2. CHAPTER 1 Selling the Dream
The Growth of Charity
Selling the Dream of “Better”
Who is Selling the Dream?
Selling the Dream Requires an In-depth
Understanding of Why People Give
Why People Don't Give More?
Where Can I Find Out More About It?

3. CHAPTER 2 General Rules for Charitable Deductions
Overview
What Is It?
Qualified Charities Defined

4. CHAPTER 2 General Rules for Charitable Deductions
What Is It? (cont’d)
Direct Gifts
Cash Gifts
Ordinary Income Property
Long-term Capital Gain Property
Life Insurance
Annuities
Series E and EE Bonds
Gifts of Tangible Personal Property
Nondeductible Gifts or Contributions Selling the Dream of “Better”

5. CHAPTER 2 General Rules for Charitable Deductions
Value and Substantiation of Gifts
Fair Market Value
Substantiation
Gifts of Less than $250
Gifts of $250 or More
Gifts of More than $500
Gifts of More than $5,000
Gifts of Artwork More than $20,000
Gifts of Artwork Valued at More than
$50,000
Loss of Deduction

6. CHAPTER 2 General Rules for Charitable Deductions
What Are the Tax Implications?
Income Tax
Gift Tax
Estate Tax

7. CHAPTER 2 General Rules for Charitable Deductions
Penalty for Overvaluation
20% Negligence Penalty
Valuation Misstatement Penalties
20% Substantial Valuation Misstatement Penalty
40% Gross Valuation Misstatement Penalty
75% Fraud Penalty
$1,000 Civil Penalty
Timing of Deduction

8. CHAPTER 3 Income Percentage Limitations
What Is It?
Public (50%) Charities

9. CHAPTER 3 Income Percentage Limitations
How Is It Done?
Public (50%) Charities
Private Family Foundations (30% Charities)
Order of Charitable Deductions Allowed
Reduction from Fair Market Value to Cost
Basis
Fair Market Value Less Than Cost Basis
Property Subject to a Debt
Gifts Made by a Corporation

10. CHAPTER 3 Income Percentage Limitations
“To” Versus “For the Use Of”
Carryover Rules
Effect of Subsequent Events on Carryover
Provisions
Information to Support a Carryover
Deduction

11. CHAPTER 4 Gifts of Property
What Is It?
When is the Use of Such a Device
Indicated?
Tangible Personal Property
Related Use
Investment or Inventory?
Future Interest
Unusual Asset Types

12. CHAPTER 4 Gifts of Property
Intangible Property
Publicly Traded Securities
Privately Held Businesses Related Use
Sole Proprietorships
Partnerships
C Corporations
S Corporations
Limited Liability Companies (LLCs)

13. CHAPTER 4 Gifts of Property
Real Property
Fee Simple
Partial Interests
Indirect Ownership
Where Can I Find Out More About It?
Questions and Answers

14. CHAPTER 5 Partial Interest Rules
What Is It?
When is the Use of Such a Device
Indicated?
Advantages
Disadvantages

15. CHAPTER 5 Partial Interest Rules
What Are the Requirements?
Undivided Portion of Donor's Entire Interest
Remainder Interest in Personal Residence
Remainder Interest in Farm
Other Partial Interest Gifts
Right to Use Property

16. CHAPTER 5 Partial Interest Rules
How it is Done?
Valuation of a Deduction for an Undivided
Interest in Property
Valuation of a Deduction for a Contribution
of a Remainder Interest in a Personal
Residence
What Are the Tax Implications?
What Are the Alternatives?
Where Can I Find Out More About It?
Questions and Answers

17. CHAPTER 6 E-Philanthropy and Technology Issues
What is E-Philanthropy?
Advantages
Disadvantages
Where Can I Find Out More About It?

18. CHAPTER 7 Ethical Issues in Charitable Planning
What Is It?
When Is the Use of Such a Device
Indicated?
How Is It Done?
Donors
Charity Board Members & Executives
Planned Giving & Development Officers
Advisors
Where Can I Find Out More About It?
Questions and Answers

19. CHAPTER 8 The Planned Giving Office
What Is It?
When Is the Use of Such a Device
Indicated?
What Are the Requirements?

