This year’s Institute features a series of programs on Charitable Giving. This track of programs examines the rules covering private foundations, charitable giving for family businesses, impact investing, and international philanthropy.
Wednesday, January 11, 2017 (9:00 – 9:50 a.m.)
Around the World in 80 Donations, or Structures Supporting U.S. Deductions for Donations Spent Abroad
Victoria B. Bjorklund
How well prepared are you to advise clients seeking U.S. tax deductions for charitable donations where those donations will be expended outside the United States? This presentation will review the IRS-approved “American Friends of” structure and its cousin, the cross-border donor-advised fund. It will also identify traps for the unwary, particularly facts fatal to deductibility.
Wednesday, January 11, 2017 Special Session I-D (2:00 – 3:30 p.m.)
Extraordinary, Efficient, Elegant, Evolutionary: The Annual Taxable Gifts Approach and Testamentary CLAT Remainder
Richard S. Franklin, Lester B. Law
This presentation proposes that wealth be transferred to family during lifetime using the annual taxable gifts approach to entirely eliminate estate taxes. The panel will also review the merits of combining this approach with a zeroed-out testamentary CLAT to both eliminate estate taxes and endow the family’s foundation. Through a quantitative analysis, the astonishing results will be revealed.
Wednesday, January 11, 2017 – Special Session II-A (3:50 – 5:20 p.m.)
Charitable Giving for Family Business Families
Turney P. Berry, Susan L. Abbott, Paul S. Lee, Jeffrey C. Thede
Owners of a family business often have significant personal and family charitable goals as well as charitable obligations to the communities in which the business is located and operates. Charitable contributions of business interests are one strategy that can be used and that will be discussed by the panelists, but they will go beyond these basics to review how other family assets often may be used to meet the family’s objectives and obligations more effectively and efficiently. Among other issues, the panelists will discuss how to select the best kind of charitable donee, the best asset to give, and the best charitable technique to use, as well as new opportunities recently created by congressional action.
Thursday, January 12, 2017 (9:00 – 9:50 a.m.)
The Nuts and Bolts of Private Foundations (for Estate Planners)
Alan F. Rothschild, Jr.
Private foundations are subject to very different rules than public charities including lower charitable deduction limitations, stringent grantmaking requirements and excise taxes on self-dealing and taxable expenditures. This session will provide a practical overview of common operational issues and insights on how to address them under legal and best practice guidelines.
Thursday, January 12, 2017 – (11:45 a.m. – 12:35 p.m.)
Feel Good Doing Good: Impact Investing When Settlors and Beneficiaries Want to Do More Than Make Money
Susan N. Gary
Investing to promote philanthropic goals occurs across a spectrum of investment strategies. The terminology and concepts can be baffling: Mission- Related Investments (MRIs), Program-Related Investments (PRIs), Socially Responsible Investing (SRI), Sustainable Investing (SI), and Environmental, Social and Governance (ESG). This presentation will cut through the confusion, address the fiduciary duties of trustees and the evolution of the prudent investor standard, and provide an overview of considerations for settlors and beneficiaries who are interested in investing for social good.
Thursday, January 12, 2017 Special Session III-D (2:00 – 3:30 p.m.)
Private Foundation Governance and Grantmaking: Practical Solutions to Everyday Dilemmas
Alan F. Rothschild, Jr., Victoria B. Bjorklund, Carolyn O. “Morey” Ward
This session will explore common private foundation issues through a series of hypotheticals including avoidance of excise taxes on foundation activities, governance, foreign grantmaking, and the interplay of foundations and donor-advised funds.
Thursday, January 12, 2017 – Special Session IV-C (3:50 – 5:20 p.m.)
It’s Hard to Be Good: The Fiduciary Issues, Strategies, and Drafting Considerations Related to Impact Investing
Benetta Park Jenson, Susan N. Gary, M. Ruth M. Madrigal, John Tyler
Impact investing is a hot topic in the investment world. More and more clients are interested in investing in a way to make the world a better place. This panel will take a deeper dive into the fiduciary issues that arise when settlors, beneficiaries, endowments and foundations want to invest for social good. The panel will also discuss strategies and drafting to accomplish the settlor’s goals and beneficiaries’ wishes, including alternatives to traditional trust structures, such as the highly publicized Chan Zuckerberg Initiative LLC.