“The man who dies rich dies in disgrace.” – Andrew Carnegie
Traditionally the holiday season is the perfect time of year to give back to those less fortunate in our community, in fact on average 40 percent of annual philanthropic giving occurs in the month of December, with a full 22 percent received on Dec. 30-31 (slate.com).
While many nonprofits across the country rely on these last-minute gifts, there are easier and more profitable ways for both the donor and charity to benefit through strategic planned giving.
As independent contractors, REALTORS® know the ins and outs of making the tax code work for them, and no one knows this better than fellow real estate investor and billionaire Warren Buffett.
Committed to the ‘Giving Pledge’, Buffett has announced his plan to distribute 99 percent of his total wealth to philanthropic causes via planned estate giving, leaving his children just enough “that they would feel they could do anything, but not so much that they could do nothing” (Forbes, 1986).
While your net worth is most likely not that of Warren Buffett, there are many charitable giving vehicles that feature attractive tax incentives and benefits for donors of all income levels.
It is with this in mind that we recognize the generosity of fellow Columbus REALTOR® member, Dean Salts and honor the memorial he created for his beloved wife and REALTOR® Connie Salts.
Always a forward thinker and wise Certified Public Accountant (CPA), Dean developed a charitable gift plan years ahead of his November 2017 passing, including the creation of a charitable gift annuity with the Columbus REALTORS® Foundation.
Simply put, a charitable annuity is a contract between a donor and charity; one which allows the transfer of assets to a charity, in exchange for a commitment to pay the donor a fixed amount for the remainder of their life.
Not only is the donor guaranteed to receive this income, they receive a significant tax deduction for the year the gift annuity was created. Upon the donors passing, any remaining assets are then distributed to the charity per the donors instruction.
Recognizing the value of a charitable annuity, Dean worked with the Foundation to set up the terms, including the annuity rate (based on age), payment schedule, and intent of the final gift.
A true believer in the investment of the industry through the future of others, Dean used his gift to create the Connie Salts Memorial Scholarship, which will begin providing scholarships to future REALTOR® leaders in spring of 2018.
The gift annuity is just one tool in the planned giving toolbox, donors also receive significant tax incentives through charitable bequests, trusts, endowments, life insurance, and gifts of real property.
We encourage you to remember the Columbus REALTORS® Foundation in your estate planning, with 501c(3) tax exempt status and a 26 year history of ‘paying it forward’ to the community (thanks to REALTOR® leaders like Dean), donors can rest assured their gift will have long-lasting impact.
For more information on planned giving or the Columbus REALTORS® Foundation, please contact me or Columbus REALTORS® CEO Stan Collins at the (614) 475-4000.