Christopher R. Hoyt

This article examines the three major types of grant‐making vehicles: a private foundation, a donor advised fund, and a grant‐making supporting organization. After a concise summary of the different vehicles and the various laws that govern each of them, it explores recurring situations that favor the use of one vehicle over another, and suggests solutions to common transactions that may pose problems (e.g., the impact of a legally‐binding pledge from a donor?). This lively mix of theory with practice helps solve the challenges that grant‐seekers and grant‐makers see every day.

Congress enacted legislation that permits donors over age 70 ½ to make lifetime charitable gifts from their IRAs in 2006 and 2007 without having to recognize the payments as taxable income. How successful has this legislation been? Which taxpayers receive the greatest benefits and what are the legal requirements? Will the law be extended to 2008 and future years? This article identifies the donors who should use the law this year, and identifies optimal strategies for communicating with both donors and IRA administrators to successfully implement these gifts.

There are more than three million Subchapter S corporations in the United States with nearly six million shareholders. These corporations and shareholders can be major sources of charitable gifts, but there are technical tax laws that can turn a mistake in the gift transaction into a severe financial cost to the corporation, its shareholders, and even to a charity that receives a gift. What are these laws? How does a charity evaluate whether the economic and tax benefits from the gift will exceed its costs? When can a CGA be safely issued for a gift of S corporation stock? This article addresses these questions.

What are the laws that encourage or discourage charitable gifts and bequests from retirement accounts, including IRAs, 401(k), and 403(b)? When is a donor better off making a lifetime gift from a retirement account than a gift of some other sort of asset, such as appreciated stock? How will the Charitable IRA Rollover change planning scenarios? This article presents an overview of how IRAs and other types of retirement plan accounts fit into the world of charitable gift planning. Readers will learn how the combination of income and estate taxes on these accounts can cause many people who are not charitably inclined to use these assets for charitable purposes.