red poppies memorial day

On Memorial Day (and every day), we at Gordon Fischer Law Firm want to give a deep expression of gratitude for the fallen heroes and military veterans who have served America. Indeed, we can enjoy the land of free only because of these brave individuals.

Memorial Day quote with red poppies

While Memorial Day is the unofficial start to the summer season, ushering in the much awaited season with a long weekend of sunshine and BBQs. A Monday off of work is always a cause for celebration, but throughout all this we must not forget the true meaning of this important day—to praise, to thank, and to remember.

GFLF has worked with many veterans on estate planning and in nonprofit formation/compliance, and it’s always an honor. There are not enough “thank you’s” in the world to express our gratitude for what the veterans (and their families) have done for our country. We would also like to extend this sentiment to first responders who have served on the front lines of protecting the public including police, firefighters, and EMS personnel. A special and sincere thanks to those who have sacrificed in the line of danger and their families.

As modern day heroes, our veterans and first responders’ stories are important. Their legacy is important. To preserve that tradition of strength and service, you need an estate plan to ensure your property and assets are distributed to your loved ones, and favorite charities in accordance with your wishes.

So, in an attempt to express our gratitude we would like to offer 25% off the cost of an estate plan package to all Iowan active duty or retired service members and first responders. The rate also extends to spouses. The discount will be available through 6/30/2018. Contact me via email or by phone (515-371-6077) to lock in the rate and discuss your estate plan needs.

us flag marching band

What Does an Estate Plan Include?

There are six documents that should be part of most everyone’s estate plan.

  1. Estate planning questionnaire
  2. Will
  3. Power of attorney for health care
  4. Power of attorney for finances
  5. Disposition of personal property
  6. Disposition of final remains

You should keep these documents updated and current. (Here are a few common “big” events that may necessitate estate plan revisions.) Also, don’t forget about assets with your beneficiary designations. For most Iowans, that’s good enough—six documents, keeping them current, and also remembering about those assets with beneficiary designations.

Special Estate Planning Consideration for Veterans

It’s super important that military veterans work with an attorney that specializes in estate planning as veterans have some unique assets and situations to consider. This can make the estate plan more complex and there can be unintended serious legal consequences if your plan is not drafted properly. A few examples of inputs to consider for a veterans involve:

  • Retirement benefit pay (considered guaranteed income)
  • Survivor Benefit Plan (if so elected)
  • Pension benefits
  • Life insurance
  • Dependent Indemnity Coverage (if applicable)

American flag on window

Cost of an Estate Plan

Because I want every Iowan to have an up-to-date estate plan I’m very transparent with the cost of an estate plan that that takes into full consideration YOUR situation. (This is why you need an experienced estate planner to draft your documents.) With the Memorial Day estate plan discount, that translates into significant savings.

Estate Planning Process

I write about my process at length, but it’s just five steps! Seriously, it’s not that painful. My clients report back to me that they have such relief and peace of mind when it’s completed.

Washington Memorial with man in front

DISCLAIMERS

The “Memorial Day discount” is only applicable for estate plans created by active or retired veterans and first responders (and their spouses). Availability of the discount ends after June 30, 2018 at which point prospective client must have contacted Gordon Fischer Law Firm and indicated an intention to make an estate plan.
Memorial Day discount merely relates to pricing and in no way creates an attorney-client relationship, nor any other kind of professional relationship. The Memorial Day discount does not create a contract or agreement of any kind.
Gordon Fischer Law Firm, P.C. retains full and total discretion as to who it chooses to serve as clients and why. Gordon Fischer Law Firm, P.C. retains the right to refuse service to anyone it so chooses.
The Memorial Day discount may not apply to individuals or families with a net worth of more than $1 million dollars. (High net worth families definitely need an estate plan, very much so, but the applied strategies and tools will be more complicated.)
cutting into a pie

Pi (π) is the ratio of a circle’s circumference to its diameter. Pi is a constant number, meaning that for all circles of any size, Pi will be the same. (It’s also a great day to deliver pie to Gordon Fischer Law Firm…any kind will do!)

Like geometry, in estate planning there are many variables, and some constants, too. Ironically, one of the constants in estate planning is change. And as your life and circumstances changes, your estate plan needs to change too.

