(Legal) Word of the Day: Quid Pro Quo

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pen on desk

You’ve probably heard it before on your favorite law show or movie court case, but do you know what “quid pro quo” actually means?

Quid pro quo (“something for something” in Latin) means an exchange of goods or services, where one transfer is contingent upon the other.

Quid pro quo can have different meanings in different areas of the law. For instance, we typically hear this phrase in relation to employment law. So, in the arena of philanthropy and nonprofits, what does quid pro quo mean?

A charitable donation is deductible to the extent the donation exceeds the value of any goods or services received in exchange. So what happens when you donate to your favorite charity and receive something tangible in return? This is the issue of “quid pro quo” in charitable gift law.

giving gift

Quid Pro Quo Example

If a donor gives a charity $100 and receives an opera ticket valued at $40, the donor has made a quid pro quo contribution. In this example, the charitable contribution part of the payment is $60. The donor is entitled to a charitable deduction for $60, but not the entire $100.

Both the donor and donee have a responsibility here. The donor, of course, can only deduct the cost of the donation less the value of the goods/services received. The charitable organization must provide their donors clear, written documentation of the value of donations.

In fact, in these quid pro quo situations, under IRS rules, the nonprofit must provide a written disclosure statement. This required written disclosure statement must both:

• Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the value of goods or services provided by the charity.

• Provide the donor with a good faith estimate of the value of the goods or services that the donor received.

Free Consultation

Thinking about making a donation or looking for guidance regarding gift acceptance at your nonprofit, no quid pro quo is required! I offer a free one-hour consultation, with absolutely no obligation. I can always be reached by email at Gordon@gordonfischerlawfirm.com, and by phone at 515-371-6077.

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Your Voice Matters: Upcoming Voter Rights Restoration Clinic

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i voted stickers

For most of us, the right to vote has been a part of our adult lives. It seems weird to think about not having the ability to cast a ballot. But, imagine if you lost your right to vote and had to take even extra steps to get it back? This is the reality for more than 50,000 Iowans, according to a 2016 report from The Sentencing Project. Indeed, Iowa is one of two states (the other is Kentucky) in the country that imposes permanent disenfranchisement for people, even after they’ve served their sentence and completed all probation requirements. (You may have seen the recent news when Florida passed an amendment giving Floridians who were previously denied voting rights the ability to register to vote.) I believe it’s incredibly important for all people to exercise their right to vote and thus want to draw attention to an upcoming opportunity at The University of Iowa for those who have had their voting rights revoked due to a felony conviction. (While I’m not personally involved, I know people who are!)

i voted sticker red

Iowans who have lost their voting rights can restore them only through submitting a “Right to Vote and Hold Public Office” application to the Office of the Governor. The Governor then has the discretion to restore voting rights. (Governor Reynolds has restored the voting rights for 88 people since taking office in 2017.) While certainly a hurdle, the good news is that the state has recently streamlined the application to make it easier to complete. Additionally, Governor Reynolds has made public statements calling for a constitutional amendment to do away with the state’s lifetime ban on voting for felons, but that would take at least a couple legislative sessions for actual adoption per the state’s amendment process.

Voting Rights Restoration Clinic Info

In the meantime, the application is still essential for people looking to restore their voting and ability to hold public office rights. The University of Iowa Legal Clinic is hosting an opportunity for application assistance and advice for anyone interested. See the image below for more information and contact the Clinic at 319-335-9023 to reserve a spot. (Note: if you’re not able to participate on March 2, 2019, there are other opportunities for the Clinic to offer assistance, so don’t hesitate to call.)

voter rights restoration clinic

 

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Presentations for Professional Advisors on Charitable Giving

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charitable giving presentation

If you’re a professional advisor (such as a financial advisor, insurance agent, attorney, or accountant, among others) looking for more information on how to advise your clients on smart charitable giving strategies, I’d love to speak with you and your colleagues. At every chance, I’m happy to share my firm’s mission to “maximize charitable giving in Iowa” with groups of any size!

rows of brown chairs

In terms of topics, there is actually very little in the area of charitable giving that I do not feel comfortable presenting about. So, if you have a specific subject in mind, do not hesitate to propose it. The following is a sampling of topics I’ve spoken about previously. I can easily combine multiple topics to best fit the presentation to the group’s objectives.

Planned Giving 101

  1. What is “planned giving?”
  2. Gifting during lifetime versus gifting at death
    • Advantages and disadvantages of each
    • Meet clients/donors “where they’re at”
  3. What 2017 federal tax legislation changed for charitable giving
    • Two huge challenges: charitable deduction & estate tax
  4. The seven basic estate planning documents everyone needs (and how charitable giving fits in)
  5. IRA Charitable Rollover & other gifting opportunities through retirement benefit plans
  6. The numerous benefits of the Endow Iowa Tax Credit
  7. Ins and outs of donor-advised funds
  8. Highly appreciated stock and other non-cash assets

Planned Giving 201 (Advanced Gift Types)

When I give presentations on advanced gift types, I also include a short summary of Planned Giving 101 topics.

