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 reconsider 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 update 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 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.

Dog in dog house

When you own a pet, every day is a celebration of your furry/feathery/fuzzy friend…except maybe when they leave a stain on the new carpet. But, today is National Love Your Pet Day, which means it’s a special reason to celebrate! So after you’re done posing with your pup on Instagram, contact an estate planner about including Spot in your estate plan! Don’t worry, you don’t need to name your bunny or bird as a beneficiary in your will to include them as a part of your family. There’s a special kind of trust just for animals—known as a pet or animal care trust.

dogs on a dog walker's leash

Top Dog Benefit: Peace of Mind

It’s easy to establish but can make a world of difference for your animal companion if something were to happen to you. Of course, we would all hope that our families or friends would adopt our pets without hesitation and given them all the love in the world. But, for many reasons, that doesn’t always happen. An animal care trust gives you peace of mind that your pet will be provided for if you were to pass away or become incapacitated in a way that prohibits you from fully being able to care sufficiently for the pet.

Animal Care Elements: Consider These Questions

There are just a few key questions you should consider with an animal care trust.

  1. If something happens to you, who do you want to have guardianship of your pet? This caregiver should be a trusted someone that can give ample care and love to your pup. It’s a good idea to name a successor caregiver just in case.
  2. Who do you want to be the trustee of the trust? The trustee is the person who distributes trust funds and ensures that the pet’s caregiver follows the owner’s instructions as set out in the trust. For instance, you could designate your mother as the trustee and your brother as the caregiver. You can name a successor trustee if the first individual is unable or unwilling.
  3. Who would you like named as the remainder beneficiary of the trust’s funds? If your pet passes before the trust is exhausted, where would you like the money to go? This is a great opportunity to name an animal care charity which would put the money toward helping more animals!
  4. What are your pet’s standard of care and daily life? What do they like to do? You’ll want to detail things like health care needs (like medicine), food preferences, and activities they love (like playing catch or running alongside a bike). If you want your pet to visit the veterinarian for check-ups every six months, this can also be written in.
  5.  What features (breed/age/color/name) identify your pet? Identifying the dog in detail can prevent a guardian from replacing the original pet as a way of illegally extend trust distributions! (Not that they would…but just in case.)
  6. Do you have a preference for the disposition of your dog? This is optional, but you could choose to specify burial under a favorite tree in the backyard, or cremation.
  7. How much money do you want to set aside in the trust? This money is what will be used to provide care for your pet. You’ll also want to specify how the money will be distributed to the caregiver of your animal. Generally, this figure can’t exceed what may reasonably be required given your pet’s standard of living.
  8. Do you want to compensate the caregiver? If you wish, you can compensate the caregiver in their role. Generally, a small monthly or annual stipend is acceptable.

Note that a good estate planner will include “all present and future pets” in the pet trust with some specific verbiage. This is a bit of estate planning insurance, just in case you don’t have the chance to update your pet trust if you add a new animal to your family in the future.

Why Not Just a Will?

One questions I’ve received from pet parents in the past is: why can’t I just include my cat in my will? They have a point and they’re on the right track. Pets are considered personal property, so you can include them in your will with language such as, “My daughter will inherit my house and my hedgehog, Sonic.”

However, a will is a document that facilitates transfers of assets—it doesn’t enforce demands tied to the property. Instructions in a will are unenforceable, there is nothing to stop the pet caregiver to ignoring instructions in a will completely. But, in an animal care trust, you can hone in on specific habits and behaviors such as: Rover eats X certain kind of dog food and should be taken to a dog park at least once a week. If the caregiver didn’t feed Spot a certain kind of dog food or take him to the dog park, the trustee could get the caregiver’s status revoked and the pet would transfer to the successor guardian.

Close up of dog licking camera

Unlike a specific trust, a will doesn’t address the possibility that your pet may need to be cared for by a guardian if you become incapacitated. Additionally, wills go through the probate process and the property transfer is not immediate. Where will the pet reside during this process? If litigation over the estate occurs who is caring for the pet.