Change & Your Estate Plan

Let’s assume you’ve gone to an estate planning lawyer, and you have (at the very least) the six “must have” estate planning documents. That’s great, well done. (You can read all about these six documents here.).

But remember you also need to keep these documents updated and current.

Major Life Events

If you undergo a major life event, you may well want to (re)visit with your estate planning lawyer, to see if this life event requires changing your estate plan through different provisions, tools, and strategies.

What do I mean by a major life event? Some common such events include:

  • The birth or adoption of a child or grandchild
  • Marriage or divorce
  • Illness or disability of a spouse or beneficiary
  • Purchasing a home or other large asset
  • Moving to another state
  • Large increases or decreases in the value of assets, such as investments
  • If you or your spouse receives a large inheritance or gift
  • If any family member, or other heir dies, becomes ill, or becomes disabled
  • Launch or closure of a business

This is just a short list of life events that should cause you to re consider your estate plan. There are many others.

Changes in goals

It’s not just life changes, though. It may be that your overall goals for your estate plan have changed over time. You may want to change the amounts of inheritances. As your financial situation changes, you may want to increase, or decrease, your charitable bequests.

Laws are dynamic and changing

And, it’s not just changes in your own life you need to think about, either. Congress, the Iowa legislature, and the courts are constantly changing the laws. When the rules change, so too must your estate plan.

Meet the Donor Family

To illustrate when estate plans should be updated, let’s look at the Donor Family. Jill and Dave have been married for 25 years and have four grown children. They executed a common-sense estate plan a few years ago.

Since that time, the Donors have gone through many changes, as you would expect, and as all families have. Should Jill and Dave updating their estate plan to reflect changes in their family’s circumstance? Consider the following:

Divorce

One of the Donor kids filed for a divorce from his wife. Jim and Carol need to update their estate plan, since they decided they now want to exclude the ex-spouse as a beneficiary.

Changes in financial status

Jill’s uncle passed away and left her a great deal of money. The Donors need to determine how this inheritance will affect their current plan and future estate tax liability. The Donors may want to be more generous to their favorite charities. They may want to talk to their estate planning lawyer about charitable giving through a planned gift, such as a charitable gift annuity or charitable remainder trust.

Birth

 

Our example couple’s youngest child recently announced that she and her spouse are expecting their first child. Jill and Dave must update their estate plan to provide for the new grandchild.

Major changes in health

The Donor’s youngest child was in a serious car accident, which resulted in a severe disability. He can no longer work, and is receiving government disability benefits. The Donors will want to seriously consider setting up a special needs trust. This type of trust will allow a beneficiary to receive inheritances, without it being considered income by the government for qualification purposes.

New real estate outside Iowa

Jill and Dave recently bought a vacation home in Arizona. The vacation home may well be affected by Arizona laws. In any case, the Donors’ estate plan should reflect this new asset.

vw bus in arizona

As you can see the Donor Family has many reasons to revisit their estate plan, and more than likely, so do you! In between bites of your favorite pie, review your current estate plan to make sure its current. (If you still need an estate plan, the best place to start is with my Estate Plan Questionnaire.) Additionally, I can always be found at gordon@gordonfischerlawfirm.com and 515-371-6077.

Selection Sunday 2017

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 season and which weren’t, what the most likely upsets are, and so on.NCAA Basketballs

Just like all those details are a part of #SelectionSunday and #NCAAMarchMadness, there are multiple input 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, 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 are 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.

Pop the popcorn, uncork the champagne, and put on your best red-carpet duds to tune into the 90th Academy Awards tonight! In between award envelopes (hopefully there won’t be another embarrassing best picture flub like last year), consider how your 2018 Oscar ballot has some surprising connections with estate planning. It may sound like a stretch, but hear me out while you watch the pre-show coverage.

Anything Could Happen

If you’re a film buff who has managed to watch all nine of the Best Picture category nominees (first off, I’m jealous), you may have a strong opinion about which one deserves to win. However, just like life, anything could happen! You may think The Shape of Water most certainly will be victorious, but in the end, Darkest Hour ends up taking home the gold with the bravado of a Churchill speech. You know one of the films will win, just like you know someday you’re going to pass away. However, you cannot know which one of the films will win ahead of time, just like you cannot know how and when your final scene will be.