  1. Charitable gift annuity (CGA)
  2. Charitable remainder trust (CRT)
  3. Charitable remainder annuity trust (CRAT)
  4. Charitable remainder uni-trust (CRUT)
  5. Flip CRUT
  6. Charitable lead trust (CLT)
  7. Retained life estate

Working Together is Better

I can also speak to how nonprofit staff (most especially development officers) and professional advisors can best work together for mutual benefit and for the betterment of clients.

four people around a computer

Fundraising Ethics

Another topic I’ve also discussed in the past is the ethics of fundraising: how to spot warning signs of an impending ethical dilemma; the best ways to handle common ethics concerns; what actions to avoid; etc.

Free Guide for Professional Advisors: Smart Charitable Giving Solutions

Exceed Client Expectations

If you present me with a list of your most top learning objectives, I would be happy to tailor a high-quality presentation to the group targeting those specific points. Really, any presentation related to charitable giving should be about what can make an impact in the lives and decisions of your clients. Let’s work together to help you and your team exceed client expectations and make an actionable impact on charitable giving in Iowa.

Contact me via email or phone (515-371-6077) to get your learning session planned and scheduled!

 

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Tune In to Hear Gordon on the Radio

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radio studio

On Halloween (10/31) my voice will be making a radio appearance on KCJJ 1630 AM‘s “Senior Talk” program hosted by Rex Brandstatter! We’ll be talking on the importance of estate planning for seniors, as well as the need-to-know information that ALL Iowans should know about creating a successful, quality plan for the future.

The program starts at 12:10 p.m. and will last for about 30 minutes. If you won’t be around a radio over the noon hour on 10/31, don’t worry as you can listen live via KCJJ’s YouTube channel. Plus, the program will be archived on YouTube after the show!

Hopefully my conversation will Rex will inspire you (and all of your family members and friends) to send those estate planning excuses to the graveyard. (Sorry, I had to get at least one spooky pun in there!) One of the best ways to get started on my five-step estate planning process is with the easy, free Estate Planning Questionnaire.

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Need a Speaker? Drop Me a Line!

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Gordon Fischer speaking at event

One aspect of running my own firm that I love is getting out and teaching groups of people. Just like mission, my presentations center on maximizing charitable giving. Be it through estate planning education, nonprofit board training, or sharing tools and resources for professional advisors, I’m always open to speaking at different organizations and events across the state of Iowa.

Gordon Fischer speaking at event

Here’s an example of a presentation I gave in a workshop open to the public, entitled “Basics of Estate Planning.” This presentation on clauses to include in an executive’s contract was focused toward a different audience—nonprofit employers. And just in case those samples weren’t enough, here’s a presentation I gave to my fellow estate planners on effectively including digital assets in plans. Of course, I modify my content so it’s applicable to the event, organization, and audience.

So, if you’re in need of a speaker on any topic related to my core services, don’t hesitate to shoot me an email at gordon@gordonfischerlawfirm.com or give me a call at 515-371-6077 to discuss your upcoming event and potential speaking topics.

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Survey: I Want Your Valuable Feedback

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feedbackk survey

I could use your opinions! As a lawyer who strives to maximize charitable giving in Iowa (the mission of Gordon Fischer Law Firm), estate plans are a regular part of my job. But, for most people, estate planning isn’t a normal part of the day-to-day. So, I am doing research on how and why people obtain estate plans and would appreciate if you could take three minutes (or less!) to share your thoughts and experiences with me. The goal of this survey is to gather candid feedback and varying perspectives on this topic. Note that the survey is completely anonymous and confidential.

Click here to take the short survey.

 

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Feel Good Friday: Remembering My Father

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sitting on dock at lake

There’s been a lot going on in the news lately and we could all definitely use a ray of bright light in our lives right now. For me, positivity came in the form of an article written by Ken Fusion about my father, Dieter Fischer. My dad passed away earlier this year in March, and this article captured highlights of my father’s legacy he built. He was a hard-working immigrant from Germany who came to the U.S. in 1960 with his wife (my mom). Not only did he love his family, but he also loved America and, in a way, was the true embodiment of the “American dream.” You can read the full article here, if you’re interested!

Gordon with family at bar swearing in

With my mom, wife, and dad at the Iowa Bar swearing in ceremony, 1994

This is all to say that considering the legacy you want to leave is a key part of estate planning. It’s beneficial and can even be uplifting to consider how you want to be remembered and how you want to pass your proverbial torch on to the next generation. It’s less obvious because there’s no legal document you can pen to create this. A legacy is comprised of the memories you create, stories you share, people you love, and difference you make. This legacy can be cemented by giving your property to the people and charities you want, how and when you want.

Gordon with family on bench

A cherished photo from a great day a few years back with my mom, dad, and wife

Want to get started on your estate plan? A great place to start is with my free Estate Plan Questionnaire. Want to talk about your loved ones who have passed away? I understand where you’re coming from and would love to hear about how they’ve impacted you. Contact me at any time.

