Scenario:
A Ruby Hills family would
like to broaden their
philanthropic impact
through a private
foundation, but want
greater tax benefits and
fewer bureaucratic
hurdles.
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Scenario:
An affluent Dublin Ranch
family has appreciated
stock that constitutes
substantial wealth and
also contributes to estate
planning problems for
them this year. The
parents are interested in
supporting the visual and
performing arts and would
like to take an active role
in the growth of the arts in
Dublin and the Tri-Valley
region. They also would
like to get their adult
children involved in
philanthropy.
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Scenario:
A San Ramon couple has
highly appreciated
rental property and
wishes to donate it to a
local school that isn't
equipped to accept real
estate.
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Solution:
Open a Donor-Advised
Fund, which allows the
family to recommend
grants throughout the
Tri-Valley region and
beyond. The family meets
regularly to make
decisions about grants.
Because many family
members are health care
professionals, their
grant recommendations
often focus on access to
medical care for the
uninsured, but also
reflect the family's
interest in environmental
causes and supporting
education in the
sciences.
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Solution:
Create a Supporting
Organization at the
Foundation. The family
contributes their
appreciated stock for the
maximum allowable
charitable tax deduction
and avoids capital gains
taxes.* When the
Supporting Organization
sells the assets, the
entire gift is available for
grant-making in support of
the arts. Foundation staff
will work closely with the
family to achieve their
philanthropic goals.
* While the deduction is based
on the full fair market value of
the contributed asset, the
maximum allowable charitable
tax deduction for a contribution
of capital gain property is 30% of
adjusted gross income. Any
excess can be carried forward
for 5 years.
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Solution:
Give real estate to the
Foundation and receive
a tax deduction on its
full market value, while
avoiding the capital
gains tax that would
arise from a sale. The
Foundation sells the
real estate and uses the
proceeds to set up a
Scholarship Fund that
supports the school.
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