Jimmy Kimmel Oscars

Expecting the unexpected is what estate planning boils down to. With something fun and entertaining like the Academy Awards, surprises can make for ready Oscar party fodder. But, when it comes to your estate—all of your assets you worked hard to acquire—surprises can make for frustration infighting for your family, extended probate time and fees, and assets being distributed in a way that you wouldn’t have chosen.

Estate planning allows you to make certain your loved ones and the charities you care most about “win,” regardless of when you pass away.

It’s All in the Family

Many of the films nominated this year have familial relationships as a central plot device in the scripts. Without a doubt Dunkirk’s British civilian family who answered the call to assist with the rescue efforts in northern France during WWII undergoes a heartbreaking tragedy of their own. And, no one can deny the wrenching emotions of the mother Mildred in the aftermath of her daughter’s murder in Three Billboards Outside Ebbing, Missouri. The movies Call Me By Your Name and Lady Bird specifically both feature teenage protagonists, which brings up a clear benefit and point of necessity for estate planning.

Call Me By Your Name

Teens are still considered minor children until they would turn 18, their parents should have guardianship defined through their estate plans. That way, if something were to happen to the minor’s legal guardian(s), they could be immediately placed under the care of another trusted adult. Unless guardianship has been established, an Iowa Court must choose guardians for the minor child if the legal guardian died or was incapacitated. Unfortunately, with no clear choice as to what the former caregivers would have preferred, the Court must basically make its own and best determination as to who the parents would have preferred and what would be in the best interest of the children. The Court may or may not, choose who the former caregivers would have named.

Leave a Lasting Legacy

Some of the greatest films of all time have won the “Best Picture” category and left a cinematic legacy that has lasted well beyond their premiere date. These movies and the stories they tell live on in infamy, as generation after generation experiences their contribution to the entertainment industry.

Perhaps one or more of the 2018 Best Picture nominees will join this upper echelon of cinema (and maybe not), but estate planning also allows you to also make a mark on your world—a chance to leave a lasting legacy. A legacy can be interpreted differently be different people. A legacy to you could mean leaving a sizable charitable bequest to your church or alma mater. It could also mean bequeathing your art collection to your favorite museum. It could mean establishing college funds for all of your children and grandchildren to represent your belief in continuous learning. Whatever you envision your legacy to be, an estate plan will allow you shape it…think of it like your own star on the Hollywood Walk of Fame!

hollywood walk of fame star

Let me know your pick for Best Picture in the comments below and if you want to discuss your estate plan don’t hesitate to contact me via email or by phone (515-371-6077). You can also get started on the creation of an estate plan by filling out my free, no-obligation Estate Plan Questionnaire.

Now through Valentine’s Day I’m highlighting how “gifting” an estate plan can show true love and commitment with the #PlanningForLove series. Of course, Valentine’s Day can be about celebrating many different types of love, not just romantic love. There’s adoration for your furry friend, love for your children, respect for yourself…but, it’s Super Bowl Sunday, so let’s focus on the love of the game! 

football estate plan

For two formidable teams (New England Patriots vs. Philadelphia Eagles), it’s the culmination of a season. (And for us, it’s a great excuse to indulge in all the best tailgating snacks.) It’s a grueling seven-month schedule with tons of variables from pre-season training camp to regular season kick-off to post-season play-offs.

Just like all the games leading up to the Super Bowl, a lot can happen throughout a lifetime. So many variables, so many strategies, upsets, and so many potential outcomes.

While it may be difficult to ponder the inevitably of your own timer running out, preparation for what happens after your season ends is indeed necessary.

The Main Players

Estate plan – An estate plan is the whole playbook, generally containing the following documents: your will; healthcare power of attorney; financial power of attorney; disposition of personal property; and final disposition of remains.

Will – A will is a superstar which can accomplish so much for your team. For example, who will quarterback the distribution of your property at the end of the game? You need to make certain the will is well drafted, solid, and can stand up in court. Keep in mind though, important assets such as retirement assets and investment accounts may well contain beneficiary designations that actually trump your will.

Health care power of attorney  & financial power of attorney – Don’t let a sudden disability completely take you out of the game. Have someone strong come off the bench to carry you to your personal goals.

