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Newsletter for Professional Advisors from the
East Bay
Community
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NEW EBCF CEO & BOARD CHAIR
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CHARITABLE GIVING MADE EASY AND SIMPLE
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RESEARCHING PHILANTHROPY FOR A CLIENT?
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NEWS FROM THE IRS
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DONATING REAL PROPERTY TO CHARITY
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Featured
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A
Newsletter for Professional Advisors from the
East Bay Community Foundation
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NEW EBCF CEO & BOARD CHAIR
We’re pleased and proud to have onboard two important new leaders: new President and Chief Executive Officer Nicole Taylor and new Board Chair Michael Dalby.
Taylor, who was formerly Managing Director of the Haas Center for Public Service at Stanford University, is a veteran of the non-profit sector and the first African-American to become the Foundation’s chief executive. She has extensive knowledge of community foundations and of EBCF’s programs and operations because she spent nine years with the Foundation as a consultant and staff member earlier in her career.
Taylor was named as the result of a nine-month nationwide search following the departure of sociologist Mike Howe, who returned to academic life after leading the Foundation for 13 years.
Management consultant and former McKesson Corporation senior executive Michael Dalby takes over leadership of EBCF’s 15-member governing board of directors. Dalby succeeds James King, owner of his own investment advisory firm in Walnut Creek, who served as Board Chair for the past two years.
CHARITABLE GIVING MADE EASY AND SIMPLE
When Jerry and Belinda Lucey of Moraga – he a retired attorney and she a retired teacher – wanted to engage their family in charitable giving, they contacted us.
The Luceys opened a “donor advised fund,” one of our most popular charitable vehicles that provides families a way to engage in philanthropy that’s easier, less expensive and subject to fewer restrictions and regulations than a private foundation.
“We’ve challenged our two children and their families to each find one organization that deserves funding this year and they’ve embraced the challenge,” says Jerry Lucey. “We’re looking forward to discussing their choices over the holidays.”
The East Bay Community Foundation takes care of the administration and paperwork and the Luceys get to focus on the important part: working with their family to identify grantees in their field of interest and teaming up with the Foundation’s own giving to achieve even greater impact.
RESEARCHING PHILANTHROPY FOR A CLIENT?
We have the information you need. And it’s all there on our website.
We’ve developed an easy-to-use “Researching Philanthropy” Center providing one-stop shopping for those needing accurate and up-to-date information on philanthropy, charitable giving and related subjects. The center features:
• A history of philanthropy in the US and a glossary of terms;
• A selected list of authoritative organizations and institutions on philanthropy and charitable giving;
• Access to important research, studies and reports;
• A guide to mass media outlets covering philanthropy and charitable giving;
• Information on and a list of blogging sites, as well as a short list of well-regarded sites;
• Information on the biggest philanthropists.
For the latest information on what's happening in philanthropy, click on the Researching Philanthropy link.
Researching Philanthropy
NEWS FROM THE IRS
The IRS has recently put two financial transactions under the microscope and is also providing additional guidance for the establishment of charitable lead trusts.
The transactions involve “toggling” grantor trusts and contributions of a successor member interest in a limited liability company.
According to the IRS, “toggling” involves attempts “to avoid recognizing gain or to claim a tax loss greater than any actual economic loss by purportedly terminating and then reestablishing the grantor status of the trust,” typically within 30 days. (See Notice 2007-73, Transaction of Interest – Toggling Grantor Trust.)
The second transaction under the microscope is one in which “a taxpayer acquires a successor member interest, directly or indirectly, in real property, transfers the interest to a tax-exempt organization, and claims a charitable deduction that is significantly higher than the amount that the taxpayer paid for the interest.” (See IR-2007-143 and Notice 2007-72, Contribution of Successor Member Interest.)
The IRS has designated both as “transactions of interest,” meaning that while they have potential for abuse, they have not yet been identified as tax avoidance transactions.
In a separate move, the IRS is now providing specific guidance for establishing charitable lead trusts -- similar to guidance that has been provided for charitable remainder trusts. Revenue Procedures 2007-45 and 2007-46 provide background, applicable IRS Code provisions, regulations, and sample forms with annotations for establishing inter-vivos and testamentary charitable lead trusts.
DONATING REAL PROPERTY TO CHARITY
More and more donors are interested in donating real property to charity, especially in California. The process and charitable tools for doing so are many, as are the impacts of such transactions on donors and recipients alike.
One of the best sources of information and guidance on this subject is an extensive article recently published in California Trusts and Estates Quarterly.
For reprints of the article or to learn more about working with us to donate real property, contact our Director of Development, Sara DuBois, at 510.208.0817 or at sdubois@eastbaycf.org.
PROFESSIONAL ADVISOR SEMINAR: NOVEMBER 7
The East Bay Community Foundation and Children's Hospital & Research Center Foundation are pleased to present a professional advisor seminar on November 7, 2007.
The charitable remainder net-income unitrust with make-up provision (NIMCRUT) remains a powerful vehicle to coordinate philanthropic objectives with financial and estate planning objectives. This presentation will focus on techniques to control the amount and timing of fiduciary accounting income distributable by NIMCRUTs to income beneficiaries, as well as well as important recent IRS rulings affecting NIMCRUTs.
David Wheeler Newman, of Mitchell Silberberg & Knupp LLP in Los Angeles, will present on this topic here at the Foundation’s Conference Center. Registration and lunch will begin at 11:30 a.m., and the seminar will take place from noon to 1:30 p.m. Register at (800) 841-4642, http://www.brownpapertickets.com/event/21633, or send $35 to 2201 Broadway, Suite 600, Oakland, CA 94612.
For reprints of the article or to learn more about working with us to donate real property, contact our Director of Development, Sara DuBois, at 510.208.0817 or at sdubois@eastbaycf.org.
For more information, please contact Sara DuBois at (510) 208-0817 or sdubois@eastbaycf.org.
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