20. CHAPTER 8 The Planned Giving Office
How Is It Done? An Example
What Is a Public Charity?
Other Requirements for Tax-Exempt Status
The Charity's Mission Statement
Balancing the Needs of the Charity With
Those of the Donor
Major Gift Acceptance Policy
Donor Contact
Compensation
Public Disclosure & Accountability

21. CHAPTER 8 The Planned Giving Office
How Is It Done? An Example (con’t)
State Laws
Marketing to Donors
Networking With Advisors and Peers
The Professional Advisory Board
Continuing Education
Gift Counting & Accounting
Capital Campaign
Quotas & Other Job Pressures

22. CHAPTER 8 The Planned Giving Office
Where Can I Find Out More About It?
Questions and Answers

23. CHAPTER 9 The Planned Giving Team
What Is It?
When is the Use of Such a Device
Indicated?
Advantages
Disadvantages

24. CHAPTER 9 The Planned Giving Team
What Are the Requirements?
Planned Giving Officers
Truths and Misconceptions Regarding Planned
Giving Officers
The Ideal Planned Giving Officer as a Member
of the Planning Team
Financial Advisors
Some Truths and Misconceptions Regarding
The Ideal Financial Advisor as a Member of
the Planning Team

25. CHAPTER 9 The Planned Giving Team
What Are the Requirements? (cont’d)
Tax Advisors or Estate Planning Attorneys
Some Truths and Misconceptions Regarding
Tax Advisors and Estate Planning Attorneys
The Ideal Tax Advisor or Estate Planning
Attorney as a Member of the Planning Team
Technical Competence

26. CHAPTER 9 The Planned Giving Team
How Is It Done?
Where Can I Find Out More About It?
Questions and Answers

27. CHAPTER 10 Bargain Sale Transactions
What Is It?
When is the Use of Such a Device
Indicated?

28. CHAPTER 10 Bar gain Sale Transactions
Advantages
Advantages to the Donor
Advantages to the Charitable Organization
Disadvantages
Disadvantages to the Donor
Disadvantages to the Charitable
Organization

29. CHAPTER 10 Bargain Sale Transactions
What Are the Requirements?
How Is It Done?
What Are the Tax Implications?
Where Can I Find Out More About It?
Questions and Answers

30. CHAPTER 11 Below-Market Interest Loans
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?

31. CHAPTER 11 Below-Market Interest Loans
How It is Done?
Gift Loans
Compensation-Related Loans
Corporation-Shareholder Loans
Tax Avoidance Loans
Significant Tax Effect Loans
Loans to Qualified Continuing Care
Facilities
Exceptions to the Below-Market Loan
Rules

32. CHAPTER 11 Below-Market Interest Loans
What Are the Tax Implications?
What Are the Alternatives?
Where Can I Find Out More About It?
Questions and Answers

33. CHAPTER 12 Charitable Gift Annuities
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
How Is It Done?

34. CHAPTER 12 Charitable Gift Annuities
What Are the Tax Implications?
Income Tax Treatment to the Donor and
Annuitant
Gift Tax Issues
Estate Tax Issues
Where Can I Find Out More About It?
Questions and Answers

35. CHAPTER 13 Charitable Giving Using Life Insurance
What Is It?
When Is the Use of Such a Device
Indicated?

36. CHAPTER 13 Charitable Giving Using Life Insurance
Outright Gifts at Death
Life Insurance Policies
Annuity Contracts
Outright Gifts During Life

37. CHAPTER 13 Charitable Giving Using Life Insurance
New Life Insurance Purchases
Insuring Against the Loss of a Major Donor
Gifts of Premiums Earmarked for New
Insurance
State Insurable Interest Rules