Unlike a testamentary trust for children in a will, the document doesn’t allow don’t allow for disbursement of funds over a pet’s lifetime. If you bequest funds to your intended animal guardian it would be distributed all at once and there’s nothing to stop that individual from using the money on themselves and selling your pet.

In terms of opportunity for fund disbursement, specific instructions, and a clear cut contingency plan if your initial named guardian or trustee doesn’t work out, the animal care trust is a superior estate planning tool for your pet.

That all being said, you DEFINITELY need a will as a part of your estate plan. It just that a separate animal care trust will best compliment the other estate planning documents for this particular and important part of your life.

Tail Wagging Trust

Share this infographic with fellow pet lovers, and let’s discuss how to structure your personalized animal care trust. Contact me via email or phone (515-371-6077) to get started!

Pop the popcorn, uncork the champagne, and put on your best red-carpet duds to tune into the 92nd Academy Awards tonight! In between award envelopes and amazing performances, consider how your 2020 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 bet that 1917 most certainly will be victorious, but in the end, 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.

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 and confusionin fighting 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

Some of the films nominated this year have familial relationships as a central plot device in the scripts. For instance, the Greta Gerwig take on the Louisa May Alcott classic, Little Women, explores the relationships between four sisters, each unique in their talents and interests, from childhood through young adulthood.

The scenes of Jo, Amy, Meg, and Beth remind us that people are considered minor children until they turn 18, and 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, the Iowa Courts 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 parent(s) would have preferred and what would be in the best interest of the children. The Court may or may not, choose who the parent(s) would have actually 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. Indeed, the plot of the nominee Ford v Ferrari explores what kind of lasting reputation a team can build in their attempt at besting the dominator of the day.

Perhaps one or more of the 2020 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 by 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 to shape it…think of it as your own star on the Hollywood Walk of Fame!

hollywood walk of fame star

Retain Your Control

Power is a common theme in some of the films nominated this year. Whether it’s the Joker with its implicit theme on how the power of kindness can change the cycle of bad events for someone or De Niro in The Irishman detailing the inner politics and power grabs of the mob, there is something to be said for retaining control over your assets. I like to tell my clients that estate planning really just allows you to direct who inherits what, when, and how. For most folks, they want to choose where their hard-earned property goes, not the government via Iowa’s intestacy laws.

I’d love to hear your take on films nominated this year, but I’d also like 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.

football on field

For two formidable teams (Kansas City Chiefs vs. San Francisco 49ers), 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 playoffs.

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.

football estate plan

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 crafted, 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, the birth of a child/grandchild, moving to a different state, a large change in financial status, divorce, and other significant changes are a 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 others 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 through 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

Martin Luther King Jr. Day is tomorrow (January 20) 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 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 Jr. 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 consultation. 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 this Monday, January 13, 2020. (The game kicks off at 8 p.m.) While reading up on the stats and predictions for a tiger showdown between the LSU Tigers and Clemson Tigers in New Orleans’ Mercedes-Benz Superdome, I couldn’t help but make a connection with estate planning. Goalposts 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 a 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 a 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 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 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 a 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).

#GivingTuesday world

The mission of Gordon Fischer Law Firm is to maximize charitable giving in Iowa. To that end I work with nonprofits on legal compliance and training for accepting gifts (especially complex ones) as well as the donors who want to give to their favorite organizations and causes. Small Business Saturday is great for the community and Cyber Monday is fun, but the post-Thanksgiving “day” I look forward to the most is #GivingTuesday.

Created by the Belfer Center for Innovation & Social Impact at the 92nd Street Y in New York, along with the United Nations Foundation, in 2012, #GivingTuesday is a celebration for support of philanthropy and giving. Social media has helped grow the event into a global occasion, connecting countries, organizations, and donors around the world.

Giving Tuesday takes place mid holiday season and is a great opportunity to spread awareness of nonprofits midst holiday cheer. Whether you’re prepping your nonprofit’s activities, messaging, and events for #GivingTuesday or are a donor preparing to give (and encourage others to do the same) let’s take a look at some stats from last year (2018) that show the enormous impact #GivingTuesday has.