Trust – You have lots of different options with this multi-tool MVP. A trust can help your team in so many different ways and provide you huge advantages in every facet of the game.

Get a Good Playbook!

Thorough planning is the best way to plan for the end of your season, so that you and your family are never caught unprepared. When you are no longer around to coach and care for the rest of your “team,” make sure they are both provided for and are provided training on how to keep pushing forward by settling your affairs. A comprehensive estate plan, written by an experienced estate planner, is the best way to do this.

No ‘I’ in Team

Your loved ones and close friends are all a part of your team; part of being a strong team player is including them on the plays you’re making. Discuss important aspects of your estate plan with the people it involves to avoid any confusion or conflict when it comes times for them to carry out your wishes. For instance, if you have minor children (under age 18) you’re going to want to establish legal guardianship if the worst happens and you’re no longer around to care for them. You’ll want to discuss with your chosen guardians ahead of time to make sure they’re willing and available to carry out the responsibility.

Lineup Adjustments

Pro football coaches switch up who’s starting for the best winning strategy. Similarly, you may well need to make adjustments to your estate plan “lineup” as things inevitably change over the course of your life. Big events like marriage, birth of a child/grandchild, moving to a different state, a large change in financial status, divorce, and other significant changes are good reason to review your designated representatives, beneficiaries, and overall goals.

Charity Factor

Pro football players make bank, but many also make significant contributions to charities they care about. Some NFL players have founded their own charitable foundation, while other focus on a few nonprofits whose missions they care deeply about. For instance, Chris Long, the Eagles defensive end, announced last fall he will donate his entire salary ($1 million) from the season to educational charities. Most players also work together as a team to give back to their communities. The league as a whole also supports building awareness for nonprofits though initiatives like “My Cause, My Cleats.”

Given their high profile sports status, these players also help inspire folks across the country to do the same. (In one great example, these football fans donated to NFL players’ favorite nonprofits!) You too can be a fierce philanthropist, but without actually having to sprint, throw, or sweat! You can include your favorite charities in your estate plan as beneficiaries. Then there are the other charitable giving tools that can be included as a part of your “end game” like charitable gift annuities and the charitable remainder trust.

Winning Score

I cannot predict who will win the Super Bowl today, but I can say without a doubt that you never know when the game is going to change. You never know when you (and/or your team members) are going to need any one of the documents a part of your estate plan. So, you need to have your “playbook” written out ASAP…well, you can wait until after the big game!

The best place to start on your estate plan is with my free, no obligation Estate Plan Questionnaire. You can also shoot me an email or give me a call at 515-371-6077 to discuss your situation (or football).

Marting Luther King Jr. and American Flag

Today, on Martin Luther King Jr. Day (and the famous civil rights leader’s birthday), I think it’s important to pay tribute to a man who truly championed ideals of equity, freedom, peace, and justice. Among his many accomplishments, Dr. King tirelessly pushed for nonviolent activism and peaceful resolution to human rights issues. He reportedly wrote five books and gave hundreds of speeches in a single year…more than most of us could produce in a lifetime. And, there’s no doubt that he was a key player and influencer in the passage of the U.S. Civil Rights Act of 1964. Dr. King was subsequently was awarded one of the highest honors in the world in 1964—the Nobel Peace Prize—for “his dynamic leadership of the Civil Rights movement and steadfast commitment to achieving racial justice through nonviolent action.” (He donated the prize money, $54,123, back to the civil rights movement.)

Dr. King and his lasting legacy can undoubtedly serve as an inspiration to us all. I see his dream of a better world—a better future for all—exemplified in action by the hardworking Iowa-based nonprofit organizations. I also see his lessons being practiced by the wonderful donors who support these organizations and advance their missions.

So, yes, it’s nice to have a day off of work, but make certain the day doesn’t pass you by without setting a plan in place to perform some form of service for others. Dr. King tirelessly pursued the advancement of human rights for the greater good and we can honor him by practicing forms of charitable giving as a way to advance the greater good for our communities. Be it through volunteering time to an organization that speaks to your heart (remember, certain costs associated with volunteer can be tax deductible), setting up a donor advised fund, or simply writing a list of the nonprofits you would like to include as beneficiaries in your will, you too can set out on an honorable service-oriented path and inspire your friends, family, and colleagues to follow suit.