38. CHAPTER 13 Charitable Giving Using Life Insurance
New Life Insurance Purchases (cont’d)
State Laws Governing the Contract
Risk Assessment and Insurance Illustrations
A Gift With Strings Attached
Duty to Invest Prudently
Percentage-Based Fund Raising Fees
Future Premiums
How to Proceed

39. CHAPTER 13 Charitable Giving Using Life Insurance
Life Insurance as a Wealth
Replacement Tool
Transfers into Split Interest Vehicles
Charitable Remainder Trust
Charitable Gift Annuity

40. CHAPTER 13 Charitable Giving Using Life Insurance
Insurance as an Investment
Individual Insurance
Group Policies
Viatical Settlements
Annuities
Reinsuring Charitable Gift Annuities
Charitable Remainder Trust
Where Can I Find Out More About It?
Questions and Answers

41. CHAPTER 14 Charitable Lead Trusts
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?
How Is It Done -- Examples

42. CHAPTER 14 Charitable Lead Trusts
What Are the Tax Implications?
Valuing the Charitable Deduction
Grantor Lead Trust
Family Lead Trust
Where Can I Find Out More About It?
Questions and Answers

43. CHAPTER 15 Charitable Remainder Annuity Trusts
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?
How Is It Done?

44. CHAPTER 15 Charitable Remainder Annuity Trusts
What Are the Tax Implications?
Income Tax
Gift Tax
Estate Tax
Where Can I Find Out More About It?
Questions and Answers

45. CHAPTER 16 Charitable Remainder Unitrusts
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages

46. CHAPTER 16 Charitable Remainder Unitrusts
What Are the Requirements?
Basic Requirements
Net Income Exception CRUT (NICRUT)
Net Income with Make-Up Provision CRUT
(NIMCRUT)
“FLIP” Unitrust
How Is It Done?
Joint Life CRUT with Wealth Replacement
Trust

47. CHAPTER 16 Charitable Remainder Unitrusts
What Are the Tax Implications?
Value of the Charitable Deduction
Taxation of CRUT Income and Payouts
Determination of Trust Income
Where Can I Find Out More About It?
Questions and Answers

48. CHAPTER 17 Community Foundations
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?

49. CHAPTER 17 Community Foundations
How Is It Done?
What Are the Tax Implications?
What Are the Alternatives?
Where Can I Find Out More About It?
Questions and Answers

50. CHAPTER 18 Qualified Conservation Contributions
What Is It?
When Is the Use of Such a Device
Indicated?

51. CHAPTER 18 Qualified Conservation Contributions
What Are the Requirements?
Qualified Conservation Contribution
Requirements
Qualified Real Property Interest
Qualified Organization
Exclusively for Conservation Purposes
Estate Tax Exclusion Requirements

52. CHAPTER 18 Qualified Conservation Contributions
How Is It Done?
What Are the Tax Implications?
Income Tax
Estate Tax
Estate Tax Exclusion for Land Subject to
Permanent Conservation Easement
Where Can I Find Out More About It?
Questions and Answers

53. CHAPTER 19 Donor Advised Funds
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages

54. CHAPTER 19 Donor Advised Funds
What Are the Requirements?
Types of Donor Funds
How Is It Done? Examples
Where Can I Find Out More About It?
Questions and Answers

55. CHAPTER 20 Pooled Income Funds
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?

56. CHAPTER 20 Pooled Income Funds
How Is It Done?
Irrevocable Gift
Property Suitable to Donate
What Can the Pooled Income Fund Do
With the Assets?
Units of Participation
Summary of Benefits to the Donor
Wealth Replacement Technique

57. CHAPTER 20 Pooled Income Funds
What Are the Tax Implications?
Income Tax
Gift Tax
Estate Tax
Taxation of the Pooled Income Fund
Where Can I Find Out More About It?
Questions and Answers

58. CHAPTER 21 Private Foundations
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?
Private Foundation Excise Taxes

