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The Advisor Resource is an occasional eNewsletter designed to provide attorneys, accountants and financial advisors with helpful resources and information to better serve their clients.

Our December 2020 issue includes:

Reminders and Deadlines for Year-End Giving

We’re here to help make your clients’ year-end charitable giving easy, seamless and impactful

As we look toward the final weeks of the calendar year, here are some helpful reminders:

If your client is planning to open a new fund before year-end, the fund agreement must be completed no later than December 31. Agreements can generally be completed the same day, and gifts must meet the following timeframes:

Gifts From Your Client to Their Fund at the Community Foundation:

• Gifts of stock must be received into the Community Foundation brokerage accounts by Thursday, Dec. 31.
• Gifts of mutual funds must be received into the Community Foundation brokerage accounts on Thursday, Dec.31. Please note gifts of mutual funds typically take over a week to complete.
• Gifts of complex assets such as real estate, closely held business interests or stock, and planned giving vehicles should be discussed with a member of our philanthropic services team in the early weeks of December to ensure the Foundation's gift acceptance committee has adequate time for review and approval before year end.
• Checks sent via U.S. Postal Service to the Community Foundation must be postmarked on or before Thursday, Dec. 31.
• Checks sent via carriers such as FedEx, UPS and DHL must be physically received at the Community Foundation office on or before Thursday, Dec. 31.
• The Foundation’s lobby will be open from 8 a.m. - 5 p.m. on Thursday, Dec. 31. Checks or cash must be dropped off at the Foundation by 5 p.m. on December 31.
• Wire transfers of cash must be received into our Community Foundation bank account by Thursday, Dec. 31. We encourage you to reach out to your banker, as many banks have their own year-end transfer deadlines.
• Online credit card contributions may be made until 11:59 p.m. on Thursday, Dec. 31, to ensure timely posting by the credit card company.

Do you or your clients need recommendations for impactful year-end giving opportunities?

Our Community Investment team is in constant contact with area nonprofits, schools and civic organizations and has a pulse on the needs and opportunities that exist throughout our area. If you need recommendations for impactful giving opportunities, contact Patrick Gale, vice president for Community Investment.

Taking Chances

Will Hindsight Point to 2020 as the Year to Maximize Giving?

The November 3 election left many professional advisors with a dilemma: Should they counsel their clients to implement planning techniques in anticipation of sweeping changes to the tax laws, or instead assume the status quo will continue and stay the course with clients’ current plans?

Here’s a look at how proposed changes might affect charitable giving strategies:

Under Joe Biden’s proposed tax plan, taxpayers making more than $400,000 per year would be taxed at a top income tax rate of 39.6%, an increase from 37% under current law. That would mean charitable giving would become more tax efficient under the new law for some taxpayers. However, a separate provision in Biden’s proposed plan would impose a 28% limit on charitable deductions for taxpayers who make more than $400,000 per year. This would mean that instead of avoiding income tax on charitable gifts at the rate of 39.6% as described above, these taxpayers would escape income tax only at a rate of 28%.

Biden’s tax proposal also calls for increasing — from a maximum rate of 20% to 39.6% — the capital gains and dividend tax rates for taxpayers whose annual earnings exceed $1 million. For affected taxpayers, this change would create opportunities to avoid significantly more tax than is possible under current law for gifts of appreciated assets. An increase like this would create a huge incentive for philanthropists to support charitable organizations.

Impact to Charitable Legacies

One point of Biden’s proposal we’re watching closely is the call for a substantial elimination of the step-up in basis from the taxpayer’s cost to fair market value at the time of death, further complicating existing estate plans for many families.

Some philanthropists are maximizing gifts to family members in 2020 to take advantage of their remaining exemptions and deferring charitable gifts to 2021 and beyond, under the assumption that tax laws will change dramatically. Others simply are not comfortable with making such large gifts immediately — and thereby significantly reducing their own net worth — when it might end up not mattering.

Questions?

Want to talk more about strategies that may help your clients? Give us a call — we’d love to visit with you! Reach us at 605.336.7055.

Meet Our Philanthropic Experts

Offering expertise in philanthropic planning and strategy, our Philanthropy Team is ready to partner with you to help your clients navigate their philanthropic journey. Together, we’ll simplify your clients’ giving and maximize their impact.

Meet our Philanthropy Team

Andy Patterson, President

Andy joined the Community Foundation in 2006 and was named president in 2015. Prior to joining the Foundation, he served as director of development for the University of Sioux Falls, where he oversaw the “Greatest Gift” campaign, the largest in school history, which raised $25 million for the endowment as well as capital improvement projects.

Andy holds a bachelor’s degree and an MBA from USF.

A member of the Sioux Empire Leadership Council, Andy also serves on the Sioux Falls Area Chamber of Commerce’s Foundation Board and Business Leadership Council, as well as Sioux Falls Thrive’s Strategy Council. He is also a member of the Association of Fundraising Professionals, the Sioux Falls Estate Planning Council and Downtown Rotary. He is currently completing his Chartered Advisor in Philanthropy (CAP) designation.

Contact Andy at 605.336.7055 x 15 or by email.

Mary Kolsrud, Vice President, Philanthropy

Mary joined the Community Foundation in 2017 after serving as executive director for Susan G. Komen Great Plains where she provided leadership for the local affiliate, building community relations and advocating for patient rights.

A graduate of Augustana University, Mary also holds an MBA from the University of South Dakota.

In addition to being a member of the Sioux Falls Estate Planning Council, Mary also holds the Chartered Advisor in Philanthropy (CAP) designation, maintaining an in-depth knowledge of the philanthropic process.

Contact Mary at 605.336.7055 x 26 or by email.

Nate Dally, Donor Relations Manager

Nate joined the Community Foundation in 2019 after serving as an assistant vice president for Augustana University where he managed major giving to the endowment, capital projects and scholarships. He also oversaw the University’s annual giving program as well as alumni relations.

A graduate of Concordia College, Nate is passionate about making the Sioux Falls area an even better place to live, work and play.

An active community volunteer, Nate is also a graduate of Leadership Sioux Falls.

Contact Nate at 605.336.7055 x 12 or by email.