MLK Day Quote

Dr. King’s lessons resonate with our hearts and heads because we too have dreams of making our corners of the world a better place to learn, live, and grow through service. Maybe Dr. King’s commitment to “practice what you preach” mentality has inspired you this year to give charitably more and more often. Maybe you considered his question, “What’s your life’s blueprint?” and decided to form the charity you’ve wanted to establish for a long time. Either way, don’t hesitate to contact me for a free consult. As Dr. King said: “The time is always right to do what is right.”

footballs on wall

Turn on ESPN, put on your jersey, and stock with fridge with a cold beverage…the College Football Playoff National Championship is tonight. While reading up on the stats and predictions for the southern powerhouse showdown between the Alabama Crimson Tide and Georgia Bulldogs in Atlanta’s Mercedes-Benz Stadium, I couldn’t help but make a connection with estate planning. Goal posts to estate planning goals may seem like a stretch, but hear me out.

Football is a complex game—the field is full of moving parts and competing strategies; it’s a game of inches where just a few missteps or right moves can make a huge difference. Estate planning works the same way. Here are just five of the surprising similarities between estate planning and the game of football:

1. Your Clock Will Indeed Run Out

Just like every football season eventually comes to an end, your (hopefully long and healthy) season will also come to a close. When it does, you need a special kind of playbook for the rest of your team…AKA an estate plan. In this analogy an experienced lawyer is the great coach who is going to help you put plans in place for when the game changes unexpectedly or the stadium lights turn off for the last time. And, just like so much can change over the course of a season, a lot will happen over the course of your lifetime. That’s where annual reviews and revisions after significant events fit in.

While it is often difficult for people to ponder their unavoidable exit off their own fictitious field, preparation for what happens after your season is over can be one of the most comforting aspects of financial and legal planning.

2. The Main Players

Let’s take this analogy a bit further and put some estate planning terms into football speak.

Estate – An estate is the whole playbook, containing the following documents: your will; health care power of attorney; financial power of attorney; disposition of personal property; and final disposition of remains. (Click on the link preview below to delve deeper.)

Will – A will deals primarily with the distribution of assets and care for minor children. You need to make certain the will is well drafted, solid, and can stand up in court. Keep in mind though, important assets such as a life insurance policy payouts, retirement assets, and investment accounts may well contain beneficiary designations that trump your will.

Trust – You have lots of different options with this player. A trust can dictate how your assets will be dispersed, the timeline and manner in which they are dispersed, and who’s overseeing the process.

3. You Must Make Mid-Season Starting Lineup Adjustments

Just as a coach may switch up who’s starting partway through the season, you’ll may need to make adjustments to your estate plan as things inevitably change over the course of your life. Big events like marriage, birth of a child/grandchild, moving to a different state, a large change in financial status, divorce, and other significant changes are good reason to review your “playbook.”

4. No ‘I’ in Team

Your loved ones and close friends are all a part of your team; part of being a strong team player is including them on the plays you’re making. Discuss important aspects of your estate plan with the people it involves to avoid any confusion or conflict when it comes times for them to carry out your wishes. For instance, if you have minor children (under age 18) you’re going to want to establish legal guardianship if the worst happens and you’re no longer around to care for them. You’ll want to discuss with your chosen guardians ahead of time to make sure they’re willing and available to carry out the responsibility.

5. Final Score

football on field

There are probably at least a few more good football analogies I could tie into the conversation of why you need an estate plan, but the most important takeaway is that you never know when the game is going to change. So, you need to have your “playbook” written out ASAP. The best place to start is with my free, no obligation Estate Plan Questionnaire. You can also shoot me an email or give me a call at 515-371-6077 to discuss your situation (or football).

25 days of Christmas - Holiday giving

It’s not a cheese, wine, or Harry Potter sock advent calendar…but beginning December 1 through Christmas Day the GoFisch blog will feature a new piece related to giving. ‘Tis the season for giving and the “25 Days” posts will feature information important for both nonprofit executives and donors.

What I want to know is: what questions about charitable giving do you have? From specific to general, post your questions below in the comments, or email them to me at Gordon@gordonfischerlawfirm.com.

Remember, no matter what winter holiday you celebrate, all have the power to make a positive impact through charitable giving!