59. CHAPTER 21 Private Foundations
How Is It Done?
Private Operating Foundations
What Are the Tax Implications?
What Are the Alternatives?
Where Can I Find Out More About It?
Questions and Answers

60. CHAPTER 22 Retirement Plan Gifts
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?

61. CHAPTER 22 Retirement Plan Gifts
How Is It Done? An Example
Testamentary Gift Directly to Charity
Testamentary Gift Using a Charitable
Remainder Trust
Distributions as IRD
Wealth Replacement

62. CHAPTER 22 Retirement Plan Gifts
What Are the Tax Implications?
Income Tax
Distributions of Employer Securities
Income in Respect of a Decedent
Required Minimum Distributions
Planning Opportunities
Estate Tax
Where Can I Find Out More About It?
Questions and Answers

63. CHAPTER 23 Testamentary Gifts
What Is It?
Pecuniary Amount
Percentage/Fractional Bequests
Specific/General Bequests
Contingent Bequests

64. CHAPTER 23 Testamentary Gifts
Testamentary Split Interest Gifts
Charitable Remainder Trusts
Charitable Lead Trusts
Pooled Income Funds
Remainder Interest in a Farm or Personal
Residence

65. CHAPTER 23 Testamentary Gifts
When is the Use of Such a Device
Indicated?
Advantages
Disadvantages
What Are the Requirements?
Cy Pres Doctrine
Which Charities Qualify for an Estate
Tax Charitable Deduction?

66. CHAPTER 23 Testamentary Gifts
How Is It Done?
Issues with Specific Property
Tangible Personal Property
Income in Respect of a Decedent
Testamentary Gifts of Life Insurance
Commercial Annuities

67. CHAPTER 23 Testamentary Gifts
Issues with Specific Property
Tangible Personal Property
Income in Respect of a Decedent
Testamentary Gifts of Life Insurance
Commercial Annuities

68. CHAPTER 23 Testamentary Gifts
What Are the Tax Implications?
Charitable Estate Tax Deduction
Property Included in Decedent's Gross
Estate
Payment of Estate Taxes
QTIP Property

69. CHAPTER 23 Testamentary Gifts
What Are the Tax Implications? (cont’d)
Powers of Appointment
General Power of Appointment
Special Power of Appointment
Disclaimers
Income Earned During Estate
Administration
Questions and Answers

70. CHAPTER 24 Supporting Organizations
What Is It?
When Is the Use of Such a Device
Indicated?
Advantages
Disadvantages

71. CHAPTER 24 Supporting Organizations
What Are the Requirements?
How Is It Done?
What Are the Tax Implications?
What Are the Alternatives?
Where Can I Find Out More About It?
Questions and Answers

72. APPENDIX A Planned Giving Trends
Aggressive Charitable Planning
Techniques
Increased Scrutiny from Legislators

73. APPENDIX B Charitable Gift Annuity Rates and IRS Expected Return Multiples
Single Life
Two Lives – Joint and Survivor
Expected Return Multiples

74. APPENDIX C Charitable Remainder Trust (CRT) Administration
Choosing a Charitable Trustee
Institutional Trustee
Charity as Trustee
Grantor as Trustee
Investing Trust Assets
Unrelated Business Taxable Income (UBTI)

75. APPENDIX C Charitable Remainder Trust (CRT) Administration
Tax Reporting Requirements
Form 5227 (Split-Interest Trust Information
Return)
Form 1041-A (U.S. Information Return,
Trust Accumulation of Charitable Amounts)
Schedule K-1 of Form 1041 (Beneficiary's
Share of Income, Deductions, Credits, etc.)
Form 8282 (Donee Information Return)
Other Tax Reporting Requirements

76. APPENDIX C Charitable Remainder Trust (CRT) Administration
Accounting for Annuity or Unitrust
Payments to the Income Beneficiary
The 4-Tier Ordering System
Paying the Annuity or Unitrust Amount
Recordkeeping Requirements