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Retire with a Reason: Read GFLF’s Latest Article in The Iowa Lawyer

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Man sitting at conference table with phone

The September edition of “The Iowa Lawyer” is now out! Published by the Iowa State Bar Association, this month focused entirely on retirement-related topics. According to the ISBA, there are approximately 2,300 ISBA members who are 60 and older. And, in Iowa in general, people age 65 or older comprise 16.7% of the population. Retiring is a whole different stage in life that can come with newfound challenges as well as benefits. While geared toward Iowa attorneys, many of the insights are applicable in other industries. For instance, succession planning is important for all business owners! Similarly, retirement is a time when charitable giving often gets a boost.

Iowa Lawyer September 2018

GFLF’s piece focuses on how you can use retirement benefit plans to benefit the charities and causes you care about in a strategic, tax-wise way. This is super important for all Iowans to know (not just attorneys!). In the article we focus in on three important tax concepts:

  1. Inheritance as income
  2. Income in respect of a decedent
  3. Step-up in basis (also called, stepped up basis)

You  can read the full article by clicking here and scrolling to page 23.

Retire with a Reason

Any questions after reading? Feel to explore more on the topic in our other blog posts on the subject or contact GFLF at any time to discuss by email, at gordon@gordonfischerlawfirm.com, or by phone at 515-371-6077.

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August is National Make-A-Will Month

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August includes it’s fair share of obscure “holidays” including National Catfish Month, Friendship Week, and Bad Poetry Day. This month is also your chance to celebrate National Make-A-Will Month! (Yes, seriously. This is a thing.) I recommend celebrating this quite literal month by creating an estate plan. A will is one of six key documents in a quality, individualized estate plan. (If you were to elect to make a living revocable trust a part of your plan, then you would still need a will—often referred to as a pour-over will—it would just read a little different!)

national make-a-will month

Depending on your personal/family situation and assets, a will can be a bit more complicated and longer in page length than the other estate plan documents. It’s important you work with a lawyer experienced in estate planning to be sure your will covers the three major questions of:

  1. Who do you want to be the executor of your will? The executor is in charge of carrying out your directions and wishes as expressed in the will. They will also pay any outstanding debts and distribute assets as you express in the document.
  2. Who do you want to be the legal guardians for your minor children until they’re adults (age 18), if something were happen to you?
  3. What do you want done with both your tangible and intangible property? (An example of tangible property is your books or your boat. Intangible property includes assets like stocks.)

Yet another reason to work with a professional estate planner to craft a will is to avoid costly mistakes and to legitimately donate to your favorite charities.

YOU Are a Super Hero: Charitable Giving Through Estate Planning

Why Does a Will Matter?

I cannot reinforce enough that everyone NEEDS a will. Leaving your family and friends without a clearly written will in place can result in worst case scenarios such as litigation or confusion in who is to be the proper guardian of your minor child(ren). Real world examples of this are unfortunately all too common and no one is immune. For instance, Prince died without a will leaving family infighting and conflict.

Think Estate Planning is Just for the Wealthy? Think Again!

Without a will the Iowa probate court is forced to name an executor and there is the possibility that the appointed executor is not who you would have chosen. It’s simply better not to gamble with who has control over dispersing your hard earned assets.

Regular Revisions

If you already have a will (and other necessary estate planning documents) congrats! You’re better prepared for the inevitable than about half of Americans. Yet, just because you created an estate plan at one point doesn’t mean it automatically adapts to how your life changes.

While estate plans never expire, for your will to be most effective it needs to be reviewed at least annually and updated as needed. Common scenarios for estate plan revisions can be a death in the family, change in marriage status, birth of a child, major changes in financial situation, and moving out of state.

5 Scenarios for Estate Planning Revisions

Your estate plan should also be updated if your goals change over time. For example, you may want to alter the amounts of inheritance or increase/decrease charitable bequests.

Where There’s a Will There’s a Way

I would love to help you solidify your family’s future, help you achieve peace of mind, and celebrate Make-A-Will Month in the best way you can! The best place to start is by filling out my Estate Plan Questionnaire. It’s easy, free, and there’s no obligation. It’s simply a document that gets you thinking and planning. You can also contact me at any time via email (Gordon@gordonfischerlawfirm.com) or phone 515-371-6077.

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Latest Iowa Lawyer Issue: Read GFLF’s Article on Irrevocable Life Insurance Trusts

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Irrevocable life insurance trust clipboard

The August 2018 issue of the Iowa State Bar Association’s The Iowa Lawyer magazine was recently published. This edition includes GFLF’s piece on how irrevocable life insurance trusts (ILITs for short) can be a valuable estate planning tool. While the magazine is an industry publication for lawyers, this information is also incredible useful for anyone with life insurance as an asset.

Iowa Lawyer August 2018 cover

This month’s ISBA publication also includes interesting pieces on:

So, put on your reading glasses, click here, and scroll to page 22 to learn more about the challenges life insurance can pose in estate planning and the major benefits of ILITs. I would love to hear your feedback on the piece either in the comments below, or via email at gordon@gordonfischerlawfirm.com. Also, we’re open to any suggestions you may have for specific topics you would like to read about related to GFLF’s core services

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