 

Giving Tuesday How Will You Get

Giving Tuesday is held the Tuesday after Thanksgiving (November 28 this year) and is an important day for nonprofits to reach out to current and potential donors. Scroll through your social media feeds with the hashtag #givingtuesday and it seems like every organization, from the Malala Fund to The Leukemia & Lymphoma Society, is running digital marketing campaigns related to the day. Unlike Black Friday’s lines outside of stores in the middle of the night, #GivingTuesday’s activity is largely social media based. For nonprofits all of this online activity is typically directed to online giving portals.

These online giving pages facilitate easy charitable giving, but before you send inspired donors to your giving portal, it’s wise to ensure your organization is compliant with associated legal issues. Whether you have created your own donation platform or are using a third-party platform embedded on your site, make sure to follow these legal tips:

Donation Receipt

It’s important to offer a donation receipt to your donors so they make take the charitable contribution deduction on 2017 taxes. A proper receipt—whether in a generated pdf, email, mailed letter, or other printed/printable form—should state the donor’s name, date of contribution, and amount given.

If the donation is greater than $250 a written statement should be obtained stating that the organization did not give any services or goods. If the charity does in fact give goods or services to the donor in return for a donation, the acknowledgment should describe what was given and provide an estimate of value of the goods or services.

If those goods and services provided are valued greater than $75, the written statement must also specify the the amount of the donation that is tax deductible. (This figure is the amount of money that exceeded the value of the goods or services exchanged by the charity.)

You want to make certain your communications (such as written acknowledgements and receipts) with donors meet all legal requirements, as just discussed. But that doesn’t mean you can’t also have some fun with these communications, or use them as an opportunity to stick out above the noise with creativity. Here are a couple solid articles, from The Balance and CauseVox  featuring ideas for upgrading your thank you’s to donors.

Online Charitable Solicitations

Fundraising activities fall under state law, and many states require charities (as well as individuals hired to assist the nonprofit with fundraising) to register with that state BEFORE any donations are solicited from residents of said state.

A charitable solicitation can be considered anything from a YouTube video with a call to action to donate, an e-newsletter sent to a subscriber list, to a simple Facebook post (and everything in between). Obviously, online giving has made figuring out which states your organization needs to register with complicated. Case in point, your organization may operate and be registered in Iowa, but if you have a “donate” button on your website, donations could come from residents of any state (or any country for that matter). Even the presence of a donation button could subject an organization to registration requirement in some states, but won’t in other states. (Charitable solicitation registration is not currently required in Iowa.)

The main policy guidance for state regulators on this matter was published in 2001 by the National Association of State Charity Officials (NASCO), called the Charleston Principles. But, these provisions aren’t law, merely suggestive, so how should your charity deal with online donations? It’s far better for the organization to be safe rather than found noncompliant which can involve costly penalties.

Initial Registration Requirements

Nonprofits accepting online donations have a two main approaches, according to the white paper, “Guidance for Compliance with State Charitable Solicitation Registration Requirements,” published by Harbor Compliance and the National Council for Nonprofits.

  1. Your charity could register (or file for an exemption) in all 41 states that require such registration, but that can be costly. The total fees to register your charity in all those states can range up to $5,000, (and that doesn’t even include professional fees you may need to incur, like paying lawyers or CPAs).
  2. A second option is to register only with states that require registration and from which you would reasonably expect donations. For instance, if your nonprofit operates in Iowa, depending on your fundraising activities, it could be reasonable to expect donations from residents of neighboring states such as Minnesota. Or, if a significant percentage of subscribers to your e-newsletter are from Illinois, it’s smart to register there. With this option it’s important to note that if you do receive a contribution from residents of another state that requires registration that triggers the need to register with that state.

Either way, it’s a good idea to look into the Unified Registration Statement (URS), a consolidated multi-state registration form. It’s also important to remember not only the initial registration, but also registration renewals (complete with deadlines and late fees).