77. APPENDIX C Charitable Remainder Trust (CRT) Administration
Valuation of CRT Assets
Charitable Remainder Annuity Trust
(CRAT)
Charitable Remainder Unitrust (CRUT)
Termination of a Charitable Remainder
Trust
Complying With the Private Foundation
Rules

78. APPENDIX D Income Percentage Limits for Lifetime Charitable Gifts*

79. APPENDIX E Codes of Ethics
Professional Codes
American Association of Fundraising
Counsel (AAFRC)
AAFRC Membership Standards
Association of Fundraising Professionals
(AFP)
AFP Code of Ethical Principles and
Standards of Professional Practice
Association for Healthcare Philanthropy
Statement of Professional Standards and
Conduct Education (CASE)

80. APPENDIX E Codes of Ethics
Professional Codes (cont’d)
Council for Advancement and Support of
Education (CASE)
CASE Statement of Ethics
Council on Foundations
Principles and Practices for Effective
Grantmaking

81. APPENDIX E Codes of Ethics
Professional Codes (cont’d)
International Alliance of Grantwriters and
Nonprofit Consultants (IAOGWANC)
(formerly known as the International
Alliance of Grantwriters and Nonprofit
Management Consultants (IAOGWANMC))
Code of Ethical Principles
Standards of Professional Practice
Summary of Competencies for Nonprofit
Consultant

82. APPENDIX E Codes of Ethics
Professional Codes (cont’d)
National Committee on Planned Giving
(NCPG)
Model Standards of Practice for the Charitable
Gift Planner

83. APPENDIX E Codes of Ethics
Donor Bill of Rights
Principles of the E-Donor Bill of Rights

84. APPENDIX F IRS Filing and Reporting Requirements
Revenue Procedure 83-32,
CB 723
IRS Filing Requirements
IRS Forms

85. APPENDIX G Model Forms for Charitable Remainder Trusts
Inter Vivos Charitable Remainder Unitrust
One Life
Two Lives, Consecutive Interests
Two Lives Concurrent and Consecutive
Interest

86. APPENDIX G Model Forms for Charitable Remainder Trusts
Testamentary Charitable Remainder
Unitrust
One Life
Two Lives, Consecutive Interests
Two Lives, Concurrent and Consecutive
Interests

87. APPENDIX G Model Forms for Charitable Remainder Trusts
Inter Vivos Charitable Remainder Annuity
Trust
One Life
Two Lives, Consecutive Interests
Two Lives, Concurrent and Consecutive
Interests

88. APPENDIX G Model Forms for Charitable Remainder Trusts
Testamentary Charitable Remainder
Annuity Trust
One Life
Two Lives, Consecutive Interests
Two Lives, Concurrent and Consecutive
Interests

89. APPENDIX H Charitable Planning Software
What to Look for–Selection Criteria
Types of Software
Comprehensive Calculations and
Illustrations
Administrative Software
Where Can I Find Out More About It?
Questions and Answers

90. APPENDIX I Tax Rates and Credits
Income Tax Rate Schedules
Gift and Estate Tax Rate Schedules
Unified Credit
Maximum Credit Table for State Death
Taxes

91. APPENDIX J Valuation Issues Relating to Specific Assets
General Valuation Rules
Fair Market Value
Deduction Limitations
Reduction Rule: Ordinary Income Property
Reduction Rule: Long-Term Capital Gain
Property
Reduction Rule: Tangible Personal Property
Reduction Rule: Gifts of Appreciated
Property to a Private Charity
Appraisal Requirements

92. APPENDIX J Valuation Issues Relating to Specific Assets
Valuation Issues for Specific Assets
Real Estate
Publicly Traded Stocks, Bonds, and Mutual
Funds
Closely Held Stock
Life Insurance
Tangible Personal Property

93. APPENDIX K Valuation Tables
CLATs, CRATs
CLUTs, CRUTs
PIFs
Charitable Gift Annuities

94. APPENDIX L Charitable Planning Websites
Comprehensive Professional Resources
Associations
Publications
Researching a Nonprofit Organization
Software
Trust Administration