This case study illustrates how a donor can use a gift annuity to provide a fixed income stream to a relative for life while at the same time reducing taxes and benefiting charity.

The law of endowments has changed dramatically, just in time for our new "down" market. This article focuses on the law of endowments, the new accounting rules, and the challenges facing charities in determining their endowment spending rates. This also reviews a few "new" ideas for donors reluctant to give to the traditional endowment.

One popular technique in financial planning circles is to convert an IRA to a Roth IRA, so that the IRA participant will not have to pay income taxes on distributions from the Roth IRA in later years. However, the participant in a Roth IRA must typically pay substantial income taxes, since the IRA distribution (before it goes into the Roth) is taxable at ordinary income tax rates. One option is to offset taxes due on the conversion by simultaneously making a gift to a pooled income fund (PIF). Not only does this reduce taxes, but it provides cash flow for life to the income beneficiaries of the PIF while (very importantly) benefiting charity!

Most disputes over charitable bequests are resolved through mediation. This article is a simulated mediation in which participants play different roles and attempt to make a deal to settle the dispute. A basic fact pattern is provided in advance, with additional details for roles provided in this article.