Talk to anyone finalizing their bracket before the NCAA tournament tips off today with the first half of the First Four games and there are many different approaches—statistics and rankings; gut instinct; fan favorites; taking advice from computer simulations; and simply, the random dart throw.
For me, I would love if I could slate the Iowa Hawkeyes to win, but pure bias isn’t a great way to build a bracket, so I decided to take a different approach. Based on the mission of my law firm–to promote and maximize charitable giving in Iowa–I decided to incorporate that into my approach for this year’s NCAA tournament bracket. I compiled a list of the 68 colleges and universities’ endowment sizes and then built off our bracket off of that. So, the winner of each round has the greater endowment of the two teams which brings us to a clear winner. An unconventional way of bracketing? Sure. Totally plausible? Why not!
.Of course, I totally recognize that there’s no way that the size of a higher education institution’s endowment translates directly into athletic excellence. Would I pick Yale off the top of my head? Probably not. But, there is something to be said that charitable giving reaps benefits beyond the immediate, so maybe this isn’t such a shot in the dark!
While we’re at it, this is also a good opportunity to review what a college endowment actually is. No doubt you’ve heard of this term related to charitable giving before, but what is it actually?
Endowments: A Short Explanation
A college or university endowment fund invests charitable donations (of money or other assets, like stocks) with the goal of growing the principal amount. There are restrictions, limits, and particular details associated with endowments (but those deserve their own full blog post). In turn, the funds’ spending amounts can be spent on scholarships, facilities improvements, hiring talented personnel, and paying outstanding debts and expenses. Undoubtedly, colleges and universities foster planned giving programs and cultivate dedicated donors to continue to grow their endowments and thus grow their institution’s capabilities.
So, maybe the GFLF bracketing style isn’t so farfetched. The bigger the endowment could equate to greater scholarships (in both quantity and quality) or nicer athletic facilities which could translate into attracting more talented student-athletes.
How does your bracket stack up in comparison? I’d love to talk basketball or, better yet, about smart charitable giving to your favorite higher education institution could fit with your giving goals. Contact me in between the tournament games via email or by phone (515-371-6077)
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/03/aline-de-nadai-521068-unsplash.jpg33835074Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2019-03-19 05:59:212020-05-18 11:28:48March Madness: A Charitable Giving Take on the Bracket
Spring ushers in so many great things: baseball season, blooming flowers, and baby animals. But, it also brings tax season (which can be a metaphorical rain cloud or rainbow depending on your personal situation). The Tax Cuts and Jobs Act, passed at the end of 2017, ushered in many federal changes that affect both estate planning and charitable giving. I’ve blogged about many of the provisions that can impact your estate planning (and why you should definitely review any existing estate plan), but what about some of the aspects of the new tax law that impact charitable giving? Because we’re not all tax attorneys or CPAs, let’s take this piece by piece and first explore the charitable deduction limitation increase for cash gifts and how it differs under federal and state law.
While federal law has made several modifications, Iowa has not conformed to most of the recent changes to the charitable contribution deduction for state tax purposes. Quite obviously, this can cause confusion when strategically calculating planned giving.
Under federal tax law, the charitable deduction limitation, specifically for cash contributions to certain public charities and private foundations, has increased from 50% to 60% of an individual’s adjusted gross income (AGI) for the year.
This increase does not apply for Iowa tax purposes, however. If an individual’s federal deduction for cash contributions to qualifying public charities and public foundations exceeds 50% of the taxpayer’s AGI for the year, the individual must recalculate the charitable deduction to apply the 50% limitation for Iowa purposes.
If this is still a bit confusing, fear not. We can work out a plan so that you can meet your charitable giving goals in a tax-beneficial way for the tax years moving forward. I offer a free, no-obligation consult, so don’t hesitate to contact me.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2019/03/Screen-Shot-2019-03-18-at-11.03.21-PM.png678983Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2019-03-18 23:04:542020-05-18 11:28:48Tax Talk: Federal & State Differences on the Charitable Deduction Limitation
1. If you understand #SelectionSunday, and #MarchMadness, you can most certainly understand estate planning.
When I meet people who say they’re confused about estate planning I love to see their faces when I tell them understanding the basics of wills, trusts, and even business succession planning may sound intimidating, but the basics are as simple as understanding NCAA March Madness. Seriously! Many folks know what teams are on the bubble, which teams were playing well at end of the season and which weren’t, what the most likely upsets are, and so on.
2. If you have time to fill out a March Madness bracket (and you do), you also have time to fill out an Estate Plan Questionnaire.
Most everyone I know fills out a March Madness bracket in a (mostly) friendly competition with family, friends, co-workers, or sometimes all three. If you have time to fill out a bracket, why not also put serious thought into securing your future with estate planning? No, I’m not trying to guilt you. It’s just, again, it’s not that hard! You can find my Estate Plan Questionnaire here. It’s a great place to start.
We all know that a huge part of the fun of NCAA March Madness is the upsets. The super thrilling and/or gut-wrenching endings that shouldn’t have happened, but somehow did. It’s a reminder that life, for better or worse, is quite unpredictable. Why not make sure that plans are in place in case something unexpected happens?
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/03/select.png342742Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2019-03-16 06:17:142020-05-18 11:28:483 Things #SelectionSunday Can Teach You About Estate Planning
March Madness: A Charitable Giving Take on the Bracket
Charitable GivingTalk to anyone finalizing their bracket before the NCAA tournament tips off today with the first half of the First Four games and there are many different approaches—statistics and rankings; gut instinct; fan favorites; taking advice from computer simulations; and simply, the random dart throw.
