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
GoFisch: April Newsletter
NewsletterThe April edition of my GoFisch monthly newsletter went out today. Not a subscriber yet? Give it a glance here! This month featured:
Like what you read? You’re invited to subscribe to the monthly newsletter and know that I never send out spammy communications. Know a nonprofit leader, philanthropist, or anyone who needs an estate plan? Feel free to pass the newsletter along!
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.