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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Do Estate Plans Have an Expiration Date?

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calendar book with pen

So many things in life come with built-in expiration dates. Some, such eggs, milk, and cheese, are clearly stamped, while other common items (everything from spices, fire extinguishers, lipstick, to hard liquor) lose their quality or effectiveness over time, but don’t have a clear “best used by” date on them.

So, how about an estate plan? If your running shoes can expire, how about important legal documents? This is a common and certainly valid question.

As bill-paying Americans, it seems par-for-the-course that like everything else, we need to routinely file paperwork, with payment(s), to keep coverage in place. Fortunately, estate planning documents do not expire. Once valid, such legal documents are effective for, well, for as long as you want. This includes all documents that could (and probably should) be in your estate plan, such as a will, health care power of attorney, financial power of attorney, instructions for disposition of personal property, and instructions for final disposition of remains.

You will never receive a notice in the mail that your carefully crafted estate plan is set to expire in 30 days if you don’t submit another signed form or check payment. However, I highly recommend revisiting your estate plan annually to make certain life changes over the past year are appropriately reflected. For example, having a child, getting married or divorced, moving to another state, changes in financial circumstances, and other major life events necessitate revisiting your estate plan. After all, estate planning documents can be changed up until the moment you pass away.

Update Your Estate Plan: How, When, & Why

Since these legal documents do not expire, there’s no better time than now to get started on your estate plan. The best place to start? Download my Estate Plan Questionnaire; it’s free and provided at no obligation!

I would love to discuss your estate plan with you. Reach out at any time by email, gordon@gordonfischerlawfirm.com, or cell phone, 515-371-6077.

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What’s the Difference Between Public Charity & Private Foundation

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Holding lights

Since 1968, every Section 501(c)(3) organization is classified by the IRS as either a private foundation or a public charity. This classification is crucial for at least two reasons to anyone considering forming a nonprofit or anyone considering making a significant donation to a nonprofit.

First, private foundations are subject to much stricter regulations than public charities. Second, public charities receive more favorable tax treatment than private foundations. Let’s explore each classification a little deeper.

Public Charities

heart ceramics bowls

Public charities must attract broad donor support. Some organizations—churches, schools, and hospitals for instance—are by their very nature considered “publicly supported.” Other organizations must pass mathematical public support tests to qualify as a public charity. These tests require charities to obtain funding from numerous sources, rather than one singular source, or a small group of related funders.

When a charity passes one of the public support tests, it is demonstrating to the IRS that the general public (non-insiders) evaluated the charity’s performance and found it worthy of financial support. As a result, such charities are treated as having a sort of stamp of approval of the general public, lessening the need for the stricter IRS scrutiny applied to private foundations.

Private Foundations

Do something great in neon

Private foundations are funded by an individual, a family, a company, or a small group. Two prominent examples would include the Ford Foundation and Bill & Melinda Gates Foundation.

Private foundations are subject to a more strict regulatory scheme than public charities. There are penalties for self-dealing transactions, failure to distribute sufficient income for charitable purposes, holding concentrated interests in business enterprises, and making risky investments. The IRS recognizes two types of private foundations: private non-operating foundations and private operating foundations. The main difference between the two? How each distributes its income:

  • Private nonoperating foundations grant money to other charitable organizations.
  • Private operating foundations distribute funds to their own programs that exist for charitable purposes.

In general, private foundations can accept donations, but many do not and instead have endowments, as well as invest their principle funding. The income from the investments is then distributed for charitable activities/operations.

Deduction limits

Contributions made to public charities and private foundations may be deducted from the donor’s federal income tax. The amount of the deduction is subject to certain limits under federal tax law.

Money and receipts

Gifts to public charities receive more favorable tax treatment than gifts to private foundations—this includes donor limits. For example, a charitable cash donation to a public charity would be deductible at up to 50 percent of the taxpayer’s adjusted gross income (AGI), but the same gift to a private foundation is deductible at a rate of only 30 percent of AGI.

A word on the word “foundation”

Don’t assume that an organization with “foundation” in its title/name is indeed a private foundation and not a public charity. Of course, it could be, but many types of nonprofit organizations have adopted “foundation” as part of their name to help project a mission and/or identity. (Examples include Friends of Animal Center Foundation and the Iowa City Public Library Friends Foundation.) If you’re entirely unsure if a nonprofit you’re considering donating to is a private foundation or public charity, simply ask one of the nonprofit’s executives or appropriate contact.

If you’re wanting to make a complex gift or include nonprofits as beneficiaries in your estate plan it’s wise to work with an attorney experienced in those areas. Of course, I would be happy to help.

Have any questions? Want to discuss your charitable donation or formation of your dream nonprofit? Contact me by email or phone (515-371-6077) .

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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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You Won the Lottery! Here’s What You Should Do Now

lottery balls

Pull out those lucky golden tickets because the Mega Millions lottery jackpot has reached a record $1.6 billion. (The Powerball isn’t too shabby either, at $620 million). Undoubtedly, we’ve all daydreamed about what we would do with cash like that. Maybe your dream is jet setting, paying off debt (and then some), funding educations for your entire family, building a swank mansion stocked with Teslas…but, let’s bring it back to reality for a moment and talk about two perfectly practical and important things you SHOULD add to that list if you’re suddenly a Mr./Mrs. Money Bags.

sports car in front of mansion

Make an Estate Plan

It’s definitely true that estate planning is not just for the wealthy, but that doesn’t mean it’s NOT for the wealthy too! Estate planning is essential for the effective and successful transfer of wealth for high net worth individuals. A quality estate planner will take all assets (from artwork to real estate to investments) into consideration when deciding what strategies, vehicles, and tools to maximize your goals, tax savings for your estate, and solidify your legacy. (You do not want to join the likes of these celebs who passed away without a will!) With a high net worth, you definitely need to consider different types of trusts in addition to how best to practice charitable giving through testamentary gifts.