For me, I would love if I could slate the Iowa Hawkeyes to win, but pure bias isn’t a great way to build a bracket, so I decided to take a different approach. Based on the mission of my law firm–to promote and maximize charitable giving in Iowa–I decided to incorporate that into my approach for this year’s NCAA tournament bracket. I compiled a list of the 68 colleges and universities’ endowment sizes and then built off our bracket off of that. So, the winner of each round has the greater endowment of the two teams which brings us to a clear winner. An unconventional way of bracketing? Sure. Totally plausible? Why not!
While we’re at it, this is also a good opportunity to review what a college endowment actually is. No doubt you’ve heard of this term related to charitable giving before, but what is it actually?
Endowments: A Short Explanation
A college or university endowment fund invests charitable donations (of money or other assets, like stocks) with the goal of growing the principal amount. There are restrictions, limits, and particular details associated with endowments (but those deserve their own full blog post). In turn, the funds’ spending amounts can be spent on scholarships, facilities improvements, hiring talented personnel, and paying outstanding debts and expenses. Undoubtedly, colleges and universities foster planned giving programs and cultivate dedicated donors to continue to grow their endowments and thus grow their institution’s capabilities.
So, maybe the GFLF bracketing style isn’t so farfetched. The bigger the endowment could equate to greater scholarships (in both quantity and quality) or nicer athletic facilities which could translate into attracting more talented student-athletes.
How does your bracket stack up in comparison? I’d love to talk basketball or, better yet, about smart charitable giving to your favorite higher education institution could fit with your giving goals. Contact me in between the tournament games via email or by phone (515-371-6077)
Tax Talk: Federal & State Differences on the Charitable Deduction Limitation
Charitable GivingSpring ushers in so many great things: baseball season, blooming flowers, and baby animals. But, it also brings tax season (which can be a metaphorical rain cloud or rainbow depending on your personal situation). The Tax Cuts and Jobs Act, passed at the end of 2017, ushered in many federal changes that affect both estate planning and charitable giving. I’ve blogged about many of the provisions that can impact your estate planning (and why you should definitely review any existing estate plan), but what about some of the aspects of the new tax law that impact charitable giving? Because we’re not all tax attorneys or CPAs, let’s take this piece by piece and first explore the charitable deduction limitation increase for cash gifts and how it differs under federal and state law.
Differences Between Federal and State Tax Laws
While federal law has made several modifications, Iowa has not conformed to most of the recent changes to the charitable contribution deduction for state tax purposes. Quite obviously, this can cause confusion when strategically calculating planned giving.
Under federal tax law, the charitable deduction limitation, specifically for cash contributions to certain public charities and private foundations, has increased from 50% to 60% of an individual’s adjusted gross income (AGI) for the year.
This increase does not apply for Iowa tax purposes, however. If an individual’s federal deduction for cash contributions to qualifying public charities and public foundations exceeds 50% of the taxpayer’s AGI for the year, the individual must recalculate the charitable deduction to apply the 50% limitation for Iowa purposes.
If this is still a bit confusing, fear not. We can work out a plan so that you can meet your charitable giving goals in a tax-beneficial way for the tax years moving forward. I offer a free, no-obligation consult, so don’t hesitate to contact me.
3 Things #SelectionSunday Can Teach You About Estate Planning
Estates & Estate Planning, Events, Wills, Trusts & Estates1. If you understand #SelectionSunday, and #MarchMadness, you can most certainly understand estate planning.
When I meet people who say they’re confused about estate planning I love to see their faces when I tell them understanding the basics of wills, trusts, and even business succession planning may sound intimidating, but the basics are as simple as understanding NCAA March Madness. Seriously! Many folks know what teams are on the bubble, which teams were playing well at end of the season and which weren’t, what the most likely upsets are, and so on.
Just like all those details are a part of #SelectionSunday and #NCAAMarchMadness, there are multiple inputs that go into a quality estate plan. For starters, there are your personal goals, the six main estate planning documents, and then personal considerations for, say, children, a family with special needs, pets, and charitable bequests. Feel free to read into these estate plan elements (like you would check out the stats of your favorite teams!) in between sweating out your bracket. And, speaking of your bracket…
2. If you have time to fill out a March Madness bracket (and you do), you also have time to fill out an Estate Plan Questionnaire.
Most everyone I know fills out a March Madness bracket in a (mostly) friendly competition with family, friends, co-workers, or sometimes all three. If you have time to fill out a bracket, why not also put serious thought into securing your future with estate planning? No, I’m not trying to guilt you. It’s just, again, it’s not that hard! You can find my Estate Plan Questionnaire here. It’s a great place to start.
3. Weird stuff happens.
We all know that a huge part of the fun of NCAA March Madness is the upsets. The super thrilling and/or gut-wrenching endings that shouldn’t have happened, but somehow did. It’s a reminder that life, for better or worse, is quite unpredictable. Why not make sure that plans are in place in case something unexpected happens?
Want some more sports to legal analogies in your life? Check out this read on preparing your favorite nonprofit for top-notch compliance.
Regardless of who you’re slating to win it all, I would love to hear from you; let’s schedule an initial free one-hour consultation (at no obligation, of course). Email me at gordon@gordonfischerlawfirm.com or give me a call at 515-371-6077.