  •  Faith-based charities received the largest sector percentage of #GivingTuesday donations made online.
  • At $125 million Facebook was the largest payment processing platform.
  • $3.6 million of Giving Tuesday donations were made online and 17% of all views of online donation forms were made on a mobile device
  • $380 million was given total (which was a 45% increase over 2017)
  • More than 150 countries participated
  • Since 2012, Giving Tuesday has raised more than $1 billion in the U.S.

All year, not just on #GivingTuesday, GFLF is thrilled to work with nonprofit organizations on elements of operations including, but certainly not limited to;

If your nonprofit is interested in any such services, I offer a free consultation!

#GivingTuesday is a reminder that, against the backdrop of the “busy” of the holiday season, the spirit of giving is thriving. Want to chat about charitable giving? Reach out anytime by email or phone (515-371-6077)

thanksgiving thankful

I would like to wish you a very happy Thanksgiving. I hope that you have the opportunity to spend quality time with your loved ones. I’ve taken a much needed moment this holiday to take a step back and think about all GFLF has to be thankful for. I owe so much to my clients, friends, and family who have helped make this year a successful one.

grateful quote

Here are just a few of the things GFLF has to be exceedingly grateful for:

But, really, this is a short list—the tip of the turkey, if you will—of what GFLF is perpetually thankful for.

Wishing you full bellies and hearts today,

Gordon Fischer

Giving Tuesday How Will You Get

Giving Tuesday is held the Tuesday after Thanksgiving (December 3 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 big to small, 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 2018 taxes if they choose so. A proper receipt—whether in a generated pdf, email, mailed letter, or other printed/printable form—should state the donor’s name, date of the 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 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 acknowledgments 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 of 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 a 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.

Harbor Compliance Charitable Registration

Harbor Compliance | Charitable Registration

Nonprofits accepting online donations have 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 is 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 a 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!

Flag in field with sun

“True heroism is remarkably sober, very undramatic. It is not the urge to surpass all others at whatever cost, but the urge to serve others at whatever cost.” -Arthur Ashe

On Veterans Day and every day, I want to say a heartfelt thanks for our veterans’ sacrifice and service. I work with many veterans on estate planning and in nonprofit-related work, and it’s always an honor. There are not enough “thank you’s” in the world to express my gratitude for what they have done for our country.

Veterans Day flags

As a veteran your story is important. Your legacy is important. To preserve that legacy 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 my gratitude I would like to offer 25% off the cost of an estate plan package to all Iowan active duty or retired service members. The discount will be honored through 11/30/2019. Contact me via email or by phone (515-371-6077) to discuss your estate planning needs.

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 necessitate estate plan revisions.) Also, don’t forget about assets with your beneficiary designations. For most Iowans, that’s good – six documents, keeping them current, and also remembering about those assets with beneficiary designations.

American flag on chair

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 takes into full consideration YOUR situation. (This is why you need an experienced estate planner to draft your documents.) Speaking very generally, an estate plan from my Firm usually costs a single person about $790, and a family about $990. So, with this Veterans Day discount, that’s a saving of about $197.50 for singles to $247.50 for a family.

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.

Contact

If you’ve been making excuses or have an extremely outdated estate plan now’s the time to check it off your list (and get a discount while doing so!).

How to get started? Contact me by the end of the month (11/30) via email (gordon@gordonfischerlawfirm.com) or phone (515-371-6077) and fill out my free Estate Plan Questionnaire.


DISCLAIMERS

The “Veterans Day discount” is only applicable for estate plans created by active or retired veterans (and their spouses). Availability of the discount ends after November 30, 2019 at which point the prospective client must have contacted Gordon Fischer Law Firm and indicated an intention to make an estate plan.
Veterans Day discount merely relates to pricing and in no way creates an attorney-client relationship, nor any other kind of professional relationship. The Veterans 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 Veterans Day discount may not apply to individuals or families with a high net worth of around/more than a million-plus dollars. (You still need an estate plan, very much so, but it necessarily needs to be more “complex” to adequately account for all assets.).