and building God’s kingdom. I want to help people have a complete life!”
This is Sam’s story.
C A R O L I N A S
wealth management(
Our team of trusted advisors provide insight on:
How can I reduce my tax liability so I can keep more of my hard earned safe money? How can I find banks that pay more on my safe money?
I’m retired: now what do I do to produce an income? How may catastrophic accident or illness affect my current plan? How can I be sure my family is taken care of while doing more for my charity?
Carolinas Wealth Management is not a subsidiary of nor is controlled by ING Financial Partners.
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