If you already have an estate plan, that great! But, with a massive influx of wealth you’ll likely need major updates and revisions.

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

Found a Private Foundation

Undoubtedly, if you come into massive wealth everyone is going to come out from the woodwork to try and get a piece of it. It’s great to share your winnings with the people and causes you care about, but you definitely don’t want fraudsters, scammers, or thieves looking to swoop in a take a piece of the pie. One of the best ways to protect your cash is by founding a private foundation. After you win, donate the money to your newly founded [Insert Your Name Here] Family Foundation of which you can serve as the executive director.

What’s the Difference Between Public Charity & Private Foundation

This is a smart move on multiple advisable fronts. For starters, because a private foundation is a charitable organization, you minimize your personal tax liability greatly. Furthermore, and more importantly, you get to use your endowed Foundation to support your charitable passion projects, help your community, and solidify a reputation for being an influential philanthropist. (Inspirational speaker circuit anyone?)

The private foundation, with its sound investment policies, is also a good way to have the principle grow significantly over time.

With a private foundation, you can serve as the executive direction and then hire family members and friends to essential administrative roles. Wondering how you actually “see” any of that money you transferred to your foundation? Salaries for such positions can be established based on private foundations of a similar size and wealth, so you can expect at least “enough” for an affluent life.

When founding a private foundation, enlisting an experienced nonprofit attorney is a must. Have your attorney advise on the IRS regulations you need to adhere to like filing the appropriate documents, refrain from political donations, and adopt important good governance policies and procedures. Additionally, you’ll want to avoid self-dealing like the plague! That means you can’t use foundation funds for your personal benefit, even if you founded it, because the foundation is completely separate different legal entity with a governing board of trustees who owe the foundation a fiduciary duty.

Person with fan of cash

There is much more to be said on the minutia of forming a compliant, successful private foundation, but we’ll save that for a future post! In the meantime, if you have questions, don’t hesitate to contact me!

You don’t need to be a lottery winner to establish a charitable organization (private or public)! With a mission, vision, and the tenacious drive to make an impact, you can form your own organization at any time if you follow the proper process. I’d love to help make your estate planning goals and charitable organization dreams happen at any asset level. Schedule your free consult or drop me a line via email or phone (515-371-6077).

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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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Nonprofit Events and Opportunities in October & November

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events on calendar

Halloween and Thanksgiving aren’t the only things you should be looking forward to in October and November! I like to help spread the word about all the awesome events, awards, and grants available in Iowa. There are so many great opportunities for nonprofit pros, board members, volunteers, and donors, that range from webinars to workshops. But, life is busy, and it can be hard to keep track of what you should register for or put on your calendar. That’s why I compiled a list for your convenience!

Learning Events & Trainings

Grants

There are so many great events and opportunities for nonprofits and the people that advance them that there is no doubt I missed some in the list above. Please feel free to add applicable events for October and November in the comments below! If you would like to notify GFLF of any upcoming nonprofit-focused events and opportunities in the coming months, don’t hesitate to email GFLF’s Chief Content Officer at mackensie@gordonfischerlawfirm.com.

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GoFisch October Book Pick

If you read the September issue of my e-newsletter, GoFisch, you already have a jump start on this month’s book club pick! Head to your library, your e-reader, or favorite local bookstore and pick up a copy of My Father’s Wake, by Kevin Toolis. Toolis is a profound storyteller, which is evident not just from his writings but from his award-nominated films.

Death is an enmeshed component of estate planning. This can be difficult to dwell on at times, but there’s also some comfort in knowing that death will reach us all. No one is exempt from this destiny, which is what makes life, so incredibly vibrant in comparison. What we can control is how our loved ones will be provided for. Really, at it’s core, making an estate plan is deciding who you want to inherit the property you own (everything from your home to your art to your car), when you want that to happen, and how after you pass from this world.

My Father's Wake

This is why this book resonates so strongly. Our perception of death is shaped by the customs of our respective cultures and how we honor our deceased. From this book, it’s evident that we can learn a great deal from how the Irish deal with death.

While I’m not Irish myself, as the son of German immigrants, I identified strongly with the author’s drive to connect with and participate in the culture and customs of his heritage. For instance, the book teaches us that a meitheal is an old Irish word for a gathering together for a communal task. An Irish wake can be considered a meitheal of sorts—a communing of mortal souls to aid the deceased in bridging the ephemeral space between life and death and aid.

I lost my own father earlier this year and would recommend this book in particular to anyone who has lost someone they love.

The Importance of Discussing Your Estate with Your Family

I would like to hear your thoughts about this book in the comments below! What stuck with you? What would you like to learn more about? Do you have any recommendations of books (fiction or non) related to Gordon Fischer Law Firm’s core services of estate planning; nonprofit formation and guidance; nonprofit employment law; or donations and complex gifts? Let me know in the comments or contact me by email or phone!

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