Crowdfunding Considerations

Crowdfunding is anticipated to be a $90-96 billion dollar industry by 2025, and there are more and more nonprofits utilizing it as a tool within the fundraising mix. If your charity is using a crowdfunding site (Kickstarter and Indiegogo are both popular platforms) the charitable solicitation registration requirements covered above apply. But, this is also a good subject to broach the topic of fraud and misrepresentation because crowdfunding has opened the door to more people being involved. Charitable organizations are prohibited from engaging in fraud, using deceptive practices that are likely to create confusion, and misrepresenting the nature, purpose, or beneficiary of the charitable solicitation. This one’s a biggie because committing fraud or misrepresentation could mean a lengthy and expensive litigation process.

To avoid this risk it’s wise to have a vetted gift acceptance policy with clear guidelines regarding crowdfunding. Organizations should keep an eagle eye on fraudulent crowdfunding campaigns that may use the nonprofit as a beneficiary, but fail to ever actually donate funds. Yet, if dedicated volunteers and donors do want to crowdfund for you, that’s fantastic. The organization just needs to keep close watch on the campaign’s operation and offer crystal clear guidance on what campaigning on behalf of the charity is acceptable and what is not.

A day when the world comes together


#GivingTuesday is coming up quick (where did the year go?!), so now’s the time to double check any potential issues for noncompliance that could occur. If you have any questions with regard to your online donation compliance I would love to offer a free one-hour consultation. Contact me via email or on my cell phone (515-371-6077). Best of luck with your #GivingTuesday campaigns!

#GivingTuesday Nov. 28

After the onslaught of Black Friday advertising and Cyber Monday announcements filling up your inbox, Giving Tuesday (November 28) feels like a breath of fresh (wintery) air from the shopping rush. The “holiday,” often known by its social media tag of #GivingTuesday, is all about celebrating generosity and philanthropy. Giving charitably to your favorite organizations feels great and allows you to make a difference in your community, state, and the world. But, you also want to make sure your gift is legally compliant and beneficial when it comes to the charitable deduction on federal income taxes.

Before you donate on #GivingTuesday (or any other day) consider these legal tips:

Make Sure the Charity is Qualified

A charitable deduction can result in significant tax savings, but for that to occur, the donation must be made to a qualified 501(c)(3). While that may sound basic, some initiatives may look like nonprofits but actually operate as a business, not a tax-exempt organization. A little bit of research can go a long way here. First, read up about the organization in question online and don’t hesitate to call to speak to a representative. You can also use the IRS’ Exempt Organizations Select Check; limit the search to organizations eligible for tax-deductible charitable contributions.

(If your favorite organization is in need of assistance for obtaining tax-deductible status, don’t hesitate to reach out.)

#GivingTuesday What Will You Give?

Sufficient Documentation

Proper documentation is required in order to take the charitable contribution deduction for contributions of $250 or more. This means you need written acknowledgement that expresses the required info of the donee (charity), date of donation, and monetary amount. It’s your legal obligation as the donor to ask for the written acknowledgement, not the charity’s obligation to offer it.

Here’s a simple breakdown of what’s needed for specific types of giving-

  • Gifts of less than $250 per donee — you need a cancelled check or receipt
  • $250 or more per donee — you need a timely written acknowledgement from the donee
  • Total deductions for all property exceeds $500 — you need to file IRS Form 8283
  • Deductions exceeding $5,000 per item — you need a qualified appraisal completed by a qualified appraiser

Need more info? I go into detail in this blog post.

Restrict in Writing

If you feel strongly about a specific program, region of operation, or use within the nonprofit, you’ll want to restrict the charitable donation. The restriction must be made in writing, at the same time as the donation is made.

Going Global

#GivingTuesday has expanded greatly since its founding in NYC to become a global event. You may hold a foreign-based charitable organization near and dear to you heart and, of course, you may give to that organization, however your donation won’t qualify for a charitable tax deduction.

Background Research

I work with my estate planning clients on defining their goals for their future and assets. The same baseline advice applies to charitable giving—what are your goals? Do the organizations you’re donating to support your giving goals? Look at materials published by  One way to gauge this is by reviewing the nonprofit’s annual information on its Form 990, “Return of Organization Exempt From Income Tax.” This form is intended for the public and includes important financial info. The IRS publishes Form 990 and it’s easy to check out the details on Guidestar, a nonprofit database.


If you have any questions on how to give charitably and do so wisely, don’t hesitate to reach out. Maximizing charitable giving in Iowa is the mission of Gordon Fischer Law Firm and we want to help as many Iowans give confidently as we can.